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Performance

Management &
Rewards
Performance Management

 - refers to the procedures and systems designed to


improve employee outputs and performance, often
through the use of economic incentive system.

Others 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
Performance Management & Rewards
Staffing
STAFFING

- refers to the HR planning , acquisition and


development aimed at providing the talent necessary
for organizational success.

The staffing process consists of the ff.


1. Job analysis
2. Recruitment
3. Selection
4. Socialization

Performance Management & Rewards


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 the job description
2. Evaluating and classifying jobs
3. Training and career development
4. Performance appraisal
5. Other HR aspects

Performance Management & Rewards


Job Analysis

To meet the requirements specified in the job description,


the job specification is derived.

In a typical job specification, requirements about the


following are indicated:
1. Education and experience
2. Technical knowledge
3. Physical aptitudes and abilities
4. Interpersonal and communication skills
5. Analytical aptitudes and abilities
6. Creative abilities
Performance Management & Rewards
Recruitment

 - a human resource management practice designed to


locate and attract job applicants for particular
positions.

Recruitment involves the following:


1. Advertisement of the position vacancy

2. Preliminary contact with potential job candidates

3. Preliminary screening to obtain a pool of candidates

Performance Management & Rewards


Internal recruitment

 - a process for attracting job applicants from those


currently working for the firm.

Performance Management & Rewards


Advantages of Internal Recruitment

1. It is good public relations.


2. It builds moral.
3. It encourages good individuals who are ambitious.
4. It improves the probability of a good selection, since
information on the individuals performance is readily
available.
5. It is less costly than external recruitment.
6. Those chosen internally already know the organization.
7. When carefully planned, promoting from within can
also act as a training device for developing middle and
top-level managers.

Performance Management & Rewards


Disadvantages of Internal Recruitment

1. 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.
2. It my generate infighting among the rival candidates for
promotion.
3. It may decrease the moral levels of those not selected.
4. It may promote “inbreeding”.

Performance Management & Rewards


Methods of Internal Recruitment

1. Computerized Career Progression System (CCPS)

2. Supervisor Recommendation

3. Job Posting

4. Career Development System

Performance Management & Rewards


Methods of Internal Recruitment

 Computerized Career Progression System (CCPS)


- Is one that stores extensive amounts of
information about employees of the company.
- It is a useful means of recruiting people
currently employed by the organization.

Performance Management & Rewards


Methods of Internal Recruitment

 Supervisor Recommendations
- When a supervisor needs to fill a certain
vacancy in his unit, he is in his best position to identify
the person who fits the job.

Performance Management & Rewards


Methods of Internal Recruitment

 Job Posting
- a method of internal recruitment in which a job
vacancy notice is posted and all qualified employees
may bid.

Performance Management & Rewards


Methods of Internal Recruitment

 Career Development System


- Under this method, the organization places
“fast-track” or high-potential employees on a career
path where they are groomed for certain target jobs.

Performance Management & Rewards


External Recruitment

 - it is a process of attracting job applicants from


outside the organization. It is undertaken when no
suitable candidates are available from within the
organization

 - this recruitment source tends to bring in ‘’new


blood’’ and fresh ideas to the organization

Performance Management & Rewards


Methods of External Recruitment

1. Employee referrals

2. Applicant-initiated recruitment

3. Help-wanted advertisements

4. Private employment agencies and executive search firms

5. Campus recruiting

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Methods of External Recruitment

 Employee referrals
- is a method of recruitment in which
organization ask their employees to solicit applications
from qualified friends and associates

Performance Management & Rewards


Methods of External Recruitment

 Applicant-initiated Recruitment
- is a method of external recruitment in which an
organization accepts unsolicited applicants or resumes
from individuals interested in working for the
organization

Performance Management & Rewards


Methods of External Recruitment

 Help-wanted Advertisement
- Is a method of external recruitment in which
an organization places an advertisement for the
position in the appropriate media such as newspaper,
magazine, and the like

Performance Management & Rewards


Methods of External Recruitment

 Private Employment Agencies and Executive Search


Firms
- In this method, the hiring organization initiates
the recruitment process by contacting the appropriate
agency or firm and informing it of the qualifications
needed for the job in question

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Methods of External Recruitment

 Campus recruiting
- In which the organization’s recruiter visit
various college and university campuses to recruit
individuals for positions requiring a certain degree

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Selection

- assessing and choosing among job candidates.

The selection process involves the ff. 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

Performance Management & Rewards


Socialization

- it involves orienting new employees to the


organization and its work units, especially the work
units where the newly hired employee will be working.

Performance Management & Rewards


Training and
Career Planning
and Development
TRAINING

- is the process of changing employee behaviour,


attitudes, or opinions through some type of guided
experiences

Training is classified as follows:


 On-the-job training
 Off-the-job training

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On-the-job Training

-this training method is conducted while


employees perform job related tasks

- it is the most direct approach to training

 The Common Forms of On-the-job Training


1.1. Internships
1.2. Apprenticeships
1.3. Job Rotation

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On-the Job Training

1.1. Internships
- are opportunities for students to gain real world
experiences. They are often offered during summer breaks and
may be with or without payment.

1.2. Apprenticeships
- involve learning a trade from an experienced work.

1.3. Job Rotation


- provides a broad range of experiences in different kinds of
jobs in an organization. It is often used to provide background
for future managers and is sometimes used to try alleviate worker
boredom.

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Off-the-job Training

- this type of training deals with work skills in


settings away from their ordinary workplace.

 The various off-the-job training techniques are:


2.1 Classroom Lectures
2.2 Videos and Films
2.3 Simulations Exercise
2.4 Computer-based training
2.5 Vestibule Training
2.6 Programmed instructions
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Off-the-job Training

2.1 Classroom Lectures


- consist of lectures designed to communicate specific
interpersonal, technical, or problem-solving skills

2.2 Videos and Films


- uses various media production to demonstrate
specialized skills that are not easily presented by other training
methods

2.3 Simulation Exercises


- occurs by actually performing the work. This may
include case, analysis, experiential exercises, role playing or
group decision-making.
Performance Management & Rewards
Off-the-job Training

2.4 Computer-based training


- simulates the work environment by programming a
computer to imitate some of the realities of the job.

2.5 Vestibule training


- done on actual equipment used on the job, but
conducted away from the actual work setting which actually is
a simulated work station.

2.6 Programmed instruction


- training materials are condensed into highly organized,
logical sequences. It may include computer tutorials, interactive
video disks, or virtual reality simulations.
Performance Management & Rewards
Career Planning and Development

Career Stages:
 Establishment Stage

 Advancement Stage

 Maintenance Stage

 Retirement Stage

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Maintenance Stage

 Career Plateau

 Structural Plateau

 Content Plateau

 Life Plateau

Performance Management & Rewards


Performance
Appraisal
Performance Appraisal

 the process of evaluating performance of employees,


sharing that information with them and searching for
ways to improve their performance

Performance Management & Rewards


Functions of Performance Appraisal

1. Give employees feedback on their performance

2. Identify the employee’s developmental needs

3. Make promotion and reward decisions

4. Make demotion and termination decision

5. Develop information about the organization’s

selection and placement decision

Performance Management & Rewards


Criteria for Performance Appraisal

1. Individual Task Outcomes

2. Behaviors

3. Traits

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The Process of Performance Appraisal

1. Establishment of performance standards

2. Mutually set measurable goals

3. Measure actual performance

4. Compare actual performance with standards

5. Discuss the appraisal with the employee

6. If necessary, initiate corrective action

Performance Management & Rewards


Methods of Performance Appraisal

1. Absolute Standards

2. Relative Standards

3. Objectives

Performance Management & Rewards


ABSOLUTE STANDARDS

 Under this approach, the subjects of appraisal are not


compared with other persons.

Methods of Absolute Standards


1. the essay appraisal
2. the critical incident appraisal
3. the checklist
4. the adjective rating scale
5. forced choice
6. behaviorally anchored rating scales.
Performance Management & Rewards
Absolute Standards

 Essay Appraisal
- An appraiser writes a narrative about the
employee. The employee’s strengths and weaknesses
are described and recommendations for development
are indicated.

Performance Management & Rewards


Disadvantages of Essay Appraisal

1. Very time consuming


2. The quality of the appraisal may be influenced by
the appraiser’s writing skill and composition style.
3. It tends to be subjective and may not focus on
relevant aspects of job performance.

Performance Management & Rewards


Absolute Standards

 Critical Incident Appraisal


- requires effective or ineffective performance for
each employee being appraised. These incidents are
critical incidents.

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Absolute Standards

 Checklist
- the evaluator uses a list of behavioral
descriptions and checks off those behaviors that apply
to the employee

Performance Management & Rewards


Advantages & Disadvantages of Checklist

Advantage:
-reduces some bias since the rater and the scorer
are different.

Disadvantage:
- when there are many job categories, a checklist
of items must be prepared for each job categories and
that is costly in terms of materials and time consumed.

Performance Management & Rewards


Absolute Standards

 Adjective Rating Scale


- also known as graphic rating scale, is a
performance appraisal method that lists a number of
traits and a range of performance for each. The traits
listed are assumed to be necessary to successful job
performance.

Performance Management & Rewards


Advantages & Disadvantages of Adjective Rating Scale

Advantage:
-practical and cost little to develop.

Disadvantage:
-it does not clearly indicate what a person must do
to achieve a given rating.
-it does not provide a good mechanism for providing
specific, nonthreatening feedback.
-accurate ratings are not likely to be achieved
because the points on the rating scale are not clearly
defined.

Performance Management & Rewards


Absolute Standards

 Forced-choice Appraisal
- The rater must choose between two or more
specific statements about an employee’s work behavior.
The supervisor or others familiar with the ratee’s
performance evaluate how applicable each statement
is. Oftentimes the statements are ranked from most to
least descriptive.

Performance Management & Rewards


Absolute Standards

 Behaviorally Anchored Rating Scale (Bars)


- a rating instrument comprised of traits anchored
by job behaviors. Appraisers select the behavior that
best describes the worker’s performance level. The
typical BRS includes seven or eight traits called
“dimension” each anchored by a seven or nine-point
scale.

Performance Management & Rewards


Advantages and Disadvantages of BARS

 The greatest advantage of BARS is its ability to direct and


monitor behavior. The behavioral anchors let employees
know what types of behavior are expected of them which
gives appraisers the opportunity to provide behaviorally
based feedback.

 The weakness of BARS is the difficulty of selecting the one


behavior on the scale that is most indicative of the
employee’s performance level. Sometimes, an employee
may exhibit behaviors at both ends of the scale, so the
rater would not know which rating to assign.

Performance Management & Rewards


RELATIVE STANDARDS

 - This category of appraisal methods compare


individuals.

The most popular in this category are:


 Group Order Ranking

 Individual Ranking
 Paired Comparison

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Relative Standards

 Group Order Ranking


- is a relative standard of performance
characterized as placing employees into a particular
classification such as top “one-fifth”.

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Relative Standards

 Individual Ranking
- this method requires the evaluator merely to
list the employees in order from highest to lowest.

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Relative Standards

 Paired Comparison
- subordinates are placed in all possible pair
and the supervisor must choose which of the two in
each pair is the better performer.

Example:
Pedro vs. Juan Pedro vs. Maria Juan vs. Maria
Pedro vs. Josefa Juan vs. Josefa Josefa vs. Maria

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OBJECTIVES

- is also known as Management By Objectives


(MBO), is a process of joint goal setting between a
supervisor and a subordinate.

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Four steps of MBO

 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.

 Action Planning
- realistic plans are developed to attain the
objectives.

Performance Management & Rewards


Four steps of MBO

 Self- Control
- refers to the systematic monitoring and
measuring of performance.

 Periodic Reviews
- are the means used to determined whether
there is a need for correction action.

Performance Management & Rewards


Errors in Performance Appraisal

To eliminate the possibility of errors, they must be first


identified.

The following are errors in performance appraisal:


 Halo Error
 Leniency Error
 Central Tendency Error
 Recency Error
 Personal Bias Error

Performance Management & Rewards


Errors in Performance Appraisal

 Halo Error
-occurs when a rater assigns ratings on the basis
of overall impression (positive or negative) of the
person being rated.

Performance Management & Rewards


Errors in Performance Appraisal

 Leniency Error
- this is a rater’s tendency to give relatively high
ratings to virtually everyone .

Performance Management & Rewards


Errors in Performance Appraisal

 Central Tendency Error


- occurs when a rater lump everyone together
around the average , or middle, category.

Performance Management & Rewards


Errors in Performance Appraisal

 Recency Error
- a biased rating that develops by allowing the
individual’s most recent behavior to speak for his/her overall
performance on a particular dimension.

Performance Management & Rewards


Errors in Performance Appraisal

 Personal Bias Error


- occurs when a rater allows specific biases, such as
racial, age, and gender, to enter into performance appraisal.

Performance Management & Rewards


Rewards
Reward

 positive outcomes that are earned as a result of an


employee’s performance.

Performance Management & Rewards


Types Of Organizational Incentives

1. Intrinsic or extrinsic

2. Financial or nonfinancial

3. Performance-based or membership based

Performance Management & Rewards


Intrinsic or Extrinsic

 Intrinsic Reward
are those that the workers from the job itself,
such pride in one’s work, feeling of accomplishment
or being part of a team.

 Extrinsic Rewards
are those that workers get from the employer,
usually money, promotion or benefit.

Performance Management & Rewards


Financial or Nonfinancial

 Financial Rewards
are those that enhance an employee’s financial
well-being.

 Non- Financial Rewards


are indirect enhancement of an employee’s
financial well-being.

Performance Management & Rewards


Membership-based Rewards or
Performance- based Rewards
 Performance- based Rewards
these rewards take the form of commission,
piecework pay plans incentives system, group bonuses
or other forms of merit pay.

 Membership-based Rewards
refer to those given that are given to all
employees regardless of performance.

Performance Management & Rewards


End.
Activity:
Trip to Jerusalem
1 6  11
2 7  12
3 8  13
4 9  14
5  10  15

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