Human Resource Management Chpt. 10

Crowdsourcing

"the practice of obtaining information or input into a task or project by enlisting the services of a large number of people, either paid or unpaid, typically via the Internet."

"Crowdsourcing" Performance Review concerns

- Employees not motivated to provide careful feedback of coworkers - Bringing everyone in to appraisal process may interfere with legality

Examples of crowdsourcing

- Expedia - Trivago

Behavioral observation scale (behaviors)

-A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. -A BOS also asks the manager to rate frequency with which the employee has exhibited the behavior during rating period.

Critical Incident method (behaviors)

-Based on managers records of specific examples of employees acting in ways that are either effective or ineffective -Employees receive feedback about what they do well and what they do poorly. Also how they are helping the organization achieve its goals.

legally defensible performance management system

-Based on valid job analyses, with requirements for job success clearly communicated to employees. -Evaluates behaviors or results, rather than traits. -Multiple raters (including self-appraisals) used. -All performance ratings reviewed by upper-level managers. -Appeals mechanism for employees.

To prepare for a feedback session managers should...

-Be well prepared -Create the right context for the meeting -Select a neutral location -Enable the employee to be well prepared -Ask employees to complete a self-assessment ahead of time

Methods for measuring performance

-Comparative -Attribute -Behavior -Results -Quality

4 team player styles

-Contributor -Collaborator -Communicator -Challenger

4 types of rating individuals- behaviors

-Critical-incident method -Behavioral anchored rating scale (BARS) -Behavioral Observation scale (BOS) -Organizational behavior modification (OBM)

Communicator

-Emphasizes team process. -Listens well and periodically summarizes discussion. -Encourages participation and believes in an interpersonal "glue". -Helps team members relax and have fun. -Tactful, considerate, encouraging, relaxed, friendly, helpful.

Contributor

-Enjoys providing good technical information and data. -Pushes for high performance standards. -Helps the team use its time and resources. -Freely shares all relevant information with the team. -Dependable, organized, responsible, efficient.

Criteria for Effective Performance Management

-Fit with strategy -Validity -Reliability -Acceptability -Specific feedback

2 types of rating individuals- attributes

-Graphic rating scale -Mixed-standard scale

Downside/limitations of performance reviews...

-Hard to assess someone else's performance with 100% accuracy -Time consuming Bias/errors Can be de-motivating

ethical issues in performance management

-Hard to assess someone's performance with 100% accuracy -Could video monitor, however employee monitoring via electronic devices and computers may raise concerns over employee privacy.

Collaborator

-Helps the team establish goals and clarify tasks. -Sees the "Big Picture." -Reminds the team to stay on track and focused on the target. -Pitches in to help out other team members when needed. -Flexible and open to new ideas. -Cooperative, accommodating, flexible, imaginative, visionary.

Legality issues and goals

-Job related -Relevant -Consistent -Valid (Performance management processes are often scrutinized in cases of discrimination or dismissal)

Performance management process requires...

-Knowing what activities and outputs are desired -Observing whether they occur -Providing feedback to help employees meet expectations

Graphic rating scale (attributes)

-Lists traits and provides a rating scale for each trait (1-5, 5 being highest) -Employer uses the scale to indicate extent to which an employee displays each trait

Scheduling Performance Feedback

-Performance feedback should be a regular, expected management activity. -Annual feedback is not enough. -Employees should receive feedback so often that they know what the manager will say during their annual performance review.

Total Quality Management (measuring quality)

-Performance measurement combines measurements of attributes and results. -two kinds of feedback in TQM

Effective performance systems include...

-Performance objectives fit with organizational strategy -Must give employees specific and timely feedback about performance expectations. -Must be valid (reflects the employee's actual performance, e.g., how they handle customer service) -Must be reliable (consistently measure the same results across employees). -Must be usable, easy to understand, not too long, and perceived as fair by employees. -Allows for employee to comment on (preferably before the review) his or her own performance.

3 types of rating individuals- measuring results

-Productivity -Management by objectives (MBO) -Total quality management (TQM)

Challenger

-Questions goals and methods. -Willing to disagree with the leader. -Encourages the team to take well-conceived risks. -Honest about progress and problems. -Asks "why?" and 'how?" and other relevant questions. -Candidate, adventurous, outspoken, honest, questioning.

Giving performance feedback

-Scheduling performance feedback -Preparing for a feedback session

3 types of measuring performance

-Simple ranking -Forced distribution -Paired comparison

SMART goals

-Specific -Motivating -Achievable -Results oriented -Time oriented

3 purposes of performance management

-Strategic purpose -Administrative purpose -Developmental purpose

Improving performance

-When performance evaluation indicates that employee's performance is below standards, the feedback process should launch an effort to correct the problem. -The final stage of performance management involves identifying areas for improvement and ways to improve performance in those areas. -To determine an employee's ability level, the manager considers whether the employee has the knowledge, skills, and abilities needed to perform the job effectively. -To determine an employee's level of motivation, managers need to consider whether the employee is holding a job he or she wants.

6 Ways to Structure Communication

1. Prevent surprises 2. Use specific, concrete examples 3. Focus on goals 4. Listen as well as talk 5. Be honest and positive 6. Treat employees with respect

Two kinds of feedback in TQM

1. Subjective feedback 2. Statistical quality control

360 degree feedback will usually be given to any of the following:

1. Subordinates 2. Peers 3. Supervisiors

"Crowdsourcing" Performance Review benefits

Review may mean more. It's by a lot of people, not a few.

Use specific, concrete examples

Statements about "attitude" or "commitment" require some mind-reading, and employees may feel misunderstood. References to specific accomplishments and examples of behavior are more neutral. Specific comments are especially important to back up negative feedback.

The performance management system at XYZ company currently is perceived as unfair and is time-consuming for managers. Which of the following systems is the most likely and least likely used, respectively. A) Paired comparisons; Results B) Results; Forced distribution C) Behavioral; Attributes D) Attributes; Comparative

Answer: A

Forced distribution performance measure

Assigns a certain percentage of employees to each category in a set of categories.

How to start legally defensible performance management system?

Clear results or behavior based expectations

Focus on goals

Compare the previous performance with the most recent measure to look for improvement.

Paired comparison performance measure

Compares each employee with each other employee to establish rankings.

"Crowdsourcing" Performance Review

Conducting employee performance reviews by getting feedback quickly from a large number of employees

Contract effect

Contrast Error is a concept during a performance appraisal of a candidate where his/her valuation is impacted by the fact that the previous candidates were relatively good or bad. It's an error where a person sets a certain benchmark, which affects the appraisal of the candidate being interviewed

Reliability

Does the measure consistently produce the same results. A measure could be very reliable but not valid. For example, you could reliably measure how quickly a customer service rep answer the phone but it may not be a valid measure of how effective they are handling the customer's problem.

Validity

Does the system accurately measure what it is intended to measure - in this case performance. That is, it needs to be comprehensive and not omit important aspects of the job (criterion deficiency) but it also should measure aspects that are not relevant or that important (criterion contamination).

Prevent surprises

Employees should have clear job descriptions and receive clear directions. Supervisors should be communicating regularly with employees about expectations and how well they are performing. Then when the formal feedback is delivered to an employee, it should be consistent with what the employee has been hearing since the previous review. either take time to discuss goals for career development or plan a time to do so.

Listen as well as talk

Employees who feel heard are more likely to believe that the review is fair and that their contributions are valued.

Fit with strategy

Ensure that what is most valued is actually measured and rewarded in terms of employee behaviors. Also, when strategies change, ensure that line managers work with HR to update or modify PM systems as necessary.

Performance measures should fit with the organization's strategy by supporting its...

Goals and culture

Be honest and positive

If performance is not acceptable, don't pretend that it is. Within the limits of honesty, express yourself as positively as you can. Pretending is disrespectful of the employee and could get the organization in legal trouble if the employee is later let go and believes the company discriminated

contamination

Information that is gathered but irrelevant

deficiency

Information that is not gathered but is relevant

Halo and Horn Effect

It is a cognitive bias that causes you to allow one trait, either good (halo) or bad (horns), to overshadow other traits, behaviors, actions, or beliefs.

legal issues with performance management

Lawsuits related to performance management usually involve charges of discrimination and unjust dismissal

Preparing for a feedback session

Managers should be prepared for each formal feedback session in an appropriate neutral and distraction free setting

Behaviorally Anchored Rating Scale (behaviors)

Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance

Simple ranking performance measure

Requires managers to rank employees in their group from the highest performer to the poorest performer.

Performance management process step...

Step 1: Define performance outcomes for company division and department Step 2: Develop employee goals, behavior, and actions to achieve outcomes Step 3: Provide support and ongoing performance discussions Step 4: Evaluate performance Step 5: Identify improvements needed Step 6: Provide consequences for performance results

How to avoid leniency errors

The best way to avoid making leniency errors when making performance reviews is to just be honest with your employees. Take the time to analyze the performance of your employees and don't be afraid to give a negative review as well as positive. An employee's performance will never improve if one is not honest on their reviews. A good employee would be able to take the constructive criticism and better themselves.

Acceptability

The measure has to be usable, easy to understand, not too time-consuming, and perceived as fair

360 degree feedback

The process of evaluating employees from multiple rating sources, usually including supervisor, peer, subordinate and self. Feedback is usually conducted through an online survey such as qualtrics.

Performance Management

The process through which managers ensure that employees' activities and outputs contribute to the organization's goals.

True or False: To protect against ethical and legal lawsuits, it is important to have a legally defensible performance management system.

True

True or false: Employees want more feedback?

True

Treat employees with respect

Use polite language and looking for solutions rather than simply placing blame on employees when performance is less than desired.

Mixed-standard scale (attributes)

Uses several statements describing each trait to produce a final score for that trait

Productivity (measuring results)

an important measure of success because getting more done with a smaller amount of resources (money or people) increases the company's profits.

The "halo effect"

captures what happens when a person who is judged positively based on one aspect is automatically judged positively on several others without much evidence. (EX. Being considered intelligent because you are attractive)

Subjective feedback

comes from managers, peers, and customers about the employee's personal qualities such as cooperation and initiative.

Strategic Purpose of Performance Management

helps the organization achieve its business objectives.

Statistical quality control

method uses charts to detail causes of problems, measures of performance, or relationships between work-related variables.

Management by Objectives (measuring results)

people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization's overall goals.

360-Degree Performance Appraisal

performance measurement that combines information from employees' -managers -peers -subordinates -self -customers

Developmental purpose of Performance Management

serves as a basis for developing employees' knowledge and skills.

The "horns" or "devil effect"

the concept by which a person who is judged negatively on one aspect is automatically judged negatively on several other aspects without much evidence. (ex. Being considered lazy because you are overweight)

Specific feedback

the measure should provide information about what standards the employee is expected to meet as specifically as possible

Distributional Errors

the rater tends to use one part of the rating scale. 1. Leniency errors 2. Strictness errors 3. Central tendency errors

Leniency Errors

this type of Error occurs when a rater tends to rate all performances at the positive end of the scale. This happens when managers over-empathize an employees positive behavior.

Central tendency errors

this type of error happens when a manager rates all employees as average without truly evaluating employees from one person to the next.

Administrative Purpose of Performance management

ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

Strictness errors

A frequently-occurring management mistake, in which a manager is too strict in evaluating the performance of employees, leading to decreases in motivation and performance. The strictness error is the inverse of the leniency error, in which a manager does not enforce a suitable level of performance and compliance with standards from employees

Organizational behavioral modification (behaviors)

A plan for managing behavior of employees through a formal system of feedback and reinforcement