Chapter 12

Chapter 12

1. INTRODUCTION

   • Well managed employees increase revenues & decrease costs
   • MOHRMAN - All activities should contribute to better performance
   • BIRON - PM Continuous process
   • BOXALL & PURCELL
     • Ability, Motivation, Opportunity - employer must maximise all 3

2. STRATEGIC NATURE OF PM

   • Alignment of objectives & performance - where there is a gap HR intervene

3. PERSPECTIVES ON PM

   • Can be seen as top down & controlling
   • Managers must set objectives, monitor and measure results (PM skills)
     • Also show leadership, mentoring & relationships (General mgmt.)

4. PM AS PROCESS

   • Improve performance at each stage of life cycle
   • RECRUITMENT
     • Values aligned
     • Test for potential
   • INDUCTION
     • Make expectations explicit
     • REED survey - 93% poor induction has adverse effect on productivity
   • PROBATION
     • True evaluation
   • APPRAISALS
     • Constant feedback
     • Positive reinforcement
     • Common argument - why praise those who just reach standards?
     • APPRECIATIVE ENQUIRY
       • BRYCE - When employees are encourage to focus on strengths, more likely to succeed

5. DEFINING PERFORMANCE

   • BERNANDIN - Defined as outcomes of work
   • BRUMBACH - Performance means behaviours & results
   • WHO DEFINES PERFORMANCE
     • Often top down
     • SEMLER - Semco have bottom up approach
       • Set own targets & rewards
       • Recognised that involving employees in setting objectives more likely to gain commitment
     • NONAKA - Can have combination

6. WHAT CAN BE MEASURED?

   • Depends on PM structure
   • How do you measure creativity & innovation
   • PM assumes explicit measures
   • Temporal barriers - time might affect measurement e.g. long term projects & annual appraisals
   • Contribution to group

7. PITFALLS OF DEFINING PERFORMANCE TARGETS

   • REEVES - Targetology - Obsessed with targets
     • 1 or 2 clear targets can be powerful - loads is recipe for disaster
   • HALL - Can be powerful but careful consideration needed
   • Not all targets can be split - meaningless if broken down
   • Quantity over quality
   • Goal displacement - measure becomes goal
   • Can cause competition
   • Employees can neglect other responsibilities

8. MEASURING PERFORMANCE

   • Should be ongoing
   • No surprises
   • Self - measurement - include employees

9. APPRAISALS AS A PM TOOL

   • PM is more than just appraisals
   • Honest evaluation can be strong driver for further l&d
   • LOCKE & LATHAM - Feedback can be motivating
   • Fairness in reward
   • TYPES OF APPRAISAL
     • TOP DOWN
     • SELF APPRAISAL
     • PEER APPRAISAL
     • MULTI-RATER
     • APPROACHES
       • RESULTS ORIENTED
         • Quantifiable, achievable, time bounded objectives
         • Agreed between manager and report
       • COMPETENCY ORIENTED
         • Demonstration of key skills associated with high performance
   • Problem with linking to pay - less likely to highlight development needs if seen as a weakness
     • Fixed quota systmes
   • PROBLEMS
     • People unhappy with average rating
       • Swiss Federal Administration trialled A++ to C
         • Most get C which is psychologically better
     • APPRAISER BIAS
     • PERCEPTION ERRORS - FURNHAM
       • First impression
       • Halo/horns effect
       • Same as me/different to me
       • Recency effect
       • Central tendency
       • Spillover (Last year)

10. MOTIVATION THEORIES

    • CONTENT APPROACH
      • Focus on what motivates (reward)
    • PROCESS APPROACH
      • Connect effort & reward
    • NTRINSIC MOTIVATION
      • KRISHNA
        • Sense of meaning
        • Sense of purpose
        • Sense of choice
        • Sense of competence
        • Sense of progress
      • PAY
        • Money could decrease long term intrinsic motivvation
        • Use as motivator can damage self regulation (DECI)

11. PERFORMANCE RELATED REWARD - EXPECTANCY THEORY

    • In short term employees need...
      • A belief that extra effort will result in sales
      • A belief that will be recognised and rewarded
      • A belief that reward is worth having

12. ARGUMENTS AGAINST PM

    • Some say appraisal & pay are least effective HR policies as perceived by employees (HUTCHINSON & PURCELL)
    • Two thirds employees dissatisfied with PM & has no impact