Improving and Maintaining Performance of Human Resources

Prepared by:Atos, Criselda

Palma, Mylene

Orientation

Maintenance of Human Resources is the supportive function of human resources management. This phase insures the employees retention in the organization and his motivation for more and better productivity.

• This refers to the assistance given to the newly hired employee in adjusting to the new work of environment which encompasses the people around him, the facilities of the organization, the programs and services, and technology used in the production of goods and delivery of services.

Types.

Formal. This type is used when there is a group of new workers taken in periodically. A unit of Human Resources Management Department is tasked to take care of a well prepared program.

• Tour in the office or plant.• Film Showing• Review of job description of each

worker• General Assembly

Depending on the size and resources of the organization, the organization program can be either Formal or informal

Types

Informal. The newly hired worker is assisted by another employee of the same department where the former is assigned to work.

• A quick tour of the work setting

• Introduction to key people

Physical Working Conditions

The first thing that impress or depress any worker are the physical working conditions. As stressed in educational psychology, there is nothing in the mind which was not first in the senses. What the worker sees, touches, hears, and feels in his work setting consciously or unconsciously makes or unmakes his day.The physical affects the psychological state. The management is responsible for affording a wholesome workplace that is free from unnecessary hazards and conditions that do not constitute a risk to the physical and mental health of the employee.

Physical Working Conditions

Space Allocation. Adequate space provided to give employees elbow room for easy movement while at work. Physical Layout. Office or plant is designed in such a way that communication among the employees is facilitated. Temperature of the workplace. Right temperature should be maintained during work hours to insure efficiency among the workers.

Physical Working Conditions

Condition of the equipment and tools.

Safety. The office or plant surroundings should be kept not only clean but also safe at all times.

Motivation

• Motivation is the intrinsic inducement that propels an individual to think, feel and perform in certain ways. It is internalized and the most important yet elusive determinant of work behavior.

• Motivation is predicated on needs and values of an individual that direct behavior toward goals.

• The management should be aware of and recognize their motives in order to guide, lead and direct them properly.

Performance Appraisal

May be defined as the method by which, through observation by the appraiser, the individual workers efficiency in performing his duties and responsibilities during a given period is evaluated on the basis of pre-determined performance standards or established goals mutually set by the employee and his supervisor. It is a process of appraising the job accomplishment of the employees. It is the assessment of the extent to which job and organization objectives have been achieved. *In other words, it the assessment of the achievement of employees

Performance AppraisalPerformance evaluation improves communication withemployees by involving them in the evaluation process.Performance evaluation provides a written record tosupport personnel decisions such as salaryadvancements, promotions and demotions.Performance evaluation provides a way for managersand supervisors to help achieve agency missions, goalsand objectives.Performance evaluation helps employees know clearlywhat their job duties are and what their supervisorsexpect from them.Performance evaluations let managers and supervisorssee how productive their employees are in carrying o

The task of evaluating employee performance is known by various terms,

namely:

a)Performance ratingb)Efficiency ratingc)Employee evaluation d)Service ratinge)Personnel ratingf) Performance review,

andg)Performance appraisal

Why Study Performance Appraisal

• To understand the objectives and principles of appraising the performance of employees.

• To know the different types of performance rating plan that will fit a company.

• To learn how to formulate and install an employee appraisal program in a company.

• To evaluate an employee according to some standards and communicate the results of the appraisal in the way that the employee will understand and accept them, thereby facilitating agreement on a working plan for the employees improved performance.

Why Study Performance Appraisal

• To find out the strength and weakness' inside the employees in order to determine training needs.

• To determine salary adjustments, pay increase and fringe benefits.

• To validate criteria and procedure used in screening and selecting job applicants.

• To serve as formal records or evidences in labor management disputes in grievance procedures.

• For continuous improvement , mentoring so that increased total output of an employee.

Methods Used in Performance Appraisal

1. RANK ORDER METHOD- provides a comparison of the qualities of performance among all the employees in a group or unit. The employees to be rated are ranked from the most efficient to least capable on each trait or quality to be used in judging the emlpoyees’ performance.

The employees are ranked on each trait and as many times as there are traits on which the employees are to be rated. Thus, an employee may ranked first in quantity of work accomplished, but fifth in reliability, third in judgment, and so on.The best and poorest ones are chosen first, then the second best and second poorest, then the middle in order to decrease the problem of rating those in center. This technique can be used to by superiors and peers.

2. PAIRED COMPARISON METHOD

The name of each employee who is to be rated is written on a card. Each employee to be rated is then paired with every other employee in the same unit.

In the process, the person rating the employees determines which of the two employees in each pair is superior in terms of trait being considered and underlines his name. The pairing is repeated for each trait and for all the employees in the unit.

When the comparison are completed, the rater determines the ranking of the employees by counting the number of times an of times that each name was underlined.

2. PAIRED COMPARISON METHOD

Paired comparison analysis is a good way of weighing up the relative importance of options.A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

3.FORCED DISTRIBUTION SYSTEM

This system uses a five-point job performance scale in the rating employees who do familiar work in the firm. Under this method, it is assumed that the ratings of a group of workers doing familiar jobs will normally fall into some such levels as Superior, Above Ave., Average, Below Average and Poor.

It is also assumed that percentages would be approximately 2 – 18- 60- 18- 2, following a normal Distribution curve. Employees are rated on only two characteristic – job performance and promotability. The weakness of this system lies in the fact that only two characteristics are used to rate the employees. This forces lumping up of all traits that make up these two characteristics.

4. GRAPHIC RATING SCALE

This uses a chart or graph containing a list of traits to be considered in rating the employees. The traits on which the employees are to be evaluated are printed on the left hand column of the form.

Opposite each trait is a horizontal line divided into two parts or blocks, usually five, each with a corresponding descriptive statements of the trait varying degrees. When a connecting line is drawn between the marks in the finished rating forms, a profile of the employee's performance appears.

The Rating Scale is a form on which the manager simply checks off the employee's level of performance. This is the oldest and most widely method used for performance appraisal.

4. GRAPHIC RATING SCALE

5. PREFENCE CHECKLIST METHOD

Sometimes called Forced Choice Checklist or Descriptive Scale. The rating method provides a number of traits o factors with their corresponding definitions written in the left-hand column of the form, such as quantity of work, quality of work, attitudes toward job, judgment, reliability, cooperation and punctuality.

After trait or factor a horizontal liner is drawn. This line represents a scale divided into four or five parts, each containing a statement or description of the degree of the corresponding trait indicating varying degrees of performance.

To minimize the tendency of the rater to commit “halo-error”, descriptive statements for each trait are sometimes arranged without any discernible sequence. The rater checks the statements which most nearly describe the performance of the employee being rated during rating period.

6. Management By Objectives (MBO)

*links organizational goals to employee performance targets MBO is a process in which the superior and subordinate managers jointly identify their common goals, define each individual’s major area of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

6. Management By Objectives (MBO)

• Provides clear goals for employees to work towards and objective standards upon which to evaluate employees.

• Helps employees feel they are part of meeting organization-wide goals.

• MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods)

6. Management By Objectives (MBO)

Traits or Factors to Rate

1. Personal Traits2.Actual work

performance3.Personal

relations

Traits or Factors to Rate

● Openness – How open and receptive a person is to new experiences and thoughts.● Conscientiousness – whether a person tends to be more disciplined or spontaneous when handling set tasks.● Extraversion – How sociable and outgoing a person is in relation to others.● Agreeableness – Whether a person reacts compassionately or antagonistically when confronted.● Neuroticism – How quick a person is to have an emotional reaction to a given stimulus.

Selecting Traits

1. Select the trait that can be defined.2. The trait should be observable and

capable of being rated while employee performs at work.

3. The trait should be considered important in the successful performance of all the jobs covered by rating plan.

4. No two or more traits should overlap.

Observable Traits

• Honesty and Integrity• Communication Skills• Pride and the job and work

ethic• Problem Solving Skills

Qualities of a Good Appraisal Form

1. Simple as possible.2. Provide the basis or standards for

appraising satisfactory performance.3. Must be flexible.4. Must be thorough/detailed.5. Provide for a definite control over

personal biases and prejudice.6. Provide two or more independent

evaluations of each employee.7. Provide a training program for

supervisors who will rate the subordinates.

Guides for an Effective Program

1. Prepare a complete job descriptions and standards of performance required. State clearly what is to be done in the job, how well should be done, and what is expected of the employees who will do it.

2. Explain job descriptions clearly and required goals to the employees .

3. Make sure that the equipment and materials are readily available.

4. Get the right man for the job, train and direct him on how to do his job.

5. Observe what employee is doing and how he is doing in his job.

6. Assess his performance based on the performance standards set.

7. Inform the employee on his performance rating.

Guides for an Effective Program

6. Assess his performance based on the performance standards set.

7. Inform the employee on his performance rating.

8. Express sincere appreciation on job well done.

9. Counsel on weak points and help prepare a plan for his improvement.

Common Errors in Rating

Halo Effect

• The rater allow two/more dominant traits to of worker’s performance to influence his ratings on other traits

• Occurs when an employee performs particularly well (or poorly) in one area and is then rated correspondingly high or low in all other areas.

Logical Error

• If the rater finds an employee outstanding or unsatisfactory in one trait he feels that it is logical for him to rate that employee outstanding or unsatisfactory in other traits.

Personal Bias

• The more characteristics a manager shares with an employee, such as age, race, gender, work values, work experience, and personality, the more favorably the manager will tend to rate that employee’s performance.

• Committed by supervisors very much influenced by an employees work in the previous rating periods.

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Central Tendency

Leniency Blaming SubordinatesBias and Prejudice

Raters may rate employee “Average” on all traits, avoiding to give an extremely high or low rating.Playing it safe.

Raters rate their men high in order to avoid displeasing them or on the belief that many are poor in their performance ratings.Index of poor supervision

Subordinates are being blamed or penalized for errors committed beyond their assigned duties.Supervisors fails to inform clearly the scope and nature of job being assigned.

Raters may be influenced in his rating with factors such as religion, sex, political affiliation or past incident that has no bearing at all on the trait being rated .

Estimate Worker’s Effeciency

1. He does not need to be shown every detail; learns the job quickly.

2. He works without needing close supervision.3. He is regularly on the job; he does not give

alibis and is always on time.4. He finds ways to do his work better.5. He has the attitude of cheerfulness and is

cooperative.6. He shows seriousness in his work.

Behaviorally Anchored Rating Scales allow managers to rate employee performance

based on detailed descriptions

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Definition (BARS)

• Disaggregates a job into key tasks.

• Identifies a range of ineffective to excellent behaviors that can be displayed by employees. performing each task..

• This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

• Greater validity is ensured when jobholders are involved in identifyingtasks and behaviors.

BARS: provides in-depth descriptions of employee

performance, but is time consuming to develop

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Advantages

Disadvantages

• Evaluation criteria are clearly defined in behavioral terms .• Criteria are based on feedback from employees which improves

acceptance levels from managers and employees.• Gives concrete examples of work that will improve performance.• Appraiser- convenient• Requires little management time.

Pitfalls

• Can be time-consuming to develop.• Hard to keep the information current as job expectations can

change over time.• Does not necessarily give more accurate ratings than graphic

rating scales that incorporate good behavioral descriptions.• If confidential tendency of ratings to bunch around average.• Often seen as subjective & bias prone.

• Appraisal factors contain personality evalutations which are more appropriate for placement purposes

360° Degree Appraisal

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360-degree Feedback is also known as Multi-Source, Multi-Rater (MSMR)

Feedback

Internal Customers

Supervisors

Peers

Subordinates

External Clients

Self

360 Feedback

Appraisal ratings made by those who have working

contact with employee. Ratings made on same behavioral

factors as BARS on a rating scale.

360-degree feedback gives a well rounded view of employee performance, but is not

appropriate to inform all decisions

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Advantages

Disadvantages

• Provides a well-rounded view of each employee, as opposed to relying only on one manager’s perspective.

• Useful for managers who cannot be involved in employee’s daily activities and development purposes.

• Can enhance an employee’s perception of fairness.• Research shows that when 360-degree feedback is used for development

purposes, it can bring positive changes in employee behavior that tend to be immediate and dramatic.

• Can be time consuming to collect and interpret data from multiple sources for each employee.

• Employees submitting feedback may be reluctant to provide constructive criticism, particularly when they have to provide feedback to those who outrank them or they are being used to inform promotion or disciplinary decisions..

• Multiple sources do not necessarily yield better feedback. Individual employees have their own biases and judgments, and may sometimes confuse individual issues with organizational problems.

Pitfalls • Watch popularity polls. Good PR persons not necessarily good performers

Result-Based Appraisal System

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Advantages

Disadvantages

• More specific and less contentious.• Probability of error in judgment reduced.• Greater likelihood of a normal distribution.• Basis of self-control as people know what is expected.• Focus on performance results

• Appraiser will baulk at the need to conduct periodic reviews as they are used to “once a year duty”.

• Target-setting will require a change in mindset from being action-oriented to results-oriented.

Pitfalls • Skipping periodic reviews because large span of control.

Appraisal ratings are based on quantity as well as quality of results, including level of difficulty and level

of importance.

Multirater Feedback Process

Self-assessment

Supervisors

Clients/ Customer

Direct Reports

Peers/ Colleagues