Week 4: Performance management & equality

Question 1

Performance management

Answer 1

tracks the organizations performance and ensures that it achieves its objectives (monitors performance, enhances employee engagement)

Question 2

Performance appraisal

Answer 2

interview between employee and the manager.
When employee perf. is measured:
*review employee performance
*set future goals
*make decisions regarding promotion and development

Question 3

HPWPs

Answer 3

High Performance Work Practices
Advanced HR practices- people management practices strategic and progressive in the nature.
Ex. Pay for performance, information sharing, team work, performance management.

Question 4

AMO model

Answer 4

A+M+O–>Ability; motivation; opportunity
By improving AMO:
*training increases ability (does employee have right skills or knowledge?)
*pay performance management incr. motivation (do employees know what is expected from them?)
*teamwork and info sharing opportunities (Do employees operate in an environment conducted to performance?)

Question 5

Traditional performance management cycle

Answer 5

performance plan—>feedback—>mid-year evaluation—>year-end performance appraisal

Question 6

How performance management works? (theories)

Answer 6

1. The goal-setting theory (Locke-Lathan)
   5 Elements of goals- “the star”
   1.Clarity
   2.Challenge
   3.Commitment
   4.Feedback
   5.Task complexity

*motivation to increase performance
*SMART goals
*Goal impotance
*self-efficacy, ones self-confidence in ability to perform
*feedback mechanism

2. Expectancy theory
   employee motivation is base on 3 factors:
   1) Expectancy- work efforts gives task performance
   2)Instrumentality- if my performance reaches target, will I be rewarded?
   3)Valence- are this reward good enough for the hard-work?
3. Equity theory-
   inputs (what individual brings- effort, performance)
   outputs (factors received in return for inputs-reward, recognition)
   —> How equally are employees treated?

Disbalance–>inequality–>worse performance

4.Den Hartog, Bosile, Paauwes model
If PM is aligned with other HRM practices employees perception and attitudes will be affected (motivation, trust, commitment). Consisted messages should be delivered to employee.

Question 7

Engagement

Answer 7

To extent to which employees demonstrate energy, dedication, immersion in their work.
Improves performance and company’s competitive advantage.

Question 8

Performance management schemes

Answer 8

1.Rating
2.Ranking
3.Critical incident technique
4. 180 degr. feedback
5. 360 degr. feedback
6.Competency based assessment

Question 9

Performance management pitfalls

Answer 9

*pressure on workers –> stress, burnout
*threaten self-esteem
*ratings can be irrelevant
*employees having little contol over performance targets can be discounted
*human error
*biases

Question 10

PM Biases

Answer 10

*contrast effect
*first impression error
*the regency effect- opposite of “first impression error”, only remembering end of appraiser.
*Similar-to-me effect
*Central tendency bias- rating all employees average
*Skewing bias- overly + or - effect on rating
*Attribution bias- understanding incorrect reasons for job not well done
*Stereotyping

Question 11

How to overcome PM pitfalls?

Answer 11

A) 5 steps:
*identify and agree on the problem
*establish reasons for underperformance
*decide, agree on action
*resource action
*monitor, provide feedback

SMART goals and GROW model

redesign jobs, job rotation

B) 1. Goal setting- SMART goals
2. Coaching- assign coach to employee, GROW model
3. Training- providing training to increase knowledge and skills
4. Role redesign and job rotation

Question 12

Trends of PM

Answer 12

*Feedback can reduce performance
*Managers despise perf. reviews
*Strength based feedback
*Feedforward interview protocol
*ADOBE disrupted perf. reviews - frequent dialogues and discussions.

Question 13

Indirect vs direct discrimination

Answer 13

Direct discrimination- discrimination that is obviously contrary to the terms of equality legislation.
Indirect discrimination- seemingly normal provision attached to job acts to exclude a person or group protected under equality legislation.
ex. job req. to be tall—> automatically exclude women.

Question 14

Positive discrimination vs positive action

Answer 14

Positive discrimination- treatment of a minority group over majority group to fight disadvantages in the market.
Positive action- measures taken aiming to achieve fair and effective equality for member, groups that are disadvantaged. BUT does not seek to discriminate others.

Question 15

Comparator

Answer 15

A person or group making a claim comparing to demonstrate that they have been treated differently using the comparator or standard.

Question 16

Principles for fair PM

Answer 16

1. Procedural justice- the performance management process transparent and fair and can employees provide input (e.g., setting goals
2. Distributional justice- the actual outcomes decided upon during performance management are fair. ex. achievement based on rating etc.
3. Interactional justice- how employees are interacted and communicated with during PM.

Question 17

5 steps to manage underperformance (Armstrong 2009)

Answer 17

1. Identify, agree on the problem
2. Establish reasons for shortfall
3. Decide, agree on action
4. Resource the action
5. Monitor, feedback

Question 18

3 explanations of inequality

Answer 18

1. Human capital factors (formal qualification, acquired skills, work experience…)
2. Socially constructed factors (cultural, social norms, prejudice, ideology etc)
3. Institutional factors (rules, legislation, lack of support, “old boys networking”)