In this chapter, the following content will be discussed: In this chapter, you will learn to: Trace the history of organized labor in the United States; discuss the major legislation affecting labor unions; outline the objectives of labor unions; describe the tactics used by labor and management during conflicts, and discuss the role of unions in the future;...
LECTURE: THIRTY HRM-755 PERFORMANCE MANAGEMENT OSMAN BIN SAIF Summary of Previous Lecture • • • • • Coaching Process Observation and Documentation of Developmental Behavior and Outcomes Constraints in Observing and Evaluating Performance Reasons for Documentation of Progress Recommendations for Documentation of Progress Summary of Previous Lecture (Contd.) • Giving Feedback • Purposes of Feedback • Enhancing Feedback • Praise Agenda for Today’s Lecture • • • • • Negative Feedback Reasons for Negative Feedback Discomfort Improving Defensive Response SECTION 4: REWARD SYSTEMS, LEGAL ISSUES AND TEAM PERFORMANCE MANAGEMENT CHAPTER 10: REWARD SYSTEMS AND LEGAL ISSUES Agenda for Today’ Lecture (Contd.) • • Conditions necessary for a Successful CP Plan Possible Problems Associated With Contingent Pay Plans • Types of CP Systems • Recommendations for Rewards • Pay Structures • Performance Management and Legislation Negative feedback • • Negative feedback includes information that performance has fallen short of accepted standards The goal of providing negative feedback is to help employees improve their performance in the future; – it is not to punish, • embarrass, or • chastise them Negative feedback (Contd.) • • It is important to give negative feedback when it is warranted because the consequences of not doing so can be detrimental for the organization as a whole In spite of need to address poor performance, managers are usually not very comfortable providing negative feedback Why is this so? Reasons for Negative Feedback Discomfort Consider the following reasons, why managers are not comfortable providing negative feedback; • Negative reactions and consequences: – Manager may fear, the employee may react negatively Reasons for Negative Feedback Discomfort (Contd.) • Negative experience in the past: – • Managers themselves may have received negative feedback at some point in their careers and have experienced firsthand how feelings can be hurt Playing “god”: – Manager may be reluctant to play the role of an all knowing, judgmental god Reasons for Negative Feedback Discomfort (Contd.) • Need for irrefutable and conclusive evidence: – Managers may not want to provide negative feedback until after they have been able to gather irrefutable and conclusive evidence about a performance problem 10 Some Legal Principles Affecting Performance Management • • There are six important concepts that often come into play in the case of litigations related to the implementation of a performance management system: Employment at will: – In employment at will, the employer or employee can end the development relationship at any time 55 • Some Legal Principles Affecting Performance Management Negligence: (Contd.) – Many organizations outline a performance management system in their employee manual, employment contract, or other materials – When the system is described in such documents and not implemented as described, legal problems can arise 56 • Some Legal Principles Affecting Performance Management Defamation: (Contd.) – Defamation is the disclosure of untrue, unfavorable performance information that damages an employees reputation – An employee can argue that the organization defamed her if the employer states false and libelous information during the course of performance evaluation, or negligently or intentionally communicates these statements to a third party, such as potential future 57 employer, thus subjected the employee to • Some Legal Principles Affecting Performance Management Misrepresentation: (Contd.) – Whereas defamation is about disclosing untrue, unfavorable information, mis presentation is about disclosing untrue favorable performance and this information causes risk or harm to others 58 • Some Legal Principles Affecting Performance Management Adverse impact: (Contd.) – Adverse impact also called unintentional discrimination, occurs when the performance management system has as unintentional impact on a protected class – This can happen when women receive consistently lower performance ratings than men 59 • Some Legal Principles Affecting Performance Management Illegal discrimination: (Contd.) – Illegal discrimination also called disparate treatment, means that raters assign scores differentially to various employees based on factors that are not performance related such as race, nationality, color, or ethnic and national origin 60 Laws Affecting Performance Management In the past few decades, several countries have passed laws prohibiting discrimination based on race, ethnicity, national origin, gender, religion, age, disability status 61 Laws in the U.K For example, the following laws have been passed in the United Kingdom: • Equal pay act of 1970: – • Aims to give individuals the right to the same contractual pay and benefits as a person of opposite gender in the same employment Race relations act of 1976: – Makes it illegal to discriminate against someone on the ground of nationality and 62 color, or ethnic, racial or national group Laws in the U.K (Contd.) • Gender discrimination act of 1975: – • Makes it illegal to discriminate on the grounds of gender, marital status, and gender reassignment in a limited manner Disability discrimination act of 1995: – Makes it illegal to discriminate on the grounds of disability status 63 Laws in the U.K (Contd.) • Employment equality (sexual orientation) regulations 2003: – • Makes it illegal to discriminate on the grounds of sexual orientation Employment equality (religion or belief) regulation 2003: – Makes it illegal to discriminate on the grounds of religion and belief 64 Laws in the U.S Similarly following laws have been passed in the united states: • Equal pay act of 1963: – • Prohibits gender discrimination in the payment of wages Civil religious act of 1964: – Prohibits discrimination on the basis of color, race, religion, gender or national origin 65 Laws in the U.S (Contd.) • Age discrimination in employment act of 1967: – • Prohibits discrimination on the basis of age Americans with disability act of 1990: – Makes it illegal to discriminate against people with disabilities 66 Summary for Today’s Lecture • • • • • Negative Feedback Reasons for Negative Feedback Discomfort Improving Defensive Response SECTION 4: REWARD SYSTEMS, LEGAL ISSUES AND TEAM PERFORMANCE MANAGEMENT CHAPTER 10: REWARD SYSTEMS AND 67 LEGAL ISSUES Summary for Today’ Lecture (Contd.) • • Conditions necessary for a Successful CP Plan Possible Problems Associated With Contingent Pay Plans • Types of CP Systems • Recommendations for Rewards • Pay Structures • Performance Management and Legislation 68 Thank You 69 ... and measure performance first, then allocate rewards: – Before rewards are allocated, there must be a good performance management system in place that defines – (1 )performance and performance. .. handle the performance and the performance evaluation of their employees? – They are likely to inflate ratings so that employees receive what the manager thinks are appropriate rewards 30 • Possible... been hired: Instructor(pay range: $30, 00 0-4 5,000) Senior instructor(pay range:$40,00055,000) 18 Contingent Pay Plans • • Contingent pay(CP) also called pay for performance, means that individuals