The 4 various options or features of design available when developing a Performance Management System are:
Management by Objective – It is an option of design where objectives as from corporate level cascaded down to each division and then to departments and finally to employees. It seeks to judge the performance of employees based on their success in achieving the objectives they have established through consultation with their superiors. Performance Improvement under MBO focus on the goals to be achieved by employees rather than the activities they perform or the traits they exhibit in connection with their assigned duties.
Rating Scales – here each trait of characteristic to be rated is represented by a scale on which a rater indicates the degree to which an employee possesses that trait or characteristic.
Global Rating – While a rating scale with several relevant dimensions is preferable, many organisations simply use a single rating of overall job performance, for example, appraising and employee’s total performance as ‘average’. Such a rating commonly referred to as global rating, is useful for making some HRM decisions, such as those concerning salary increases or promotions.
Behaviourably Anchored Rating Schale (BARS) is a feature of developing PMS by placing descriptions of behaviour along a scale. These descriptions permit the rater to identify the point where a particular employee should be rated on the scale. The BARS consist of 5 to 10 vertical scales, one for each important dimensions of job performance anchored by the incidents judged to be critical. A critical incident occurs when employee behaviour results in unusual success or unusual failure in some part of the job.
Sunday, November 22, 2009
correction question 9: how can performance management system be improved?
Performance Management System is one that is normally designed to strengthen good relationship between supervisors and employees in order to attain the organisation goals and objectives. However, the road to success is not always smooth and easy; improvements should be regularly reviewed so as to achieve to an effective performance management system. When this happens there is a need to have a look at the system and set up some guidelines that may help the organisation in improving the system. Several guidelines that follow should help to develop an improved performance management system:
The appraisal system is recommended to be a continual ongoing evaluation process to achieve organisational success. By brainstorming or making audits staff and supervisors can developed their concerns and problems that exist within the performance management system and find effective solutions to these problems. Hence, with feedback from different perspectives, they will re-evaluate performance scopes and find effective solutions that can be implemented.
By implementing a thorough Performance Management System review process this will help in establishing and maintaining a successful performance-based culture in the organisation. One of the duties of HR practitioners and managers should be to make the process of performance review effective and efficient. However, this can be true only if proven best practices are established and implemented within the organisation.
Another crucial option in improving performance management system is by atomizing it. Organisations should opt for a more technology based Performance Management System rather than a paper base one as it is often difficult to maintain, and records can be unavailable after a period of time. By upgrading the system to a technology base one it will prioritise appraisals and monitoring of same will be done continually. It will be cheaper, faster and effective as all evaluations, analysis and feedback will be given rapidly. Hence, all manual work will be reduced as well as staff resources and the organisation will be able to provide a structured and effective planning and monitoring process.
It is clear that with the On-line Performance Management System, collection and performance data process will definitely be more reliable and managers can have access to any information anytime. They will have the opportunity to use, analyse all data productively by identifying if there is any competency or skill gap within the organisation, by tracking the impact of employee training and development or performance strategies and last but not least by assessing employee rating distributions within the company so that fair objective rewards practices are followed. Also on-line Performance Management can provide a good anonymous feedback initiative where positive and negative feedback can be collected without any fear of reprisal.
Finally, to meet best practices in Performance Management System, organizations need to continually develop opportunities to make plans for improvement.
The appraisal system is recommended to be a continual ongoing evaluation process to achieve organisational success. By brainstorming or making audits staff and supervisors can developed their concerns and problems that exist within the performance management system and find effective solutions to these problems. Hence, with feedback from different perspectives, they will re-evaluate performance scopes and find effective solutions that can be implemented.
By implementing a thorough Performance Management System review process this will help in establishing and maintaining a successful performance-based culture in the organisation. One of the duties of HR practitioners and managers should be to make the process of performance review effective and efficient. However, this can be true only if proven best practices are established and implemented within the organisation.
Another crucial option in improving performance management system is by atomizing it. Organisations should opt for a more technology based Performance Management System rather than a paper base one as it is often difficult to maintain, and records can be unavailable after a period of time. By upgrading the system to a technology base one it will prioritise appraisals and monitoring of same will be done continually. It will be cheaper, faster and effective as all evaluations, analysis and feedback will be given rapidly. Hence, all manual work will be reduced as well as staff resources and the organisation will be able to provide a structured and effective planning and monitoring process.
It is clear that with the On-line Performance Management System, collection and performance data process will definitely be more reliable and managers can have access to any information anytime. They will have the opportunity to use, analyse all data productively by identifying if there is any competency or skill gap within the organisation, by tracking the impact of employee training and development or performance strategies and last but not least by assessing employee rating distributions within the company so that fair objective rewards practices are followed. Also on-line Performance Management can provide a good anonymous feedback initiative where positive and negative feedback can be collected without any fear of reprisal.
Finally, to meet best practices in Performance Management System, organizations need to continually develop opportunities to make plans for improvement.
Sunday, November 15, 2009
Correction: question 2
The performance indicators and the position descriptors should be up to date for the performance appraisal to be effective because this will have an impact on the company and on the employees. Up to date and accurate performance appraisals should be available because an employee’ performance and positive feedback will depend mostly on the performance appraisal. If ever the employee’s performance has not been good enough during the year, then training may be provided to the employee so that he can give his best at work and show his potentials. It is therefore very important to have up to date information on the employee’s performance in order for the company to know what measures should be taken while evaluating the employee’s performance that is whether to give the employee promotion prospects because of good performance at work and hard work or whether to give training and coaching to the employee to improve his performance at work and to make the employee become multi skilled in the job process.
Moreover it will help companies to keep record about their employees’ performances and if in case grievances arise at work because of an employee, it will be easier to take immediate actions referring to his performance appraisals.Furthermore, the up to date information will help the company to decide about how much salary should be given to employees depending on their performances at work, whether to increase their salary by looking at their performance appraisal or whether to make the employee do more training in order to meet up the company’s goals and expectations in order to increase the company’s efficiency and at the same time to make the employee become more professional at work. Otherwise grievances may crop up if position descriptions and performance indicators are not up to date, this may therefore have an adverse effect on the company’s efficiency and lead to poor performance at work. There may be unfair discrimination as well because employees who merit being promoted will not be promoted if their performance appraisals have not been up to date and employees who have recently been irresponsible at work may get promotion prospects based on their previous performances, this will therefore prove to be very crucial for the future prospects of the company and may lead to grievances and great confusion in the company.
Moreover it will help companies to keep record about their employees’ performances and if in case grievances arise at work because of an employee, it will be easier to take immediate actions referring to his performance appraisals.Furthermore, the up to date information will help the company to decide about how much salary should be given to employees depending on their performances at work, whether to increase their salary by looking at their performance appraisal or whether to make the employee do more training in order to meet up the company’s goals and expectations in order to increase the company’s efficiency and at the same time to make the employee become more professional at work. Otherwise grievances may crop up if position descriptions and performance indicators are not up to date, this may therefore have an adverse effect on the company’s efficiency and lead to poor performance at work. There may be unfair discrimination as well because employees who merit being promoted will not be promoted if their performance appraisals have not been up to date and employees who have recently been irresponsible at work may get promotion prospects based on their previous performances, this will therefore prove to be very crucial for the future prospects of the company and may lead to grievances and great confusion in the company.
Saturday, November 14, 2009
correction for question 4: why is accurate and complete doc.........
The performance appraisal documentation should be accurate and complete in order to avoid rating errors because this can have an impact on the job holder and the company may also lose the right person for the job if documentation is not accurate and complete. Moreover documentation is necessary when decisions concerning discipline or dismiss might need to be taken; therefore there should be evidence behind the action taken. Therefore the documentation will act as a proof and it will be easier to demonstrate that every decision taken is being done fairly, thus it is necessary to have it complete and accurate.
The performance appraisal documentation helps to reduce the possibility of many rating errors. Good documentation is important in justifying evaluations and resultant administrative decisions. Effective documentation should therefore be accurate, specific, consistent, and factual. It should be in a written form and be provided to employees. Hence Documentation should be updated regularly, focus on evidence and adjusted as needed throughout an employee's career because it helps in giving effective, ongoing feedback, and is essential for conducting annual performance reviews
The performance appraisal documentation helps to reduce the possibility of many rating errors. Good documentation is important in justifying evaluations and resultant administrative decisions. Effective documentation should therefore be accurate, specific, consistent, and factual. It should be in a written form and be provided to employees. Hence Documentation should be updated regularly, focus on evidence and adjusted as needed throughout an employee's career because it helps in giving effective, ongoing feedback, and is essential for conducting annual performance reviews
Friday, October 16, 2009
How can performance management systems be improved?
Performance Management System is one that is normally designed to strengthen good relationship between supervisors and employees in order to attain the organisation goals and objectives. However, the road to success is not always smooth and easy; improvements should be regularly reviewed so as to achieve to an effective performance management system. When this happens there is a need to have a look at the system and set up some guidelines that may help the organisation in improving the system. Several guidelines that follow should help to develop an improved performance management system:
Continual analysis of performance data
The appraisal system is recommended to be an ongoing evaluation process to achieve organisational success. By brainstorming or making audits staff and supervisors can developed their concerns and problems that exist within the performance management system and find effective solutions to these problems, they want to avoid with a new appraisal system. Hence, with feedback from different perspectives, they will re-evaluate performance scopes and set goals they want to achieve. By implementing a thorough Performance Management System review process this will help in establishing and maintaining a successful performance-based culture in the organisation.
Automation of Performance Management System
For long, organisations have been using a paper based system to take care of performance appraisals. However, the system has often proved its inefficacity as sometimes it was difficult to keep all these records appropriately. The tendency goes to a technology based solutions because of its rapidity in conducting appraisals and it is relatively low in cost. It gets appraisals done on time and can be monitored continually. It will also help in delivering structured evaluations that will contain more professional feedback. And last but not least it will eliminate all manual work associated with filing, analysing and accessing performance review documentation; it will collate performance data in a greater capacity and leave managers to access these data’s more easily to analyse and use it efficiently.
Defining performance indicators
The first challenge that an organisation face is in clearly defining the performance indicators also known as goals or measures. The challenge lies in finding the quantifiable parameters for many tasks. The effective way to reach to this analysis is through discussions among top management and managers to be able to decide what parameters or guidelines should be set up at all levels of employees. It is absolutely crucial that key employees be consulted before setting targets for them and for their peers. Once the guidelines are set, a goal setting exercise engaging all employees should be conducted to ensure mutual consent of employees and their managers to set and define performance indicators.Managers should also ensure that a balance between quality of delivery and quantity of delivery is maintained in order to keep up standards and hence, achieve desired performance.
Focus on observable behavior
The most important part in the appraisals process is the interview between supervisors and employees. Normally, all supervisors are trained accordingly to be able to handle these interviews as the key outcome of these interviews is to employees to understand and use the feedback develop themselves and improve their performance. For sure employees won’t be able to do so if the feedback from their superiors isn’t clear to them.
For feedback to be useful it should be behavioral and not personal. It has to be specific, directly observable and clearly job related to meet the two important criteria’s which are performance and results. Also, supervisors should keep regular records of the results employees achieve. This will show whether employees are above or below expectations and if the equipment provided to them meets their needs to perform well. By observing employees working, supervisors can also see how employees perform specific job responsibilities, if they communicate well, if they follow safety policies, if they argue with co- workers or customers and the poor performers as well.
Consequently, these observed behaviors can be discussed and both supervisors and employees can make plans to improve both performance and results. Based on normal reports supervisors can easily categorize their employees in broad categories like Outstanding, Excellent, Good and Average. However, for the succession planning of the organization; promotions, rewards there is a need to find the leader among performers.
Appropriate Reward System
Once identified, immediate steps should be taken to reward the performers. Rewards should be appropriate and matching the performance, and to extent the expectations of performers. It can be in terms of cash bonus, promotions, vacations etc. Sometimes HR can ask the performer to give their preference among a variety of chosen awards. The more satisfying the reward is, the more it will create an environment of competition among peers to perform better than others. A poor reward system, on the other hand, will create an indifference of employees towards your performance management system. Linking performance with pay helps organizations to satisfy the performers and motivate the non- performers.
Finally, to meet best practices in Performance Management System, organizations need to continually develop opportunities to make plans for improvement. However, those employees who can’t improve with all possible efforts from the organization’s part must be moved to some other department or be graciously asked to look for other opportunities outside as no organization can afford to carry “dead wood”.
Continual analysis of performance data
The appraisal system is recommended to be an ongoing evaluation process to achieve organisational success. By brainstorming or making audits staff and supervisors can developed their concerns and problems that exist within the performance management system and find effective solutions to these problems, they want to avoid with a new appraisal system. Hence, with feedback from different perspectives, they will re-evaluate performance scopes and set goals they want to achieve. By implementing a thorough Performance Management System review process this will help in establishing and maintaining a successful performance-based culture in the organisation.
Automation of Performance Management System
For long, organisations have been using a paper based system to take care of performance appraisals. However, the system has often proved its inefficacity as sometimes it was difficult to keep all these records appropriately. The tendency goes to a technology based solutions because of its rapidity in conducting appraisals and it is relatively low in cost. It gets appraisals done on time and can be monitored continually. It will also help in delivering structured evaluations that will contain more professional feedback. And last but not least it will eliminate all manual work associated with filing, analysing and accessing performance review documentation; it will collate performance data in a greater capacity and leave managers to access these data’s more easily to analyse and use it efficiently.
Defining performance indicators
The first challenge that an organisation face is in clearly defining the performance indicators also known as goals or measures. The challenge lies in finding the quantifiable parameters for many tasks. The effective way to reach to this analysis is through discussions among top management and managers to be able to decide what parameters or guidelines should be set up at all levels of employees. It is absolutely crucial that key employees be consulted before setting targets for them and for their peers. Once the guidelines are set, a goal setting exercise engaging all employees should be conducted to ensure mutual consent of employees and their managers to set and define performance indicators.Managers should also ensure that a balance between quality of delivery and quantity of delivery is maintained in order to keep up standards and hence, achieve desired performance.
Focus on observable behavior
The most important part in the appraisals process is the interview between supervisors and employees. Normally, all supervisors are trained accordingly to be able to handle these interviews as the key outcome of these interviews is to employees to understand and use the feedback develop themselves and improve their performance. For sure employees won’t be able to do so if the feedback from their superiors isn’t clear to them.
For feedback to be useful it should be behavioral and not personal. It has to be specific, directly observable and clearly job related to meet the two important criteria’s which are performance and results. Also, supervisors should keep regular records of the results employees achieve. This will show whether employees are above or below expectations and if the equipment provided to them meets their needs to perform well. By observing employees working, supervisors can also see how employees perform specific job responsibilities, if they communicate well, if they follow safety policies, if they argue with co- workers or customers and the poor performers as well.
Consequently, these observed behaviors can be discussed and both supervisors and employees can make plans to improve both performance and results. Based on normal reports supervisors can easily categorize their employees in broad categories like Outstanding, Excellent, Good and Average. However, for the succession planning of the organization; promotions, rewards there is a need to find the leader among performers.
Appropriate Reward System
Once identified, immediate steps should be taken to reward the performers. Rewards should be appropriate and matching the performance, and to extent the expectations of performers. It can be in terms of cash bonus, promotions, vacations etc. Sometimes HR can ask the performer to give their preference among a variety of chosen awards. The more satisfying the reward is, the more it will create an environment of competition among peers to perform better than others. A poor reward system, on the other hand, will create an indifference of employees towards your performance management system. Linking performance with pay helps organizations to satisfy the performers and motivate the non- performers.
Finally, to meet best practices in Performance Management System, organizations need to continually develop opportunities to make plans for improvement. However, those employees who can’t improve with all possible efforts from the organization’s part must be moved to some other department or be graciously asked to look for other opportunities outside as no organization can afford to carry “dead wood”.
How can a PMS assist with the up-skilling and development of an employee?
An organisation using Performance Management System when evaluating their employees will be able to spot the high to the poor performers. The performance appraisal technique will guide management how far the employee is in need of up skilling to deliver high standard of work and be effective.
Performance Appraisal System is the process by which organisation evaluates employees’ job performance. It is through the Performance Appraisal Interview that the Manager talks about the strengths and weaknesses of the employees. Discussions on this should be encouraged so that employees can express themselves regarding their personal development needs.
The discussions should include agreement of both parties regarding these strengths and weaknesses. Employees should be aware and agreed upon that they will need some more up-skilling and development in some particular areas. The areas for improvement can be some trait of behaviour or character or any technical aspect of their job.
Throughout the completion of implementing the PMS, the skills development of each employee need to be recorded in a particular database and in relation to this, their performance can be evaluated. The PMS will allow the company to know about what were the previous skills that the employee already possessed and what skills they actually require to deliver better performance on the job place. Therefore, by referring to the PMS the company will be able to find out which skills will be more suitable for which employees and hence provide them with the required and ongoing training sessions so as to make them before better skilled workers.
Thus effective training and development on the job, off the job or combination of both will ensure that knowledge and skills and behaviours learned will improve performance.
Training should be consistent with the organisation value system, be integrated in work processes and operations and aim to improve aptitudes for service delivery. On the job training help employees learn through observing colleagues, supervisors perform their job and repeating, improving their behaviours. Whereas off the job training enable employees meet other persons out of the organisation and thus sharing of knowledge and skills among everybody can be an advantage.
Some appraisers recommend training because they are genuinely interested in seeing improvement in the people under them. Others may use training courses as a punishment or as a reward. It is a generally accepted belief that training should never be used as a punishment. It is also advisable for superiors to distinguish between training for development and training for reward. Rather than superiors recommending specific training courses, it would be better for them to indicate training needs, and for someone else [for e.g. the personnel manager, Training officer] to training course limits the recommendations to courses known by him.
Another reason for this is that training needs need not necessarily point to training courses. A need might be better met through on-the-job training or being assigned a special project or through job rotation. Appraisers are also generally not familiar with training vocabulary, and may recommend vaguely a “management course” where a training officer may be able to come up with a much more specific and useful course content.
It is not of course enough to put training recommendations on paper and then see that they are carried out. Feedback on how effective the training has been must be obtained by superior who recommended it in first place. This must be done with discretion and the full awareness of the employee. The whole purpose of training is defeated by the superior demanding a conduct report on the employee’s behaviour at the end of the course. The point that has been missed is that a training course is just the right environment for an employee to experiment, make mistakes, and from them, thus stimulating the process of development. The best thing would and initiate be for the employee himself to report back on his own progress and initiate a course of action for improvement back on the job. If feedback is not obtained by the superior, all the learning that has taken place during the training is likely to be forgotten as quickly as it was learnt. It has to be put to use in the real world. It has to be on the form for the appraiser to indicate what action has been taken and the improvements seen.
It is understood that training is the key factor in order to assist employee in their up skilling and development, of course through the Performance Management System.
Performance Appraisal System is the process by which organisation evaluates employees’ job performance. It is through the Performance Appraisal Interview that the Manager talks about the strengths and weaknesses of the employees. Discussions on this should be encouraged so that employees can express themselves regarding their personal development needs.
The discussions should include agreement of both parties regarding these strengths and weaknesses. Employees should be aware and agreed upon that they will need some more up-skilling and development in some particular areas. The areas for improvement can be some trait of behaviour or character or any technical aspect of their job.
Throughout the completion of implementing the PMS, the skills development of each employee need to be recorded in a particular database and in relation to this, their performance can be evaluated. The PMS will allow the company to know about what were the previous skills that the employee already possessed and what skills they actually require to deliver better performance on the job place. Therefore, by referring to the PMS the company will be able to find out which skills will be more suitable for which employees and hence provide them with the required and ongoing training sessions so as to make them before better skilled workers.
Thus effective training and development on the job, off the job or combination of both will ensure that knowledge and skills and behaviours learned will improve performance.
Training should be consistent with the organisation value system, be integrated in work processes and operations and aim to improve aptitudes for service delivery. On the job training help employees learn through observing colleagues, supervisors perform their job and repeating, improving their behaviours. Whereas off the job training enable employees meet other persons out of the organisation and thus sharing of knowledge and skills among everybody can be an advantage.
Some appraisers recommend training because they are genuinely interested in seeing improvement in the people under them. Others may use training courses as a punishment or as a reward. It is a generally accepted belief that training should never be used as a punishment. It is also advisable for superiors to distinguish between training for development and training for reward. Rather than superiors recommending specific training courses, it would be better for them to indicate training needs, and for someone else [for e.g. the personnel manager, Training officer] to training course limits the recommendations to courses known by him.
Another reason for this is that training needs need not necessarily point to training courses. A need might be better met through on-the-job training or being assigned a special project or through job rotation. Appraisers are also generally not familiar with training vocabulary, and may recommend vaguely a “management course” where a training officer may be able to come up with a much more specific and useful course content.
It is not of course enough to put training recommendations on paper and then see that they are carried out. Feedback on how effective the training has been must be obtained by superior who recommended it in first place. This must be done with discretion and the full awareness of the employee. The whole purpose of training is defeated by the superior demanding a conduct report on the employee’s behaviour at the end of the course. The point that has been missed is that a training course is just the right environment for an employee to experiment, make mistakes, and from them, thus stimulating the process of development. The best thing would and initiate be for the employee himself to report back on his own progress and initiate a course of action for improvement back on the job. If feedback is not obtained by the superior, all the learning that has taken place during the training is likely to be forgotten as quickly as it was learnt. It has to be put to use in the real world. It has to be on the form for the appraiser to indicate what action has been taken and the improvements seen.
It is understood that training is the key factor in order to assist employee in their up skilling and development, of course through the Performance Management System.
What role can HR play in imroving organisational performance?
Human resource manager should have a proper business strategy and implement these strategies into action, so that the HR manager is able to form part of the business team and attain the organisation main objectives. Moreover, human resource manager should be able to link business strategy to HR policies and practices and should contribute in decision-making process.
A good human resource plan should:
- Develop Human Resource plans and strategies aligned to the organization’s strategic direction and business strategy.
- Provide tools and tactics to enhance execution of these strategies.
- Manage the interface between HRM processes and systems.
- Formulate and communicate HRM policies.
- Act as the conscience of employer with respect to people issues.
- Assess the long-term impact of short-term decisions on people.
- Manage people related issues accompanying mergers, alliances and acquisitions.
- Advise management on implications of change for employees.
- Co-ordinate & facilitate the change process.
- Facilitate changed relationships.
- Provide support structures for employees during change.
- Deliberate and proactive management of the changing environment and its implications for work and the organization.
A good human resource policy can make to improve organisational performance. Appropriate human resource manager should know how to motivate staff members and promote positive attitude in the workplace so that the staffs get higher incentive to work harder. This is done by appraising person with the required performance or who has exceeded the expected performance. However, this will lead to greater efficiency and profitability in the organization.
Human resource management should provide retraining from time to time to reinforce staffs understanding of the work function. In addition, human resource management must give advice to employees, guide them, and give them support in order to avoid discrimination and harassment in the working environment.
Code of conduct should be well addressed to all employees at workplace. Also, managers should use the disciplinary process in order to improve performance of employees and enforce appropriate behavior to ensure a productive and safe workplace. This will help to eliminate inappropriate behavior and will also create a “win-win” situation for managers and subordinates.
Managers should provide personal assistance to employees if requested. Human resource should review properly the performance of all employees. Managers must be in a position to assist with substandard performance.
Counseling should be given to employees whose performance level is deteriorating. Managers need to develop their counseling skills to be able to come with the right solutions. If it is an organizational problem, this should be fixed immediately and if it is a personal problem, the employee must be referred to an expert.
Human resource manager have to provide employees with responsibilities so that they can make full use of their skills and abilities. Nevertheless, human resource management should cover all these aspects to improve organisation performance, otherwise this may lead to reduce motivation, alienation and labour unrest.
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