Performance management and Performance appraisal Flashcards
What is performance appraisal?
The process of evaluating how well employees perform their jobs when compared to a set of standards, and then communicating that information to employees
What is performance management?
A process that significantly affects organisational success by having managers and employees work together to set expectations, review results and rewards performance.
What are the types of performance criteria?
Trait-based criteria: These focus on the personal characteristics of an employee - for example, loyalty, dependability, creativity and communication skills. Here, the focus is on what a person is and not on what he or she does or accomplishes on the job.
Behaviour-based criteria: These are concerned with specific behaviours that lead to job success. For example, instead of ranking leadership ability (a trait), the rater is asked to assess whether an employee exhibits certain behaviours (for example, ‘works well with co-workers”).
Results or outcome-based criteria: These focus on what was accomplished or produced, rather than how it was accomplished or produced. It is important to note that this type of criterion is not appropriate for every job and that it is often criticised for missing important aspects of the job, such as quality.®
What are the objectives in performance appraisal ?
Evaluative:
-Compensation decisions
-Staffing decisions
-Evaluate selection systems
Developmental:
-Performance feedback
-Direction for future performance
-Identify training and development needs
Lack of skills. On too many occasions, organisations place an employee in a job for which he or she is unsuited. This difficult problem for management (and for the employee) can normally be remedied in only one of three basic ways: (1) train the employee and remove the skil deficiency:
(2) transfer the employee to a job that uses his or her skills; or (3) dismiss the employee. This requires effective talent management within the organisation.
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Lack of motivation. A multitude of theorles and approaches to emplovee motivation exist. but most motivational strategies boil down to one seemingly simple axiom: determine what the employee needs and offer it as a reward for good performance. Yet, as most students of management know. determining the needs of an employee and creating an environment in which those needs are satisfied is one of the manager’s most challenging tasks. In addressing that challenge, decision-makers must know the following common techniques for motivating the unmotivated:
- Create meaningful goals that are challenging but attainable.
- Invite and use employee participation in decision-making.
- Keep employees informed about where they stand.
- Reward good work; be generous with praise.
Treat employees fairly.
- Make work as interesting and fulfilling as possible.
- Be sensitive to individual and cultural differences.
- Help employees grow and develop.
- Communicate effectively.
- Provide feedback to employees working from remote locations,
3 Lack of respect for rules. A third cause of unsatisfactory performance is associated with rule breaking. An example of the rule-breaker is the employee who is occasionally absent or late for work, violates the dress code, swears at the manager and/or drinks excessively during lunch.
This employee has the necessary skills and normally does a fair day’s work, but nevertheless disregards the policies, rules and regulations of the workplace. Although the situation of each rule breaker is different, the most effective approach for dealing with this form of unsatisfactory performance is to apply positive discipline, a technique discussed later in Chapter 13.
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Personal problems. A final cause of unsatisfactory performance is associated with the troubled employee. A troubled employee is one whose personal problems are so significant that they prevent the employee from performing satisfactorily at work. Although the troubled employee may suffer from a variety of problems such as mental illness, financial crises, drug dependency, chronic physical problems and family problems, by far the most common ailment of the troubled employee is the abuse of alcohol. Because of the significance and severity of this problem in business and industry today, many organisations have created employee assistance programmes, a topic discussed later in this book.
