Chapter 12

Chapter 12

INTRODUCTION
1. Well managed employees increase revenues & decrease costs
2. MOHRMAN - All activities should contribute to better performance
3. BIRON - PM Continuous process
4. BOXALL & PURCELL
  1. Ability, Motivation, Opportunity - employer must maximise all 3
STRATEGIC NATURE OF PM
1. Alignment of objectives & performance - where there is a gap HR intervene
PERSPECTIVES ON PM
1. Can be seen as top down & controlling
2. Managers must set objectives, monitor and measure results (PM skills)
  1. Also show leadership, mentoring & relationships (General mgmt.)
PM AS PROCESS
1. Improve performance at each stage of life cycle
2. RECRUITMENT
  1. Values aligned
  2. Test for potential
3. INDUCTION
  1. Make expectations explicit
  2. REED survey - 93% poor induction has adverse effect on productivity
4. PROBATION
  1. True evaluation
5. APPRAISALS
  1. Constant feedback
  2. Positive reinforcement
  3. Common argument - why praise those who just reach standards?
  4. APPRECIATIVE ENQUIRY
    1. BRYCE - When employees are encourage to focus on strengths, more likely to succeed
DEFINING PERFORMANCE
1. BERNANDIN - Defined as outcomes of work
2. BRUMBACH - Performance means behaviours & results
3. WHO DEFINES PERFORMANCE
  1. Often top down
  2. SEMLER - Semco have bottom up approach
    1. Set own targets & rewards
    2. Recognised that involving employees in setting objectives more likely to gain commitment
  3. NONAKA - Can have combination
WHAT CAN BE MEASURED?
1. Depends on PM structure
2. How do you measure creativity & innovation
3. PM assumes explicit measures
4. Temporal barriers - time might affect measurement e.g. long term projects & annual appraisals
5. Contribution to group
PITFALLS OF DEFINING PERFORMANCE TARGETS
1. REEVES - Targetology - Obsessed with targets
  1. 1 or 2 clear targets can be powerful - loads is recipe for disaster
2. HALL - Can be powerful but careful consideration needed
3. Not all targets can be split - meaningless if broken down
4. Quantity over quality
5. Goal displacement - measure becomes goal
6. Can cause competition
7. Employees can neglect other responsibilities
MEASURING PERFORMANCE
1. Should be ongoing
2. No surprises
3. Self - measurement - include employees
APPRAISALS AS A PM TOOL
1. PM is more than just appraisals
2. Honest evaluation can be strong driver for further l&d
3. LOCKE & LATHAM - Feedback can be motivating
4. Fairness in reward
5. TYPES OF APPRAISAL
  1. TOP DOWN
  2. SELF APPRAISAL
  3. PEER APPRAISAL
  4. MULTI-RATER
  5. APPROACHES
    1. RESULTS ORIENTED
      1. Quantifiable, achievable, time bounded objectives
      2. Agreed between manager and report
    2. COMPETENCY ORIENTED
      1. Demonstration of key skills associated with high performance
6. Problem with linking to pay - less likely to highlight development needs if seen as a weakness
  1. Fixed quota systmes
7. PROBLEMS
  1. People unhappy with average rating
    1. Swiss Federal Administration trialled A++ to C
      1. Most get C which is psychologically better
  2. APPRAISER BIAS
  3. PERCEPTION ERRORS - FURNHAM
    1. First impression
    2. Halo/horns effect
    3. Same as me/different to me
    4. Recency effect
    5. Central tendency
    6. Spillover (Last year)
MOTIVATION THEORIES
1. CONTENT APPROACH
  1. Focus on what motivates (reward)
2. PROCESS APPROACH
  1. Connect effort & reward
3. NTRINSIC MOTIVATION
  1. KRISHNA
    1. Sense of meaning
    2. Sense of purpose
    3. Sense of choice
    4. Sense of competence
    5. Sense of progress
  2. PAY
    1. Money could decrease long term intrinsic motivvation
    2. Use as motivator can damage self regulation (DECI)
PERFORMANCE RELATED REWARD - EXPECTANCY THEORY
1. In short term employees need...
  1. A belief that extra effort will result in sales
  2. A belief that will be recognised and rewarded
  3. A belief that reward is worth having
ARGUMENTS AGAINST PM
1. Some say appraisal & pay are least effective HR policies as perceived by employees (HUTCHINSON & PURCELL)
2. Two thirds employees dissatisfied with PM & has no impact

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	Created by emily_palmer almost 11 years ago