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Performance Management
Session 01(Introduction – Performance
Management)
M Irhas Effendi 2008
PERFORMANCE MANAGEMENTDefinisi, Dasar & Tujuan
DEFINISIPerformance 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.
DASARKetika orang mulai mengetahui dan memahami apa yang
mereka harapakan, dan akan dapat mengambil bagian dalam pengharapan tersebut, mereka akan berusaha mencapainya (Amstrong)
M Irhas Effendi 2008
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
M Irhas Effendi 2008
Performance Management adalah:
Prose's bersama-sama antara manajer, tim dan individuMelibatkan manajemen kontrak, bukan komandoBerdasarkan persetujuan bersama atas tujuan, pengetahuan, ketranpilan dan kemampuan yang akan dicapaiMenerapkan 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.
M Irhas Effendi 2008
How Performance Management Work
Performance Agreement
Main Performance
Review
Monitoring and Review performance Agreement
High Performance Reinforce melalui praise/ rekognisi/ pengembangan tgjw
Improved Performance
Low Performance Coaching/ Counseling
Start Year Tingkatan Performance Management End Year
Performance Aktual
Perf
orm
ance
E
ffec
tive
ness
M Irhas Effendi 2008
Management by ObjectivesSistem 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
M Irhas Effendi 2008
Corporate objectives
Unit objectives
Managers set down objectives
Indiv prepare objectives
Indiv & managers agree objectives
Review of individual
performance
revise
Review of unit
performance
revise
Review of corporate
performance
The Management by Objectives process
M Irhas Effendi 2008
Latar Belakang Performance Management
Merit RatingManajer menilai bawahan berdasar:
1.Pengetahuan akan tugas sekarang2.Output efektif3.Pengambilan keputusan4.Ketepatan kerja5.Percaya diri6.Sikap kerja7.Inisiatif8.Kesiapan menghadapi tekanan
Menggunakan skala:Amat baikMemuaskan CukupBuruk
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
Merit ratingManagement by
ObjectivesPerformance Management
M Irhas Effendi 2008
MUNCULNYA PERFORMANCE MANAGEMENT
Hadirnya HRM sebagai pendekatan strategis dalam mengelola dan mengembangkan bawahanPentingnya penilaian yang strategis & fleksibelKesadaran bahwa performance hanya bisa diukur & dinilai dg model input-proses-output-hasil (kontribusi)Adanya perhatian terhadap peningkatan dan pengembangan yang berkelanjutan, serta learning organizationKesadaran bahwa proses penilaian kinerja harus dilakukan oleh manajer lini sepanjang tahunKesadaran akan pentingnya kultur perusahaanPengembangan konsep & teknik pengukuran kemampuan dalam level perilakuMunculnya kesadaran bahwa pengelolaan kinerja adalah tanggung jawab bersama, bukan hanya manajer liniKetidakpuasan akan hasil pengukuran dari cara-cara yang lain
M Irhas Effendi 2008
PERFORMANCE MANAGEMENT
IMPROVING INDIVIDUAL AND
ORGANIZATIONALPERFORMANCE
REWARD MANAGEMENT
DEVELOPING SKILLS
AND COMPETENCIES
IMPROVINGMANAGERIAL
EFFECTIVENESS
Performance Management as an Integrating Force
M Irhas Effendi 2008
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 selanjutnyaPM 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.
M Irhas Effendi 2008
Change in Organization Structure
R & D Manufacturing Marketing & Sales
Traditional (vertical view) of organization
M Irhas Effendi 2008
The Silo Phenomenon
R & D Manufacturing Marketing & Sales
M Irhas Effendi 2008
The system (horizontal) view of organization
Research and Development Manufacturing Marketing and Sales
Research
Product Development
Manufacturing Plant
Manufacturing Plant
Manufacturing Plant
Marketing
Sales
materials
Suppliers
Customer
Product Specs
new product ideas
orders
needs
promotions
products orders
M Irhas Effendi 2008
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.
M Irhas Effendi 2008
Three levels of Performance:
Organization Process Job/Performer
M Irhas Effendi 2008
Organization Level of Performance
Function A
Function B
Function C
Share-holders
Market
Products/Service
$
M Irhas Effendi 2008
Process Level of Performance
Process 1
Process 2
Function A
Function B
Function C
Share-holders
Market
$
Products/Service
M Irhas Effendi 2008
Job/Performer Level of Performance
The Performance Variables that must be managed;
HiringPromotingJob responsibilities and standardsFeedbackRewards Training
M Irhas Effendi 2008
Nine Performance Variables
Goals Design Management
Orgn.
Process
Job/Performer
Org Goals Org Design Org Mngt
Process Goals
Job Goals
Process Design
Job Design
Process Mngt
Job Mngt
M Irhas Effendi 2008
Performance Appraisal:
Douglas McGregor:1. Systematic judgments to back-up
salary increase, promotion, transfer, demotion, termination
2. Means of telling employees how they are doing (behavior, attitude, skills, job knowledge
3. Basis for job related counseling & coaching of individual by superior
M Irhas Effendi 2008
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
M Irhas Effendi 2008
3 headed-hydra ofPerformance Management
PerformanceManagement
Improve Performance
Helps PeopleGrow
Compensation & PromotionMechanism
M Irhas Effendi 2008
Requirements for establishing PM
1. Organizational readiness2. System Integration
3. Training4. Evaluation
M Irhas Effendi 2008
Factors Causing Antipathy Toward Performance Appraisal Systems
OwnershipNeither manager nor subordinate has any sense of ownership
Bad newsNegative messages generate defensive reactions and promote hostility rather than serve as useful performance feedback
Adverse impactBoth managers and employees know that bad reviews have an adverse impact on a person’s career.
M Irhas Effendi 2008
• Scarce rewards
There 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 don’t make sense
M Irhas Effendi 2008
USES OF APPRAISALS (1)
Subsystem Elements Objectives
Staffing:Recruitment SelectionPlacementTransferPromotionTerminationHuman resource InventoryRewarding:BenefitsSalary structureMeritIntrinsic
Identifying Current inadequaciesCriteria for Selection Predictors
Individual Skills for New AssignmentIdentifying Outstanding PerformerIdentifying Inadequate PerformerSkill and Potential Data
Comparative Data on PerformanceMotivation Through Objective Setting, Feedback, & ParticipationAppraisee Evaluation
M Irhas Effendi 2008
Subsystem Elements
Objectives
Changing:Organizational ClimateOrganizational StructureManagement StylesPoliciesCommunicationsDeveloping: RotatingTrainingCounseling
Identify Need for General ChangeTwo-Way FeedbackTwo-Way Feedback
Judgments on LearningIdentifying Individual Upgrading NeedsEvaluating Previous TrainingCareer Planning Basis
USES OF APPRAISALS (2)
M Irhas Effendi 2008
Human Judgment Raters Criteria and Formats
Subjectivity and/orindividual natureof decisions making:intentional bias and prejudice
Lack of informationon ratee performance, lack of knowledge ofratees” job, possession oferroneous information, differing expectations due tolevel in hierarchyand role
Ambiguity, lack ofspecific andbehaviorally-basedlanguage, notcommunicatedexplicitly to ratees
Sources of Problems in Appraisal Systems (1)
M Irhas Effendi 2008
Organizational Policy
Legal RequirementAnd Equal EmploymentOpportunity Legislation
Inflexibility
No commitment toappraisal, failureto use results in reward allocation,no standard policy regarding raters’ tasks in appraisal orfrequency ofappraisal, no allowance for userparticipation insystem development
Failure to developappraisal criteriafrom job analysis rating systems administeredsubjectively, use of results to discriminate on basis of race, sex,etc.
Inability of systemto reflect dynamicnature of jobs andorganizationalcontext; credibilityloss from outdatedsystems.
Sources of Problems in Appraisal Systems (2)