Documente Academic
Documente Profesional
Documente Cultură
MGMT20124/20129
People and Organisations
Table of Contents
Introduction
Learning objectives
Overview
Perfromance Management
Causes of Poor Performance
Poor Perfromance vs Misconduct
The Potential Productivity Matrix
Managing Difficult People
Measuring Perfromance
Progressive Disicpline
The Legal Framework
Terminating the Employment Relationship
Related Competencies
Guided Readings
Journal Readings
Introduction
This topic discusses aspects of performance management, linking people
management to business performance and developing performance management
practices. Many of the concepts and strategies discussed in this unit rely on an
appreciation of the conceptual units that cover the topics of personality, individual
differences, motivation, emotions and the context in which we work, both the
organisational and the external environments.
Several critical units underpin this unit include the Developing Capability Units of:
Personality, Developing Others, Empathy and Trust and Conflict Management. In
addition the MBA Foundation Courses of Business Communication, which addresses
verbal and non-verbal communication, interviewing skills etc., addresses critical
skills in performance management, and Business Ethics and Sustainability that
emphasizes concepts related to process and treating people with respect and
dignity,
The ability to discuss performance issues with employees, particularly poor
performers, is one of the greatest challenges for managers. The effectiveness of
our approach this will depend on not only our developed competencies mentioned
above but also our ability to accurately diagnose problems and our willingness to
plan for the various contingencies which may develop from performance
management interviews.
Learning objectives
This unit has the following learning objectives:
an appreciation of the significance of performance management in the
contemporary business context
a sound understanding of the relationship between strategy, performance
management and business performance
an appreciation of the difference between performance management and
performance measurement in an organisational context.
An understanding of the causes f poor performance and the implication for
each
Identification of different performance standards using the Potential
Productivity Matrix as a diagnostic tool
An understanding of the characteristics of difficult people and the
strategies that can be employed to manage these individuals.
Identify the key competencies required of managers to enable effective
performance management interviews
Overview
Contemporary performance management is driven by responses to the pressures of
global competition, cost reduction, downsizing and restructuring, and the pressure
for greater employee accountability.
High-performance global organizations are placing a bigger emphasis on
performance management by translating and embedding the organizations business
objectives and strategy into individual job objectives and performance standards.
Such organizations regard performance management not only as a means by which
to reward high performing employees, but also a way to signal desired employee
behaviours and the type of organisational culture that will best suit the
organisational strategy and business objectives.
The prevailing view in contemporary business is that organizations that manage
employee performance will in turn outperform others in terms of greater
productivity, higher profits and better customer service. Increasingly, employee
performance measures are being tied to overall business objectives and strategy.
However, it is important to bear in mind that performance can mean different
things to different people and within different organizations.
Performance Management
Performance management is considered to be an ongoing process of managing
people with the aim of increasing job-related success. Armstrong (2000) suggests
that it is a means of getting better results from the organization, teams and
individuals by understanding and managing performance within an agreed
framework of planned goals, standards and attribute/competence requirements.
He suggests that Performance Management is a strategic and integrated process
that delivers sustained success to organizations by:
Performance
is
something
that
the
person
leaves
behind
and
that
exists
apart
from
the
purpose (Kane 1996). Performance means both behaviours and results. Behaviours
emanate from the performer and transform performance from abstraction to
action. Behaviours are outcomes in their own right the product of mental and
physical effort applied to tasks and can be judged apart from results (Brumbach
1988).
that
threatens
others,
either
physically
or
Managers need to be mindful that many of the behaviours that are classified as
misconduct are also illegal in many jurisdictions. It is not only employees who
may be guilty of misconduct but also managers and supervisors who often
misunderstand the concept of managerial authority or managerial prerogative to
mean that they can demand compliance from employees. It is important to
understand the limits to managerial authority as businesses, be they public or
private, are not usually military organisations and managers can only act within the
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As with all other performance problems, accurate diagnosis of the cause of the
problem is paramount. In the case of Difficult People it is important to distinguish
whether they are in distress as distinct from being difficult.
Wheeler (1994) provides more specific guidance on the different types of difficult
people and puts forward a range of strategies for managing these people.
As with the statement above,
Wheeler confirms the importance of diagnoses suggesting managers ask the
following questions:
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How often is this situation happening? Most of the time, frequently, rarely?
Do you have a personal prejudice against the person or situation?
Can you specific about what you want changed?
Measuring Performance
The general literature on performance management also refers to hard versus
soft approaches to HRM, and this applies to the area of performance management
as well. As human resources are increasingly seen as crucial to adding value and
enhancing business performance, there has been a growing trend toward
emphasising a harder, more measurement oriented approach to performance
management.
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They also note that that many HR texts and authors do not discuss the counselling
or disciplinary interview, and the link between this process and dismissal is often
overemphasised. Thus, insufficient attention is given to the approach managers
should take to ensure a positive and fair process. (This is discussed in more detail
below)
360-degree Feedback
The 360-degree feedback process, which is also known as multi-rater feedback,
multisource feedback, or multisource assessment, is feedback process that uses all
inputs around an employee (Bracken, et al., 2001).
The term "360" refers to the 360 degrees of a circle which places the employee at
the centre of that circle with feedback assessments coming from a number of
work/job related stakeholders. These traditionally include: the employees
manager/supervisor, their peers, and their subordinates. Some 360-degree
assessments include customers and suppliers to gain a full picture of both internal
and external performance achievement (Maylett & Riboldi, 2007).
Research indicates a mixed picture with 360-degree feedback suggesting that it
should be applied with other forms of performance assessment to avoid any
potential organisational or individual biases (Vinson, 1996). Other research studies
have identified that self-ratings are generally significantly higher than the ratings
of others (Nowack, 1992; Yammarino & Atwater, 1993).
Some authors argue that 360 processes are much too complex to make broad
generalizations about their effectiveness (Bracken, Timmreck, Fleenor, & Summers,
2001b; Smither, London, & Reilly, 2005). Smither et al. (2005) have suggested that
the question for researchers and practitioners is not so much does multisource (360
degree) feedback work, as Under what conditions and for whom is multisource
feedback likely to be beneficial? (p. 60).
Progressive Discipline
Robbins, DeCenzo and Walter (2010) describe the immediate performance interview
process as progressive discipline.
They maintain that discipline needs to be applied in steps - progressively. It should
get more substantive-serious as or when an offence is repeated, thus the concept
of progressive. The logic of progressive disciplines is that stronger penalties for
repeated offences discourages repetition, that the actions taken must be
consistent with industrial rulings, and that mitigating factors need to be
considered.
They suggest that progressive disciplinary action commences with a verbal warning,
may proceed to written reprimands, through to suspension and finally, in the most
serious cases, dismissal.
The Performance or Discipline Interview should be part of a clear process that
escalates as performance problems escalate. Based on Australian Industrial courts,
and the NSW Employer Association Guidelines, the following is an example of a
formalised system.
1.
2.
3.
4.
An informal discussion
A first formal Interview
A second formal Interview with a written warning
A third Interview, with written confirmation of consequences of continued
poor performance
5. Termination
At all stages documentation must be maintained. Depending on the organisation
and the various state and federal legislations, as the process progresses, more
senior managers and employee advocates may become involved.
Related Competencies
As identified in the Introduction to this Unit Performance Management involves
numerous activities and interpersonal skills and abilities, many of which are the
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subject of Units in the Course. The teaching team has therefore tried to identify a
range of competencies other than those examined in Units such as Empathy and
Trust and Developing Others and in the Business Communications Course dealing
with Verbal and Non-verbals, interviewing, assertiveness etc.
As noted above both Goleman et al. (2002) and Quinn et al (2015) identify conflict
management as key competency. Goleman notes that Negotiating and Resolving
Conflict as a competency with the Working with Others cluster whilst Quinns
model notes Managing Conflict as a competency within the Facilitator
role.
Critical Competency 1: Analytical Problem Solving and Decision / Judgment
Making Abilities
As identified the discussion section of this unit, diagnosing the cause of a
performance problem is crucial in determining the appropriate approach, be it a
performance counseling interview or a more advance stage of the process. the
correct management or resolution strategy. Pedler et al. (2013) Analytical Problem
Solving and Decision / Judgment Making Abilities, which appears in the Level 2 Situation Specific Abilities and Response Tendencies group, is therefore advocated
as a critical competency. This would be similar to Boyatzis (1982) Diagnostic Use of
Concepts from the Goal and Action Management Cluster. Whilst not a direct
parallel, Quinn et al. (2008) Monitoring Individual Performance has a direct
relationship to performance management and it is this sort of data that assists
managers to identify performance gaps.
Critical Competency 2: Perceptual Objectivity
Boyatzis (1982) Perceptual Objectivity from the Focus on Others Cluster is
advanced as an important competency in managing performance. Clear when
dealing with poor performers managers, the issues are often unclear and a degree
of tension is usually present. Managers must therefore be able to maintain a degree
of objectivity about both the issue and the person. As identified the discussion
section of this unit, diagnosing the cause of a performance problem is crucial in
determining the appropriate approach, be it a performance counseling interview or
a more advance stage of the process.
Critical Competency 3: Emotional Resilience
Similar to Conflict scenarios Pedler et al. (2013) the competency of Emotional
Resilience which appears in the Level 2 - Situation Specific Abilities and Response
Tendencies group is suggested as an important management capability. As
mentioned above, performance management issues, particularly dealing with poor
performers, can be extremely stressful. The ability to remain calm assists with
Perceptual Objectivity and thus better decision-making. Boyatzis (1982) Focus on
Others Cluster, which identifies Stamina and Adaptability as a critical competency,
which is not dissimilar to Emotional resilience
Required Reading
Reading 1
Carlopio, J. & Andrewartha, G. (2012) Developing Management Skills, 5th edn,
Pearson, Sydney. Chapter 14
Or
Whetten DA & Cameron KS (2011) Developing Management Skills, 7th edn,
Prentice Hall, Englewood Cliffs. Supplement B.91
The chapter in the Carlopio and Andrawartha (2012) or its parallel international
text, the Whetten and Cameron 2011) deals with critical skills that are
fundamental to effective performance management. The discipline interview, the
performance appraisal interview, tools such as 360 Degree feedback all require the
manager to have well developed interview skills. As you read this chapter take note
that range of question styles are presented. Managers need to be able to structure
questions in such a way that key information is surfaced during the performance
management interview. They also provide a brief overview of performance-review
interviews and the range of formats that can be adopted.
Reading 2
Tovey, M. (2001) Managing performance improvement. Frenchs Forest: Prentice
Hall.
References
Armstrong, M, 2004. Performance Management: Key strategies and practical
guidelines, Kogan Page, London.
Bracken, D.W., Timmereck, C.W., & Church, A.H. 2001a. The handbook of
multisource feedback. Jossey-Bass, San Francisco.
Bracken, D.W., Timmreck, C.W., Fleenor, J.W., & Summers, L. 2001b. 360 degree
feedback from another angle.Human Resource Management, Vol. 40, Iss. 1, pp. 320.
Brumbach GB, 1988.. Some ideas, issues and predictions, about performance
management. Public Personnel Management, Winter: pp. 387- 402.
Davis, K
& Newstrom, J, 1985, Human behavior at work: Organizational
Behaviour, McGraw Hill, New York
Dessler, G, Griffiths, J Lloyd-Walker, B, 2007. Human Resource Management, 3rd
edn, Pearson, Frenchs Forrest.
Kane, JS. 1996. The conceptualization and representation of total performance
effectiveness. Human Resource Management Review, Vol. 6, No. 2, pp.123-145.
Maylett, T. M., & Riboldi, J. (2007). Using 360 Feedback to Predict Performance.
Training + Development, September, 48-52.
Nankervis, AR, Compton, RL & McCarthy, TE 1996. Strategic Human Resource
Management, Nelson, Melbourne.
Nowack, K.M. 1992. Self-assessment and rater assessment as a dimension of
management developmen. Human Resource Development Quarterly, Summer, pp.
141-155.
Robbins, SP, DeCenzo, DA Walter, R 2010. Supervision Today! 6 th edn, Pearson
Higher Education, Upper Saddle River
Rudman, R. 1995. Performance planning and review: Making employee appraisals
work. Pitman, South Melbourne.
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