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PERFORMANCE MANAGEMENT SYSTEM – PERFORMANCE REVIEW AND APPRAISAL PROCESS

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PRESENTATION PLAN

1. The Strategic importance of talent management

2. Performance appraisal process and methods

3. Performance appraisal challenges

4. Promotion, transfer, and separation management

5. Team work topics

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TALENT MANAGEMENT

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Talent Management is also known as Human Capital Management (HCM). 1. Is the ability to attract, onboard and

retain highly skilled profitable employees.

2. It involves development of skills of new as well as existing workers.

3. Is developing and retaining employees to meet immediate as well as future business needs.

4. Is the ability to shift the responsibility of employees from the human resources department to all managers throughout the organization.

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5. Focuses on the role of leaders in developing the workforce to assume future roles and assignments.

6. Is about winning the war of talent because organizations have become aware that having and retaining the best talent assures them of success in the emerging hypercompetitive and complex global economy.

7. Is the awareness that management of talent is critical in the achievement of outstanding business results.

8. A mistake made incorrect hiring has been computed to cost fifteen times the employee's salary in loss of performance optimization.

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SKILLS HIERARCHY MODEL3

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Strategic Skills

Tactical Skills

Specialized Skills

Discretionary Skills

Basic Skills

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STRATEGIC IMPORTANCE OF TALENT MANAGEMENT

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1• Mistakes in recruitment will occur when the hiring crew is unclear on a number of hiring issues:• Job requirements• Selection criteria • Inability to pick the right candidate arising from lack of proper selection tools.

Adobe Acrobat Document

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Effective talent management is not just about attracting, developing, and retaining the best; it is also about organizing and managing people so that they perform in ways that lead to excellent organizational outcomes.

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1• The best way HR can add value to

corporation competitiveness is by being a business partner i.e. by directly improving the performance of the business.

• This can be accomplished through:• Effective talent management• Helping with change management• Influencing strategy implementation

to impact effectiveness

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1• Having competency based hiring system can help out.

• However it is critical to be quite clear about the correct role and competencies required for a position.

• Looking at the expected outcomes can give a fair idea of the required competencies.

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1• A 2005 study on global human capital found that chief HR officers (CHROs), are "chief talent architects,”.

• HR plays the role as strategic business advisors by leveraging human capital to improve organizational performance and workforce effectiveness.

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HR ARCHITECTURE

Talent Management

System

Performance Management

System

Employee Selection

and Placement System

Learning, Growth &

Succession System

Compensation, Reward

&Recognition

System

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1• A clear path outline from the beginning will give a lot of confidence to new employee as to where he/she is now, what he/she has to do and if he/she does it where he/she will reach.

• It is important for HR to develop a robust on-boarding program for every new employee

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1• It is also important for HR to educate top management on the link between the talent management cycle and the cost of turnover.

• For example, an employee's decision to stay or leave is related to career possibilities in the company as well as how he or she can become better prepared to move to other opportunities.

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1• HR must engage function managers to develop and define jobs, job relationships, and performance control systems in order to achieve performance excellence.

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CHALLENGES AND ISSUES IN TALENT MANAGEMENT

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1• Workforce planning and management. • Motivation of staff at all levels in the org

structure. • Managing mid-career employees. • Managing variances in different

generations• Keeping “A” performers productive. • Developing and implementing effective PIP

programs.• Retaining talented employees.• Developing effective organizational

culture. • Engaging employees productively – work

life balance.• Implementing leadership development

programs.

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• Other workforce issues include:• Heightened competition for skilled workers.• Effective succession plans.• Managing high turnover cost.• Integrating and managing global workforces.• Off-shoring and outsourcing trends.

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1• Taleo’s graphical representation emphasizes the mandate of talent management to respond to business goals and consequently be the driver of business performance.

• Talent management is depicted as a circular—not a linear—set of activities.

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TALEO’S GRAPHICAL TALENT PRESENTATION3

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• These factors—coupled with the need to align people directly with corporate goals—are forcing HR to evolve from policy creation, cost reduction, process efficiency, and risk management to driving a new talent mindset in the organization.

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PERFORMANCE MANAGEMENT PROCESS

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• Performance management provides the ongoing processes and practices to maintain a stellar workforce.

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1Critical Incident method • The critical incidents for performance

appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period

Weighted Checklist method• This method describe a performance

appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs

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1Paired Comparison Analysis• 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.

Graphic Rating Scales• 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.

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1Essay Evaluation method • This method asked managers / supervisors to

describe strengths and weaknesses of an employee’s behavior. Essay evaluation is a non-quantitative techniqueThis method usually use with the graphic rating scale method.

Behaviorally Anchored Rating Scales• 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.

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1Performance Ranking method

• Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst.

• Manager will compare an employee to another employee, rather than comparing each one to a standard measurement.

Management by Objectives (MBO) method• MBO is a process in which managers /

employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.

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

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13600 Performance Appraisal• 360o Feedback is a system or process in

which employees receive confidential, anonymous feedback from the people who work around them. This post also include information related to appraisal methods such as 720, 540, 180…

Forced Ranking (forced distribution)• Forced ranking is a method of performance

appraisal to rank employee but in order of forced distribution.

• For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom.

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1Behavioural Observation Scales• Behavioral Observation Scales is frequency rating of critical incidents that worker has performed.

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1• Engage all function heads to

understand the strategic plan and business plan

• Train the leaders in appreciating and interpreting the Balanced Score Card (BSC) approach

• Identify Key Performance Areas (KPAs)

• Develop Key Performance Indicators• Set measures, targets, weights and

scores parameters

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CHALLENGES IN PERFORMANCE APPRAISAL

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1• Lack of competence• Top management should choose the raters or the evaluators carefully.

• They should have the required expertise and the knowledge to decide the criteria accurately.

• They should have the necessary training, competence and experience to carry out the appraisal process objectively.

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1• Errors in rating and evaluation

• Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process.

• Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.

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• Resistance• The appraisal process may face

resistance from the employees and the trade unions for the fear of negative ratings.

• Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal.

• The standards should be clearly communicated and every employee should be made aware what exactly is expected from him/her.

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PROMOTIONS AND TRANSFERS

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1• Performance appraisal is a process

of obtaining, analyzing and recording information about the relative worth of an employee.

• It is a systematic periodic and an impartial rating of an employee's excellence in matters pertaining to his present job and his potential for a better job.

• A good appraisal system provides right feedback about the quality of performance of an employee.

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1• In spite of dislike by several

employees, performance appraisal has become an inescapable feature.

• It imparts benefits not only to the employees but also on supervisors and management.

• By viewing the benefits of performance appraisal, an attempt was made to find out from HR managers, general manager and owners of 37 hotels in hospitality industry.

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1• The identified criteria for which

performance appraisal is carried out in the hospitality industry include:• To check current performance• Know future potential of the employee• Maintain work force • Improve performance • Determining training needs • Personal development opportunity • Criteria for promotion, Transfer and

discharge • Basis of pay revision , feedback and

communication mechanism.

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TEAM TASKS

The Eagles Team-6 Synergy3

Outline and critically analyze the way by which HR would demonstrate value contribution in talent investment plan.

Identify the ways by which HR could introduce and implement an effective performance management system articulating the effectiveness of the system you propose.

Review five (5) challenges that HR professionals face in introducing and implementing an effective performance management system and briefly indicate how to overcome each challenge.

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