PERFORMANCE
MANAGEMENT AND
REWARDS
PERFORMANCE MANAGEMENT
refers to the procedures and systems designed
to improve employee outputs and performance,
The other means used to improve
employee performance
STAFFING
refers to the HR planning, acquisition, and development aimed
at providing the talent necessary for organizational success.
Staffing Process
Job Analysis
A technical procedure used to define the duties, responsibilities,
and accountabilities of a job.
The results of job analysis are very useful
in:
1. preparing job descriptions
2. evaluating and classifying jobs
3. training and career development
4. performance appraisal
5. other HR aspects
Recruitment
Define as a human resource management practice designed to
locate and attract job applicants for particular position.
Recruitment involves the following:
1. Advertisement of a position vacancy
2. Preliminary contact with potential job applicants
3. Preliminary screening to obtain A pool
of candidates
Recruitment
2 Types of Recruitment: Methods of Internal Recruitment:
Recruitment
2 Types of Recruitment: Methods of External Recruitment:
Selection
Involves assessing and choosing among job candidates.
Selection process involves the following:
1. Completing the application form
2. Conducting an interview
3. Completing any necessary tests
4. Background investigation
5. Physical and medical examination
6. A decision to hire or not.
Socialization
It involves orienting new employees to the organization and its
work units.
New employees are provided with information about the
following:
1. Key organization factors
2. Department and job-related issues
TRAINING AND CAREER PLANNING AND DEVELOPMENT
Is the process of changing employee behavior, attitudes, or
opinions through some type of guided experience.
Ways to conduct training programs
1. On-the-job training;
2. Off-the-job training.
On-the-job Training
Is conducted while employees perform job-related tasks.
Common forms of on-the-job training
1. Internships
2. Apprenticeships
3. Job rotation
Off-the-job Training
Deals with work skills in settings away from their ordinary
workplace.
Off-the-job training techniques:
1. Classroom lectures
2. Videos and films
3. Simulation exercises
4. Computer-based training
5. Vestibule training
6. Programmed instruction
CAREER
The pattern of work-related experiences that span the course of a person’s life.
Career
Stages
-Refers to the distinct stages that individuals go through in their careers,
typically including:
Establishment stage
Advancement stage
Maintenance stage
Retirement stage
Career Plateaus
Situation in which, for either organizational or personal reason,
the probability of moving up the career ladder is low.
Three types of career plateaus:
1. Structural plateau
2. Content plateau
3. Life plateau
Performance Appraisal
As the process of evaluating the performance of employees,
sharing that information with them,
Function of Performance Appraisal
1. To give employees feedback on performance
2. To identify the employee’s developmental needs
3. Promotion and reward decisions
4. Demotion and termination decision
5. Develop information about the organization’s
selection and placement decision
CRITERIA FOR PERFORMANCE
APPRAISAL
THE PROCESS OF PERFORMANCE APPRAISAL
Establishment of performance standards
Mutually set measurable goals
Measure actual performance
Compare actual performance with standards
Discuss the appraisal with the employee
If necessary, initiate corrective action
Methods in Performance
Appraisal
1. Absolute
Standards
The subjects are not compared with other persons.
6 methods of Absolute Standards:
• Essay Appraisal
• Critical Incident Appraisal
• Checklist
• Adjective Rating Scale
• Forced Choice
• Behaviorally Anchored Rating Scales
1. ESSAY APPRAISAL
• An appraiser write a narrative about the employee.
• The employees strengths and weaknesses are
describe and recommendations development are
indicated.
• Point out the unique characteristics of employee.
DISADVANTAGES:
• Time consuming;
• The quality of appraisal may be influenced by the
appraiser’s writing skills and composition style;
• It tends to be subjective and may not focus on
relevant aspects of job performance.
2. CRITICAL INCIDENT APPRAISAL
• Requires effective or ineffective performance for each
employee being appraised.
• The critical incident appraisal can be very useful if the
appraiser is given enough time to observe the subject
employee.
3. CHECKLIST
• A performance appraiser method
wherein the evaluator uses a list of
behavioral descriptions and check
of those behaviors that apply to
the employee.
ADVANTAGE:
• Reduces some bias since the rater and the scorer is
different.
DISADVANTAGE:
• A checklist of items must be prepared for each job categories and
that is costly in terms of materials and time consumed.
4. ADJECTIVE RATING SCALE:
• Graphic Rating Scale
• Traits listed a number of traits and a range of
performance for each.
ADVANTAGE:
• It is practical and cost little time to develop.
DISADVANTAGES:
• It does not clearly indicate what a person must do to achieve a given training.
• It does not provide a good mechanism for providing specific, non threatening
feedback.
• Accurate things are not likely to be achieved because the points on the rating
scale are not clearly defined.
5. FORCED CHOICE APPRAISAL
• The rater must choose between two or more
specific statements about an employee work
behavior.
• The statements are ranked from most to least
descriptive.
6. BEHAVIORALLY ANCHORED
RATING SCALE (BARS)
• Comprised of traits anchored by job behaviors.
• The typical BARS includes seven or eight traits called
“dimensions” each anchored by seven or nine-point
scale.
• A BARS anchors each trait with examples of specific
behaviors that reflect varying level of performance.
extremely poor
The professor single out students in class for
unreasonable criticism.
The professor exhibits a number of annoying
fair
habits when lecturing.
The professor speaks in a clear understandable
manner.
The professor uses examples when trying to
emphasize a point.
The professor answer students question a
outstanding clear, concise and accurate manner.
AN ILLUSTRATION OF A BARS FOR JOB OF COLLEGE PROFESSOR
ADVANTAGES:
• Ability to direct and monitor behavior. The
behavioral anchors let employees to know what
type of behavior are expected to them which gives
the appraiser the opportunity to provide
behaviorally based feedback.
DISADVANTAGES:
• Difficulty of selecting once behavior on the scale that is
most indicative of the employees performance level.
Sometimes, an employee may exhibit behavior at both
ends of the scale so the rater would not know which rating
to assign.
RELATIVE STANDARDS:
Appraisal method compare individuals against other individuals.
The most popular in this category are:
-Group order making
-Individual ranking
-paired comparison
Objectives- process of joint goal setting between a supervisor
and subordinate, process of converting organizational
objectives into individual objectives.
MBO Consist of four steps:
• Goal setting
• Action plan
• Self-control
• Periodic reviews
The advantages of The disadvantages
MBO of MBO
- Does not specify the behavior required to
reach goals
- Improve job performance by
monitoring and direct behavior. - Tends to focus on short terms goals
- Practical and inexpensive - Successful achievement of MBO goals may
be partly a function of factors outside the
- Foster better communication workers controls .
between employee and - MBO doesn’t provide a common basis for
supervisors.
comparison of performance standards.
- Often fails to gain acceptance .
ERRORS IN PERFORMANCE
APPRAISAL
The subjects are not compared with other persons.
• Halo Error
• Leniency Error
• Central Tendency Error
• Recency Error
• Personal Bias Error
REWARDS
Final requirement is necessary to ensure effective
performance
TYPES OF ORGANIZATIONAL INCENTIVES
• Intrinsic Rewards or Extrinsic Rewards
• Financial Rewards or Nonfinancial Rewards
• Performance-based Rewards or Membership-
based Rewards
