HRM 548: Diversity & Global Issues in the Workplace

HRM 548: Diversity & Global Issues in the Workplace

CHAPTER 8

PERFORMANCE MANAGEMENT

Performance Management

is NOT Performance Appraisal

Performance Management: By The #’s

• Approximately 11% of employees never receive a performance review

• 58% of employees believe their managers do not give fair evaluations

• Only about 35% of performance reviews are submitted on time during review cycle

• 65% of employees report they cannot provide feedback to the supervisors

• 84% of employees are not satisfied with their opportunity for a promotion

• 28% of employees claim they receive the same review each year

• 62% of companies reported NOT having a talent management program

Performance Management: Processes and systems

Silverman’s Five Stage Model:

Preface – Issues/elements, forms, focus (traits, behaviors, results), actors, conflict resolution

1. Clarify employees’ major responsibilities

2. Develop performance standards

3. Give periodic feedback

4. Diagnose and coach

5. Review overall performance

PERFORMANCE MANAGEMENT Defined as: Ongoing process of communication between a Manager

and Employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes setting objectives, identifying goals, providing feedback and evaluating the results.

3. DEVELOPING5. REWARDING

2. MONITORING

4. RATING

1. PLANNING

TALENT MANAGEMENT “The most important corporate resource over the next 20 years will be talent: smart, sophisticated businesspeople who are technologically literate, globally astute, and

operationally agile.” – Society for Human Resources Management (Talent Management Study 2017)

What is Talent Management? “The implementation of integrated strategies or systems designed to improve processes for recruiting, developing,

and retaining people with critical skills and aptitudes to meet current and future organizational needs”

Purpose: to ensure that the right supply of talented workforce is ready to realize the strategic goals of the company both today and in the future.

TALENT = COMPETENCE + COMMITMENT + CONTRIBUTION

TALENT MANAGEMENT MODEL

 Includes a series of integrated systems

TALENT MANAGEMENT

Business Strategy

Hiring S.M.A.R.T.

Training & Development

Performance Management

Skill Gap Assessment

Career Planning

TALENT MANAGEMENT

S.M.A.R.T.

 Strategic Planning

 Multi-discipline Collaboration

 Applicable Skills, Knowledge & Abilities

 Results Oriented

 Timely & Tactical

Should Employees Conduct Self-Appraisals?

Global Comparative

Japan: 86% Germany: 54% U.S.: 36%

Note: Japan and Germany, as well as other countries,

self-evaluate on core competencies

PERFORMANCE MANAGEMENT: USE OF COMPETENCIES

Defined as: What a person should know, be able to do and a pattern of behavior that represents the different characteristics we expect employees to excel at. Core elements of talent management practices.

Value of Competencies

1. Helps establish criteria to effectively evaluate an employee

2. They are the demonstrable and measurable knowledge, skills, behaviors, personal characteristics that are associated with or predictive of excellent job performance.

3. Guides management in providing feedback on performance, outcomes and expectations

4. Behavioral approach which allows for better understanding of how performance of the job differs from one person to the next.

PERFORMANCE MANAGEMENT: KPI FACTORS

Uses of Key Performance Indicators:

• KPI’s are used to measure and monitor our performance against the characteristics which we determine are critical for us to deliver our business plan

• Used at different levels for short and long term objectives, through individual and shared goals

Characteristics of Effective KPI’s

1. Aligned – Always aligned with strategy and objectives 2. Owned – Employee is now accountable 3. Predictive – Leading indicator of desired performance 4. Actionable – Timely data and information, providing managers with

opportunities to intervene and impact

5. Easy to understand – Competencies and Factor language should be obvious to user

Performance Management: Rating Perils

• Halo/Horn Effect – rate employees the same on every trait

• Central Tendency – lack of rating differentiation between employees

• Leniency – avoids honest ratings to avoid conflict

• Recency – narrow focus on recent events

• Similarity/Like me – favorable rating to employees who have similar values or interests to the rater

• Constancy – rate employees via rank order

13

Performance Management: Avoiding Other Rating Perils

• Make objective statements

• Consider the totality of the employees performance

• Inadequate record keeping – lack of specific examples

• Lack of establishing milestones for progress reviews

• Discuss specific performance issues and behaviors objectively

• Legal impact of inflated performance ratings

• Maintain clear and open communication channels

• Specific comments should avoid any connotations which are connected to Protected Classes

PERFORMANCE MANAGEMENT GLOBAL PERSPECTIVE

• The practice itself confronts the issue of cultural applicability.

• May be necessary to use local staff and a customized form.

• Level of position involved is an important consideration.

DO YOU COMPLETE AND ADMINISTER

PERFORMANCE EVALUATIONS ON

EXPATS?

ABSOLUTELY!!!

PERFORMANCE MANAGEMENT: GLOBAL PERSPECTIVE

GERMANY

• Believe in a thorough review process

• Performance Evaluation incorporates: – Work Objectives

– Leadership & Management Section

– Professional Qualities & Personal Attributes

– Overall Assessment of Employee Performance

– Projection of Short and Long Term Goals

• Compensation ties to completion of objectives

• More and more 360 evaluations

PERFORMANCE MANAGEMENT: GLOBAL PERSPECTIVE

JAPAN

• Rely heavily on a formal appraisal system – direct correlation to salary & promotion

• More recent times reflective of Western Management practices (i.e. United States)

• Review the Skills, Knowledge & Abilities plus “ATTITUDES”

• Not designed to enhance communication channels between management and employee

PERFORMANCE MANAGEMENT: FEEDBACK FORMULA

1. Introduce the conversation

2. Empathize

3. Describe the Behavior/Issue (I’ve Noticed)

4. State the impact of the behavior

5. Ask for their perception

6. Make a suggestion or request

7. Build an agreement on next steps

8. Say Thank You

Hint: When receiving feedback..Swallow, Breathe & Say Thank You!

JAPAN WORKLIFE

BASIC JAPANESE IDEALS

 Japans ideals are based in a rich, long heritage which transcends into corporate life

Westerners have little experience with living and working within the Asian ideas.

 It can be difficult for Westerners to understand Asian culture because there one of the key ideals in westernized countries includes the concept of individual freedom & independence more than community.

This directly translates to the significant differences in work ideology

JAPAN: CORPORATE CULTURE

• Politeness: care in interactions with others is one of the hallmarks of Japanese culture, and this translates in the workplace as people making an effort to be pleasant and non-confrontational.

• Teamwork: Japanese are very good at working in teams to get things done and, naturally, prefer to collaborate with others. This means that colleagues can be very supportive, and also creates a natural sense of belonging.

• Social contacts: Teamwork extends outside of the company with socializing with colleagues. For those that enjoy it, this can lead to very strong relationships in the office.

JAPAN: CORPORATE CULTURE

• Consensus in decision-making: True to their team nature, Japanese companies prefer to make decisions based on the consensus of everyone in the group. Many non-Japanese employees appreciate this consensus-based approach.

• Planning, process and details: Japanese companies spend much time on planning, with detailed information gathering and analysis. They also put a lot of emphasis on the process, including attention to small details.

• Ability to execute: As a result of the careful planning and attention to detail, Japanese companies are very good at following through with a plan.

JAPAN: CORPORATE CULTURE

• Lack of pigeonholing: Job definitions in Japan tend to be vague, which can give you an opportunity to get involved in areas beyond what you were originally hired for. There is often also scope to take initiative and suggest improvements.

• Increased responsibility: Japanese employees can receive the opportunity to get involved in activities and take on more responsibility than might be possible. It also gives you more visibility and potential exposure to senior-level workers.

• Opportunity for learning: Always opportunity to deepen knowledge leading to enhanced learning.

JAPAN: CORPORATE CULTURE CHALLENGES

• The language barrier: Even if you speak Japanese well, doing all your work in Japanese can be a strain. And if you don’t speak Japanese, you’ll find that there is always information that is not easily accessible. Your Japanese colleagues will likely also be struggling with a language barrier.

• Indirect communication style: Until you get used to their style of communication, it may be difficult in pick up on the subtle negative signals that Japanese send instead of coming out and speaking directly. The reluctance to confront people with negative information can also turn into passive-aggressive behavior.

JAPAN: CORPORATE CULTURE CHALLENGES

• A need to read between the lines: Not only do Japanese tend to be indirect, their communication style also tends to be vague. Instructions or feedback may be conveyed very nonspecifically, leaving non- Japanese to wonder what the real meaning is.

• Lack of positive feedback: One of the things that tends to get left unsaid in Japanese culture is positive feedback. This can feel disconcerting if you’re used to positive reinforcement.

• Takes a long time to get anything done: The carefulness, planning and consensus-oriented decision-making has the effect of creating long drawn- out processes when making a decision.

JAPAN: CORPORATE CULTURE CHALLENGES

• Slow to change: A corollary of the slowness to make decisions is a tendency to stick to the status quo and avoid change. Middle managers in particular tend to be very reluctant to try anything new, lest it fail and doom their careers.

• Long working hours: This is one of the most notorious aspects of Japanese workplaces. The amount of overtime expected can vary significantly by company. Realizing this is a problem for all employees, many Japanese firms are attempting to restrict overtime as part of recent “workstyle reform” efforts.

JAPAN: CORPORATE CULTURE CHALLENGES

 Japan’s working culture has become life- threatening

• Death by overwork, karoshi, in 2018, over 200 Japanese employees took their own lives directly attributed to the amount of work and overtime worked.

• According to a government report over a fifth of Japanese employees are at risk through working more than 80 hours of overtime a month. More serious still, one in ten Japanese workers clock over 100 hours of overtime each month.

Update: New laws state that overtime cannot exceed 45 hours per month and 360 hours per year.

JAPAN: PERFORMANCE MANAGEMENT

 Japanese employees are often reviewed at least 2x per year

The performance review focuses more on goal attainment and development of knowledge, skills and abilities.

 Japanese employees conduct self-evaluations which has become part of the self-development. Often times their self-evaluation is more critical than their managers.

Core competencies are selected by management and considered universal for all employees to attain.

Promotions, salary increases and bonuses are directly ties to goal achievement.

HRM548: CHAPTER #8 STUDENT RESPONSE

“It does not matter how slow you work, as long as you never stop pursuing the desired outcome for the whole and the individual”

Knowing what we now know about Japan, list the pros and cons of having Mystique Cosmetics expand to Japan?

Does the above quote make sense to a company like Mystique Cosmetics?