ETHICS OF PERFORMANCE MANAGEMENT

Presented by: A3 group

PERFORMANCE MANAGEMENT

Performance management: the process through which managers ensure that employees activities and outputs contribute to the organizations goals.

PERFORMANCE MANAGEMENT

It is a systematic process of -Planning work and setting expectation -Continually monitoring performance -Developing the capacity to perform -Periodically rating performance -rewarding good performance

OBJECTIVES OF PERFORMANCE MANAGEMENT

To enable the employees towards achievement of superior standards To help the employees in identifying the knowledge and skills required for performing the job efficiently Boosting the performance of the employees by encouraging employee empowerment Promoting a two way system of communication between the supervisors and the employees Identifying the barriers to effective performance and resolving those barriers

PERFORMANCE MANAGEMENT SYSTEM

Performance Planning Performance Appraisal and Reviewing Feedback on the Performance followed by personal counseling and performance facilitation Rewarding good performance Performance Improvement Plans Potential Appraisal

BENEFITS OF A PERFORMANCE MANAGEMENT SYSTEM Organizations Benefits Improved organizational performance Employee retention and loyalty Improved productivity, Overcoming the barriers to communication, Clear accountabilities, Cost advantages.

BENEFITS OF A PERFORMANCE MANAGEMENT SYSTEM Managers Benefits Saves time Reduces conflicts Ensures efficiency Consistency in performance.

BENEFITS OF A PERFORMANCE MANAGEMENT SYSTEM

Employees Benefits Clarifies expectations of the employees Self assessment opportunities clarifies the job accountabilities and contributes to improved performance Clearly defines career paths and promotes job satisfaction

DIFFERENCE BETWEEN PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL

Performance Management

Performance appraisal
Stresses on mutual objective setting Generally Continuous reviews are Performed Usage of ratings is less common Focus is on quantifiable objectives, values and behaviors Flexible system Is not directly linked with pay

Focus is on top down assessment Performed annually

Usage of ratings is very common Focus is on traits Monolithic system Are very much linked with pay

ETHICAL PERSPECTIVE
Important that the decisions made during performance management be seen as fair and just Two factors of justice influences employees job satisfaction and organizational decisions 1)Distributive Justice 2)Procedural Justice

DISTRIBUTIVE JUSTICE
Perceived fairness of particular outcomes Distribution of rewards and punishments across people Specific to particular decision

PROCEDURAL JUSTICE
Evaluation of fairness of the method or process by which the decision was made Rules of procedural justice: Consistency rule Bias suppression rule Accuracy rule Correctability rule Representativeness rule Ethicality rule

CRITERIA FOR GOOD ASSESSMENT SYSTEM

Validity Reliability Freedom from Bias Practicality

POTENTIAL PROBLEMS
Unclear Standards Halo effect Central Tendency Leniency or Strictness Bias

HOW TO AVOID PROBLEMS?

Know Problems Use right tool Train Supervisors Keep a diary

LOREAL
One of the Worlds most Ethical Companies by Ethisphere Institute. Recognition highlights companies that outperform industry peers when it comes to ethical behavior.

ETHICS AT LOREAL
Ethics at LOral is the subject of specific communication directed toward both internal and external audiences. Ethics is fully integrated into the training process and employee and manager appraisal systems.

LOREALS ETHICS PROGRAM

ETHICS DAY Every year, all employees worldwide are invited to take part in a day dedicated to ethics. ETHICS INTRANET A website dedicated to business ethics is accessible to all employees, including the visually impaired

LOREALS ETHICS PROGRAM

TRAINING Ethics training is integrated into existing training modules to be as close as possible to employees day-to-day work. EXTERNAL RECOGNITION OF LORAL'S ETHICS TRAINING MODEL The LOral Ethics Training Model has been identified as a best practice in the Conference Board's Research Report: "Working at the Intersection of Human Resources, Ethics and Compliance the Need for Collaboration".

LOREALS ETHICS PROGRAM

EMPLOYEE APPRAISALS LOral employees are appraised not only on their results but also on the way in which such results are obtained. Two ethical competences are now part of LOral's worldwide appraisal system - "Act/Lead with human sensitivity" and "Obtain results with integrity".

LOREALS ETHICS PROGRAM

ETHICS INCLUDED IN INTERNAL AUDIT Some ethics-related subjects are now systematically covered during the internal audit mission. EMPLOYEE OPINION SURVEY Employee opinion surveys include questions on the implementation of the groups ethics program.

DEPLOYMENT VIA THREE STRATEGIC LEVERS

A steering and monitoring system including tools for ethical risk analysis and assessment, a country reporting system and regular audits. Awareness-raising and engagement to promote the involvement of employees at all levels of the group on ethics.

DEPLOYMENT VIA THREE STRATEGIC LEVERS

Promoting a culture of dialog and transparency : the Open Talk policy encourages employees to air their views, express their opinions and report unacceptable demands and behaviour.