For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 3 Assessing & developing.

Presentation on theme: "For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 3 Assessing & developing."— Presentation transcript:

1 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PART 3 Assessing & developing employees

2 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning CHAPTER 9: Performance management & appraisal CHAPTER 10: Training & development CHAPTER 11: Managing compensation & benefits CHAPTER 12: Health & safety The environment for HR Finding & placing qualified employees Assessing & developing qualified employees Labour relations Emerging HR practices 3

3 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning CHAPTER 9 Performance management and appraisal

4 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Chapter outcomes Explain the evaluative and developmental objectives of performance appraisal Describe the major performance appraisal methods Design and evaluate a programme of performance appraisal Discuss who should perform the appraisal Provide examples of several rater errors Discuss several concerns about appraisal feedback interviews

5 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Definitions Performance appraisal (PA) – Performance management (PM) –

6 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Organisational performance management cycle

7 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning South Africa’s performance management dilemma Existence of negative working culture Changes in corporate strategy did not result in corresponding behaviour changes Insufficient line management support for performance management Periodic and formal performance reviews: –Lack of follow-up of performance reviews –Overemphasis on the appraisal aspect at the expense of development –Inadequate performance information and inadequately maintained objectivity

8 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning South Africa’s performance management dilemma (continued) A large number of organisations do not have a formal performance management system

9 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Performance criteria 3 types of performance criterion: –Trait-based criteria - –Behaviour-based criteria - –Results or outcome-based criteria -

10 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning PA objectives EVALUATEDEVELOPMENTAL

11 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal process Steps in developing a PA system: –

12 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Legal considerations Written appraisals conducted regularly Supervisors should be trained Apply consistent, explicit and objective Audit system Problem areas detailed & documented Problems identified establish things for improvement Give employee clear opportunity to respond Employer should be able to prove that employee received the appraisal Circulation of PA should be restricted Check past PAs

13 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Methods for appraising performance Category rating Graphic rating scale Non graphic rating scale Checklist of critical incidents Comparative Ranking Force distribution Paired comparison Behavioural/objective Behavioural rating approaches MBO Scorecard Narrative Critical incidents Essay PA methods

14 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning MBO process

15 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Common rater errors Halo effect Leniency Recency/primary effect

16 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Who should do the rating? Customer/client evaluations Self-ratings Team portfolio appraisals

17 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Assessment centres Many of the employee performance appraisal systems focus on the employee’s past performance Using the assessment centre method it is also possible to, at the same time, attempt to assess a candidate’s potential for future advancement Assessment centres are used increasingly to: –

18 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Monitoring employees on the job Possible to evaluate employee performance electronically Video surveillance is used to discourage theft and other rule violations Telephone surveillance of service representatives has been used for a long time to monitor the timing and content of customer contacts Computer programs can monitor keystrokes to track employee performance, eavesdrop on employee electronic mail (e-mail) and record who accesses which databases at what times Monitoring employees by computer or any other method is open to serious invasion and privacy issues

19 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Systems approach to effective PAs Effective appraisal support Effective manager-rating practices Effective system design Top management support Appraisal outcome linked ratings Ongoing systems review Effective performance planning actv Ongoing appraisal & coaching Motivate raters to conduct effective appraisals Clear appraisal purpose Employee/ma- nager input in system design Properly trained personnel

20 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal interview Problems with the appraisal interview –

21 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal interview (continued) Interview format –Prepare for the interview - –State the purpose of the interview -

22 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal interview (continued) Interview format (continued) –Indicate specific areas of good performance and areas that need improvement - –Invite participation -

23 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal interview (continued) Interview format (continued) –Focus on development -

24 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning The appraisal interview (continued) Problem-solving interviews –Objectives –Psychological assumptions –Role, attitude & skills of interviewer –Employee’s motivation for change –Possible gains –Risks of interviewer –Probable results

25 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Summary Employees generally dislike and fear PA, and even supervisors find the process stressful. Employees tend to be satisfied with the process if the appraisal interview is constructive and if the chosen method is job-related and provides specific direction for future performance. The PA process generally has two goals: (1) the evaluation of employees' past performance for salary and selection decisions; and (2) the improvement of future performance as a part of career development. The evaluative objective tends to dominate specific organisational uses of appraisal information. The appraisal process should contain certain features. A standardised process should evaluate all employees in a consistent manner. Job analysis should be used in the content development to ensure job-relatedness. Supervisors should be trained in the process and should provide employees with direct written feedback from the process. Certain rater errors, such as supervisor bias, halo effect or recency, can only be minimised; others, such as leniency or central tendency, can be eliminated. But forms that eliminate these problems generally contain their own problems. Each appraisal method has unique advantages and disadvantages but rating scales continue to be used most often by HR managers.

26 For use with Human Resource Management in South Africa 4e by Grobler, Wärnich et al ISBN: 1408019515 © 2010 Cengage Learning Summary The appraisal interview is the most important element in the PA process. Supervisors who dislike 'playing God' find it hard to act simultaneously as judge and friend. Supervisors need to be trained for and give adequate attention to the appraisal interview. Employee preparation can also help them to provide useful input into the discussion, as well as to be psychologically prepared for any possible negative feedback. Organisations can benefit by periodically evaluating their appraisal programme. The HR department can provide feedback to supervisors about the quality of their appraisals and check for rater problems, such as the halo effect or leniency. Multiple raters - such as peers, customers and team ratings - may be used as information added to supervisor's ratings.