CH-9-Performance-Management-Rewards
CH-9-Performance-Management-Rewards
PERFORMANCE
MANAGEMENT AND REWARDS
PERFORMANCE MANAGEMENT AND REWARDS
Apart from economic incentives, the other means used to improve employee performance are:
• 1. goal setting
• 2. streamlined organizational structure
• 3. better technology
• 4. new arrangements of working schedules
• 5. high involvement of employees
• 6. better motivation of employees
STAFFING
Effective performance begins with getting the right people, and then providing them with
the right training and the right environment. To achieve this, the staffing function of the
organization must be well implemented.
Staffing refers to the HR planning, acquisition, and development aimed at providing the
talent necessary for organizational success The staffing process consists of the following:
1. job analysis
2. Recruitment
3. selection
4. socialization
JOB ANALYSIS
The process of staffing starts with an understanding of the positions or jobs for which
individuals are needed in the organization. Job analysis is 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
After job analysis, the next step in the staffing process is the drawing of
people to apply for the various positions identified. This step is called
recruitment and it may be defined as a human resource management
practice designed to locate and attract job applicants for particular
positions,
Recruitment involves the following:
1. advertisement of a position vacancy
2. preliminary contact with potential job candidates
3. preliminary screening to obtain a pool of candidates
INTERNAL RECRUITMENT
It is a process for attracting job applicants from those currently working for the firm.
The advantages of internal recruitment are:
1. It is good public relations.
2. It builds morale.
3. It encourages good individuals who are ambitious.
The disadvantages of internal recruitment consist of the following:
4. It can be dysfunctional to the organization to utilize inferior internal sources only
because they are there, when excellent candidates are available on the outside.
5. It may generate infighting among the rival candidates for promotion.
METHODS OF INTERNAL RECRUITMENT
Employee referrals is a method of recruitment in which organizations ask their employees to solicit applications from qualified
are: friends and associates.
The advantages of this method:
1. Applicants referred by employees tend to perform better and remain with the organization longer than applicants recruited by
other means.
2. Employees tend to be good recruiters because they know a lot about both the job being filled and the
individual, and can therefore accurately judge the "fit" character to fall under the job requirement.
3. Employees make good recruiters because believing their reputation is on the line, they are encouraged the highest qualified
applicants.
The disadvantage of this method:
is the limited choice offered 10 the organization. Employees will tend to recruit only those they know. Even if some are better
qualified, they cannot be considered unless they are referred to by employees
APPLICANT-INITIATED RECRUITMENT
After recruitment, the next step in the staffing process is selection. This involves
assessing and choosing among job candidates. The selection process involves the
following steps:
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
Training
Training is the process of changing employee behavior, attitudes, or opinions through
some type of guided experience. Training the individual employee occurs not only
initially but anytime improved skills are needed to meet changing job requirements.
There are many ways to conduct training programs and they may be classified as follows:
1. on-the-job training:
2. off-the-job training
• On-the-lob Training.
This training method is conducted while employees perform job-related tasks. The common
forms of on-the-job training are:
1. internships
2. apprenticeships
3. job rotation.
• Internships are opportunities for students to gain real world experience.
They are often offered during summer breaks and may be with or
without payment.
This type of training deals with work skills in settings away from their ordinary workplace. The various off-the-job training
techniques are:
1. Classroom lectures. These consist of lectures designed to communicate specific interpersonal, technical, or problem-
solving skills.
2. Videos and films. This training method uses various media production to demonstrate specialized skills that are not
easily presented by other training methods.
3. Simulation exercises. This is a training method that occurs by actually performing the work. This may include case
analysis, experiential exercises, role playing, or group decision making.
4. Computer-based training. This is a training method that Computer the work environment by programming a computer to
imitate some of the realities of the job.
5. Vestibule training. This is a training method which is done but conducted away on actual equipment used on the job,
which is actually a simulated from the actual work setting work station.
6. Programmed instruction. This is a training method where training materials are condensed into highly organized, logical
sequences. It may include computer tutorials, interactive video disks, or virtual reality simulations.
CAREER PLANNING AND DEVELOPMENT
1. Absolute
standards:
2.Relatives
standards: and
3.Objectives.
SAMPLE OF ADJECTIVE RATING SCALE ITEMS
AND FORMAT
The advantage of adjective rating scale
• Is that it is practical and cost little to develop.
The disadvantages:
1. it does not clearly indicate what a person must do to achieve a given
rating.
2. It does not provide a good mechanism for providing specific,
nonthreatening feedback. 3. Accurate ratings are not likely to be
achieved because the points on the rating scale are not clearly
defined.
THE FORCED-CHOICE APPRAISAL
The third approach to appraisal makes use of objectives. This approach, also
known as management by objectives (MBO), is a process of joint goal setting
between a supervisor and subordinate. It is also a process of converting
organizational objectives into individual objectives. MBO consists of four
steps: goal setting, action planning, self-control, and periodic reviews.
In goal setting, the individual objectives are set based on the organization's
overall objectives. These goals are agreed upon and then become the
standards by which the employee's results will be evaluated.
In action planning, realistic plans are developed to attain the objectives.
The advantages of MBO are the following:
1. it improves job performance by monitoring and directing behavior;
2. it is practical and inexpensive; and
3. it fosters better communication between employees and supervisors.
The disadvantages of MBO are the following:
4. it does not specify the behavior required to reach goals;
5. it tends to focus on short-term goals;
6. the successful achievement of MBO goals may be partly a function of factors outside the worker's controls;
7. MBO does not provide a common basis for comparison of performance standards; and 5. it often fails to gain
acceptance.
ERRORS IN PERFORMANCE APPRAISAL
• Intrinsic rewards are those that the worker receives from the job itself, such as pride in
one's work, a feeling of accomplishment, or being part of a team. These rewards are self-
regulated as the worker is not dependent on an outsider, such as the manager, to provide
for them. Managing intrinsic work rewards present the additional challenge of designing a
work setting so that employees can, in effect, reward themselves for a job well done.
• Extrinsic rewards are those that the workers get from the employer, usually money, a
promotion, or benefits, Financial rewards are those that enhance an employee's financial
well-being directly through wages, bonuses, profit sharing, and the like.
• Financial rewards are those that enhance an employee's financial well-being directly through
wages, bonuses, profit sharing, and the like.
• Nonfinancial rewards are indirect enhancement of an employee's financial well-being. This is
done through supportive benefits like pension plans, paid vacations, paid sick leaves, and
purchase discounts.
• Performance-based rewards are those given using performance as basis. These rewards take
the form of commissions, piecework pay plans, incentive systems, group bonuses, or other
forms of merit pay.
• Membership-based rewards refer to those that are given to all employees regardless of
performance. This type includes cost-of- living increases; benefits; and salary increases
attributable to labor- market conditions, seniority or time in rank, credentials such as a college
degree, or future potential such as a new MBA degree from a prestigious university.