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Human Resources 8

Week 8: Maximising Performance

QuestionAnswer
Definition of performance management It is the process through which managers ensure that employee activities and outputs are congruent with the organisation’s goals
Performance management includes... Defining, facilitating and encouraging performance, measuring performance, feeding back performance information and managing poor performance
HR Processes are: HRP (Selecting, recruiting etc.), Benefits and remunerations, Work Health and Safety. Basically anything under HR functions.
The 4 elements of a Holistic Performance MGMT Strategy Goal setting, provide regular feedback, measure achievements then performance remuneration decisions
Primary Performance Review Methods Behavioural-based (BARS) and Result-based (MBO and Balanced Scorecard)
Behaviourally Anchored Rating Scales (BARS) Define the behaviours associated with success in the role. Performance is assessed in terms of specific behaviours. E.g. assessing your performance on how well you respect others
Advantages of BARS Clear behavioural indicators = simple to follow, can be tailored to any job and can be both qualitative and quantitative.
Criticisms of BARS Time consuming, not result oriented and this model may be subjective.
Result-based: Management by Objectives (MBO) Focuses on goals rather than behavioural traits. Organisational goals 'trickle down' to the individual employee level.
Advantages of MBO Employee goals are linked to org. objectives, focuses on future and is motivating as you can see how your role contributes to the bigger picture.
Disadvantages of MBO Time consuming, bureaucratic and focuses employee only on outcomes (potentially at the expense of behaviours)
Result-based: The Balanced Scorecard It is an extension of the MBO model. Measures the health of an organisation from 4 different perspectives: finance, customer, innovation and internal business. See graph in lecture slides.
Performance reviews: A Traditional Approach A typical evaluation of employee performance through the use of feedback.
Benefits of performance reviews Managers can provide feedback on how to improve, identify employee performance gaps and provides data to inform remuneration decisions.
Criticisms of performance reviews Effective reviews depend on managerial capability, lack of reviewer 'accountability' and ambiguity around performance criteria.
Typical errors common to performance reviews Biases such as halo/horns error, leniency/strictness error, error of central tendency, recency error and stereotyping.
Who provides feedback (or types of feedback) Supervisor review, self-review, peer-review, sub-ordinate review and/or 360 degree review.
Creating a performance culture No single best practice, but experts emphasise the importance of frequent informal reviews, short-term goals, transparency and focusing on the future.
Under-performance versus misconduct Under-performance is the failure to perform the duties of the position to the standard requirement. Misconduct refers to behaviours that warrants instant dismissal.
Context Is Crucial.
Created by: Kaye_7
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