1. GROUP
11




Brin, Bernadette L.
Perez, Ferlita Jasmin
Regis, Cindy
San Diego, Shiela L.

2. PERFORMANC
E
MANAGEMENT
AND REWARDS

3. WHAT

1.
2.
3.
4.
5.
6.
IS PERFORMANCE MANAGEMENT
?
Performance management refers to the
procedures and systems designed to improve
employee outputs and performance, often through
the use of economic incentive system.
Apart from economic incentives, the other means
used to improve employee performance are;
Goal setting
Streamlined organizational structure
Better technology
New arrangement of working schedules
High involvement of employees
Better motivation of employees

4. STAFFING


1.
2.
3.
4.
refers to the HR planning, acquisition, and
development aimed at providing the talent
necessary for organizational success.
The staffing process consist of the following:
Job analysis
Recruitment
Selection
Socialization

5. JOB ANALYSIS


1.
2.
3.
4.
5.
A technical procedures used to definite the
duties, responsibilities, and accountabilities of a
job.
The result of job analysis are very useful in:
Preparing job descriptions
Evaluating and classifying jobs
Training and career development
Performance appraisal
Other HR aspects

6. RECRUITMENT


1.
2.
3.
May be defined as a human resource
management practice designed to locate and
attract job applicants for particular positions.
Recruitments involves the following
Advertisement of a position vacancy
Preliminary contact with potential job
candidates
Preliminary screening to obtain a pool of
candidates

7.  Recruitments
are of two types
Internal recruitment. It is a process for attracting job
applicants from those currently working for the firm.

1.
2.
3.
4.
5.
6.
7.
Advantages or internal recruitment:
It is good public relations.
It builds morale.
It encourages good individuals who are ambitious.
It improves the probability of good selection, since
information on the individual’s performance is readily
available.
It is less costly than external recruitment.
Those chosen internally already know the
organization.
When carefully planned, promoting from within can
also act as training device for developing middle and
top-level managers.

8. 
1.
2.
3.
4.
Disadvantages of internal recruitment:
It can be dysfunctional to the organization to utilize
inferior internal sources only because they are there,
when excellent candidates are available on the
outside.
It may generate infighting among the rival
candidates for promotion.
It may decrease the moral levels of those not selected.
It may promote “inbreeding”.

Methods of internal recruitment:
1.
Computerized career progression system
Supervisor recommendations
Job posting
Career development system
2.
3.
4.

9. External recruitment. it is a process of
attracting job applicants from outside the
organization. It is undertaken when no suitable
candidates are available from within the
organization. This recruitment source tends to
bring in “new blood” and fresh ideas to the
organization.

Methods of external recruitment:
1.
Employee referrals
Applicant-initiated recruitment
Help-wanted advertisement
Private employment agencies and executives
search firms
Campus recruiting
2.
3.
4.
5.

10. SELECTION
This involves assessing and choosing among job
candidates.
The selection process involves the following steps:
1. Completing the application form;
2. Conducting an interview;
3. Completing any necessary tests;
4. Background investigation;
5. Physical and medical examination; and
6. A decision to hire or not.

11. SOCIALIZATION
Final step in the staffing process. It involves
orienting new employees to the organization and
its work units, especially the work units where
the newly hired employee will be working. The
purpose of socialization is to enable new
employees to quickly become productive
members of the organization.
In socialization, the new employees are provided
with information about the following:
1.
2.
Key organization factors
Department and job-related issues

12. TRAINING AND CAREER PLANNING
AND DEVELOPMENT
 Training
Process of changing employee behavior, attitudes,
or opinions through some type of guided
experience.

1.
2.
There are many ways to conduct training
programs and they may be classified as follows:
on-the-job Training
off-the-job Training

13. On-the-job Training. Training method is
conducted which employees perform job-related
tasks. It is the most direct approach training.
1.
2.
3.
The common forms of on-the-job training are:
Internship
Apprenticeships
Job rotation
Off-the-job Training. Type of training deals with
work skill in settings away from ordinary
workplace.

14. 1.
2.
3.
4.
5.
6.
The various off-the-job training techniques are:
Classroom lectures
Videos and films
Simulation exercise
Computer-based training
Vestibule training
Programmed instruction
Career Planning and
Development

Career . The pattern of work-related
experiences that span the course of a person’s
life.

15. 
Career Stages. Refers to the distinct stages that
individuals go through in their careers, typically
including establishment, advancement,
maintenance, and retirement.
1.
Establishment stage. One of apprenticeship
where the young employee enters an
organization who may be technically able but
often without an understanding of the
organization’s demands and expectations.
2.
Advancement stage. The employee seeks
growth and increased responsibility through the
continued development and utilization of his
skills.

16. 3. Maintenance stage. The employee may
experience continued growth of performance and
accomplishment, or he may encounter career
stability.
4. Retirement stage. The individual learns to accept
a reduced role and less responsibility. Depending
on the individual this can be either a very positive
or a highly upsetting stage of one’s career.

17. PERFORMANCE APPRAISAL
Is a key aspect of performance management.
 The process of evaluating the performance of
employees, sharing that information with them,
and searching for ways to improve their
performance.


18. FUNCTIONS OF PERFORMANCE
APPRAISAL
1.
2.
3.
4.
To give employees feedback on performance;
To identify the employee’s development needs;
To make promotion and reward decisions;
To develop information about the organization’s
selection and placement decisions.

19. CRITERIA FOR PERFORMANCE
APPRAISAL
The three most popular sets of criteria are:
1.
2.
3.
Individual task outcomes;
Behaviors
Traits

20. 

Individual Task Outcomes. One way of
appraising performance is evaluating the
employee’s task outcomes.
Behavior. There are instances when it is
difficult to measure an individual’s task
outcomes. This is so on advisory jobs or support
positions and those who are assigned to work in a
group.

21. 
Traits. It is weak because it has little connection
with the actual performance of the job.
The traits commonly used as basis for
performance appraisal include:
1.
2.
3.
4.
5.
Good attitude
Showing confidence
Being dependable
Looking busy
Possessing a wealth of experience

22. The Process of Performance Appraisal
Establishment of performance standards
 Mutually set measurable goals
 Measure actual performance
 Compare actual performance with standards
 Discuss the appraisal with the employee
 If necessary, initiate corrective action


23. To determine what actual performance is, it is
necessary to acquire information about it.
Information may be derived from the
following sources:
1.
2.
3.
4.
Personal observation
Statistical reports
Oral reports
Written reports

24. METHODS OF
PERFORMANCE APPRAISAL
1.
2.
3.
Absolute standards;
Relative standards;
Objectives.

25. Absolute Standards. The subjects of appraisal are
not compared with other persons. This approach
consists of the following methods:



The essay appraisal
 A performance appraisal method whereby an appraiser
writes a narrative about the employee.
The critical incident appraisal
 A performance appraisal method which requires
effective or ineffective performance for each employee
being appraised.
The checklist
 A performance appraisal method wherein the evaluator
uses a list of behavioral descriptions and checks off
those behaviors that apply to the employee.

26. The adjective rating scale
 Also known as graphic rating scale, a
performance appraisal method that lists a
number of traits and a range of performance
for each.
 Forced choice
 A type of performance appraisal in which the
rater must choose between two or more specific
statements about an employee’s work
behavior.
 Behaviorally anchored rating scales (BARS)
 A rating instrument comprised of traits
anchored by job behaviors.


27. Relative Standards. This category of appraisal
methods compare individuals against other
individuals. The most popular in this category
are:
 Group
order ranking
 Individual ranking
 Paired comparison

28. Group order ranking is a relative standard of
performance characterized as placing
employees into a particular classification such
as top “one-fifth”.

29. The individual ranking method requires the
evaluator merely to list the employees in order
from highest to lowest.

30. Paired comparison is an appraisal method
whereby subordinates are placed in all possible
pair and the supervisor must choose which of
the two in each pair is the better performer.

31. Objectives. Also known as management by
objectives (MBO), is a process of joint goal setting
between a supervisor and a subordinate. MBO
consist of four steps: goal setting, action
planning, self control, and periodic reviews.
In goal setting, the individual objectives are set
based on the organization’s overall objectives.
In action planning, realistic plans are developed to
attain the objectives.
Self control refers to the systematic monitoring and
measuring of performance.
Periodic reviews are the means used to determine
whether there is a need for corrective action.

32. THE ADVANTAGES OF MBO ARE
THE FOLLOWING:
1.
2.
3.
It improves job performance by monitoring and
directing behavior;
It is practical and inexpensive; and
It fosters better communication between
employees and supervisors.

33. THE DISADVANTAGES OF MBO ARE
THE FOLLOWING:
1.
2.
3.
4.
5.
It does not specify the behavior required to
reach goals;
It tends to focus on short-term goals;
The successful achievement of MBO goals may
be partly a function of factors outside the
worker’s controls;
MBO does not provide a common basis for
comparison of performance standard; and
It often fails to gain acceptance.

34. ERRORS IN PERFORMANCE
APPRAISAL
The following are brief descriptions of errors in
performance appraisal.
Halo Error. This is a rating error that
occurs when a rate assigns rating on the basis of
an overall impression (positive or negative) of
the person being rated.
Leniency Error. This is a rater’s tendency to
give relatively high ratings to virtually
everyone. The opposite of this is strictness error
where the raters tend to give everyone a low
rating.

35. Central Tendency Error. This occurs when
a rater lump everyone together around the
average, or middle, category. The idea is that
there are no very good or very poor performers
on the dimension being rated.
Recency Error. This is a biased rating
that develops by allowing the individual’s most
recent behavior to speak for his or her overall
performance on a particular dimension.
Personal Bias Error. This occurs when a
rater allows specific biases, such as racial, age,
and gender, to enter into performance
appraisals.

36. REWARDS
A final requirement is
necessary to ensure effective
performance. The requirement
refers to the design and
implementation of reward
systems.

37. TYPES OF ORGANIZATIONAL
INCENTIVES
1.
2.
3.
Intrinsic or extrinsic
Financial or nonfinancial
Performance-based or membershipbased

38. Intrinsic rewards are those that the
worker receives from the job itself, such as pride
in one’s work, a feeling of accomplishment, or
being part of a team.
Extrinsic rewards are those that the
workers get from the employer, usually money,
a promotion, or benefit.
Financial rewards are those that
enhance an employee’s financial well-being
directly through wages, bonuses, profit sharing,
and the like.

39. Nonfinancial rewards are indirect
enhancement of an employee’s financial well-being.
This is done through supportive benefits like pension
plans, paid vacations, paid sick leaves, and purchase
discounts.
Performance-based rewards are those given
using performance as basis. These rewards take the
form of commissions, piecework pay plans, incentive
systems, group bonuses, or other forms of merit pay.
Membership-based rewards refer to those that
are given to all employees regardless of performance.
This type includes cost-of-living increases; benefits;
and salary increases attributable to labor-market
conditions, seniority or time in rank, credentials such
as a college degree, or future potential such as a new
MBA degree from a prestigious university.