PERFORMANCE

MANAGEMENT AND
REWARDS
PERFORMANCE MANAGEMENT
refers to the procedures and systems designed
to improve employee outputs and performance,
The other means used to improve
employee performance
STAFFING
refers to the HR planning, acquisition, and development aimed
at providing the talent necessary for organizational success.

Staffing Process
 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:

1. preparing job descriptions

2. evaluating and classifying jobs
3. training and career development
4. performance appraisal
5. other HR aspects
 Recruitment

Define as a human resource management practice designed to

locate and attract job applicants for particular position.

Recruitment involves the following:

1. Advertisement of a position vacancy

2. Preliminary contact with potential job applicants
3. Preliminary screening to obtain A pool
of candidates
 Recruitment

2 Types of Recruitment: Methods of Internal Recruitment:

 Recruitment

2 Types of Recruitment: Methods of External Recruitment:

 Selection

Involves assessing and choosing among job candidates.

Selection process involves the following:

1. Completing the application form

2. Conducting an interview
3. Completing any necessary tests
4. Background investigation
5. Physical and medical examination
6. A decision to hire or not.
 Socialization

It involves orienting new employees to the organization and its

work units.

New employees are provided with information about the

following:

1. Key organization factors

2. Department and job-related issues

TRAINING AND CAREER PLANNING AND DEVELOPMENT

Is the process of changing employee behavior, attitudes, or

opinions through some type of guided experience.

Ways to conduct training programs

1. On-the-job training;
2. Off-the-job training.
 On-the-job Training

Is conducted while employees perform job-related tasks.

Common forms of on-the-job training

1. Internships
2. Apprenticeships
3. Job rotation
 Off-the-job Training

Deals with work skills in settings away from their ordinary

workplace.

Off-the-job training techniques:

1. Classroom lectures
2. Videos and films
3. Simulation exercises
4. Computer-based training
5. Vestibule training
6. Programmed instruction
 CAREER

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 stage
Advancement stage
Maintenance stage
Retirement stage
 Career Plateaus

Situation in which, for either organizational or personal reason,

the probability of moving up the career ladder is low.

Three types of career plateaus:

1. Structural plateau
2. Content plateau
3. Life plateau
 Performance Appraisal

As the process of evaluating the performance of employees,

sharing that information with them,

Function of Performance Appraisal

1. To give employees feedback on performance

2. To identify the employee’s developmental needs
3. Promotion and reward decisions
4. Demotion and termination decision
5. Develop information about the organization’s
selection and placement decision
CRITERIA FOR PERFORMANCE
APPRAISAL
THE PROCESS OF PERFORMANCE APPRAISAL

 Establishment of performance standards

 Mutually set measurable goals
 Measure actual performance
 Compare actual performance with standards
 Discuss the appraisal with the employee
 If necessary, initiate corrective action
Methods in Performance
Appraisal
 1. Absolute
Standards
The subjects are not compared with other persons.

6 methods of Absolute Standards:

• Essay Appraisal
• Critical Incident Appraisal
• Checklist
• Adjective Rating Scale
• Forced Choice
• Behaviorally Anchored Rating Scales
 1. ESSAY APPRAISAL
• An appraiser write a narrative about the employee.
• The employees strengths and weaknesses are
describe and recommendations development are
indicated.
• Point out the unique characteristics of employee.
DISADVANTAGES:
• Time consuming;
• The quality of appraisal may be influenced by the
appraiser’s writing skills and composition style;
• It tends to be subjective and may not focus on
relevant aspects of job performance.
2. CRITICAL INCIDENT APPRAISAL

• Requires effective or ineffective performance for each

employee being appraised.
• The critical incident appraisal can be very useful if the
appraiser is given enough time to observe the subject
employee.
 3. CHECKLIST

• A performance appraiser method

wherein the evaluator uses a list of
behavioral descriptions and check
of those behaviors that apply to
the employee.
ADVANTAGE:
• Reduces some bias since the rater and the scorer is
different.

DISADVANTAGE:
• A checklist of items must be prepared for each job categories and
that is costly in terms of materials and time consumed.
 4. ADJECTIVE RATING SCALE:
• Graphic Rating Scale
• Traits listed a number of traits and a range of
performance for each.
ADVANTAGE:
• It is practical and cost little time to develop.

DISADVANTAGES:
• It does not clearly indicate what a person must do to achieve a given training.
• It does not provide a good mechanism for providing specific, non threatening
feedback.
• Accurate things are not likely to be achieved because the points on the rating
scale are not clearly defined.
 5. FORCED CHOICE APPRAISAL

• The rater must choose between two or more

specific statements about an employee work
behavior.
• The statements are ranked from most to least
descriptive.
 6. BEHAVIORALLY ANCHORED
RATING SCALE (BARS)
• Comprised of traits anchored by job behaviors.
• The typical BARS includes seven or eight traits called
“dimensions” each anchored by seven or nine-point
scale.
• A BARS anchors each trait with examples of specific
behaviors that reflect varying level of performance.
 extremely poor

The professor single out students in class for

unreasonable criticism.

The professor exhibits a number of annoying

fair
habits when lecturing.

The professor speaks in a clear understandable

manner.

The professor uses examples when trying to

emphasize a point.

The professor answer students question a

outstanding clear, concise and accurate manner.

AN ILLUSTRATION OF A BARS FOR JOB OF COLLEGE PROFESSOR

ADVANTAGES:

• Ability to direct and monitor behavior. The

behavioral anchors let employees to know what
type of behavior are expected to them which gives
the appraiser the opportunity to provide
behaviorally based feedback.
DISADVANTAGES:
• Difficulty of selecting once behavior on the scale that is
most indicative of the employees performance level.
Sometimes, an employee may exhibit behavior at both
ends of the scale so the rater would not know which rating
to assign.
 RELATIVE STANDARDS:

Appraisal method compare individuals against other individuals.

The most popular in this category are:

-Group order making

-Individual ranking

-paired comparison
Objectives- process of joint goal setting between a supervisor
and subordinate, process of converting organizational
objectives into individual objectives.

MBO Consist of four steps:

• Goal setting

• Action plan

• Self-control

• Periodic reviews
 The advantages of
MBO
- Improve job performance by
monitoring and direct behavior.
- Practical and inexpensive
- Foster better communication
between employee and
supervisors.
The disadvantages
of MBO
- Does not specify the behavior required to
reach goals
- Tends to focus on short terms goals
- Successful achievement of MBO goals may
be partly a function of factors outside the
workers controls .
- MBO doesn’t provide a common basis for
comparison of performance standards.
- Often fails to gain acceptance .
ERRORS IN PERFORMANCE
APPRAISAL
The subjects are not compared with other persons.

• Halo Error
• Leniency Error
• Central Tendency Error
• Recency Error
• Personal Bias Error
REWARDS
Final requirement is necessary to ensure effective
performance

TYPES OF ORGANIZATIONAL INCENTIVES

• Intrinsic Rewards or Extrinsic Rewards

• Financial Rewards or Nonfinancial Rewards
• Performance-based Rewards or Membership-
based Rewards