Performance Management

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Performance Management

• Session 01
• (Introduction Performance Management)

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PERFORMANCE MANAGEMENTDefinisi, Dasar Tujuan

• DEFINISI
• 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)

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• 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 _at_ Fungsi kerja
esensial yang diharapkan karyawan _at_ Kontribusi
karyawan terhadap tujuan organisasi _at_ Arti
konkretnya melakukan pekerjaan dengan baik _at_
Kerjasama antara karyawan dengan penyelia dalam
mempertahankan, memperbaiki dan mengembangkan
kinerja yang ada _at_ Bagaimana kinerja karyawan
diukur _at_ Mengenali hambatan dan mencari solusi
kinerja karyawan
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• 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.

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How Performance Management Work

• High Performance
• Reinforce melalui praise/ rekognisi/
  pengembangan tgjw

Improved Performance
Performance Effectiveness

• Low Performance
• Coaching/ Counseling

Performance Aktual
Performance Agreement
Main Performance Review
Monitoring and Review performance Agreement
Start Year Tingkatan Performance Management
End Year
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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
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The Management by Objectives process
Corporate objectives
Unit objectives
Review of corporate performance
revise
Managers set down objectives
Indiv prepare objectives
Review of unit performance
Indiv managers agree objectives
revise
Review of individual performance
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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

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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

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

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Change in Organization Structure
R D
Manufacturing
Marketing Sales
Traditional (vertical view) of organization
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The Silo Phenomenon
Marketing Sales
R D
Manufacturing
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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
orders
products
materials
Suppliers
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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.

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Three levels of Performance

• Organization
• Process
• Job/Performer

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Organization Level of Performance

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

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

• The Performance Variables that must be managed
• Hiring
• Promoting
• Job responsibilities and standards
• Feedback
• Rewards Training

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Nine Performance Variables
Management
Design
Goals

Orgn.
Org Mngt
Org Goals
Org Design
Process Design
Process
Process Goals
Process Mngt
Job/ Performer
Job Mngt
Job Goals
Job Design
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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

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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

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3 headed-hydra ofPerformance Management
Improve Performance
Compensation Promotion Mechanism

• Performance
• Management

Helps People Grow
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Requirements for establishing PM

1. Organizational readiness
2. System Integration
3. Training
4. Evaluation

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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 persons
  career.

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Scarce rewardsThere are few formal rewards
for taking the process seriously and probably no
informal rewards.Personal reflectionManagers
hesitate to give unfavorable appraisals for fear
that the appearance of unsatisfactory work by a
subordinate will reflect and develop
subordinates. No timeFear of
confrontationForms and procedures dont make
sense
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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
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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 Two-Way Feedback Judgments on Learning Identifying Individual Upgrading Needs Evaluating Previous Training Career Planning Basis
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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
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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.