HUMAN RESOURCES

MANAGEMENT
INTERVENTION
- Performance Management
- Developing & Assisting Members
Performance Management

Thomas G. Cummings
Christopher G. Worley
 Learning Objectives
 To present a model for understanding the
components and relationships associated with
performance management
 To explore three interventions concerned with
managing the performance of human
resources: goal setting, performance appraisal,
and reward systems

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A Performance Management Model
Business Strategy

Reward Goal
Workplace Technology

Employee Involvement
Systems Setting
Individual
and Group
Performance

Performance
Appraisal

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Powerfull Component

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Characteristics of Effective Goals

 Goals are Challenging

 Challenging but realistic  varying the goal difficulty
 Goals are set participatively  commitment
 Goals are Clear
 Goals are specific and operationally defined
 Resources for goal achievement are negotiated

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-8

Application Stages
 Diagnosis: job or work group, employee need, business
strategy, workplace technology, level of employee
involvement
 Preparation for goal setting: interaction &
communication between managers & employees in goal
setting, training, made spesific action plans for implementing.
 Setting of goal: challenging goal are established and
methods for goal measurement are clarified  employees
participate.
 Review: modifications can be made if necessary, is that
energizing & challenging? Support business strategy?

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 Management by Objectives
(MBO)
 MBO attempts to align personal goals with
business strategy through increased
communications and shared perceptions
between managers and subordinates
 MBO programs may go beyond manager and
subordinate roles to address individuals, work
groups, and to reconcile conflicts.

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MBO Perspectives
 Organizational
8 key areas: (1) Market standing, (2) Innovation, (3) Productivity,
(4) Physical and financial resources, (5) Profitability, (6)
Manager performance and development, (7) Worker
performance and attitude, (8) Public responsibility 
quantitatif measurement
 Developmental
For developmental and growth on the job  identifying
weaknesses to analyzing performance in order to define
strengths and potentials  qualitative measurement

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MBO Application Stages
 Work group involvement
 Joint manager – subordinate goal setting
 Establishment of action plans for goals
 Establishment of criteria, or yardstick, of
success
 Review and recycle Periodically
 Maintenance of records

Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning 17-12

Effects of Goal Setting and MBO
Kelebihan:
Memungkinkan para individu  mengetahui apa yang diharapkan dari mereka.
Membantu manajer dalam perencanaan untuk menetapkan tujuan dan sasaran.
Memperbaiki komunikasi antara manajer dan bawahan.
Membuat para individu lebih memusatkan perhatiannya pada tujuan organisasi.
Membuat proses evaluasi lebih dapat disamakan. Ini juga memungkinkan para
bawahan mengetahui kualitas pekerjaan mereka dalam hubungannya dengan
tujuan organisasi.
Kekurangan:
Waktu dan usaha yang besar untuk mempraktekkan MBO
Kelemahan yang seharusnya tidak ada tapi menjadi ada  dalam
pengembangan dan implementasi

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 Sistem umpan balik yang melibatkan evaluasi
langsung terhadap kinerja individu atau
kelompok kerja, yang dilakukan oleh
supervisor, manajer, atau peers (360-degree
feedback)
 Penjembatan antara goal setting dengan
sistem reward
 Prosesnya melibatkan beberapa elemen

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Performance Appraisal Elements
Elements Traditional High Involvement
 Organizational, legal  Developmental
Purpose  Fragmented  Integrative

 Supervisor or manager  Appraisee, co-

Appraiser workers, and others
Role of  Passive recipient  Active participant
Appraisee
 Subjective  Objective and
Measurement  Concerned with validity subjective
 Period, fixed,  Dynamic, timely,
Timing administratively driven employee- or work-
driven

Bureaucratic approach & newer

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Performance Appraisal
Application Stages
 Select the right people.
 Diagnose the current situation
 Establish the system’s purposes and objectives
 Design the performance appraisal system
 Experiment with implementation
 Evaluate and monitor the system

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Characteristics of Effective
Appraisal Systems
 Timely
 Accurate
 Accepted by the users
 Understood
 Focused on critical control points
 Economically feasible

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Effects of Performance Appraisal
 Meningkatkan kinerja individual dan kelompok
 “kesan yg efektif”
 “Objective feedback does not usually work, it
virtually always work”
 Walaupun fokus penilaian adalah hubungan
antara kinerja dengan individunya, namun
ditemukan juga ada hubungan yang positif
antara kinerja kelompok dengan feedback yang
diberikan.
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Contoh form penilaian kinerja

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 Imbalan merupakan insentif yang “powerful”
untuk meningkatkan kinerja individu dan
kinerja kelompok
 Menghasilkan kepuasan kerja yang tinggi
 2 jenis reward:
 Intrinsic rewards  enriched job dan
kesempatan untuk mengambil keputusan
untuk memotivasi kinerja karyawan
 Extrinsic rewards  upah, bonus, barang, bagi
hasil, promosi, keuntungan, dll
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Reward System Design Features
Design Feature Definition

Person/Job Based vs. The extent to which rewards are based on the
Performance Based person, the job or the outcomes of the work
External Equity The relationship between what an organization
pays and what other organizations pay
Internal Equity The extent to which people doing similar work
within and organization are rewarded the same
Hierarchy The extent to which people in higher positions get
more and varied rewards
Centralization The extent to which reward system design,
decisions and administration are standardized
Rewards Mix The extent to which different types of rewards
are available and offered to people
Security The extent to which work is guaranteed

Seniority The extent to which rewards are based on length

of service

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Characteristics of Effective
Reward Systems
 Availability: ketersediaan reward yang memadai, terlalu sedikit reward
bukanlah sebuah reward.
 Timeliness: diberikan pada waktu yang tepat,misalnya hasil feedback PA
 Performance Contingency: reward sebaiknya diberikan berkaitan
dengan kinerja tertentu. Jika tujuan tercapai maka diberikan. Jika tidak maka
reward dikurangi atau dihilangkan
 Durability: intrinsik reward lebih bertahan lama daripada ekstrinsik reward
 Visibility: karyawan yang lain harus bisa melihat siapa saja yang mendapat
reward

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 Types of Rewards
 Skill-Based Pay System
• Menetapkan keahlian yang dibutuhkan untuk pelaksanaan
yang efektif
• Mengidentifikasi profil ketrampilan yang optimal dan
sejumlah karyawan dengan masing-masing skillnya.
• Menghargai setiap ketrampilan
• Mengembangkan aturan untuk memperoleh keahlian
tersebut
• Mengembangkan metode untuk mengukur ketrampilan yang
dimiliki karyawan tersebut

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Types of Rewards
 Performanced-Based Pay Systems
3 dimensi:
• Unit organisasi dimana kinerja karyawan tersebut diukur
– berbasis individu, kelompok atau organisasi
• Cara kinerja tersebut diukur
• Reward yang diberikan untuk kinerja yang baik

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Types of Rewards
 Gain-Sharing System
• Sistem bagi hasil (gain-sharing) melibatkan pembayaran
bonus karyawan berdasarkan pada pengembangan
terhadap pelaksanakan hasil.
• Biasanya reward ini berkaitan dengan proyek-proyek
yang melibatkan karyawan.
• Berguna untuk memberikan kontribusi guna
meningkatkan motivasi karyawan, keterlibatan, dan
kinerjanya.

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Types of Rewards
 Promotion Systems
Biasanya promosi jabatan dan peningkatan
karir/pekerjaan dibuat dari lapisan atas ke bawah.
Misal: manajer menentukan apakah bawahannya
akan dipromosikan
 Benefit
Beragam fasilitas, misal: tunjangan kesehatan,
asuransi, tunjangan anak-istri, tunjangan
pendidikan, tempat tinggal, dll

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Contoh reward berbasis kinerja

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