MIE 330: Ch 10; Managing employees performance
drawback of BOS
- a lot of information is required
types of rating errors
- contrast errors - distributional errors
Step 1 in Performance Management Process
- define performance: outcomes for company division and department
graphic rating scale
- lists traits and provides a rating scale for each trait -employer uses the scale to indicate extent to which an employee displays each trait
1. contrast errors
- rater compares an indv, not against an objective standard, but against other employees
administrative purpose
- ways in which organizations use the system to provide info for day to day decisions about salary, benefits and recognition programs - support decision making related to employee retention, termination for poor behavior ad hiring layoff
conducting feedback session
-"tell and sell" -"tell and listen" -"problem solving
SLIDE 18 & 19
-MBO: two objectives for bank
Step 6 (goes to 1)
-Provide consequences for performance results
SMART goals
-Specific -Measurable -Attainable -Relevant -Time bound
As an employee...
-be prepared, write self assessment objectively -try to stay engaged -let feedback sink in -understand appeal process -dont refuse to sign appraisal but feel free to add comments -see as an opportunity to improve
Metrics for college student
-comes to class prepared -performs well on tests -participates in class discussions -active in organizations -secures an internship
test-retest reliability
-consistency of results over time
performance management
-critical for executing a talent management system that involves one to one contact with managers to ensure that proper training and development are taking place
rating behaviors
-critical incident method -behaviorally anchored rating scale (BARS) -behavioral observation scale (BOS) -organizational behavior modification (OBM)
reliability
-describes consistency of results that performance measure will deliver
political behavior in performance appraisals
-distorting a performance evaluation to advance ones personal goals
strategic purpose
-effective performance management helps organization achieve objectives - links employees behavior with organizations goals -enables org to take corrective acton (training, incentives)
Step 4 (can go to step 5 or 6)
-evaluate performance
scheduling performance feedback
-feedback should be regular, expected management activity -annual is not enough -employees should receive feedback so often they know what manager will say during annual performance review
Effective performance management
-fit with strategy -validity -reliability -acceptability -specific feedback
productivity
-is an important measure of success because getting more done with a smaller amount of resources (money or people) increases companys profit - output of production
performance management process requires...
-knowing what activities and outputs are desired -observing whether they occur -providing feedback to help employees meet expectations
problem-solving
-managers and employees work together to solve performance problems
tell-and-sell
-managers tell employees ratings and justifies them
tell-and-listen
-managers tell employees ratings and let employees explain view
future of performance management
-more open source feedback -shorter duration (end of projects, quarterly) -less formal, more focused on development and feedback -no rating scales
Acceptability
-must meet practical standard of being acceptable to the people who use it
Management by Objectives (MBO)
-people at each level of organization set goals in process that flows from top to bottom, so that all levels are contributing to the organizations overall goals
260-degree performance appraisal
-performance measurement that combines information from employees -managers (most common) , peer, subordinates (ppl reporting to manager) , self, customers (directly observes service performance and best source of performance info)
4. Organizationals Behavior Modification (OBM)
-plan for managing behavior of employees through a formal system of feedback and reinforcement
As a manager...
-prepare thoroughly for appraisal meeting, specific examples -read self assessment and note areas with disagreement -recognize employee may become defensive (get them to engage in discussion) -remember focus is on improving performance -listen and respond with empathy -reinforce your commitment to them
employee self assessment
-prior to review meeting -begin with talking about assessment
performance management
-process through which managers ensure that employees activities and outputs contribute to the organizations goal -defines what the organization expects from each employee and measures each employee's performance to identify where those expectations are and are not being met
measuring results
-productivity -management by objectives (MBO)
Step 3
-provide support and ongoing performance discussions
2. distributional errors
-rater tends to use only one part of a rating scale -leniency: reviewer rates everyone near the top -strictness: rater rates everyone near the top -central tendency: the rater puts everyone near middle of scale
3. rater bias
-raters often let opinion of one quality color their opinion of others
electronic monitoring and employee privacy
-records of employees performance ratings, disciplinary actions, and work rule violation are often stored in electronic databases -electronic monitoring can improve productivity and generates privacy concerns
uniform guidelines on employees selection procedures
-require that organizations avoid using criteria such as race and age as a basis for employment decisions
2. behaviorally anchored rating scale (BARS)
-scale showing specific statements of behavior that describe different levels of performance
developmental purpose
-serves as basis for developing employees knowledge and skills -helps employees aware of strengths and areas that need improvement
performance feedback setting
-should be in appropriate meeting place, neutral free of distractions -manager create right context, open dialogue, self assessment
fit with strategy
-shuold aim at achieving employee behavior that support organizations strategy, goals and culture
making comparisons
-simple ranking (alternation ranking) -forced distribution -paired comparison
1. critical-incident method
-specific examples of employees acting in ways that are either effective or ineffective -employees receive feedback about what they do web and what they do poorly and how they are helping the organization achieve its goal
calibration meeting
-technique to minimize appraisal politics -meeting at which manager discuss employee performance ratings and provide evidence supporting their rating with goal of eliminating influence of rating errors
specific feedback
-tell employees what is expected of them and how to meet expectations
finding solutions to performance problems
-type of action called for depends on what employee lacks -lack of ability, motivation, both
legal requirements for performance management
-uniform guidelines on employee selection procedures -unjust dismissal
mixed-standard scale
-uses several statements describing each trait to product a final score for that trait
unjust dismissal
-usual claim is that person was dismissed for reasons beside what employer states -performance management systems provide evidence to support organizations employment decision
3. Behavioral Observation Scale (BOS)
-variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task -a BOS also asks manager to rate frequency with which employee has exhibited the behavior during rating period
horns error
-when bias involves negative ratings -can cause employees to feel frustrated and defensive
halo error
-when bias is in a favorable direction -can mistakenly tell employees they dont need to improve in an area
validitiy
-whether appraisal measures all relevant aspects of performance and omits irrelevant aspects
BARS for active in organizations
1 - Does not belong to any organizations 2 - Belongs to organizations but does not participate often 3 - Attends 50% of meetings 4 - Attends 100% of meetings 5 - Attends 100% of meetings and holds a leadership position
4 components of OBM
1. Define a set of key behaviors necessary for job performance. 2. Use a measurement system to assess whether the employee exhibits the key behaviors. 3. Inform employees of the key behaviors, perhaps in terms of goals for how often to exhibit the behaviors. 4. Provide feedback and reinforcement based on employees' behavior.
3 components of MBO
1. goals are specific, difficult, objective 2. managers and their employees work together to set goals 3. manager gives objective feedback through rating period to monitor progress toward goals
If the performance management system created competition among team members, I would
A. make collaboration a criterion to one evaluated
Step 2
Develop employee goals, behavior and actions to achieve outcomes
rating attributes
characteristics or traits believed desirable -behavior measurement, performance appraisals , quality of work 1. graphic rating scale 2. mixed standard scale
interrater-reliability
consistency of results when more than one person measures performance
Step 5 (goes to 1)
identify improvement needed