MAP OF TEXT
PART 1
PART 2
PART 3
1 – Performance Management System2 – Performance Management Process 3 – Linkage to Strategy /Strategic Planning
4 – Measurement
5 – Measuring Results & Behaviours 6 – Performance Appraisal 7 – Implementation of PM System Strategic & General Considerations
2 - Performance Management Process 3 - Linkage to Strategy
System Implementation /Operations 2 - Performance Management Process 3 - Linkage to Strategy
Reward System, Legal Issues & Team 2 - Performance Management Process 3 - Linkage to Strategy
8 – Employee Development 9 – Performance Management Skills
PART 4
Employee Development2 - Performance Management Process 3 - Linkage to Strategy
PM is a
continuous process of identifying, measuring and developing
performance in organisations by
linking each individual’s performance
and objectives to the organisation’s overall mission and goals.
Performance Management &
Reward Systems in Context
Contributions of PM
Systems (Advantages)
Motivation to perform is increased Self-esteem is increased
Managers gain insight about subordinates The definitions of job and criteria are clarified Self-insight and development are enhanced Personnel actions are more fair and appropriate Organisational goals are made clear
Employees become more competent There is better protection from lawsuits
There is better and more timely differentiation between good and poor performers Supervisors’ views of performance are communicated more clearly
Organisational change is facilitated
Disadvantages of Poorly
Implemented PM Systems
Employees may quit due to results False or misleading information may be used Self-esteem may be lowered
Time and Money are wasted Relationships are damaged Motivation to perform is decreased
Employees suffer from job burnout and job dissatisfaction There is increased risk of litigation
Managers are required to use an unjustified amount of resources Standards and ratings vary and are unfair
Biases can replace standards
Mystery surrounds how ratings were derived
Reward Systems
Returns and Degree of Dependence on PM System
Base Pay (Moderate Dependence) Cost-of-Living (Low Dependence) Contingent Pay Merit (High Dependence) Short-term Incentive (High Dependence)
Long-term Incentive (High Dependence) Income Protection (Low Dependence) Work/Life Focus (Moderate Dependence) Allowances (Moderate Dependence)
Tangible Returns (Cash Compensation
and Benefits)
Recognition and Status Employment Security Challenging Work Learning Opportunities
Purposed served by PM Systems
Strategic – assist top mg’t with achieving business objectives
Administrative - assist with decisions such as promotion, salary, termination, recognition
Information – communication expectations to employees
Developmental - to provide coaching to employees
Organisational Maintenance - workplace planning and allocation of human resource
Documentation –collection of useful information eg. for personnel decisions
Characteristics of Ideal PM System
Strategic Congruence
Thoroughness Practicality
Meaningfulness
Specificity
Identification of effective and ineffective performance
Reliability Validity
Acceptability of Fairness Inclusiveness
Openness Correctability Standardisation Ethicality Relational Returns
(Intangible) Moderate Dependence
Summary: For Performance Management to be effective there must be linkage between the performance management system and other HR functions. Performance Appraisal is just one aspect of the performance management system. Performance Management is a continuous process. Performance Management has multiple purposes. Performance Management must include many elements of the ideal system.
Commitment to goal achievement Observation & Documentation On-going feedback and Coaching Updates
Communication with Supervisor Feedback Collecting & Sharing Performance Data Resources Preparing for performance review Reinforcement
Knowledge – information required to perform the work not necessarily having done it before.
Skills – required attributes, usually gained by having done the work in the past.
Abilities – physical, emotional, intellectual and psychological aptitude
Performance Management Process
PM is an ongoing process which includes several components which are
closely related.
Prerequisites
Knowledge of organisation’s mission which is gained through strategic planning
Knowledge of the job in question which is obtained
through job analysis
Performance Planning
Supervisor and Employee meet and agree on
what has to be done and how it has to be done
Results – What / Outcomes
Behaviour – How
Developmental Plan
Accountabilities – broad areas of the job obtained from JD
Objectives – specifics (measurable outcomes) based on each accountability Performance Standards – yardsticks to evaluate how well objectives have been achieved
Competencies – clusters of KSA’s eg. Customer service, communication, creative thinking and dependability
Areas for improving and goals to be achieved – results and behaviours
Performance Execution
Employee
has
primary
responsibility
–
ownership
Involvement does not begin at the stage but earlier
Performance Assessment
- Both employee and supervisor have responsibility to determine whether desired behaviour / results were achieved.
- Both take ownership of the process - Employee completes Self-Appraisal - Sets the stage for the Review process
Performance Review
- Meeting between Supervisor and Employee to discuss performance assessment.
- Appraisal Meeting / Discussion
- Formal Setting for employee to receive feedback on performance - Review of the Past, Present (Compensation based on performance)
and Future (Developmental Plan)
Six (6) Recommended Steps for conducting P/Review - Identification of what was done well and poorly - Solicit feedback on the above
- Implication of changing / not changing - Explain how skills in past achievement can help - Action Plan
- Follow-up meeting on the behaviours, actions and attributes are to be evaluated
Performance Renewal
and Re-contracting
Essentially identical to the Performance Planning component, the main difference is that at this state insights from the other stages are used.
Summary: The Performance Management process is an ongoing one. It includes six closely related components – (a) Prerequisites, (b) Performance Planning, (c) Performance Execution, (d) Performance Assessment, (e) Performance Review and (f) Performance Renewal and Re-contracting.
Helps define org identity Helps org prepare for the future
Enhances ability to adapt to enviro. change
Provides focus and allow for better allocation of resources Produces and organisation culture of cooperation Considers new options and opportunities
Provides employees with information to direct daily activities
Strategic Planning Linkage
Strategic Planning is a process that involves the organisation’s
destination, assessing barriers and selecting
approaches for moving forward. The main goal is to allocate resources to lead to competitive advantage. It serves
as a blueprint that defines how organisation’s will allocate resources in pursuit of it goals. It provides critical
information to be used in performance management systems.
Purposes of Strategic Plan
To ensure strategy cascades down and leads to concrete action
there is need to link strategy to individual performance
Organisational Strategic Plan
Unit’s Strategic Plan
Mission Vision Goals Strategies
Job Description Tasks, KSA’s
Individual & Team Performance Results, Behaviours, Dev. Plan
Process / Steps for Strategic Plan Creation
3
Environmental Analysis (identification of internal &
external parameters in which the org. operate
Mission Statement
(reason for existence - present) (a statement of future aspirations) Vision Statement
External
- Opportunities - Threats
(PESTLESCC)
Internal
- Strengths - Weaknesses (Org. Structure, Culture, Processes, Size, Politics)
1. Basic Product / Service to be offered (does what) 2. Primary Market / Customer Group (to whom)
3. Unique Benefits / Advantages of Product or Service (what benefits) 4. Technology to be used in production / delivery
5. Fundamental concern for survival through growth / profitability 6. Public image sought by the organisation
7. Self concept of business adopted by employees / stockholders
Brief Verifiable Bond by time line Current Focussed Understandable Inspiring A stretch
Goals Strategies
1. Provide more specific information regarding how the mission will be implemented 2. Provide a more tangible target to strive for
3. Provide basis for decision-making
4. Provide the basis for performance measurement
Description of game plan or ‘how to’ procedures to reach the stated goals / objectives
Summary: A Performance Management system can serve as a primary tool to realise the organisation’s vision by aligning / linking the strategic plan to the individual performance through the cascading concept. A Strategic Plan is created though five (5) steps - (a) Conduct of Environmental Analysis (b) Mission Statement (c) Vision Statement (d) Goals (e) Strategies. The creation of the Strategic Plan is not a linear process.
HR’s roles in linking the Strategic Plan to the Performance Management System is
(1) Communicate knowledge of strategic plan
MEASUREMENT APPROACH OF PERFORMANCE
4
Performance Defined – Performance Management Systems usually include measures of both behaviours and
results. However, performance is defined only by behaviour, what an employee does and not about the outcomes.
Two additional characteristics of the behaviour are; Evaluative, judged based on contribution (positive, negative,
neutral) and Multi-dimensional, different kinds of behaviour (capacity to advance of hinder)
on, assessing barriers and selecting approaches for moving forward. The main goal is to allocate resources to lead
to competitive advantage. It serves as a blueprint that defines how organisation’s will allocate resources in pursuit
of it goals. It provides critical information to be used in performance management systems.
Determinants of
Performance
Declarative Knowledge – information about facts and things, procedures
Procedural Knowledge – knowledge on what to do and how to do it, eg. cognitive, physical, motor, interpersonal
Motivation – choice of behaviour, i.e. to exert effort, the level of effort to exert and the choice to persist in the expenditure of that level of effort
Additionally, HR Practices and the Work Environment can also affect performance
Performance Dimensions
Task Performance – activities that transfer raw materials to goods and services or activities that help with the transformation process.
Contextual Performance (Organisational Citizenship) – behaviours that contribute to the organisation’s effectiveness by providing a good environment in which task performance can occur.
Task Contextual
Varies across job Fairly similar across jobs Likely to be role-prescribed Not likely to be role-prescribed Antecedents – abilities / skills Antecedents – personality
Why Include in Performance Management Systems 1. Global Orientation – raising effort level of persons 2. Teams
3. The need to offer outstanding Customer Service due to global competition 4. Evaluation of Performance – both contribute to organisational success
Measuring Performance
Trait Approach Behaviour Approach Results Approach
Trait-Oriented
Emphasises the individual performance and ignore the specific situation, behaviours and results.
Process-Oriented
Emphasises what employees do on the job, does not consider traits or outcomes / results from behaviours.
Bottom-line Oriented Emphasises outcomes / results, does not consider trait or how employees do the job.
Adopting a Behaviour Approach is appropriate when:
Long time before desired outcome is achieved Link between behaviour and result is not obvious Outcomes are in the distant future
Poor results are beyond performer’s control
Adopting a Results Approach is appropriate when:
Workers are skilled in the needed behaviours Behaviours and Results are obviously related Results show improvement over time There are many ways to do the job right
MEASURING RESULTS AND BEHAVIOURS
5
Measuring Results
Measuring Behaviours
Key Accountabilities
Broad areas of a job for which employees are responsibility for producing results.
Information about the job is collected from the Job Description as well as consideration of Unit and Organisation Strategic priorities.
Degree of importance of each Accountability: - % of time spent
- Impact on Unit Mission if inadequately done - Consequence of error
Objectives Performance Standards
Specific Objectives to achieve as part of each accountability.
To identify a limited number of highly important results.
Characteristics of Objectives:
- Specific & Clear - Challenging - Agreed Upon - Prioritised - Significant - Bound by Time - Achievable - Fully Communicated - Flexible
- Limited in Number
A yardstick used to evaluate how well each objective has been achieved. This is usually in Quality, Quantity, Cost and Time.
Characteristics of Standards:
- Related to the position - Concrete, specific and
measurable - Meaningful
- Realistic & Achievable - Reviewed Regularly
Includes the assessment of Competencies (measurable clusters of KSA’s that are critical in determining how results will be achieved)
Differentiating Competencies – The ability to distinguish between average and superior performers.
Threshold Competencies – Everyone needs to display to do the job to a minimally adequate standard To understand the extent to which an employee possesses a competency, we measure Indicators. Each indicator is an observable behaviour that gives us information regarding the competency in question.
In contrast to measurement of results, the measurement of competencies is Intrinsically Judgemental.
To understand the extent to which an employee possesses a competency, we measure Indicators. Each indicator is an observable behaviour that gives us information regarding the competency in question.
In contrast to measurement of results, the measurement of competencies is Intrinsically Judgemental.
Competencies
Systems Used to Evaluate Competencies
Comparative Absolute
Comparison of Employees Comparing Employees with a pre-specified performance standard - Simple Rank Order - Essays
- Alteration Rank Order - Behaviour Checklists - Paired Comparisons - Critical Incidents - Forced Distribution - Graphic Rating Scales
- Behaviourally anchored Rating Scales (BARS)
Shock employees
Teach a rebellious employee a lesson Send a message that employees should consider leaving
Build a record of poor performance Maximise the merit rise / rewards
Encourage Employees Avoid creating a written record Avoid a confrontation with employees Promote undesired employees out of unit Make manager look good to his supervisor
Supervisor, Peers, Subordinates, Self and Customers
Note: The advantages and disadvantages of each should be noted
Where there is Disagreement across scores, weighting can be used for different sources in capturing the overall performance score used for administrative purposes, eg. As obtained from 360 Feedback. Appraisals should be conducted Every 3 or 6 months
PM Systems can include six (6) formal meetings between the Supervisor and the Employee:
- System Inauguration (specifically for new employees) - Self-Appraisal
- Classical Performance review - Merit/Salary review - Developmental Plan - Objective Setting Judgemental Procedure - considers every aspect
of performance and then arriving at a defensible summary.
Mechanical Procedure - considers the score assigned to each section of the form and then adding up to obtain an overall score.
Note: Assignment of WEIGHTS for each performance dimension allows the supervisor to come to an objective and clear overall performance for each employee. Weights show degree of importance.
One size does not fit all; however, there are certain desirable features that make appraisal forms effective:
- Simplicity - Comprehensiveness - Relevance - Definitional Clarity - Descriptiveness - Communication - Adaptability - Time Orientation
At the core of any Performance Management System is the
assessment of performance.
Information on
performance is collected using form known as
Appraisal Forms, which can be filled out on paper or electronically.
Performance appraisals are an important component of the Performance Assessment stage.
It is the instrument
used to document and evaluate performance.
GATHERING PERFORMANCE INFORMATION
6
Components of a
Performance Appraisal Form
Characteristics of
Appraisal Forms
- Basic Employee Information
- Accountabilities, Objectives & Standards - Competencies & Indicators
- Major achievements and contributions
- Developmental Achievement (could be done separately) - Developmental Needs, Plans, Goals (could be done separately) - Stakeholder Input
- Employee Comments - Signatures
Determining Overall Rating
Appraisal Period & Number
of Meetings
Who should provide
performance information?
Rater Motivation
The process of evaluating performance can be filled with emotional overtones and hidden agendas driven by the Goals and Motivation of the person providing the rating.
INTENTIONAL Rater Distortion (Inflation)
INTENTIONAL Rater Distortion (Deflation)
Mitigating Rater Distortion
INTENTIONAL & UNINTENTIONAL
Through Extensive Training, which should include: Reasons for implementing a PM System How to identify and rank job activities
How to observe, record and measure performance Information on the Appraisal Forms and System Mechanics How to minimise rating errors
Number of individuals evaluated Distribution of performance ratings Quality of information
Quality of performance discussion meetings System satisfaction
Overall costs / benefit ratio
Unit-level and organisation-level performance
Needed adjustment and revisions can be made before going live. The system is implemented in its entirety from beginning to end, however evaluations are not recorded on employees file. All participants should keep record of any difficulties experienced
A good way to get employee buy-in, which can then be a champion for the system, rather than HR having sole responsibility
End –users are likely to have a higher rate of acceptance knowing that stakeholders had a say in the design, rather than the feeling of a programme created by HR.
Unintentional Intentional Similar to me Leniency Contrast Severity Halo Central tendency Primacy
Recency Negativity First Impression Spillover Stereotype
This is important in gaining employee buy-in as well
as increases perceptions of system’s fairness.
The things that need to be done / put in place before the system is actually implemented includes
a
communication plan, an appeals process, training of raters and pilot testing the system. Additionally how
to monitor the system once it is place to make sure it is working properly.
Implementing a Performance
Management System
7
Communication Plan
- What is performance management - How does performance management fit in
our strategy - What’s in it for me - How does it work
- What are my responsibilities
- How is performance management related to other initiatives
A Communication Plan answers
the following questions Biases that influence the effectiveness of a communication plan
Selection Exposure – tendency to expose one’s mind only to those things we already agree to.
Selective Perception – tendency to perceive a piece of information as meaning what we would like it to mean, even though it may mean the opposite.
Selective retention – tendency to remember only those pieces of information we already agree with.
Things to minimise the negative impact of communicative biases
Employee Involvement Employee Needs Strike First
Facts and Consequences Put it in writing
Multiple communication channels Credible Communication Say it and say it again
Appeals Process
Judgemental Issues – validity of the system
Administrative Issues – following of policies and procedures
Level 1 – HR addresses as a mediator between employee & supervisor Level 2 – Arbitrator consisting of panel – peers and managers (decision derived through voting)
Training
Rater Error (RET) – to make raters aware of errors they
are likely to make
Frame of Reference (FOR) - to improve accuracy y
familiarising raters on performance dimensions
to be assessed where focus in behaviour
Behavioural Observation – to minimise unintentional rating ,
where focus is results
Self-Leadership – emphasis is intrinsic
Raters are made familiar with per. dimensions.
Rates complete appraisal form with justification for ratings
Discussion between correct and incorrect ratings
Geared to improve raters skills at observing performance – observe, store, recall and use information about performance. Use of observational aids – notes, diaries.
Geared to improve raters confidence in his ability to manage performance. It includes positive self-talk, mental imagery and positive beliefs and thought patterns
Pilot Testing
Advantages
- Decreased possibility of biases - Increased awareness of expectations - Increased commitment to improve - Improved self-perceptions of performance - Improvement of performance
- Reduction of ‘undiscussables’
- Help for employees to take control of their careers
Risks
- Negative feedback can hurt
- Individuals may not be ready to receive feedback and may not participate willingly
- Anonymity may be compromised and information may be distorted
- Raters may be overwhelmed with forms to fill out - All employees have a Plan
- All employees entitled to development opportunities on an on-going basis - Managers are involved with the assessment and progress
- Managers are committed to the development of their employees - The Developmental Plan becomes an integral part of the performance
management system
- The performance of managers is evaluated in part based on how well they manage the development process for their employees
- Self-guided Reading - Mentoring
- Attending a Conference - Getting a Degree - Job Rotation
- Temporary Assignments
- Membership in Professional or Trade Org. - Sustain performance in current job - Prepare employees for development - Enrich the employee’s work experience
- Specific steps to be taken and specific objectives (new skill / knowledge to be obtained and how)
- Resources and strategies to achieve objectives (how will the learning take place and r=from whom)
- Time frame for completion (when should the new skill / knowledge be learned) - Measurement of the objective
- Keep the needs of both organisation and employee in mind
The overall objective is to encourage
continuous learning, performance
improvement and personal growth
Practical, Specific, Time-oriented, Linked to a standard and
Developed jointly by supervisor and employee
8
Employee Development
There are two key stakeholders in the employee development process:
(1) the employees
of the
organisation who are improving their own performance and (2) the managers who help guide the process of
employee development for staff and support it so that it can successfully occur. It is a joint activity, owned
by both employee and manager.
Personal Development Plan
Objectives
- Improve performance in current job - Sustain performance in current job - Prepare employees for development - Enrich the employee’s work experience
Personal Development Plan
Content
Development Activities
- On-the-job Training - Courses
- Self-guided Reading - Mentoring
- Attending a Conference - Getting a Degree - Job Rotation
- Temporary Assignments
- Membership in Professional or Trade Org. - Sustain performance in current job - Prepare employees for development - Enrich the employee’s work experience
Supervisor’s Role
- Explain requirement to improve performance - Refer employee to development activities - Reviews and make suggestions about objectives - Checking employee progress
- Provide reinforcements / motivations (extrinsic or intrinsic)
Factors which will promote successful
implementation of Personal Development Plan
360-degree Feedback Systems
Characteristics of a Good System
- Anonymity
- Observation of employee performance - Feedback interpretation
- Follow-up
- Used for development purposes only - Avoidance of survey fatigue - Emphasis on behaviours - Raters go beyond ratings - Raters are trained
Driver – assertive, speaks quickly, firm, talks about tasks and facts, not very expressive
Persuader – explains benefits to the organisation and employee, assertive, tend to use expansive body gestures, talk more about people and relationships, expose others to a broad range of feelings.
Amiable – wants everyone to be happy, goes on heart rather than head, not assertive, speak deliberately, pause often, make many conditional statements.
Analyser – logical and systematic, following rules and procedures, not very assertive, talks more about facts and tasks than about personal feelings.
Sequence of Events Explain purpose of meeting Self-Appraisal
Share ratings and explain rational Development Discussion Employee Summary Rewards Discussion Follow-up Discussion Approval & Appeals Process Discussion
Final Re-cap
A collaborate on-going process in which the manager interacts
with his employees and takes an active role and interests in
their performance. It involves directing, motivating and
rewarding employee behaviour. It is a day-to-day function as
well as concerned with long-term performance
Performance Management Skills
9
Performance Management systems are not likely to help employees develop and improve their performance
if managers do not have the necessary skills to help employees accomplish these goals. Such skills include
being able
to serve as Coaches , to observe and document performance accurately, to give both positive
and negative feedback and to conduct useful and constructive performance review discussions.
Coaching
Major Functions:
- Give advice - Provide guidance - Give Support - Give Confidence
- Promote greater competence
Key Behaviours:
- Establish development objectives - Communicate effectively - Motivate employees - Document performance - Give feedback
- Diagnose performance problems - Develop employees
Elements of Good Coaching
- Listens
- Creates helping climate
- Encourages expression of feelings and empathises - Gives tangible support
- Clarifies performance expectations - Encourages discussion and problem-solving - Helps plan for actions to achieve solutions - Explores potential growth areas
- Shares authority and knowledge and delegates actions - Understand individual needs
Coaching Styles
Coaching Process
Set Developmental Goals
Identify Development Resources and Strategies
Implement Strategies
Observe and Document Development Behaviour
Give Feedback Things to Note:
Manager’s Constraints Importance
Recommendations
Purposes Builds confidence Develops competence Enhances Involvement
Characteristics Timely Frequent Specific Verifiable Consistent Private Descriptive Related
Identifiable Patterns Confidence Builder
Tool for generating advice and ideas
Types of Feedback Praise
Negative Feedback
Performance Review Meetings
Manager actions Establish or Maintain Rapport Be empathetic
Observe Verbal / Non-verbal cues Minimise Threats
Encourage Participation Response by the Employee
Usually fair and acceptable PM Systems are legally sound. Legal principles affecting performance management are:
- Employment at Will - Negligence - Defamation - Misrepresentation - Adverse Impact - Illegal Discrimination
An organisation’s pay structure classifies jobs into categories based on their relative worth. This is done through a process known as Job Evaluation.
Broad-banding is the collapse of job classes into fewer categories (usually 5 or less). Each category is called a Band.
Broad-banding:
- provides greater flexibility to reward people - opportunity to reflect changes in organisational
structure (flatter less hierarchical)
- better base for rewarding growth in competence - to devolve more pay decisions to managers - better basis for rewarding career progression - allows for salary increases without having to change
job classification / title
Job Evaluation is a process of data collection through which an organisation can understand the worth of the various jobs and as a result create a pay structure. Job Evaluation considers knowledge, skills and abilities required for each job, how valuable the job is to the organisation and how much pay other organisations allocate to these jobs.
Type of Job Evaluations: - Ranking Method - Classification Method - Point Method
Reward Systems and Legal Systems
10
Traditional Reward Systems
Contingent Pay (Pay for Performance)
Position and Seniority are determinants of salary and salary increases and not performance. There is no relationship between performance and rewards.
Individuals are rewarded based on how well they perform on the job. Increases and rewards wholly or in part for job performance. Increases are added to salary or given as one-time bonus (Variable Pay).
Reasons for CP Plans
Reasons Why CP Plans Fail
1. PM Systems are more effective when results are tied to rewards 2. High Performers are attracted to organisations that reward high
performance therefore it serves as a recruitment and retention tool. 3. Projects a good Corporate Image based on the fairness re: allocation
of rewards for clearly communicated expectations and standards 4. Enhances Employee Motivation to accomplish goals – helps in
changing behaviour and improve performance
1. Poor PM System in place
2. Folly of rewarding A and expecting B 3. Rewards not significant
4. Managers not accountable
5. Extrinsic Motivation at the expense of Intrinsic Motivation.
Selecting a CPL Plan for Different Cultures
Traditional Culture Involvement Culture Piece-rate Profit-Sharing Sales Commission Skill-based Pay Group Incentive
In addition to the organisation’s culture, another important consideration is the organisation’s Strategic Direction
Recommendations for Making Rewards Work
1. Define and Measure Performance first, then allocate rewards
2. Only use rewards that are visible 3. Make sure all employees are eligible 4. Make rewards contingent
5. Make rewards reversible 6. Use Non –financial rewards Job Evaluation
Pay Structures
Broad Banding
Team Performance
11
A team is a place where
two or more people interact dynamically and interdependently and share a
common valued goal, objective or mission.
Summary: An organisation that included any type of team would benefit from managing the performance of both individuals and teams. Including team performance as part of a PM systems is a natural extension of a system that focuses on individual performance only. Whilst consideration of team performance adds a layer of complexity, the fundamental guiding principles remain the same.
Benefits of Teams
Idea Generation Learning / Development Creativity Relationships
Customer Service Continuity Better Products Varied Skills
Faster Completion Time Quicker Problem Resolution Less Need for Supervision Increased Productivity Decreased Costs Greater Organisation Flexibility (structure)
Types of Teams
Work or Service Teams – Routine task eg. Assembly line. Members share a similar set of skills and have worked together for a while.
Project Teams – Assembled for a specific purpose and will be disbanded upon completion, comprises members from different functional areas and are highly dependent on each other.
Network Teams – Includes memberships that is not constrained by time and not limited to organisational boundaries. Usually geographically dispersed and stay in touch through technology
Purposes of Team PM Systems
In addition to the strategic, administrative, information, developmental, organisational maintenance and documentation purposes, all team members are made to be accountable and to have a stake in performance
Challenges of Team PM Systems
How to assess relative individual contribution. How to balance individual and team performance.
How to identify individual and team measures of performance.
Performance Management Process
Prerequisites
Performance Planning
Performance Execution
Performance Assessment
Performance Review
Performance Renewal and Recontracting
Rewarding
Team
Performance
They should follow the same principles used for individual rewards Rewards should be visible, contingent and reversible
Reward must be tied to goal, eg. If goal is to work faster, reward should be tied to completion time and not co-operation per se.