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4 views

HRM 07

Uploaded by

bibox89036
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Human Resource

Management

HARSH KUMAR JHA


CARDIFF UNIVERSITY, UK
Managing Performance
Performance Behaviour Results
Effective Performance Management
Basic Requirements:

(1) validity
(2) reliability
(3) cost-effectiveness
(4) felt-fairness
Purpose of Performance and Reward Management
Attract : the right people at the right time for the right jobs, tasks or roles
Retain: the best people by recognizing and rewarding their contribution
Motivate: so that employees contribute to the best of their capability.
Framework for Performance and Reward System Development
Figure 21.4 Example of a diagnostic employee attitude survey
Figure 21.5 Prescriptive questionnaire
Table 21.2 Setting targets for total pre-tax remuneration mix
 Will they address current weaknesses?
 Will they support the organization's success factors?
 Will they elicit the desired behavior and results?
 Will they address employees’ needs and expectations?
 Are they timely?
 Are they realistic and manageable?
 Are they going to be affordable?
 Are the proposals well integrated?
Citibank: Performance Evaluation
Performance Management System
What is Citibank’s performance management system?

◦ Objective/Subjective measures
◦ Quantitative/Qualitative measures
◦ Financial/non-financial measures
◦ Absolute/Relative
The Performance Scorecard
Standards Measured subjectively through Lisa’s statement
People Measured subjectively through Lisa’s statement
Control Measured subjectively by auditors, but using standardized procedures
Customer Satisfaction Measured through a survey by an external company
Strategy Implementation Measured objectively
Financial Measured objectively
Purpose of PMS
What is the purpose of the performance management system at Citibank?
◦ To communicate its strategy to its employees
◦ To align performance of employees with the strategy

Citibank's strategy in California was to “build a profitable franchise by providing relationship


banking combined with a high level of service to its customers”.
Problems and Challenges
Problems with the instrument/scorecard
◦ Weight(age) not assigned to the components of scorecard

Problems in the evaluation process


◦ Same goals for customer satisfaction and control for all the branches
◦ Outsourced customer survey
◦ Survey conducted on 25 customers per quarter
Citibank
As Lisa, the area manager supervising James, what will you decide with Frits, the president
about:

A) Performance evaluation of James (Exhibit 1)


◦ Pros and cons of giving him par or below par ratings?

B) Bonus decision for James?


Key lessons
Performance evaluation should be based on a business model with cause-effect relationships.

To choose diagnostic measures, managers must evaluate three criteria:

1) Alignment with strategy: “Does it tell people what they should be focusing on?”
2) Measurability: “Can it be measured?”
3) Linked to value: “Are we confident that it creates economic value?”
Performance Management: Purpose
Aligning employee activities with the goals of the organization

Administration purpose
◦ Transfer, reward, compensation, layoff

Developmental purpose
◦ Self: Self-awareness / self-developmental/Feedback tool
◦ Professional: Training, coaching, career progression

Record keeping for legal requirements


Performance Management & Appraisal
Performance Management: Continuous process of identifying, measuring and developing
individual and group performance in organizations.

Performance Appraisal: Systematic description of individual or group job-relevant


strengths and weaknesses.

Performance Appraisal comprises of Observation and Judgement: both processes are prone to
biases. Biases may be associated with raters (no first-hand knowledge of ratees’ performance),
ratees (job tenure, gender), their interaction (race, gender, caste, religion), or situational
(organization specific) characteristics.
Sources/Suggested Readings
Cascio, W. F., & Aguinis, H. 2014. Applied psychology in human resource management. Harlow:
Pearson.

Shields, J. 2007. Managing employee performance and reward : concepts, practices, strategies.
Cambridge; New York: Cambridge University Press.

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