Human Resource Management Chapter 7 PERFORMANCE MANAGEMENT AND

Human Resource Management Chapter 7 PERFORMANCE MANAGEMENT AND APPRAISAL Dr. Rommel Sergio Faculty, School of Business Administration CUD 8 -1

HRM in Action: Productivity and Emotional Intelligence - Ability to recognize and manage emotions Individuals with high EQ - Cope successfully and proactively with life’s demands and pressures; build and use rewarding relationships with others, while not being afraid to make tough decisions Positive relationship between emotionally intelligent leadership and employee engagement, client satisfaction, and bottom line 8 -2

Performance Management Training and performance appraisal play significant role in process Training, appraisal, and rewards-integrated linked for continuous organizational effectiveness Effort of every worker directed toward achieving strategic goals 8 -3

Performance Appraisal Defined Formal system of review and evaluation of individual or team task performance Often negative, disliked activity that seems to elude mastery 8 -4

Uses of Performance Appraisal Human resource planning - Identifies those who have potential to be promoted Recruitment and selection - Helps predict performance of job applicants Training and development - Points out employee’s specific needs for training and development Career planning and development - Assesses employee’s strengths and weaknesses and determines person’s potential 8 -5

Uses of Performance Appraisal (Cont. ) Compensation programs - Provides basis for rational decisions regarding pay adjustments Internal employee relations - Used in making decisions such as promotion, demotion, termination, layoff, and transfer Assessment of employee potential - Assesses employee potential as they appraise their job performance 8 -6

Trends & Innovations: Performance Management, Appraisal, and Layoffs Software applications available to assist management downsizing and restructuring Software tools to help identify workers who should go during downsizing Software to compare employee performance and potential ratings Aid to ongoing workforce pruning that may stave off need for layoffs 8 -7

Performance Appraisal Environmental Factors External: Legislation requiring nondiscriminatory appraisal systems Labor unions Factors within internal environment, such as corporate culture 8 -8

Performance Appraisal Process External Environment Internal Environment Identify Specific Performance Appraisal Goals Establish Performance Criteria (Standards) and Communicate Them To Employees Examine Work Performed Appraise the Results Discuss Appraisal with Employee 8 -9

Establish Performance Criteria (Standards) Traits Behaviors Competencies Goal Achievement Improvement Potential 8 -10

Responsibility for Appraisal Immediate supervisor Subordinates Peers and team members Self-appraisal Customer appraisal 8 -11

The Appraisal Period Prepared at specific intervals Usually annually or semiannually Period may begin with employee’s date of hire All employees may be evaluated at same time 8 -12

Problems in Performance Appraisal Appraiser discomfort Halo/horn error Leniency/strictness Central tendency Recent behavior bias Personal bias 8 -13