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Human Resource Management

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Human Resource Management (MGT501)
VU
Lesson 25
PERFORMANCE
After studying this chapter, students should be able to understand the following:
M.
Internal Barriers to Career Advancement
N.
Successful Career-Management Practices
O.
Individual and Organizational Perspectives on Career Planning
P.
Performance
LESSON OVERVIEW
In this lecture, we will discuss the barriers to effective career development. Next, we will learn about some
basic concepts of performance. We will also discuss an important function of effective management is
accurate measurement of employee performance. This chapter discusses the foundation, design, and
implementation of performance measurement systems. In addition, it describes the principles of effective
performance management.
M. Internal Barriers to Career Advancement
There can be following types of barrier that can influence the effectiveness of the career advancement.
 Lack of time, budgets, and resources for employees to plan their careers and to undertake
training and development.
 Rigid job specifications, lack of leadership support for career management, and a short-term
focus.
 Lack of career opportunities and pathways within the organization for employees
N. Successful Career-Management Practices
Following steps can be helpful towards successful career management practices in the organizations.
 Placing clear expectations on employees.
 Giving employees the opportunity for transfer.
 Providing a clear succession plan
 Encouraging performance through rewards and recognition.
 Encouraging employees to continually assess their skills and career direction.
 Giving employees the time and resources they need to consider short- and long-term career goals.
O. Individual and Organizational Perspectives on Career Planning:
Effective career planning, that is ensured with monitoring to record the failures and successes, provides
continuous chances and opportunities to employees towards career development that will definitely produce
more committed and effective workforce.
P. Performance:
Why Do We Care?
Performance can be defined as efforts along with the ability to put
Ability
efforts supported with the organizational policies in order to
achieve certain objectives.
PERFORMANCE
Performance is the function of:
Opportunity
Motivation
a) Ability: The basic skills possessed by the individual that
are required to give certain performance enhances the level
Performance =
f (Ability, Motivation, Opportunity)
of performance.
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Human Resource Management (MGT501)
VU
b) Motivation: Activities in HRM concerned with helping employees exert high energy levels and to
get performance in desirable direction.
c) Opportunity: Circumstances under which performance is made they can be ideal or vice versa.
I. Determinants of Job Performance
There are three basic determinants of the job they are as following:
1)
Willingness to perform: If employee is performing tasks and responsibilities in the organization
with willingness level of the performance will be high and
Determinants of Job
will be up to the standards.
2)
Capacity to Perform: If the basic qualifications abilities
Performance
and skills required performing specific tasks are
possessed by the employees the level of performance will
Willingness
to perform
be in accordance with the set standards and vice versa.
3)
Opportunity to Perform: Favorable circumstances and
opportunities to perform the challenging tasks which are
Job performance
more  contributory  towards  achievement  of  the
Capacity to
Opportunity
organization's mission and objective can be reasons to
perform
to perform
have more effective performance from employees.
II. Sample Core Performance Indicators
These indicators are used to measure Organizational Effectiveness. Researchers see primary management
tasks as control, innovation, and efficiency. Control means dominating the external environment, attracting
resources, and using political processes. Innovation entails developing skills to discover new products and
processes and designing adaptable structures and cultures. Efficiency involves developing modern plants for
rapid, low-cost production, fast distribution, and high productivity.
a. The External Resource Approach: Control
Using the external resource approach, managers evaluate a firm's ability to manage and control the external
environment. Indicators include stock price, profitability, return on investment, and the quality of a
company's products. An important factor is management's ability to perceive and respond to environmental
change. Stakeholders value aggressiveness and an entrepreneurial spirit.
b. The Internal Systems Approach: Innovation
Using the internal systems approach, managers evaluate organizational effectiveness. Structure and culture
should foster flexibility and rapid response to market changes. Flexibility fosters innovation. Innovation is
measured by the time needed for decision making, production, and coordinating activities.
c. The Technical Approach: Efficiency
The technical approach is used to evaluate efficiency. Effectiveness is measured by productivity and
efficiency (ratio of outputs to inputs). Productivity gains include increased production or cost reduction.
Productivity is measured at all stages of production. Service companies could measure sales per employee or
the ratio of goods sold to goods returned. Employee motivation is an important factor in productivity and
efficiency.
d. Measuring Effectiveness: Organizational Goals
Organizational effectiveness is evaluated by both official and operative goals. Official goals are the formal
mission of an organization. Operative goals are specific long-term and short-term goals that direct tasks.
Managers use operative goals to measure effectiveness. To measure control, managers examine market share
and costs; to measure innovation, they review decision-making time. To measure efficiency, they use
benchmarking to compare the company to competitors. A company may be effective in one area and
ineffective in another. Operative goals must be consistent with official goals.
III.
Why is performance measured?
Enhances motivation & productivity
Assists in validation studies
Detects problems
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Human Resource Management (MGT501)
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Helps evaluate change efforts
Provides basis for making decisions
Differentiates employees in job-related areas
Helps ensure legal compliance
IV. Performance Management
A process that significantly affects organizational success by having managers and employees work together
to set expectations, review results, and reward performance. Performance management is a means of getting
better results... by understanding and managing performance within an agreed framework of planned goals,
standards and competence requirements. It is a process to establish a shared understanding about what is to
be achieved, and an approach to managing and developing people so that it will be achieved. The Goal of
measuring performance is to improve the effectiveness & efficiency of the organization by aligning the
employee's work behaviors & results with the organization's goals improving the employee's work
behaviors & results. It is on-going, integrative process.
Key Terms
Performance: Performance can be defined as efforts along with the ability to put efforts supported with
the organizational policies in order to achieve certain objectives.
Motivation: Activities in HRM concerned with helping employees exert high energy levels and to get
performance in desirable direction.
Performance Management: A process that significantly affects organizational success by having managers
and employees work together to set expectations, review results, and reward performance.
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Table of Contents:
  1. INTRODUCTION TO HRM:Growing Importance of HRM, Road Map of the Course
  2. ESSENTIALS OF MANAGEMENT:Concepts and Essential of Management, Managerís Roles
  3. ORGANIZATION AND COMPONENTS OF ORGANIZATION:Open versus Closed Systems, The Hawthorne Studies
  4. PEOPLE AND THEIR BEHAVIOR:Why to work in organizations?, The Goals of Organizational Behavior
  5. INDIVIDUAL VS. GROUP BEHAVIOR:What Are Roles?, Problem solving Team
  6. PERSONNEL MANAGEMENT TO HUMAN RESOURCE MANAGEMENT:Records and Administration, Competitive Advantage
  7. HRM IN A CHANGING ENVIRONMENT:Productivity, New Trends at Work Place
  8. How organization Cultivate a Diverse Workforce, STEPS TOWARD MANAGEMENT OF DIVERSITY
  9. FUNCTIONS AND ENVIRONMENT OF HRM:Compensation and Benefits, Safety And Health, Interrelationships of HRM Functions
  10. LINE AND STAFF ASPECTS OF HRM:Authority, Line versus Staff Authority, Staff Manager
  11. LEGAL CONTEXT OF HR DECISIONS:Doing the Right Thing, Affirmative Action, Unintended Consequences
  12. HUMAN RESOURCE PLANNING (HRP):Benefits of HR Planning, Forecasting Human Resource Availability
  13. STRATEGIC PLANNING AND HRIS:HRís Strategic Role, Human Resource Information System, Common HRIS Functions
  14. JOB ANALYSIS:Purposes of the job Analysis, Questions Job Analysis Should Answer
  15. JOB ANALYSIS:Methods of Collecting Job Analysis Information, Observation, Source of Data
  16. JOB ANALYSIS (CONTD.):SURPLUS OF EMPLOYEES FORECASTED, Diversity through Recruiting Efforts
  17. SOURCES OF RECRUITMENT:ALTERNATIVES TO RECRUITMENT, Quantity of the Applicants, Quality of the Applicants
  18. SELECTION:Initial Screening, Advantages of Successful Screening
  19. SELECTION TESTS:Characteristics of Properly Designed Selection Tests, Guidelines for Conducting an Interview
  20. SELECTION PROCESSÖ CONTD:Background Investigations, Physical Exam, Selecting Managers
  21. SOCIALIZATION:Compensation and Benefits, Team Membership, Stages in socialization Process, Training and Development Trends
  22. TRAINING AND DEVELOPMENT:Learning, Phases of Training, Why Transfer of Training Fails
  23. MAXIMIZING LEARNING:Following up on Training, Repetition, Feedback, Purposes of T & D
  24. CAREER MANAGEMENT:Individual career planning, Career Planning and Development Methods
  25. PERFORMANCE:Determinants of Job Performance, Why is performance measured?, Performance Management
  26. PERFORMANCE APPRAISAL:What to Evaluate, The Appraisal Interview, PROBLEMS IN PERFORMANCE APPRAISAL
  27. JOB EVALUATION AND PRICING:THE APPRAISAL PERIOD, Ranking method,
  28. COMPENSATION SYSTEM:Pay, Job Pricing, Compensation: An Overview, Compensation Surveys
  29. BENEFITS:Total Compensation, Discretionary Benefits (Voluntary), Workplace Flexibility
  30. ROLE OF MONEY IN PERFORMANCE OF EMPLOYEES:Types of Pay-for-Performance Plans, Empower Employees
  31. MOTIVATION:The Motivation Process, Motivational Theories, Challenges of motivating employees
  32. OCCUPATION, HEALTH & SAFETY:Physical Conditions, Accident Investigation, Smoking in The work place
  33. STRESS MANAGEMENT:Symptoms of Stress, Managing Stress,
  34. COMMUNICATION IN ORGANIZATION:Burnout, Social Support at Work & Home, Communication in organization, Meetings
  35. TRADE UNIONS:Collective Bargaining, The HRM Department in a Nonunion Setting, Phases of Labor Relations
  36. CONFLICT AND NEGOTIATION:Transitions in Conflict Thought, Individual Conflict Management Styles
  37. POWER AND POLITICS:Sources of Power, Advantages and Disadvantages of PowerPower and Politics in Context
  38. EMPLOYEE RIGHTS AND DISCIPLINE:Contractual Rights, Management Rights, Disciplining Employees,
  39. DISCIPLINE (CONT...):Factors to Consider when Disciplining, Disciplinary Guidelines, Employee Separations
  40. LEADERSHIP:The Leaderís Behavior, Situational Theories of Leadership, Becoming a Leader
  41. REVISION (LESSON 12-21):Plans, Job Specification, Human resource planning, Selection Process, Corporate Culture
  42. REVISION (LESSON 22-26):Training, Case Study Method, Training, Performance
  43. REVISION (LESSON 27-35):Classification Method, Compensation, Empowerment, Mediation
  44. INTERNATIONAL DIMENSIONS OF HRM:Global Corporation, Type of staff members, Approaches to Global Staffing
  45. CONCLUSION & REVIEW:Strategies for Gaining Competitive Advantage, High-performance Work System