Performance and Reward

Performance and Reward

1. Defining

   • Performance management - all initiatives aimed to improve performance individually & collectively
     • Performance appraisals
       • Excellence Orientated - Continual - Motivation to enhance satisfaction and engagement
         • Not mutually exclusive but hard to manage and conflict of SO and EO
     • Standards Orientated - Remedy Poor Performance

2. Performance Appraisal

   • Hard to Manage the SO and EO Conflict as systems focus on past separately from future
     • SO = Strengths ignores weaknesses
     • EO needs honesty about weaknesses
       • Tackle this conflict
         • Focus either Evaluative or Developmental
           • Two Systems with objectives
             • Follow idea of result orientated/competency based
   • Need!!
     • Bloom et al (2012) - 12 Yr study
       • 23% more productive with:
         • Targets/Incentives/Monitoring
           • Avoid box ticking exercise!
           • Cons
             • Generalise if one element Good
               • Not critical enough
               • Favour Recent Work
                 • Carroll & Scheiner (1982) - PA most disliked managerial activity
                   • Unatural Act - Lawler 94
                   • Organisational Games (Snape 94)
                 • Expensive and judgemental
                   • Blaming Task
             • Conflict + paperwork
   • Legal Claims with Personality systems - Lee (2004)
     • Measurement difficult Wright 1991
       • Can't use universally

3. Other Appraisal Techniques

   • Upward Appraisal
     • Improve Mangerial Effectivness (Redman and Snape (1992)
     • Increased employee voice and empowerment (r&S 1992)
     • More in tune with de-layered organisations
     • Managers feel venerable
     • Political
     • Low uptake
   • Customer Appraisal
     • Hard quantifiable standards combined with soft qualifiable factors
     • Customer surveys. mystery shoppers
     • Mystery shopper - data, insights in no purchase, less costs & reliable
       • Kayande & Finn 99
     • Not staff popular
       • Lack managerial Trust
       • Brought in for negatives
         • Judgemental
           • Cook 93 says reward better than punishing
   • Team Based Appraisal
     • Works with the highly interdependent business world
     • Two Types
       • Team appraised as one
         • Teams sort internal systems & rewards
       • Individuals appraise team members = peer
   • Competency Based Appraisal
     • Connock 92 - Big idea
       • Good for analysing progress of individual compared to static approach
         • Directs attention for areas for improvement
           • Provides a language for feedback on performance problems
             • Sparrow 94
             • Good compared to traditional where mangers struggle with suggested behaviour
         • Concentrates appraisal on performance and effectiveness
       • Running Costs High

4. 360 Degree

   • Political forces in practice
     • Sucking up
       • Revenge use
         • Personal agenda for promotion
           • Reward for fasle feedback
             • Mangers canvassing
               • Friends
   • Solve through
     • Confidential
       • Consultants
         • Don't link pay just developmental

5. PRP

   • Discretionary bonus or pay rise linked to individual performance
     • Merit Based
       • Immediate supervisor
         • Apraisal - formal interview
           • Future remurantaion linked to score
     • Objective Based
       • Objectives set
         • Moonitored
           • Score derived end yr
     • Adavantages
       • Attracts & Retains performers
         • Improves motivation
           • Improves corporate/individual perfromance
       • Clarifies roles and duties
         • Links effort to organisational objectives
           • Improves communication
             • Reinforces management control
               • Identifies Developmental opportunities
         • Reinforces employment relationship
           • Reduces Union Force
             • Fair
               • Avoids need for promotion
     • Cons
       • Hard to manage
         • Hard to introduce effectively
           • Fundamentally flawed