Professional Documents
Culture Documents
Performance Management
2/15/2014
Maintaining confidence and trust. Following the rules. Conducting yourself in the proper manner. Treating others fairly. Demonstrating loyalty to company and associates. Carrying your share of the work and responsibility with 100% effort.
EMPLOYEE RIGHTS
Rights desired by employees regarding the security of their jobs and the treatment administered by their employer while on the job, irrespective of whether such rights are currently protected by law or collective bargaining agreements of labor unions.
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1. Separate Strategic Goals Into Input and Output Dimensions 2. Develop Output and Results Measures for each goal 3. Develop Input Measures for each goal 4. Check with HR to see if the set of measures is complete 5. Use an Effective Recognition System 6. Build the Culture
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Internal Results
Output Dimension
External Results
financial returns improve market share meet current and future demand
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Step 2, Develop Output Measures or Each Goal Outputs are accomplishments. In most organizations, accomplishments can be categorized into three groups.
Investment returns Customer Satisfaction Social Impacts
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CATEGORY
MEASUREMENT CONCEPT
PERFORMANCE MEASURE
Financial returns
% return on investment % return on assets employed Profit margin on sales % market share relative to the competition % market share relative to total market size
Investment Returns
Market share
The proportion of the market share against the competition should increase. The proportion of the market share relative to the total market should increase at a rate that is faster than the rate of change in total market size.
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Customer Satisfaction
Consumer prices
The retail price matched to value should decline. Children using these toys should show a measured improvement in reading skills The proportion of toys presented for re-cycling should go up.
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Child development
Social Benefits
Environmental impact
CATEGORY
PERFORMANCE MEASURE
PERFORMANCE GOAL
Direct materials and direct labour per unit, expressed in both dollar and quantity terms
Material and labour cost and or consumption per unit should decline over a specified time period Overhead consumed per unit produced should decline
% utilization of capacity
Dollars per unit of capital invested should decline over time as capital resources are used more efficiently
Management estimates of the resources of talent and energy and other non-financial resources that have been dedicated to this performance area
The amount consumed will increase as the project is developed and decrease after it is implemented
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SAVI
Accuracy
Volume
Customer Satisfaction
Consumer prices
SAVI
Direct materials and direct labour per unit, in both dollar and quantity terms.
Investment
Investment
% utilization of capacity
Volume
Investment
Management estimates of the resources of talent and energy that have been dedicated to this performance area.
Investment
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Closing Remarks
In the beginning we were challenged to find measures and see the resulting behavior.
So how about the 30 minute pizza delivery guarantee. That promotes speeding and if a delivery person has an order at 28 minutes and another at 10, which does he deliver first? And what happens if Pizza delivery people are offered a cash bonus for every delivery made within 30 minutes, and what does this do to pizza quality?
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People are curious beings. We bring our own personal values to the job, we react differently to control systems, we are motivated by different things. A performance measurement system is a uniform set of measures that is trying to motivate a most un-uniform set of people.
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Solutions
Leadership and decision makers Develop performance management systems that clarifies the what ,who, how and when Develop IDPs with clear objectives, outcomes and targets Develop and align performance plans with IDPs Develop strategic risk management Develop of performance measurements and control systems Develop change management plan and appraise performance Establish strong evaluation (audit and portfolio and oversight ) committee Communicate results
HRM in the
st 21
Century
1. Responsive to a highly competitive marketplace and global business structures; 2. Closely linked to business strategic plans; 3. Jointly conceived and implemented by line and HR managers; and 4. Focused on quality, customer service, productivity, employee involvement, teamwork, and workforce flexibility.
Are conceptualized in a business capacity, focusing on the strategy and core competencies of the organization. Able to show how it can make a difference to the companys bottom line. Use research to make recommendations for cost improvement and more efficient operations.
HRM Practice
Staffing
Realistic job previews can reduce turnover. Weighted application blanks reduce turnover. Structured, behavioral, or situational interviews are more valid. Use actuarial model of prediction with multiple measures. Graphology is invalid and should not be used Less than 20% use RJPs in high turnover jobs. Less than 30% know what an WAB is; < 1% use WABs. 45% use structured interviews. Less than 5% use actuarial model. Use is on the increase in the U.S.
Performance Appraisal
Do not use traits on rating forms. Train raters for accuracy, observation bias, etc. Make appraisal process important element of managers job. More than 70% still use traits. Less than 30% train raters. Less than 35% evaluate managers on performance appraisal.
Compensation
Merit-based systems should not be tied into bas salary. Gainsharing is an effective PFP system More than 75% tie merit pay into base pay. Less than 5% use it where they could
Trend 1: The Increased Globalization of the Economy Trend 2: Technological Changes, Challenges and Opportunities Trend 3: The Need to be Flexible in Response to Changing Business Environments Trend 4: Increase in Litigation Related to HRM Trend 5: Changing Characteristics of the Workforce.
Increased Globalization
Development of a worldwide labor market
Easy to move work around when it can be digitized. Decrease the cost of labor. HRM becomes more complicated. More union activities. Corporate downsizing linked to new technology. Barriers to entry have been reduced, increasing international competition from firms and individuals alike. Export jobs up 20% in last 10 years. MNCs are expanding in new countries and new markets.
Technological Changes
Optimal combination of people, software, and equipment. User testing programs assess computer interface. Use of intranet sites to convey personnel information. Maximize profit margins and sustained customer value. Electronic tracking of HR activities such as T/O and performance reviews. Impact of Internet on HRM activities:
Computer search of potential applicant pool. Standardized resumes in data base. Announcements and responses through e-mail. Increased focus on security of personnel information and intellectual property. Increased speed of communication across the organization. Video computer conducts testing and interviewing.
Need to be Flexible
Focus on core competencies leads to outsourcing of other activities:
Use of temporary or leased workers; Use of independent contractors; and Place personnel with new technology.
Steps (Continued)
4. Identify high and low performing employees. Establish a differentiated incentive systems. 5. Develop supporting HR management and measurement systems of selection, formal appraisal, promotion, development, and termination practices. 6. Specify the roles of leadership, the workforce, and HR in strategy execution.