performance mangement and reward system overvirew.pptx

performance

1. OVERVIEW OF PERFORMANCE MANAGEMENT AND REWARD SYSTEM NAME: MOHD TALHA SHAIKH HPGD/JL22G2/3806 SPECIALIZATION: HUMAN RESOURCE MANAGEMENT JULY 2024

2. PERFORMANCE MANAGEMENT - Refers to the procedures and systems designed to improve employee outputs and performance, often through the use of economic incentive systems. Apart from economic incentives, the other means used to improve employee performance are: Goal setting Streamlined organizational structure Better technology New arrangement of working schedules High involvement of employees Better motivation of employees

3. An effective performance management process considers human resource (HR) strategic planning as a basic requirement. HR strategic planning is the process of providing capable and motivated people to carry out the organization's mission and strategy.

4. STAFFING Refers to the HR planning, acquisition, and development aimed at providing the talent necessary for organizational success. Staffing process consists of the following: Job analysis Recruitment Selection Socialization

5. 1. JOB ANALYSIS A technical procedure used to define the duties, responsibilities, and accountabilities of a job. The results of job analysis are very useful in: Preparing job descriptions Evaluating and classifying jobs Training and career development Performance appraisal Other HR aspects

6. 1. JOB ANALYSIS Job description contains information concerned with the job. The information include job duties and responsibilities, equipment and materials used, working conditions and hazards, supervision, work schedules, standards of performance, and relationships to other jobs.

7. 1. JOB ANALYSIS To meet the job requirements specified in the job description, the job specification is derived. Job specification requirement: Education and experience; Technical knowledge; Physical aptitudes and abilities; Interpersonal and communication skills; Analytical aptitudes and abilities; and Creative abilities

8. 2. RECRUITMENT Defined as a human resource management practice designed to locate and attract job applicants for particular positions. Recruitment involves the following: Advertisement of a position vacancy Preliminary contact with potential job candidates Preliminary screening to obtain a pool of candidates

9. 2. RECRUITMENT

10. 2. RECRUITMENT - INTERNAL Process for attracting job applicants from those currently working for the firm.

11. 2. RECRUITMENT - INTERNAL Advantages It is good public relations It builds morale It encourages good individuals who are ambitious It improves the probability of a good selection, since information on the individual's performance is readily available. It is less costly than external recruitment Those chosen internally already know the organization When carefully planned, promoting from within can also act as a training device for developing middle and top-level managers.

12. 2. RECRUITMENT - INTERNAL DISADVANTAGES It can dysfunctional to the organization to utilize inferior internal sources only because they are there, when excellent candidates are available on the outside. It may generate infighting among the rival candidates for promotion. It may decrease the moral levels of those not selected. It may promote "inbreeding".

13. 2. RECRUITMENT - INTERNAL METHODS OF INTERNAL RECRUITMENT Computerized career progression system Supervisor recommendations Job posting Career development systems

14. 2. RECRUITMENT - INTERNAL A. COMPUTERIZED CAREER PROGRESSION SYSTEM (CCPS) One of that stores extensive amounts of information about employees of a company. It is a useful means of recruiting people currently employed by the organization. The system's computer file contains information on employees such as job history, education, strengths and weaknesses, leadership development needs, developmental needs, training, and special skills. The computer may also provide information on job title, location, skills requirement, and potential successors to the position.

15. 2. RECRUITMENT - INTERNAL B. SUPERVISOR RECOMMENDATIONS - are another method of internal recruitment. When supervisor needs to fill a certain vacancy in his unit, he is in the best position to identify the person who fits the job. Most likely, the supervisor will nominate those whose capabilities are well-known to him.

16. 2. RECRUITMENT - INTERNAL C. JOB POSTING - is a method of internal recruitment in which a job vacancy notice is posted and all qualified employees may bid. The notice describes the job, the salary, work schedule, and necessary qualifications. The most qualified applicants are chosen for interview.

17. 2. RECRUITMENT - INTERNAL D. CAREER DEVELOPMENT SYSTEM - Constitute another method of internal recruitment. Under this method, the organization places ‘’ fast- track’’ or high-potential employees on a career path where they are groomed for certain target jobs.

18. 2. RECRUITMENT - EXTERNAL EXTERNAL RECRUITMENT - It is a process of attracting job applicants from outside the organization. It is undertaken when no suitable candidates are available from within the organization. This recruitment source tends to bring in ‘’new blood’’ and fresh ideas to the organization.

19. 2. RECRUITMENT - EXTERNAL METHODS OF EXTERNAL RECRUITMENT Employee referrals Applicant-initiated recruitment Help-wanted advertisement Private employment agencies and executive search firms Campus recruiting

20. 2. RECRUITMENT - EXTERNAL A. EMPLOYEE REFERALS - Is a method of recruitment in which organizations ask their employees to solicit applications from qualified friends and associates.

21. 2. RECRUITMENT - EXTERNAL B. APPLICANT-INITIATED RECRUITMENT - is a method of external recruitment in which an organization accepts unsolicited applications or resumes from individuals interested in working for the organization.

22. 2. RECRUITMENT - EXTERNAL C. HELP-WANTED ADVERTISEMENT - is a method of external recruitment in which an organization places an advertisement for the position in the appropriate media such as newspaper, magazine, and the like.

23. 2. RECRUITMENT - EXTERNAL D. PRIVATE EMPLOYMENT AGENCIES AND EXECUTIVE SEARCH FIRMS - constitute another method of external recruitment. Under this method, the hiring organization initiated the recruitment process by contacting the appropriate agency or firm and informing if of the qualifications needed for the job in question. The agency or firm assumes the task of soliciting applications, and then refers top applicants to the hiring organization for further screening. Private employment agencies are those that provide organization, for a fee, with clerical, blue collar, technical, and lower managerial personnel. Their services are especially useful when many individuals are expected to apply for a job or when qualified candidates are hard to find. Executive search firms are employment agencies used to recruit middle and top level managers. These firms can locate successful executives working elsewhere who are not even actively seeking a new job

24. 2. RECRUITMENT - EXTERNAL E. CAMPUS RECRUITING - is an external recruiting method in which the organization’s recruiters visit various college and university campuses to recruit individuals for positions requiring a certain degree.

25. 3. SELECTION - This involves assessing and choosing among job candidates. The selection process involves the following steps: Completing the application form; Conducting an interview; Completing any necessary tests; Background investigation; Physical and medical examination; and A decision to hire or not

26. 4. SOCIALIZATION - The final step in the staffing process and it involves orienting new employees to the organization and its work units, especially the work units where the newly hired employee will be working. The purpose of socialization is to enable new employees to quickly become productive members of the organization.

27. 4. SOCIALIZATION In socialization, the new employees are provided with information about the following: Key organization factors which includes an overview of the organization, policies and procedures, compensation, benefits, safety and accident prevention, employee and union relations, physical facilities, and economic factors; and Department and job-related issues including department functions; job duties and responsibilities; policies, rules, procedures, and regulations; the autonomy of the department; and socialization into the work group.

28. TRAINING AND CAREER PLANNING AND DEVELOPMENT

29. TRAINING -is the process of changing employee behavior, attitudes, and opinions through some type of guidance experience. Classification of Ways to Conduct Training On-the-job training off-the-job training

30. TRAINING On-the-Job Training - this training method is conducted while employees perform job-related tasks. It is the most direct approach to training.

31. TRAINING Common Forms: Internships - are opportunities for students to gain real world experience. Apprenticeships - involve learning a trade from an experienced worker. Job rotation - provides a broad range of experience in different kinds of jobs in an organization. It is often used to provide background for future managers and is sometimes used to try to alleviate worker boredom.

32. TRAINING Off-the-Job Training - This type of training deals with work skills in settings away from their ordinary workplace. Techniques: Classroom Lectures Video and Films Simulation Exercises Computer-based training Vestibule Training Programmed instruction

33. CAREER PLANNING AND DEVELOPMENT

34. Career may be defined as the pattern of work- related experiences that span the course of a person's life. Career Stages - refers to the distinct stages that individuals go through in their careers, typically including establishment, advancement, maintenance, and retirement.

35. CAREER STAGES 1. ESTABLISHMENT STAGE - is one of apprenticeship where the young employee enters and organization who may be technically able but often without an understanding of the organization's demands and expectations.

36. CAREER STAGES 2. ADVANCEMENT STAGE - The employee seeks growth and increased responsibility through the continued development and utilization of skills. This stage calls for the employee to work as an independent contributor of ideas in a chosen area.

37. CAREER STAGES 3. MAINTENANCE STAGE During this stage the employee may experience continued growth of performance and accomplishments, or he/she may encounter career stability. But often the employee loses career flexibility. This may be a result of personal considerations such as: Limited interest in learning new skills; Organizational considerations, such as a basic lack of opportunity; and Family considerations that make it difficult to change jobs or to take additional work responsibilities

38. CAREER STAGES - Some experience career plateau, a situation in which, for either organizational or personal reason, the probability of moving up the career ladder is low. Types of Career Plateaus: Structural Plateau - which marks the end of promotions and the affected employee, will now have to leave the organization to find new opportunities and challenges. Content Plateau - which occurs when a person has learned a job too well and is bored with day-to-day activities. Life Plateau - which occurs when an employee experiences a loss of identity and self- esteem when there is no longer success in his work area.

39. CAREER STAGES 4. RETIREMENT STAGE is that stage when formal preparation for retirement is made. The individual learns to accept a reduced role and responsibilities.

40. PERFORMANCE APPRAISAL

41. - is a key aspect of performance management. It may be defined as the process of evaluating the performance of employees, sharing that information with them, and searching for ways to improve their performance.

42. FUNCTIONS OF PERFORMANCE APPRAISAL Performance appraisal is undertaken for the following reasons: to give employees feedback on performance to identify the employee's developmental needs to make promotion and reward decisions to make demotion and termination decisions to develop information about the organization's selection and placement decisions

43. CRITERIA FOR PERFORMANCE APPRAISAL - There are certain criteria used, the three most popular sets of criteria are: 1. 2. 3. Individual Task Outcomes - evaluating the employee's task outcomes. Behaviors Traits - the traits commonly used as basis for performance appraisal include: good attitude showing confidence being dependable looking busy possessing a wealth of experience

44. THE PROCESS OF PERFORMANCE APPRAISAL - It is a process in an organization whereby each employee is evaluated to determine how he or she is performing.

45. THE PROCESS OF PERFORMANCE APPRAISAL - It consists of the following steps: establishment of performance standards mutually set measurable goals Measure actual performance - to determine what actual performance is, it is necessary to acquire information about it. compare actual performance with standards discuss the appraisal with the employee if necessary, initiate corrective action

46. Information may be derived from the following sources: personal observation statistical reports oral reports written reports THE PROCESS OF PERFORMANCE APPRAISAL

47. PERFORMANCE STANDARDS - should be clearly defined and communicated to the employee. These standards should be based on job-related requirements derived from job analysis and reflected in the job descriptions and job specifications.

48. METHODS OF PERFORMANCE APPRAISAL

49. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS -In this approach, the subjects of this appraisal are not compared with other persons. Essay Appraisal Critical Incident Checklist Adjective Rating Scale Forced Choice Behaviorally Anchored Rating Scale

50. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS a. Essay Appraisal - is a performance appraisal method whereby an appraiser writes a narrative about the employee. Advantages: Provides excellent opportunity to point out the unique characteristic of the employee. Disadvantages: it is very time consuming the quality of the appraisal may be influenced by the appraiser's writing skill and composition style It tends to be subjective and may not focus on relevant aspects of job performance.

51. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS b. Critical Incident Appraisal - is a performance appraisal method which requires effective or ineffective performance for each employee being appraised. - This method can be very useful if the appraisal is given enough time to observe the subject employee.

52. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS c. Checklist - is a performance appraisal method wherein the evaluator uses a list of behavioral descriptions and checks off those behaviors that apply to the employee. Advantage: it reduces some biases since the rater and the scorer are different. Disadvantage: it is when there are many job categories, a checklist of items must be prepared for each job categories and that is costly in terms of materials and time consumed.

53. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS

54. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS d. Adjective Rating Scale Method - also known as graphic rating scale, is a performance appraisal method that lists a number of traits and a range of performance for each. Advantages: it is practical and costs less to develop Disadvantages: It does not clearly indicate what a person must do to achieve a given rate. It does not provide a good mechanism for providing specific, nonthreatening feedback. Accurate ratings are not likely to be achieved because the points on the rating scale are not clearly defined.

55. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS

56. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS e. Forced-choice Appraisal - is a type of performance appraisal in which the rater must choose between two or more specific statements about an employee's work behavior.

57. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS f. Behaviorally Anchored Rating Scale (BARS) - is a rating instrument comprised of traits anchored by job behaviors Advantage: is its ability to direct and monitor behavior. The behavioral anchors let employees know what types of behavior are expected of them which gives appraisers the opportunity to provide behaviorally based feedback. Disadvantage: is the difficulty of selecting the one behavior on the scale that is most indicative of the employee’s performance level.

58. METHODS OF PERFORMANCE APPRAISAL- ABSOLUTE STANDARDS

59. METHODS OF PERFORMANCE APPRAISAL- RELATIVE STANDARDS Group order ranking –is a relative standard of performance characterized as placing employees into a particular classification such as top “one-fifth” for example, excellent, 5%; above average, 15%; average, 60%; below average, 15%; and poor, 5%.

60. METHODS OF PERFORMANCE APPRAISAL- RELATIVE STANDARDS Individual Ranking – this method requires the evaluator merely to list the employees in order from highest to lowest.

61. METHODS OF PERFORMANCE APPRAISAL- RELATIVE STANDARDS Paired Comparison – is an appraisal method whereby subordinates are placed in all possible pair and the supervisor must choose which of the two in each pair is the better performer.

62. METHODS OF PERFORMANCE APPRAISAL- OBJECTIVES The third approach to appraisal makes use of objectives. This approach is also known as, management by objectives, is a process of joint goal setting between a supervisor and a subordinate.

63. METHODS OF PERFORMANCE APPRAISAL- OBJECTIVES Steps: Goal Setting- the individual objectives are set based on the organization’s overall objectives. Action Planning- realistic plans are developed and measuring of performance. Self- control – refers to the systematic monitoring and measuring of performance. Periodic Reviews – are the means used to determine whether there is a need for corrective action.

64. METHODS OF PERFORMANCE APPRAISAL- OBJECTIVES Advantages of MBO: It improves job performance by monitoring and directing behavior; It is practical and inexpensive; It fosters better communication between employees and supervisors. Disadvantages of MBO It does not specify the behavior required to reach goals It tends to focus on short term goals The successful achievement of MBO goals may be pertly a function of factors outside the worker’s control. MBO does not provide a common basis for comparison of performance standards It often fails to gain acceptance

65. ERRORS IN PERFORMANCE APPRAISAL- Halo Error – This is a rating error that occurs when a rater assigns ratings on the basis of an overall impression of the person being rated Leniency Error – This is a rater’s tendency to give relatively high ratings to virtually everyone. Central Tendency Error – this occurs when a rater lump everyone together around the average, or middle, category. Recency Error – this is a biased rating that develops by allowing the individual’s most recent behavior to speak for his or her overall performance on a particular dimension. Personal Bias Error – this occurs when a rater allows specific biases, such as racial, age, and gender, to enter into performance appraisals.

66. REWARDS After staffing, training, career planning and development, and performance appraisal, a final requirement is necessary to ensure effective performance. TYPES OF ORGANIZATIONAL REWARDS Rewards may be classified as either: Intrinsic or extrinsic financial or nonfinancial performance-based or membership-based

67. REWARDS Intrinsic rewards are those that the worker receives from the job itself, such as pride in one’s work, feeling of accomplishment, or being part of a team. Theses rewards are self-regulated as the worker is not dependent on an outsider. Extrinsic rewards are those that the workers get from the employer, usually money, a promotion, or benefits.

68. REWARDS Financial rewards are those that enhance an employee’s financial well-being directly through wages, bonuses, profit-sharing, and the like. Nonfinancial rewards are indirect enhancement of an employee’s financial well-being. This is done through supportive benefits like pension plans, paid vacation, paid sick leaves, and purchase discounts.

69. REWARDS Performance-based rewards are those given using performance as basis. These rewards take the form of commissions, piecework pay plans, incentive systems, group bonuses, or other forms of merit pay. Membership-based rewards refer to those that are given to all employees regardless of performance. This type includes cost-of-living increases; benefits; and salary increases attributable to labor-market conditions, seniority or time in rank, credentials such as a college degree, or future potential such as a new MBA degree from a prestigious university.