HR Strategies and Performance Management Systems
HR Strategies and Their Impact on Selection
Bargain Laborer HR: Person-Vocation-Match-Culture (PVMC) is less important because the tasks are simple, and fitting is not critical (due to the short-term nature).
Free Agent HR Strategy: Competence (C) is important because you are paying for specialized knowledge and skills. However, PVM is less important because fitting is not a priority (short-term).
Loyal Soldier HR: PVM is important because it is a long-term contract, so alignment with company values is crucial. Competence (C) is less important because the tasks are simple.
Committed Expert HR Strategy: PVMC is important because of the more complex tasks and long-term relationship, making alignment with company values essential. The most complex and expensive selection process is in the Committed Expert HR strategy because all factors (PVMC) must align.
- The tools and selection process will differ depending on the type of employee (free agent, etc.).
- Based on the HR policy, the needs (PVMC) are identified, determining the complexity of the selection. The selection process varies according to the information required.
Performance Management Systems
Merit-Based Systems
Merit-based systems focus on recognizing and rewarding high performance. Some merit-based systems use a forced distribution method, where a certain percentage of employees receive the highest rating, the majority are ranked in the middle, and a few receive the lowest. Ratings might include “Exceeds Standards,” “Meets Standards,” and “Does Not Meet.”
Parity-Based Systems
Parity-based systems encourage cooperation and allow everyone who meets a certain standard to be classified as a high performer. These measures frequently focus on processes rather than outcomes. High performance is defined as following guidelines and performing behaviors assigned by supervisors. Employees are compared with an established benchmark rather than with each other.
Strategic Framework for Performance Management
- Bargain Laborer: External/Cost HR Strategy; Parity-Based/ Comparisons to Standards/Free Distribution
- Loyal Soldier: Internal/Cost HR Strategy
- Free Agent: External/Differentiation HR Strategy; Merit-Based/Comparisons to other people/Forced Distribution
- Committed Expert: Internal/Differentiation HR Strategy
Dimensions of Job Performance
Job performance represents the contribution that individuals make to the organization. A general performance factor represents overall contribution. This factor is important because all specific measures of job performance tend to be positively correlated; people who excel in one aspect tend to do well in others.
- Task Performance: Behavior that contributes directly to the production of goods or services.
- Citizenship Performance: Behavior that contributes to the social and psychological environment of the organization.
- Counterproductive Performance: Voluntary behavior that harms the organization.
Problems of Performance Appraisal
The objective of performance appraisal is to align the employee’s true contribution with its measurement. However, two types of errors can interfere:
- Contamination: Occurs when things that should not be included in the measurement are included (e.g., irrelevant information used to assess a teacher’s quality).
- Deficiency: Occurs when things that should be included in the measurement are not included.
The ideal scenario is to minimize both contamination and deficiency.