week 2 Flashcards
main types of performance
environmental
Social performance
Governance performance
Environmental performance
6
Environmental impact and risk management environmental performance environmental solution companies Climate change impact and risk management Bio diversity Water scarcity Eg. limiting carbon foot print
kpi of environmental performance 5
KPI’s Electricity use NOx emissions Total water usage Energy intensity per employee Regulatory risk exposure
adv disad of evironmental performance 2,2
Advantages Improved reputation Environmental certification Problems Difficulty measuring environmental performance Greenwashing
Social performance
6
Human rights Supply chain standards Relations with customers and suppliers Relations with employees Stakeholder engagement Community involvement e.g. Medical plan
KPI’s
social performance 4
Fatalities per 1,000 employees
Community spending
Human rights policy
Staff absenteeism
adv disadv social peformance 2,3
Advantages Improved reputation Sometimes greater profits Problems Costly Suspicious of claims Who rates social performance?
Governance performance
5
Board practice and structure Anti-bribery practices Codes of ethics Board level responsibility for stakeholders Board level gender diversity
KPI’s of governance performance
Size of board
Poison pill plan
Output or outcome based approach
1
outcomes produced; quantitative results, for example sales figures, service duration (length of call), productivity measures, utilisations, quality measures.
Benefits of Output or outcome based approach
6
reassurance in measurement
simple and easy to understand
clarity in what is required
objective
motivational (e.g. provides a ‘line of sight’)
uses a language familiar to all key stakeholders.
Problems of Output or outcome based approach 6
‘what gets measured gets done’
‘what is measured is what’s easy to measure not what is most important’
can result in unintended consequences
not all jobs can be measured in this way
fails to take account of contextual constraints
fails to explain the process or means by which achievements are made.
Behavioural approach:
process orientated approach emphasising how an employee does the job – qualitative.
Behavioural Approaches list of 6
Performance ratings Rating scales - absolute or comparative Narratives general judgements critical incidents Specific reporting of significant events in review period Forms, keeping diaries, time taking, bias prone simple rank order alternation rank order paired comparisons
difference between comparative and absolute methods
comparative : Simple rank order Alternative rank order Paired comparisons Forced distribution
Absolute: Narrative/essays Critical incidents Graphic ratings scales Behavioural ratings
Rating Scales (likert-type scale) 7
levels range from 3–7
easy to understand and conveys clear messages about performance
force managers to be more accountable
allow comparisons between individuals
cannot have individual PRP without rating
prone to bias and inconsistency between managers
raters not good at using the full range of scales.
Behaviourally-anchored rating scales (BARS):
specific behaviours are described or ‘anchored’ and then rated.
Behavioural observation scales (BOS):
assessment based on frequency of occurrence.
Developing a BARS 5
Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Development a final instrument
Advantages of BARS 5
A more accurate gauge Clearer standards Feedback Independent dimensions Consistency
Benefits of Forced Distribution 6
forces managers to differentiate
continually raises the bar
can identity top performers who need to be developed
can ‘weed out the dead wood’
greater consistency in marking
if linked to pay can help budgetary control.
Problems with Forced Distribution 7
is performance normally distributed? employees not evaluated on the basis of what they actually do demotivating undermines team working fosters unhealthy competition increases stress and workload promotes a culture of fear.
Ethical Approach to Performance Measurement/Management
7
To avoid problems of perceived control and lack of fairness: build in respect for individual procedural fairness transparency in decision making ongoing dialogue training for raters limit the amount of measurement.
