LP-9 03 / 04 DEC 09

1. LP-9 03 / 04 DEC 09 Chapter- 11 Performance Management System (PMS) Assignment: Collect ------ Job Analysis Quiz Next week Chapters 9 & 10

2. TRADITIONAL STAGES OF CAREER • The Start --- soon after completion of basic studies • Mid Career --- 10-15 years into the service / on the job or jobs paves the way for further growth or change job. • Plateaued Mid-career Concept – Technically expert, educationally okay, professionally competent and probably financially sound, willing to stay put and having no more ambitions to grow in job • Late Career --- matures and mentors. Excels and moves ahead or remains stagnant and takes care of social and family obligations while being happy and contented with the job assignment. • Decline --- Prepares to leave the regular service, change job or decides to retire and enjoy the fruits of hard work.

3. Stages and Events in Career Dev

4. Career Choices • Holland Vocational Preferences • Three major components: • Varying occupational preferences • Productive on a job if liked • People with common interests have more to share • Six vocational Themes • Realistic • Investigative • Artistic • Social • Enterprising • Conventional • Personality is expressed as sum combination of above

5. Six vocational Themes

6. Six Vocational Themes Realistic Investigative Where do you place yourself? Letters connected by the line indicate reinforcing themes. Letters not connected represent opposing themes Conventional Artistic Enterprising Social

7. WHAT IS PERFORMANCE? It refers to the degree of accomplishment of the tasks that make up an employee’s job. The Determinants are: Effort Abilities Role / Task Perceptions Environmental Factors Requirement: A minimum level of performance

8. Purposes and Difficulties • Purposes • Feedback – Org / Employer wants to know as to how good or bad employees are performing • Development – Based on feedback to determine and afford training and development of the employees • Documentation – Both the feedback and actions taken thereof must be recorded • Difficulties • Focus on the individual --- May become emotional • Focus on the process --- Follows a structure that misses some qualitative aspects

9. ROLE OF HR DEPTT • Design and devise PMS • Train Managers in in conducting appraisals • Ensure timely rendition of appraisals • Maintain records • The Managers are required to do: • Evaluate the employees • Complete the Appraisal / Evaluation Forms • Conduct review/s • Establish plan for improvement of employees

10. Appraisal Process • Establish performance standards • Mutually set measurable goals • Measure actual performance • Compare actual performance with standards • Discuss the appraisal with employees • If necessary, initiate corrective action

11. PERFORMANCE APPRAISAL • It is the process of evaluating and communicating to an employee how he or she is performing the job and establishing a plan for improvement. • Why do we do it: • To learn of the potential of the employee for promotion or higher positions • To see the current efficiency / performance on the current • To determine pay package, rewards, incentives etc • To ensure enhancement in performance • To determine validation of Org Selection Procedure / Processes • As an input to HR Planning Process

12. Appraisal Methods • Evaluating Absolute Standards ---Measuring performance against established standards • Checklist Appraisal --- A rater checks off applicable employee attributes (Yes, No) • Adjective Rating Scale Appraisal --- Listing traits and range of performance for each

13. Appraisal Methods -- Contd • Critical Incident Appraisal --- Focusing on key behaviors that differentiate jobs done effectively or ineffectively by keeping a written record (of good or bad) and then summing up appraisal. • Forced – Choice Rating ---Rater must choose between the two or more statements (see Table 11.6 page 223)

14. Appraisal Methods -- Contd • MBO – • Multi – rater Assessment (360 Degrees assessment) -- Managers, peers, customers, suppliers, colleagues are requested to fill-in questionnaire. • Graphic rating scale – The rater assesses on the basis of work, dependability, job knowledge, attendance, and other aspects of personality. See table 11.3 page 220 • Essay Appraisal.Rater prepares a written statement describing an employee’s strengths, weaknesses and past performance. • Work Standard Approach. Setting a standard and then comparing each employee to that

15. MBO – • Establishing Statements of Objectives, establishing and allowing an employee to implement Action Plan, measuring achievements (objectives), taking corrective actions and establishing new MBOs. • How can we make MBO a success: • The process must be participatory • There should be no gap in communications • Objectives should be quantifiable and measurable • Objectives be achievable • All of the above must be reduced to writing

16. Behaviorally Anchored Rating Scales (BARS) • Definition. It determines an employee’s level of performance based on whether or not certain specifically described job behaviors are present • It generates critical incidents and develops behavioral dimensions of performance. Behavior is appreciated rather than traits. It includes definite, observable and measurable job behavior events. • Advantages: • Cooperative activity • Performance oriented • Disadvantage • Time consuming • At times narrows the scope of appraisal • See Table 11.4 page 221

17. RELATIVE STANDARD / RANKING METHOD • Definition ---Performance compared with other employees • Ranking Methods • Alternation Ranking (Most best to least best) • Paired Comparison Ranking (Check mating the employees) • Forced – Distribution (Placing the employees in Bell shaped Curve)

18. Factors that can distort Appraisal/ Potential Errors An error free appraisal is only an ideal --? • Leniency Error --- Evaluating employees against one's own value system • Inappropriate Substitutes --- To continue to judge an employee against a parameter over which the latter has no control • Inflationary Pressures --- a number game • Central Tendency --- Tendency of the Rater to rate most employees near the middle of the performance scale • Similarity Error --- Project self – perceptions on others • Halo Error --- rating an employee very high or very low based on one or two attributes

19. Effective PMS --- How to ensure an • Use behavior based measures developed around traits • Combine absolute and relative standards • Provide on-going feedback • Use Multiple raters • Use Peer evaluators • 360 Degrees Appraisals • Rate Selectivity • Train the Raters • Evaluate Formats

20. Feedback through the Interviews • A very serious event that usually turns sour due various reasons: • Communication gap • Lack of trust • Wishful thinking • False promises • Undue Hopes and expectations • Environments • Biases by the seniors etc etc