Performance Management Session 01 (Introduction – Performance Management)

PERFORMANCE MANAGEMENT Definisi, Dasar & Tujuan Performance management adalah usaha untuk mendapat hasil yang lebih baik, baik bagi organisasi, tim maupun individual dengan memahami dan memanaj performance dalam kerangka tujuan, standar dan kompetensi yang terencana dan telah disepakati bersama. DASAR Ketika orang mulai mengetahui dan memahami apa yang mereka harapakan, dan akan dapat mengambil bagian dalam pengharapan tersebut, mereka akan berusaha mencapainya (Amstrong)

Manajemen Kinerja (MK): Proses komunikasi berkesinambungan dan dilakukan dalam kemitraan antara karyawan dengan penyelia langsungnya. (Bacal) Manajemen Kinerja berupaya membangun harapan yang jelas serta pemahaman ttg : @ Fungsi kerja esensial yang diharapkan karyawan @ Kontribusi karyawan terhadap tujuan organisasi @ Arti konkretnya melakukan pekerjaan dengan baik @ Kerjasama antara karyawan dengan penyelia dalam mempertahankan, memperbaiki dan mengembangkan kinerja yang ada @ Bagaimana kinerja karyawan diukur @ Mengenali hambatan dan mencari solusi kinerja karyawan

Performance Management adalah: Prose's bersama-sama antara manajer, tim dan individu Melibatkan manajemen kontrak, bukan komando Berdasarkan persetujuan bersama atas tujuan, pengetahuan, ketranpilan dan kemampuan yang akan dicapai Menerapkan review terus menerus atas persetujuan, persyaratan, perencanaan & peningkatan pencapaian untuk perencanaan selanjutnya. Tujuan Performance Management: Tujuan utama performance management adalah menciptakan budaya dimana individu dan kelompok dapat bertanggungjawab terhadap perbaikan proses bisnis, skill & kontribusi mereka sendiri.

How Performance Management Work High Performance Reinforce melalui praise/ rekognisi/ pengembangan tgjw Improved Performance Performance Effectiveness Low Performance Coaching/ Counseling Performance Aktual Performance Agreement Monitoring and Review performance Agreement Main Performance Review Start Year Tingkatan Performance Management End Year

Management by Objectives Sistem yg dinamis untuk mengintegrasikan antara kebutuhan perusahaan untuk mencapai keuntungan dan pengembangan tujuan dengan kebutuhan manajer untuk berkontribusi dan mengembangkan diri. Mc Gregor: MBO merupakan taktik dalam strategi manajemen melalui kontrol dan pengarahan

The Management by Objectives process Corporate objectives Unit objectives Review of corporate performance revise Indiv prepare objectives Managers set down objectives Review of unit performance Indiv & managers agree objectives revise Review of individual performance The Management by Objectives process

Latar Belakang Performance Management Merit rating Management by Objectives Performance Management Merit Rating Manajer menilai bawahan berdasar: Pengetahuan akan tugas sekarang Output efektif Pengambilan keputusan Ketepatan kerja Percaya diri Sikap kerja Inisiatif Kesiapan menghadapi tekanan Menggunakan skala: Amat baik Memuaskan Cukup Buruk Mengapa manajer ini tidak suka MR Tidak percaya pada validitas MR Sungkan bila langsung mengkritik Kurang terampil melakukan penilaian dan interview Tidak suka prosedur-prosedur baru

MUNCULNYA PERFORMANCE MANAGEMENT Hadirnya HRM sebagai pendekatan strategis dalam mengelola dan mengembangkan bawahan Pentingnya penilaian yang strategis & fleksibel Kesadaran bahwa performance hanya bisa diukur & dinilai dg model input-proses-output-hasil (kontribusi) Adanya perhatian terhadap peningkatan dan pengembangan yang berkelanjutan, serta learning organization Kesadaran bahwa proses penilaian kinerja harus dilakukan oleh manajer lini sepanjang tahun Kesadaran akan pentingnya kultur perusahaan Pengembangan konsep & teknik pengukuran kemampuan dalam level perilaku Munculnya kesadaran bahwa pengelolaan kinerja adalah tanggung jawab bersama, bukan hanya manajer lini Ketidakpuasan akan hasil pengukuran dari cara-cara yang lain

Performance Management as an Integrating Force IMPROVING INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE REWARD MANAGEMENT DEVELOPING SKILLS AND COMPETENCIES IMPROVING MANAGERIAL EFFECTIVENESS Performance Management as an Integrating Force

Implikasi yg lebih luas dari PM Performance Management dan HRM Mencapai tingkat tertinggi kinerja HR suatu organisasi Mengmbangkan kapasitas maupun potensi pegawai Menciptakan lingkungan dimana potensial laten dari pegawai dapat terealisasi Mendorong / merubah kultur organisasi Pengembangan selanjutnya PM berguna dlm pengemb karir indv. & memberi kesempatan pd manajer dan bawahannya utk berdiskusi ttg pekerjaan sbg pelajaran. Jadi pegawai tidak hanya memahami atribut (pengetahuan, skill dan keahlian) dan kompetensi di area dia bekerja namun juga dpt memahami area lain. Kerja tim PM dpt berguna mengembangkan kemandirian bawahan tanpa hrs dgn manajer dgn diskusi kelompok tentang tujuan, review kemajuan yg mereka dapat.

Change in Organization Structure R & D Manufacturing Marketing & Sales Traditional (vertical view) of organization

The Silo Phenomenon R & D Manufacturing Marketing & Sales

The system (horizontal) view of organization Research and Development Manufacturing Marketing and Sales new product ideas Manufacturing Plant Research needs Marketing promotions Customer Manufacturing Plant Product Specs orders Sales Manufacturing Plant Product Development products orders materials Suppliers

The Reality of Adaptation Understanding performance requires documenting the inputs, processes, outputs, & customers that constitute a business Organization systems adapt or die Pulling any lever in the system will have an effect on other parts of the system. Putting too much efforts “fixing” people who are not broken, and not enough time fixing organization systems that are broken.

Three levels of Performance: Organization Process Job/Performer

Organization Level of Performance $ Share- holders Products/ Service Function C Function A Function B Market

Process Level of Performance $ Share- holders Process 1 Products/ Service Market Process 2 Function A Function B Function C

Job/Performer Level of Performance The Performance Variables that must be managed; Hiring Promoting Job responsibilities and standards Feedback Rewards Training

Nine Performance Variables Goals Design Management Orgn. Org Goals Org Design Org Mngt Process Process Goals Process Design Process Mngt Job/ Performer Job Mngt Job Goals Job Design

Performance Appraisal: Douglas McGregor: Systematic judgments to back-up salary increase, promotion, transfer, demotion, termination Means of telling employees how they are doing (behavior, attitude, skills, job knowledge Basis for job related counseling & coaching of individual by superior

GE experience on effects of interview Criticism has negative effect on achievement of goals Praise has little effect Performance improves most when specific goals are set Defensive resulting from critical appraisal leads to low performance Coaching should be day to day, not once a year Mutual goal setting, not criticism that improves performance Interview is design for improving performance not for other purposes Participation by employees in goal setting produces favorable results

3 headed-hydra of Performance Management Improve Performance Compensation & Promotion Mechanism Performance Management Helps People Grow

Requirements for establishing PM Organizational readiness System Integration Training Evaluation

Factors Causing Antipathy Toward Performance Appraisal Systems Ownership Neither manager nor subordinate has any sense of ownership Bad news Negative messages generate defensive reactions and promote hostility rather than serve as useful performance feedback Adverse impact Both managers and employees know that bad reviews have an adverse impact on a person’s career.

• Scarce rewards There are few formal rewards for taking the process seriously and probably no informal rewards. Personal reflection Managers hesitate to give unfavorable appraisals for fear that the appearance of unsatisfactory work by a subordinate will reflect and develop subordinates. • No time Fear of confrontation Forms and procedures don’t make sense

USES OF APPRAISALS (1) Subsystem Elements Objectives Staffing: Recruitment Selection Placement Transfer Promotion Termination Human resource Inventory Rewarding: Benefits Salary structure Merit Intrinsic Identifying Current inadequacies Criteria for Selection Predictors Individual Skills for New Assignment Identifying Outstanding Performer Identifying Inadequate Performer Skill and Potential Data Comparative Data on Performance Motivation Through Objective Setting, Feedback, & Participation Appraisee Evaluation

USES OF APPRAISALS (2) Subsystem Elements Objectives Changing: Organizational Climate Organizational Structure Management Styles Policies Communications Developing: Rotating Training Counseling Identify Need for General Change Two-Way Feedback Judgments on Learning Identifying Individual Upgrading Needs Evaluating Previous Training Career Planning Basis

Sources of Problems in Appraisal Systems (1) Human Judgment Raters Criteria and Formats Subjectivity and/or individual nature of decisions making: intentional bias and prejudice Lack of information on ratee performance, lack of knowledge of ratees” job, possession of erroneous information, differing expectations due to level in hierarchy and role Ambiguity, lack of specific and behaviorally-based language, not communicated explicitly to ratees

Opportunity Legislation Sources of Problems in Appraisal Systems (2) Organizational Policy Legal Requirement And Equal Employment Opportunity Legislation Inflexibility No commitment to appraisal, failure to use results in reward allocation, no standard policy regarding raters’ tasks in appraisal or frequency of appraisal, no allowance for user participation in system development Failure to develop appraisal criteria from job analysis rating systems administered subjectively, use of results to discriminate on basis of race, sex, etc. Inability of system to reflect dynamic nature of jobs and organizational context; credibility loss from outdated systems.