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Performance management
Supporting line managers’ involvement
Prof. dr. Koen Dewettinck
Previous research

            Study 1: HR perspective (2006)
                     PM-practices in Belgian organisations
                     N = 319

                Biggest PM challenge: Line management involvement


            Study 2: Employee perspective (2008)
                     Experience with PM-practices and quality of leadership
                     N = 5778 (96 % white-collars)

                Low enthousiasm about managers’ people management skills



2|   © Vlerick Leuven Gent Management School
Research questions

            Line management and PM:
                     Do line managers find PM useful?
                     What about their actual involvement?
                     How do they rate PM effectiveness?


            Support:
                     How do line managers rate the support they receive (from HR)?
                     How do they rate HR-partners’ competences?
                     Suggestions to make PM more powerful ?




3|   © Vlerick Leuven Gent Management School
Respondents’ profile


       721 managers


              20% female
              Average age: 41 Years
              Average people management experience: 11 Years
              Education: 40 % master degree
              Industry: 58 % services; 51 % Belgian HQ; 42 % listed



4|   © Vlerick Leuven Gent Management School
PM-enactment by line management




© Vlerick Leuven Gent Management School
Effectiveness of PM system




6|   © Vlerick Leuven Gent Management School
Effectiveness of PM system




7|   © Vlerick Leuven Gent Management School   HR –sample N = 319 / employee-sample N = 5778
Formal PM-enactment

             Conversation to                  Line   Employee


             Discuss objectives                2
             Interm. Feedback                  2         …
             Appraise performance              1



             Duration conversation            54         …




8 | © Vlerick Leuven Gent Management School
Informal PM-enactment (empowering leadership)




9|   © Vlerick Leuven Gent Management School
Informal PM-enactment (empowering leadership)




10 |   © Vlerick Leuven Gent Management School
Perceived HR Support




11 |   © Vlerick Leuven Gent Management School
Appraisal consequences




12 |   © Vlerick Leuven Gent Management School
HR Competencies




13 |   © Vlerick Leuven Gent Management School
HR meeting the line




14 |   © Vlerick Leuven Gent Management School
Suggestions for better HR Support




15 |   © Vlerick Leuven Gent Management School
HR Support could be improved by…

              “acknowledging the importance of performance management”

              “diminishing the administrative burden”

              “starting a performance management system with clear
               guidelines, procedures and additional support”

              “not showing up at all”




16 |   © Vlerick Leuven Gent Management School
Conclusions

              PM-enactment by line management
                       The line recognizes the value of PM
                       Line has confidence in their PM-enactment (formal and informal)
                       Mixed perceptions on their actual involvement

              HR(-support): invisible and/or unappreciated ?
                       Overall low satisfaction
                       HR-competencies: not convincing
                       Limited contact between HR and line


              General request for more communication, support and
              formalization


17 |   © Vlerick Leuven Gent Management School
Two cases

              Tri-Finance
                       Young organisation (operational since 2002)
                       500 employees
                       Explicit ambition to create a new generation of work environments



              KBC
                       Not much older (since 1998) but long (CERA – Kredietbank) history
                       > 50.000 employees (15.000 in Belgium)
                       CSR  commitment towards employee engagement




18 |   © Vlerick Leuven Gent Management School

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Performance Management: Koen Dewettinck

  • 1. Performance management Supporting line managers’ involvement Prof. dr. Koen Dewettinck
  • 2. Previous research Study 1: HR perspective (2006) PM-practices in Belgian organisations N = 319  Biggest PM challenge: Line management involvement Study 2: Employee perspective (2008) Experience with PM-practices and quality of leadership N = 5778 (96 % white-collars)  Low enthousiasm about managers’ people management skills 2| © Vlerick Leuven Gent Management School
  • 3. Research questions Line management and PM: Do line managers find PM useful? What about their actual involvement? How do they rate PM effectiveness? Support: How do line managers rate the support they receive (from HR)? How do they rate HR-partners’ competences? Suggestions to make PM more powerful ? 3| © Vlerick Leuven Gent Management School
  • 4. Respondents’ profile 721 managers 20% female Average age: 41 Years Average people management experience: 11 Years Education: 40 % master degree Industry: 58 % services; 51 % Belgian HQ; 42 % listed 4| © Vlerick Leuven Gent Management School
  • 5. PM-enactment by line management © Vlerick Leuven Gent Management School
  • 6. Effectiveness of PM system 6| © Vlerick Leuven Gent Management School
  • 7. Effectiveness of PM system 7| © Vlerick Leuven Gent Management School HR –sample N = 319 / employee-sample N = 5778
  • 8. Formal PM-enactment Conversation to Line Employee Discuss objectives 2 Interm. Feedback 2 … Appraise performance 1 Duration conversation 54 … 8 | © Vlerick Leuven Gent Management School
  • 9. Informal PM-enactment (empowering leadership) 9| © Vlerick Leuven Gent Management School
  • 10. Informal PM-enactment (empowering leadership) 10 | © Vlerick Leuven Gent Management School
  • 11. Perceived HR Support 11 | © Vlerick Leuven Gent Management School
  • 12. Appraisal consequences 12 | © Vlerick Leuven Gent Management School
  • 13. HR Competencies 13 | © Vlerick Leuven Gent Management School
  • 14. HR meeting the line 14 | © Vlerick Leuven Gent Management School
  • 15. Suggestions for better HR Support 15 | © Vlerick Leuven Gent Management School
  • 16. HR Support could be improved by… “acknowledging the importance of performance management” “diminishing the administrative burden” “starting a performance management system with clear guidelines, procedures and additional support” “not showing up at all” 16 | © Vlerick Leuven Gent Management School
  • 17. Conclusions PM-enactment by line management The line recognizes the value of PM Line has confidence in their PM-enactment (formal and informal) Mixed perceptions on their actual involvement HR(-support): invisible and/or unappreciated ? Overall low satisfaction HR-competencies: not convincing Limited contact between HR and line General request for more communication, support and formalization 17 | © Vlerick Leuven Gent Management School
  • 18. Two cases Tri-Finance Young organisation (operational since 2002) 500 employees Explicit ambition to create a new generation of work environments KBC Not much older (since 1998) but long (CERA – Kredietbank) history > 50.000 employees (15.000 in Belgium) CSR  commitment towards employee engagement 18 | © Vlerick Leuven Gent Management School