Strategic Human resource Management

Performance Management & Feedback

Performance Management

• Long term success in meeting organization’s strategic objectives

• Ability to manage performance of employees • Ensure that performance measures are

consistent.• Performance management– Performance evaluation, performance appraisal,

or performance measurement

Performance Management

• Performance feedback– Performance measurement becoming more of a

strategic issues for organization– Performance management system needs to be

understood and accepted by the organization’s employees and must provide them with meaningful information if it is to be effective.

– Employees and supervisors work together to set performance expectations, review results, assess organizational individual needs, and plan for the future; in order to have more effective performance systems

Performance Management• The most important concern in designing a performance management

systems is its fit with the organization’s strategic objectives and • the most important concern in providing performance related feedback is its

fit with the organization’s culture. • Organizations need broader measures of employees performance to ensure

that

1. Performance deficiencies are addressed in a timely manner through employee development programs

2. Employee behaviors are being channeled in the appropriate direction toward performance of specific objectives that are consistent with the work unit and organization’s strategy

3. Employees are provided with appropriate and specific feedback to assist with their career development

Performance Management• Performance management timeline

PastData related to past

performance

PresentAllows work plans, goals,

and development opportunities to be set

FutureResulting in the

achievement of strategic objectives

USE of the System: Strategic choices in PMSHow system will be used•Employee development•Determine reward and compensation•Enhance motivation•Facilitate legal compliance•Facilitate HRP

Who evaluates•Supervisor customers•Peers self•subordinates

What to evaluate•Traits•Behaviours•Results

How to Evaluate•Absolute•Relative

Means of Evaluation•Graphic rating scale BOS•Weighted checklist Critical incident•BARS objectives based

Links with training

Links with compensation

Flexible / standardized

Individual / Teams

Time period

Strategic choices in PMS

• A PMS can serve multiple purposes and its is important for the organization to strategize it.

• Facilitate employee development– Assessing deficiencies in performance level and

skills, can determine specific T&D needs– Assessing individual and team strengths and

weaknesses can allow employee and team development plans to be established.

T&D PMS

outcomes

Needs assessment data

Strategic Choices in PMS• A second purpose is to determine appropriate

rewards and compensation• Salary, promotion, retention, and bonus

decision are frequently based on data collected as part of performance measurement.

• Therefore, employee must understand and accept the performance feedback system.

Strategic Choices in PMS

• A third purpose of managing performance is to enhance employee motivation.

• A formal process that allows for employee acknowledgment and praise can reinforce the behaviours and outcomes that beneficial to the unit or organization.

• Employees can be told specifically what the organization’s expectations for them are, and employees can inform their employers of the types of job assignments and responsibilities.

Strategic Choices in PMS• A fourth purpose of PMS is to facilitate legal

compliance• Claims of unfair dismissal • When organization has documentation of

performance deficiencies of employee; that is best supported

• Data showing unacceptable performance

Strategic choices in PMS• Finally;– PMS facilitate the HR planning process– Performance data can alert organization to

deficiencies in the overall level and focus of employee skills and can be used in critically planning for future staffing needs.

– Performance feedback can perform multiple functions in any organization, the organization must determine how it will be used prior to developing the system.

Who Evaluates

• Who will provide the performance data???• Supervisors– Immediate supervisors; technical line managers,

do they have training to assess or collect performance data; do they observe employees day to day performance??? Halo effect???

• Peers• Customers• Subordinates• self