HRM

PERFORMANCE MANAGEMENT

involves setting objectives, assessing progress, and

providing continuous feedback to ensure employees meet organizational goals.

Facilitate:

Managers should provide resources, tools, and support to help employees

achieve performance expectations.

Encourage:

Positive reinforcement, recognition programs, and constructive feedback

motivate employees to excel.

Practice:

Performance management should be a continuous cycle, including regular

check-ins and adjustments to goals as necessary.

Behavior-Oriented Rating:

Focuses on the actions employees take to achieve results.

Result-Oriented Rating:

Emphasizes outcomes and measurable achievements.

When to Use:

Behavior ratings are suitable for developmental feedback, while result

ratings are useful for outcome-focused roles and reward decisions.

Errors:

Halo effect, leniency bias, central tendency, recency effect.

Rater Training:

Calibration meetings, feedback training, structured rating criteria.

Halo Effect:

Occurs when a rater's overall impression of an employee

influences their rating on specific criteria.

Leniency Bias:

Happens when a rater consistently gives higher ratings than

deserved.

Central Tendency:

Tendency to rate most employees as average, avoiding high

or low ratings.

Recency Effect:

Overemphasis on recent performance rather than the entire

appraisal period.

Calibration Meetings:

Sessions where raters discuss and align their rating

standards for consistency.

Feedback Training:

Teaching raters how to provide constructive and balanced

feedback.

Structured Rating Criteria:

Use of clearly defined performance criteria to

reduce subjective judgments.

Labor Market Conditions:

Supply and demand for skills.

Legislation:

Compliance with minimum wage laws and equal pay standards.

Collective Bargaining:

Union negotiations affecting wages.

Managerial Attitudes and Organizational Ability to Pay:

Company philosophy and financial health.

Pay System Mechanics

Base pay, merit pay, bonuses, incentives, and benefits form the structure of pay systems.

Policy Issues in Pay Planning and Administration

Internal equity, external competitiveness, pay transparency, and consistency.

Direct:

Salaries, wages, bonuses.

Indirect:

Health insurance, retirement plans, paid leave.

Employee Voice System:

Mechanisms allowing employees to express concerns and

suggestions.

Documenting Performance-Related Incidents:

Maintaining records for fairness and

legal compliance.

Progressive Discipline:

Gradual steps to address performance issues.

Disciplinary Interview:

Providing feedback and outlining corrective actions.

Employment at Will:

Employer's right to terminate without cause, balanced with

employee rights.

Employment Contracts:

Binding agreements outlining employment terms.

Termination:

Ethical and legal considerations for ending employment.

Employee Privacy and Ethical Issues

Balancing monitoring with privacy rights.

 Ethical use of employee data and decision-making processes.