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PerformanceManagement,7.1WhatisPerformanceManagement?,7.2TheProcessesofLinkingPerformanceManagementtotheStrategicPlan,7.3PerformanceManagementApproaches,7.4GatheringofthePerformanceInformation,7.5ImplementingaPerformanceManagementSystem,7.6ThePerformanceFeedback,Contents,Performancemanagementisaprocesswhichisdesignedtoimproveorganizational,teamandindividualperformanceandwhichisownedanddrivenbylinemanagers.MichaelArmstrong,7.1WhatisPerformanceManagement?,PerformanceManagementisAnagreementbetweenemployeeandsupervisorAnon-goingprocessTiedtothemeritprocess,PerformanceManagementshouldnotbeAonce-a-yeareventAnpunitiveprocessAtimetogivesurprises,Ingeneral,performancereferstotheeffectivenessandefficiencyinoneswork.Theso-calledperformancemanagementreferstothatmanagersandemployeesatalllevelsparticipateinperformanceplanning,performancecoachingcommunicationandperformanceevaluationinordertoachieveorganizationalgoals,performanceresultsoftheapplicationofperformancegoalsincontinuingcycletoenhancetheprocessofperformancemanagement.,OrganizationsstrategicplanMissionVisionGoalsStrategies,UnitsstrategicplanMissionVisionGoalsStrategies,IndividualandteamperformanceResultsBehaviorsDevelopmentalplan,JobdescriptionTasksKnowledgeSkillsAbilities,7.2TheProcessesofLinkingPerformanceManagementtotheStrategicPlan,Performancemanagementprocesses,Monitoring,Developing,Rating,Rewarding,Planning,1、PlanningWorkandSettingExpectations,Planningcouldbevitalinaneffectiveorganization.Itmeanssettingperformanceexpectationsandobjectives,andlinkingindividualsefforttotheorganizationalgoals.Inordertoregulatetheplanningforemployeesperformance,itisrequiredtoestablishtheelementsandstandardsoftheperformanceappraisalplans,whichoughttobemeasurable,understandable,verifiable,equitableandachievable.,2、ContinuallyMonitoringPerformance,Assignmentsandprojectsshouldbemonitoredcontinuallyinaneffectiveorganization.Effectivemonitoringrequiresconsistentlyperformancemeasurementandprovisionofongoingfeedbacktoemployeesandworkgroupsontheirprogresstowardachievingtheirgoals.,3、DevelopingtheCapacitytoPerform,Employeesdevelopmentneedsareevaluatedandaddressedinaneffectiveorganization.Developinginthiscircumstancemeansdifferentmethodsliketraining,provisionofassignmentsthatintroducesnewskillsorhigherlevelofresponsibility.Itprovidesemployeeswithtraininganddevelopmentopportunitiesthatencouragegoodperformance,strengthens,job-relatedskillsandcompetencies,andhelpsemployeeskeepupwithchangesintheworkplace,suchastheintroductionofnewtechnology.,4、PeriodicallyRatingPerformance,Fromtimetotime,organizationsfinditusefultosummarizeemployeeperformance.Thiscanbehelpfulforlookingatandcomparingperformanceovertimeoramongvariousemployees.Theorganizationneedstoknowwhotheirbestperformersare.Althoughgroupperformancemayhaveanimpactonanemployeessummaryrating,aratingofrecordisassignedonlytoanindividual,nottoagroup.,5、RewardingGoodPerformance,Inaneffectiveorganization,rewardsareusedwell.Rewardingmeansindividuallyandcollectivelyapprovingemployeesoftheirperformanceandacknowledgingtheircontributionstotheagencysmission.Goodperformanceisapprovedbeforenominationsforformalawards.Theregulationsalsocoveravarietyofcontributionsthatcanberewarded,fromsuggestionstogroupaccomplishments.,7.3PerformanceManagementApproaches,7.3PerformanceManagementApproaches,Performanceevaluationisonlypartofperformancemanagement,butitisthekeyofperformancemanagementanditisorganizedinaccordancewithcertainpre-determinedcriteriaandevaluationprocedures,theuseofscientificmethodsofevaluation,theevaluationcriteriaforevaluatingthecontentandabilitytoworkobjects,regularandirregularworkperformanceassessmentandevaluation.,Performanceevaluation,Performancemanagement,7.3.2,7.3.3,7.3.1,7.3.4,7.3.5,TheCriticalIncidentTechnique(CIT),BehaviorallyAnchoredRatingScale(BARS),The360-degreePerformanceEvaluation,TheKeyPerformanceIndicator(KPI),BalancedScorecard,Personnel,Data,Porperty,Money,CITisuesdtolookintothecauseofhuman-system(orproduct)problemssoastominimizelossofpersonnel,property,moneyordata.Analysismayshowhowclustersofdifficultiesarerelatedtoacertainaspectofthesystemorhumanpractice.Investigatorsthendevloppossibleexplanationsforthethesourceofthedifficulty.Themrthodgeneratesalistofgoodandbadbehaviorswhichcanthenbeusedforperformanceappraisal.,7.3.1,TheCriticalIncidentTechnique(CIT),BehaviorallyAnchoredRatingScale(BARS),BARSareacombinationofthecriticalincidentsandratingscalemethods.Employeeperformanceisratedonascalebutthescalepointsareanchoredwithcriticalincidents.ThedevelopmentofBARSistime-consuming,butthebenefitsmakeitworthwhile.TheBARSapproachnotonlymeetsequalemploymentopportunitycommissionguidelinesforfairemploymentpracticesbutitmayimprovereliabilityofpersonnelassessmentandenhancescommunicationwhenevaluationemployees.,7.3.2,The360-degreePerformanceEvaluation,The360-degreeevaluationisacommontoolinHRM.Simplyput,itisamechanismforevaluatingsomeonesperformancebasedonfeedbackfromeveryonewithwhomtheindividualcomesincontact-supervisors,coworkers,partners,subordinates,thegeneralpublic.Thismethodofcollectingevaluativeinputisanexcellentsourceofmotivationforemployeesbecauseifprovidesatrulyhonestassessmentabouthowtheemployeeandhis/herperformanceisviewedbyavarietyofconstituents.,7.3.3,TheKeyPerformanceIndicator(KPI),TheKeyPerformanceIndicators,alsoknownasKPIorKeySuccessIndicators(KSI),helpanorganizationdefineandmeasureprogresstowardorganizationalgoals.KeyPerformanceIndicatorsarethosemeasurements.KeyPerformanceIndicatorsarequantifiablemeasurementsthatreflectthecriticalsuccessfulfactorsofanorganization.Theywilldifferindependingontheorganization.AKeyPerformanceIndicatorforasocialserviceorganizationmightbenumberofclientsassistedduringtheyear.,7.3.4,BalancedScorecard,Sinceitsinceptionintheinternationalarena,BalancedScorecard,particularlyintheUnitedStatesandEurope,soonstronglyattractedcustomersandcommunicatiesinterest.InHarvardBusinessReview,BalancedScorecardischosenasthemostinfluentialmanagementtoolsinthepast75years,whichbrokethetraditionalmethodofusingfinancialindicatorssignallytomeasureperformance.Butonthebasisoffinancialindicators,factorssuchascustomer,internalbusinessmanagementprocessesandemployeelearingandthegrowthinourstrategicplanningandexecutivemanagementpalyaveryimportantrole.,7.3.5,7.4GatheringofthePerformanceInformation,Animportantcomponentoftheperformanceassessmentstageistheuseofappraisalforms.theseformsareinstrumentsusedindocumentsandevaluateperformance.Thesectionconcludeswithadiscussionofreasonswhyratersarelikely,eitherintentionallyorunintentionally,todistortperformanceratingsandwhatcanbedonetoimprovetheaccuracyofratings.,7.4Gatheringoftheperformanceinformantion,Thecoreofanyperformancemanagementsystemisassessmentofperformance.theinformationonperformanceiscollectedusingforms.oneofadvantageoffilledoutelectronicallyisthatinformationisstoreanditcaneasilybeshared.Also,havingthedateavailableinelectronicformcanhelpsubsequentanalyses.Regardlessofweathertheyareelectronicoronpaper,appraisalformsusuallyincludeacombinationoffollowingcomponents.Table1summarizethemajorcomponentsofappraisalforms.,7.4.1appraisalforms,Table7-1themajorcomponentsofappraisalforms,weshouldbeawarethatthereisnosuchthingasauniversallycorrectappraisalform.Insomecaseaformmayemphasizecompetenciesandignoreresults.Inothercase,theformmayemphasizedevelopmentissuesandminimize,orevencompletelyignorebothbehaviorandresults.Inspiteofthelargevariabilityintermsofformatsandcomponents,therearecertaindesirablefeaturesthatmakeappraisalformsparticularlyeffective:(seetable2),7.4.2thecharacteristicsofappraisalforms,Table7-2desirablefeaturesofallappraisalforms,Oncetheformiscompleted,thereisusuallyaneedtocomputeanoverallperformancescore.Therearetwomainstrategiestoobtainanoverallperformancescoreforeachemployees:judgmentalandmechanical.Thejudgmentalprocedureconsistoftheconsiderationineveryaspectofperformanceandthenarrivingatadefensiblesummary.Thisisbasicallyaholisticprocedurethatrepliesonabilityofratertoarriveatafairandaccurateoverallscore.,7.4.3determiningoverallrating,Howlongshouldtheappraisalperiodbe?Commonlyusedevaluationmethodsare:theannualevaluation,theevaluationofthesemi-annualandquarterlyreviews.onlyconductinganannualreviewmaynotprovidesufficientopportunityforthesupervisorandsubordinatetodiscusstheperformanceissuesinaformalsetting.Therecommendationthenistoconductsemiannualandquarterlyreviews.,Whenisthebesttimetocompletethereviews?Mostorganizationsadoptoneortwopossibilities:First,theappraisalformcanbecompletedonoraroundtheannualanniversarydate.Thesecondchoiceistocompletetheappraisalformstowardtheendoffiscalyear.,7.4.4appraisalperiod,Butwhatabouttheadditionalworkimposedonthesupervisorswhoneedtoevaluatealltheemployeesatonceduringashortperiodoftime?,Ifthereisongoingcommunicationbetweenthesupervisorandtheemployeeaboutperformanceissuesthroughouttheyear,completingappraisalformsshouldnotuncoveranymajorsurprisesandfillingouttheappraisalformshouldnotcreateamajortimeburdenforsupervisor.,7.4.5thesourceofperformanceinformation,7.5ImplementingaPerformanceManagementSystem,7.5ImplementingaPerformanceManagementSystem,Performancemanagementiskeyinorganizationsthatwishtoassessindividualsperformanceandrewardthemappropriately.Todothissuccessfullyanorganizationneedstohaveasystemthatmanagesperformance:notjustforrewardpurposesbutalsotohelpestablishwhatpeopleshoulddotogrow,andtheskillstheywillrequiretoachievethis.,7.5.1TheCommunicationPlanOrganizationaoftenmakeacommunicationplantoensurethatinformationabouttheperformancemanagementsystemiswidelydisseminatedintheorganization.Agoodcommunicationplananswersthefollowingquestions:1、Whatisperformancemanagement?2、Howdoestheperformancemanagementfitinourstrategy?3、Whataremyresponsibilities?4、Howistheperformancemanagementrelatedtootherinitiatives?,WhyCommunicationisimportantinPM,CommunicationSkill,AskingQuestions:Openquestions/CloseQuestions/ProbingQuestionsActiveListeningReflectingitcanaddressthedisagreements;italsoincreasesperceptionsofthesystemsfairness.TheHRdepartmenteithersuggestscorrectiveactiontothesupervisororinformstheemployeethatthedecisionorproceduresarecorret.,7.5.3ThePilotTestingTheorganizationmadeapoilottestintwodistricts.First,thecommitteepreparedatrainingsessionthatincludedapre-appraisalworkgroupmeeting;Thenaselectnumberofindividualsacrossthedistrictsreceived”trainthetrainer”training;Finally,thesystemwasinstitutedagency-wide.,7.5.4OngingMonitoringandEvaluation1.ThenumberofindividualevaluatedThemanagerreviewtheemployeesworkplansonaperiodicbasis,andidentifytowhatextenttheemployeehasreachedtheobjectives.2.ThedistributionofperformanceratingsThemanagerandtheemployeejointlyevaluateexistingcapabilitiesoftheemployee,andidentifytheresultsandtheperformanceofalltheevaluationfactorsintheevaluationcycle.3.ThequalityofinformationIntheevaluationmeeting,discussionsshouldputemphasisonconstructivereviewofpreviousobjectivesandworkobjectivesinfutureevaluationcycles.,4.ThequalityofperformancediscussionmeetingThemanagershouldguideordirectdiscussions,andofferfeedbackontheemployeesperformanceandrequiredcapabilities.5.SystemsatisfactionTheevaluationinterviewshouldcreateanopportunityfortheemployeetojointlydiscusshisshort-termandlong-termcareerdevelopmentobjectives.,6.Overallcost/BenefitratioTheemployeeshouldtakeadvantageo
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