Chapter 6 Performance Management
steps in Performance Management system
(Define Performance) (Monitor and Evaluate Performance) (Review performance) (Provide Consequences)
pay for performance rewards
(bonuses) (commissions)
Behavioral goals (contingency approach)
(communicate progress clearly to others in my work group) (listen to others during meetings without interrupting)
reason that feedback about performance is important
(it helps boost performance) (it increases the likelihood that employees will recommend their employer to others) employees know what they need to improve
Primary functions of performance management
(making employee related decisions such as pay raises) (clarifying expectations for advancement) (guiding employee training and development )
conditions that make pay for performance effective
(paying top performers a lot higher than other employees) (calibrated performance measures that ensure accuracy) (using multiple measures of performance)
4 steps in goal-setting process `
(set goal) (Promote goal commitment) (Provide support and feedback) (Create action plans)
effective coaching
(specific performance goals ) (being developmental)
fundamental characteristics
(specific time limits) (focusing on results) (being specific about what will be achieved)
commitment to goals can be promoted
(writing them down) (breaking them down into smaller steps or intermediate goals)
quantity (Measurements)
10 more customers were served
results of effective performance mangament
40% higher employee commitment ) (10-30% higher customer satisfaction) (50% less turnover)
franklin covey published in psychology Today in 2010
56% do not understand their organization goals
Performance management
A process that defines expectations, evaluates performance against the expectations, and consequences
Pay for Performance
Monetary incentives that link a portion of pay directly to results of accomplishments
Reasonable goals (perception of feedback)
Nobody has ever reached the goal and received the bonus
Fairness of the system (perception of feedback)
Only family member receive pay raises
important for managers to know the types of rewards their employees prefer in order
Provide rewards that will motivate employees
credibility of the source (perception of feedback)
Trust the person delivering the feedback to the honest
coaching
a customized process between two or more people with the intention of enhancing learning and motivating change
timeliness (Measurements)
calls were answered withing 24 hours
Evaluating Performance
comparing actual outcomes to a previously established goal is the step in the performance management process
financial (Measurements)
cost waste was reduced by 10%
Total Rewards
encompass not only compensation and benefits, but also personal and professional growth opportunities and a motivating work environment that includes recognition, job design, and work-life balance
project goals (contingency approach)
finish the productivity reports for the end of the year group summary
instructional and motivational
functions of feedback for those who receive
SMART goals
goals that are specific, attainable, time bound, and measurable
objective goals (contingency approach)
increase sales by 10%
involving employees in the design, selection, and assessment of reward system
increases their effectiveness as motivators
reward system
key components such as types of rewards, distribution criteria, and desired outcome are part of an organization
Accuracy (perception of feedback)
measure the right things correctly
distribution criteria
profits, error rates, and sales revenue
360 degree feedback is useful because
provides performance evaluation from peers, subordinates, and managers
managers can support employees goal achievement
providing timely and task specific feedback providing needed training
extrinsic rewards
rewards given to a person by the boss, the company, or some other person
intrinsic rewards
satisfaction a person receives from performing the particular task itself
3 common sources of feedback
self, others, task
effective feedback
serves a separate function form evaluation
noncash motivators
since the Great Recession , there has been trend toward
quality (Measurements)
there were no defective product returned
provide clear guidance how to improve performance
when giving both positive and negative feedback