HUMAN RESOURCE MANAGEMENT (IRP800)

1. HUMAN RESOURCE MANAGEMENT (IRP800) FRANCIS C. ANYIM PhD FCIPM, FNIM, FABS, FCAI Department of Industrial Relations and Personnel Management, Faculty of Business Administration, University of LagosE-mail: chucksanyim2004@yahoo.com Tel No: +2348033468317

2. TOPIC 1: PERFORMANCE MANAGEMENT

3. PERFORMANCE MANAGEMENT • Performance as a word, connotes accomplishment, doing, attainment, execution or the realization or carrying out of a given task measured against agreed pre-set known standards or objectives.

4. Introduction… • Consequently, Performance Management denotes an ongoing, continuous process of communicating, clarifying, and engaging in job responsibilities, priorities and performance expectations in order to ascertain mutual understanding between superior and the associates.

5. Introduction… • It’s a means by which the employee is valued and encouraged to develop through the provision of frequent feedback. Its emphasis is on communication as a means of value creation and sustenance in the organisation through the superior.

6. Introduction… • Armstrong and Baron (1998) define performance management as “a strategic and integrated approach of delivering sustained success to organisations by improving the performance of who work in them and by developing the capabilities of teams and individual contributors”.

7. Introduction… • Performance management essentially centres on achieving pre-determined results required by an organisation’s internal and external customers and helps individuals to be effective.

8. Introduction… • Performance management is a key factor in getting the whole organisation aligned and mobilised to attain its goals through collaboration, cooperation and genuine commitment.

9. Introduction… • A performance management system according to Heathfield (2005) includes the following actions: • Develop clear job descriptions. • Select appropriate people with an appropriate selection process. • Negotiate requirements and accopmlishment-based performance standards, outcomes and measures.

10. Introduction… d) Provide effective orientation, education and training. e) Provide on-going coaching and feedback. f) Conduct quarterly performance development discussions. g) Design effective compensation and recognition systems that reward people for their contributions. • Provide promotion/ career development opportunities for staff. J) Assist with exit interviews to understand WHY valued employees leave the organisation.

11. Objectives of Performance Management • The objectives of Performance Management are to: 1. Increase two-way communication between supervisors and employees. 2. Clarify mission, goals, responsibilities, priorities and expectations. 3. Identify and resolve performance problems. 4. Recognize quality performance. 5. Provide a basis for administrative decisions such as promotions, succession and strategic planning, and pay for performance.

12. Performance Appraisal • The success or failure of a strategic plan rests on management’s ability to properly identify the key functions that must be performed in the organization and also to formulate and execute necessary plans or policies to attain envisaged goals.

13. The systematic measurement of employee performance is an essential step as all employees are hired by the organization to produce goods and services for its survival and prosperity. It is therefore essential for organizations to monitor the performance of employees in order to ensure that they are producing at acceptable levels or standard.

14. From practical point of view, the concept is so fraught with anxiety on the part of both appraiser and appraisee. It holds so much potential for either positive or negative consequences in terms of morale, motivation, frustration, bias, development amongst others.

15. The Need for Performance Appraisal in the Organization • Performance appraisal is a regular (either quarterly, half yearly or annually) formalized review of how individual employee perform his or her job. It is carried out by the job holder’s immediate superior or boss.

16. Industrial Revolution • Performance appraisal could be seen as a management or human resource tool designed to ensure that every employee is meeting the company’s standards through the assessment of the quality of their work and also an attempt at improving their performance.

17. Performance appraisal is essential in organization for the following reasons: • To improve and sustain employees’ productivity level. • It serves as a control system to measure performance against set standards. • It helps to generate data for sound business decisions on selection, training and development, pay increase, promotions, transfers, discipline etc.

18. 4. It assists in identifying what the employees must do (behaviourally, qualitatively or quantitatively) to be proficient in their respective functions. 5. It assists the manpower development department to identify those who lack the ability to perform their job effectively.

19. 6. Aside from exposing the need for training, it goes further to fish out the type of training to be administered. 7. It serves as tool for monitoring attitude, knowledge and skills and also helps in motivating individual employees to put-in their best performance wise.

20. 8. It determines need for pay increase, promotion, transfer, discipline etc. 9.It assists in improving interpersonal skills and relationship between superiors, colleagues and subordinates. 10.Performance appraisal helps in improving communication through constructive dialogue.

21. 11.Performance appraisal helps in identifying potential high flyers and aids in succession planning. 12.Performance appraisal assists in building disciplinary documentation that could lead to the discharge of indolent employees

22. Approaches to Performance Appraisal • Traits-Oriented: This involves the appraisal of personal qualities such as appearance, punctuality, leadership skills etc. B. Results-Oriented: It centres on the output or results achieved by the job-holder being used as the basis of the appraisal e.g. Sales figures or returns, wastage rate, complaints received, costs incurred etc.

23. C. Competence-Based: This focuses and recognises the way employee goes about his or her job rather than results achieved e.g. What specific competence does he or she exhibit? • A further dimension is given to the approaches through spilt between open and closed system of performance appraisal:

24. 1. Open System: • This allows the appraisee the opportunity to discuss his/her performance with his or her boss and also contribute to a greater or lesser extent in the course of the appraisal meeting/interview.

25. 2. Closed System: • Under this, the boss assesses and records performance without discussion with the employee. However, pressure has increased the need for employees participation and more open approach to the exercise. Besides, schemes differ to the extent in which they are either developmental or judgmental.

26. 3. Developmental System: • The purpose is to review past performance and to direct learning towards improving future performance and incorporating innovative ideas. • 4. Judgmental System: • It focuses on the assessment of past performance with sole aim of identifying and proffering solution to observed gap(s) or deficiencies.

27. The Performance Appraisal Process and Instrument • The concept of the appraisal process emphasizes the pervasiveness and universality of evaluating performance and provided useful context for discussing the phenomenon

28. Figure 1: Performance Appraisal Process • The above figure shows that performance appraisal can serve different purposes and the procedure is cyclical as it is repeated either annually or bi-annually as the case may be.

29. Appraisal Process • Performance appraisal process is planned, designed and implemented through a nine step process in the organization where formal systems of performance review is used. • They are: • Identify objectives and establish policies and procedures. • Analyze jobs.

30. 3. Design measures of performance 4. Communicate performance standards to employees. 5. Observe employees’ performance and results 6. Document performance and result.

31. 7. Evaluate performance. 8.Discuss appraisal outcome with employee. 9.Follow-up: observe employee performance and result.

32. Inherent Problems with Performance Appraisal System • The following are problems associated with performance appraisal system. 1. System Design: Poor design of appraisal instrument may lead to wrong measurement of appraisee behaviour and personal traits. In other words, the instrument may lack validity in content.

33. 2. Bias: Some activities within the organization especially those impinging on interpersonal relationships could cause bias and prejudice which could in turn translate to appraisal issue and negative tendencies.

34. 3. Central Tendency: The appraisees are assigned with equal rating irrespective of the level of performance achieved or contributions each has made in order not to hurt any of the appraisee by the appraiser. This scenario creates a fertile ground or room for lack of commitment by individuals to future performance.

35. 4. Halo Effect/Stereotyping: The appraiser is unduly carried away by one factor among other rating factors or a particular behavioural and personal trait instead of spreading the factors evenly e.g. a particular even in the mind of the appraiser is allowed to attract higher rating than others.

36. 5. Leniency: The appraiser tries to “play God” by trying to please the appraisees or the appraisees are not judged too harshly.

37. 6. Strictness: This is the opposite of leniency as the appraiser becomes unnecessarily rigid or very hard on the appraisees by assigning poor or low rating which may be caused by personality differences, bias or other workplace variables.

38. 7. Recency: The appraisee is judged by his/her not too far or distant performance or on an earlier one not minding how good or bad the past has been as the case may be.

39. 8. Appraiser’s Competency Level: In some cases, the appraisers are not well trained in the art of conducting performance appraisal exercise and this leads to handling the issue in haphazard and injurious manner.

40. 9.Appraisal Exercise Implementation: The way and manner in which the exercise is implemented could create room for expectations to be unrealistic e.g. unfulfilled expectations for promotion can lead to frustration and disillusioned if the organization stops growing or progressing.

41. 10. Environmental Conditioning: The place where the rating was carried out or done may not be conducive and this could make the entire exercise to be counter-productive and unrewarding.

42. Concluding Remarks • Setting up a performance appraisal system could be time consuming and costly. It is important that review of the system and its operation take place at regular intervals to ensure that it is meeting the needs which led to its introduction and those needs are still valid and relevant.

43. This can be ascertained through renewed and constant discussion with all parties or stakeholders involved with the system and by the analysis of the uses to which the information generated is being utilized.

44. However, whatever form appraisal takes, whether effective or ineffective in meeting its objectives, it is not unlikely that the process will create opportunity or expectations for further training for those who want and those that use the system.

45. Summary • The most likely reason for the adoption of performance appraisal is to draw attention to the state or level of current performance on the job in order to reward employees fairly and equitably and to identify those with potentials for promotions, training, demotion, transfers as the case may be.

46. Complete appraisal forms may be useful in providing a picture of the current health of the organization and the need for effective human resource planning in terms of succession planning, restructuring, manpower audit etc.

47. Minor problems either individually or collectively can be revealed or traced and same promptly addressed before they cause more or serious damage.

48. In conclusion, it may be pertinent to state that without a regular and effective follow up, the benefits of well conducted appraisal will be tantamount to dissipation of energy and precious time waste.

49. Discussion Questions • What role does performance appraisal play in the life of an organization? • Why is the open system of appraisal preferred to the closed system in the current time by organizations? • To what extent can performance appraisal be seen as an evaluative and development instrument? • “Performance appraisal as an assessment tool could generate positive as well as negative outcome” Discuss. • List out some of the problems associated with the use of appraisal system and suggest ways to ameliorate the identified problems.

50. Thank You