Description
Based upon the readings this week, conduct external research and apply what you have learned. If your research shows how the topic is applied in a certain company, do you agree or disagree with the company’s approach? If the article/video is research based or an article about trends in a certain topic, or studies being conducted, give an analysis of your thoughts on the topic, using concepts from the text, and how they are applied to that article. The paper should be at least 1 page. Be sure to include references.
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Chapter 2
Performance Management
Process
Copyright © 2019 Chicago Business Press
2-1
Overview
Prerequisites
➢ Performance Planning
➢ Performance Execution
➢ Performance Assessment
➢ Performance Review
➢
Copyright © 2019 Chicago Business Press
2-2
Overview of Performance
Management Process
Copyright © 2019 Chicago Business Press
2-3
Prerequisites
A.
B.
Knowledge of the
organization’s mission and
strategic goals
Knowledge of the job in
question
Copyright © 2019 Chicago Business Press
2-4
Knowledge of Mission
and Strategic Goals
◼
Strategic planning
• Purpose or reason for the
organization’s existence
• Where the organization is
going
• Organizational goals
• Strategies for attaining goals
Copyright © 2019 Chicago Business Press
2-5
Mission and Goals
▪
Cascade effect throughout
organization
• Organization →Unit →Employee
Copyright © 2019 Chicago Business Press
2-6
Knowledge of the Vision
https://www.youtube.com/watch?v=
yLwietqZ0F0
◼ Why was a compelling vision
important to Ford’s turnaround?
◼ How was the vision related to the
company’s issues?
◼ Is having a vision in and of itself
sufficient? Why or why not?
◼
Copyright © 2019 Chicago Business Press
7
Knowledge of the Job
◼
Job analysis of key components
• Activities
• Tasks
• Products
• Services
• Processes
Copyright © 2019 Chicago Business Press
2-8
Knowledge of the Job (Continued)
◼
KSAs required to do the job
• Knowledge
• Skills
• Abilities
Copyright © 2019 Chicago Business Press
2-9
Work Analysis
◼
Use a variety of tools
• Interviews
• Observation
• Questionnaires (available on the
Internet)
◼
Data collected from
• Job incumbents
• Supervisors
• Individuals responsible for creating a new
job
Copyright © 2019 Chicago Business Press
2-10
Work Analysis Follow-Up
◼
All incumbents should
• Review information
• Provide feedback
• Rate tasks and KSAs in terms of
Frequency
◼ Criticality
◼
Copyright © 2019 Chicago Business Press
2-11
Rater Biases
◼
Rating of frequency and criticality
of tasks and KSAs is susceptible
to:
• Self-serving bias
• Social projection and false consensus
bias
• Carelessness consensus bias
→ These biases exaggerate the importance
of certain tasks & KSAs based on the KSAs
that incumbents have
2-12
Copyright © 2019 Chicago Business Press
Rater Training
◼
Web-based training: Structure
• Takes only about 15 minutes
• Establishes common point of
reference via largely 5 steps
◼
In the 5 steps, participants basically
practice their rating skills
• As a result, reduces exaggeration
of the importance of certain task
and KSAs
Copyright © 2019 Chicago Business Press
2-13
Rater Training (Continued)
◼
Web-based training: 5 steps
1. Defines the rating dimensions
2. Defines the scale anchors
3. Describes behaviors indicative of
each rating dimension
4. Allows raters to practice their
rating skills, and
5. Provides feedback on the practice
Copyright © 2019 Chicago Business Press
2-14
Job Description
Job duties
◼ KSAs
◼ Working conditions
◼
Copyright © 2019 Chicago Business Press
2-15
Generic Job Descriptions
Occupational Informational
Network (O*Net)
http://online.onetcenter.org/
Copyright © 2019 Chicago Business Press
2-16
Snapshot of O*Net for Heavy and
Tractor-Trailer Truck Drivers
Copyright © 2019 Chicago Business Press
17
Performance Planning
Results
◼ Behaviors
◼ Development Plan
◼
Copyright © 2019 Chicago Business Press
2-18
Performance Planning:
Results
✓Key accountabilities
✓Specific objectives
✓Performance standards
Copyright © 2019 Chicago Business Press
2-19
Company Spotlight
Discover credit cards made performance
planning a key part of its strategic plan
◼ Steps include:
◼
• Assigning HR professionals to attend
business meetings
• Classroom and online learning for
managers
• Employee meetings to agree upon metrics,
create action plans, and follow up with
evaluations and ratings
20
Copyright © 2019 Chicago Business Press
Key Accountabilities
◼
Broad areas of a job for which
the employee is responsible for
producing results
Copyright © 2019 Chicago Business Press
2-21
Specific Objectives
◼
Statements of outcomes
• Important
• Measurable
Copyright © 2019 Chicago Business Press
2-22
Performance Standards
“Yardstick” to evaluate how well
employees have achieved each
objective
◼ Information on acceptable and
unacceptable performance, such as
• Quality
• Quantity
• Cost
• Time
◼
Copyright © 2019 Chicago Business Press
2-23
Performance Planning:
Behaviors
How a job is done
✓ Includes a discussion of
competencies
✓
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2-24
Competencies
◼
◼
Measurable clusters of KSAs
Critical in determining how
results will be achieved
Copyright © 2019 Chicago Business Press
2-25
Performance Planning:
Development Plan
Areas for improvement
✓ Goals to be achieved in each
area of improvement
✓
Copyright © 2019 Chicago Business Press
2-26
Performance Execution:
Employee’s Responsibilities
Commitment to goal achievement
▪ Ongoing requests for feedback and
coaching
▪ Communication with supervisor
▪ Collecting and sharing performance
data
▪ Preparing for performance reviews
▪
Copyright © 2019 Chicago Business Press
2-27
Performance Execution:
Manager’s Responsibilities
Observation and documentation
◼ Updates
◼ Feedback
◼ Resources
◼ Reinforcement
◼
Copyright © 2019 Chicago Business Press
2-28
Performance Assessment
Manager assessment
◼ Self-assessment
◼ Other sources (e.g., peers,
customers)
◼
Copyright © 2019 Chicago Business Press
2-29
Self-Assessment
https://www.youtube.com/watch?v=
IkYUDQCYGHA
◼ What did you see?
◼ What about this self-assessment
made it ineffective?
◼
Copyright © 2019 Chicago Business Press
30
Multiple Assessments Are
Necessary To…
Increase employee ownership
➢ Increase commitment
➢ Provide information
➢ Ensure mutual understanding
➢
Copyright © 2019 Chicago Business Press
2-31
Company Spotlight
Google’s performance management uses
a 360-degree review process, conducted
semi-annually
◼ Features include:
◼
• Focused on behaviors and results
• Based on a 5 point scale (1= needs
improvement, 5 = superb)
• Based on 6 criteria (adherence to Google
values, problem solving, execution, thought
leadership, leadership, presence)
• Managers meet and review ratings together to
reduce biases
32
Copyright © 2019 Chicago Business Press
Performance Review
Overview of Appraisal Meeting
◼
Past
• Behaviors and results
◼
Present
• Compensation to be received
◼
Future
• New goals and development
plans
Copyright © 2019 Chicago Business Press
2-33
Six Steps for Conducting
Productive Performance Reviews
Identify what the employee has
done well and poorly
2. Solicit feedback
3. Discuss the implications of
changing behaviors
1.
Copyright © 2019 Chicago Business Press
2-34
Six Steps for Conducting
Productive Performance Reviews
4.
5.
6.
Explain how skills used in past
achievements can help overcome
any performance problems
Agree on an action plan
Set a follow-up meeting and
agree on behaviors, actions, and
attitudes to be evaluated
Copyright © 2019 Chicago Business Press
2-35
Performance Management Process
Summary: Key Points
Ongoing process
✓ Each component is important
✓
❖If one is implemented poorly, the
whole system suffers
✓
Links between components must
be clear
Copyright © 2019 Chicago Business Press
2-36
Quick Review
Prerequisites
➢ Performance Planning
➢ Performance Execution
➢ Performance Assessment
➢ Performance Review
➢
Copyright © 2019 Chicago Business Press
2-37
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
Copyright © 2019 Chicago Business Press
Copyright © 2019 Chicago Business Press
1-38
Chapter 3
Performance Management and
Strategic Planning
Copyright © 2019 Chicago Business Press
3-1
Overview
Definition and Purposes of Strategic
Planning
◼ Linking Performance Management to
the Strategic Plan
◼ Strategic Planning Process
◼
• Critical Role of HR in Strategic Planning
• Devising an environmental (i.e., SWOT) analysis
• Produce state-of-the-science mission and vision
statements, objectives, and strategies
• Devise effective job descriptions
◼
Building Support
Copyright © 2019 Chicago Business Press
3-2
Strategic Planning: Definition
◼
Process
• Describe the organization’s
destination
• Assess barriers
• Select approaches for
moving forward
Copyright © 2019 Chicago Business Press
3-3
Strategic Planning: Goal
Allocate resources to provide the
organization with competitive
advantage
◼ Blueprint that defines how the
organization will allocate its
resources in pursuit of its most
critical and important objectives
◼
Copyright © 2019 Chicago Business Press
3-4
Strategic Planning: Purposes
Copyright © 2019 Chicago Business Press
3-5
Aligning Strategic Plan & Performance
3-6
Copyright © 2019 Chicago Business Press
Strategic Planning : Overview
◼
Organizational Strategic Plan
• Mission; Vision; Objectives; Strategies
◼
Unit Strategic Plan
• Mission; Vision; Objectives; Strategies
◼
Job Descriptions
• Tasks; Knowledge; Skills; Abilities
Copyright © 2019 Chicago Business Press
3-7
Linking Performance
Management and Strategic Plan
◼
◼
◼
The Balanced Scorecard Approach
What are key elements of the balanced
scorecard approach?
How can this approach create
congruence between performance
management and the strategic plan?
Copyright © 2019 Chicago Business Press
3-8
Strategic Planning Process
Critical Role of the HR Function
◼ Environmental (SWOT) Analysis
◼ Mission
◼ Vision
◼ Objectives
◼ Strategies
◼ Job Descriptions
◼
Copyright © 2019 Chicago Business Press
3-9
Strategic Planning Process
Critical Role of the HR Function
Communicate knowledge of
strategic plan
◼ Outline knowledge, skills, and
abilities (KSAs) needed for
strategy implementation
◼ Propose compensation systems
◼
Copyright © 2019 Chicago Business Press
3-10
Strategic Planning Process
Environmental Analysis
Identifies external and internal trends
◼ To understand broad industry issues
◼ Used to make decisions using “big
picture” context
Copyright © 2019 Chicago Business Press
3-11
Strategic Planning Process
Environmental Analysis
Internal Trends
◼
Strengths:
• Internal characteristics that
organization uses to its advantage
◼
Weaknesses:
• Internal characteristics that can
hinder success of the organization
Copyright © 2019 Chicago Business Press
3-12
Strategic Planning Process
Environmental Analysis
External Trends
◼
Opportunities:
• Environmental characteristics that can
help the organization succeed
◼
Threats:
• Environmental characteristics that can
prevent the organization from being
successful
Copyright © 2019 Chicago Business Press
3-13
Strategic Planning Process
Environmental Analysis
Trends to Consider
3-14
Copyright © 2019 Chicago Business Press
Strategic Planning Process
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)
Copyright © 2019 Chicago Business Press
3-15
Strategic Planning Process
Gap Analysis
Determines
Opportunity + Strength =
Leverage
◼ Opportunity + Weakness =
Constraint
◼ Threat + Strength =
Vulnerability
◼ Threat + Weakness = Problem
◼
Copyright © 2019 Chicago Business Press
3-16
Strategic Planning for the
Organization
Environmental and Gap Analyses
provide information for
organizations to decide:
◼ Who they are
◼ What they do
Copyright © 2019 Chicago Business Press
3-17
Conducting a SWOT Analysis
◼
◼
◼
Conducting a SWOT Analysis
When should organizations conduct a
SWOT Analysis?
What is the difference between
Weaknesses and Threats?
Copyright © 2019 Chicago Business Press
3-18
Company Spotlight
SWOT
Copyright © 2019 Chicago Business Press
3-19
Company Spotlight
SWOT
Copyright © 2019 Chicago Business Press
3-20
Company Spotlight
Gap Analysis
◼
◼
Provide alternative to hotels by providing
temporary housing that allows hosts to
make money and users to save money and
experience local culture.
Provide easy-to-use web platform that allow
hosts to easily list temporary housing by
posting their listing once, and users to
easily search and filter.
Copyright © 2019 Chicago Business Press
3-21
Mission
A good mission statement answers:
✓ Why does the organization exist?
✓ What is the scope of the
organization’s activities?
✓ Who are the customers served?
✓ What are the products or services
offered?
Copyright © 2019 Chicago Business Press
3-22
Mission Statement
Should Contain:
Copyright © 2019 Chicago Business Press
3-23
Vision
Statement of future aspirations
◼ Focuses attention on what is
important
◼ Provides context for evaluating
◼
• Opportunities
• Threats
Copyright © 2019 Chicago Business Press
3-24
A Good Vision Statement:
Eight Characteristics
Copyright © 2019 Chicago Business Press
3-25
Objectives
◼
What organization hopes to
achieve in the medium- to longrange period
•Next three to five years
Copyright © 2019 Chicago Business Press
3-26
Objectives
More specific information regarding
how mission will be implemented
◼ Basis for making decisions by keeping
outcomes in mind
◼ Allows for comparison of what needs
to be achieved versus what each unit,
group, and individual is achieving
◼ A source of motivation
◼ Provides employees with a more
tangible target for which to strive
◼
Copyright © 2019 Chicago Business Press
3-27
Strategies
Descriptions of game plans or how-to
procedures to reach the stated
objectives
◼ Address issues of:
• Growth
• Survival
• Turnaround
• Stability
• Innovation
• Talent Acquisition
• Leadership
◼
Copyright © 2019 Chicago Business Press
3-28
Strategic Plans at Unit Level
◼
◼
Every Unit mission statement,
vision statement, goals, and
strategies
Must clearly align with and be
congruent with Organization’s
mission statement, vision
statement, goals, and strategies
Copyright © 2019 Chicago Business Press
3-29
Job Descriptions
◼
◼
Need to be congruent with and
support the organization and unit
mission, vision, objectives, and
strategies
Provides information about the
various tasks performed, together
with a description of some of the
KSAs required for the position
Copyright © 2019 Chicago Business Press
3-30
Building Support—
Answering “What’s in It for Me?”
◼
For top management support:
• Emphasize that PM helps carry out an
organization’s vision
◼
For support from all levels:
• Clearly communicate nature and
consequences of PM
• Involve employees in the process of PM
design and implementation
Copyright © 2019 Chicago Business Press
3-31
Individual and Team
Performance
Organization and Unit mission, vision,
goals lead to →
◼ Performance management system,
which:
• Motivates employees
• Aligns development plans with
organization priorities
◼
Copyright © 2019 Chicago Business Press
3-32
What’s In It for Me (WIIFM)?
◼
◼
◼
Answering the What’s in it For Me
(WIIFM) question
How does answering this question build
support for the performance
management system?
What role does context play in crafting
the message about performance
management?
Copyright © 2019 Chicago Business Press
3-33
Quick Review
Definition and Purposes of Strategic
Planning
◼ Linking Performance Management to
the Strategic Plan
◼
• Critical Role of HR in Strategic Planning
• Devising an environmental (i.e., SWOT)
analysis
• Produce state-of-the-science mission and
vision statements, objectives, and strategies
• Devise effective job descriptions
◼
Building Support
Copyright © 2019 Chicago Business Press
3-34
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
Copyright © 2019 Chicago Business Press
Copyright © 2019 Chicago Business Press
1-35
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