HRM Chapter 8

Managers, peers, subordinates, self, and customers

five primary sources of performance information

financial perspective

focuses on creating sustainable growth in shareholder value

results approach

focuses on managing the objective, measurable results of a job or work group

internal or operations perspective

focuses on process that influence customer satisfaction

learning and growth perspective

focuses on the company's capacity to innovate and continuously improve

attribute approach

focuses on the extent to which individuals have certain attributes (characteristics or traits) believed desirable for the company's success

productivity measurement and evaluation system (ProMES)

goal is to motivate employees to improve team or company level productivity. It is a means of measuring and feeding back productivity information to employees.

solid performers

high ability, high motivation

underutilizers

high ability, low motivation

pareto chart

highlights the most important cause of a problem. Causes are listed in decreasing order of importance, where importance is usually defined as the frequency with which that cause resulted in a problem.

process-flow analysis

identifies each action and decision necessary to complete work, such as waiting on a customer or assembling a television set. Useful for identifying redundancy in processes that increase manufacturing or service time.

competency model

identify and provide descriptions of competencies that are common for an occupation, organization, job family, or specific job

balanced scorecard

includes four perspectives of performance including financial, customer, internal or operations, and learning and growth

similar to me

individuals who are similar to us in race, gender, background, interest, beliefs, etc., receive higher ratings than those who are not

control charts

involve collecting data at multiple points in time. By collecting data at different times, employees can identify what factors contribute to an outcome and when they tend to occur.

misdirected effort

low ability, high motivation

deadwood

low ability, low motivation

upward feedback

managerial perofrmance appraisal that involves subordinates' evaluations of the manger's behavior or skills

developmental purpose

performance management systems are used to develop employees.

Pros: minimizes subjectivity cons: objective measures can be contaminated (by outside influences)

pros & cons to the results approach

halo

rater gives employee high ratings on all aspects of performance becuase of their overall positive impression of hte employee.

horns

rater gives employees low ratings on all aspects of performance because of an overall negative impression of the employee.

strictness

rater gives low ratings to all employees regardless of their performance

central tendency

rater gives middle or average ratings to all employees despite their performance.

contrast

ratings influenced by comparison between individuals instead of an objective standard (e.g. employee receives lower than deserved rating becaue he/she is compare to outstanding peers)

paired comparison

requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he or she is considered the higher performer. Once all pairs have been compared, the manager computes the number of times each employee recieved hte favorable decision and this becomes the employee's performance score.

simple ranking

requires managers to rank employees within their departments from highest performer to poorest performer (or best to worst).

comparative approach

requires the rater to compare an individual's performance with that of others

graphic rating scale, mixed-standard scale

scales used in the attribute approach

competencies

sets of skills, knowledge, abilities, and personal characteristics that enable employees to successfully perform their jobs

scattergrams

show the relationship between two variables, events, or different pieces of data.

heuristics

simplifying mechanisms, to make judgements, whether about investments or about people.

social peformance management

social media and microblogs similar to Facebook, LinkedIn, and Yammer that allow employees to quickly exchange information, talk to each other, provide coaching, and receive feedback and recognition in the form of electronic badges.

scout

software tthat can be used to evaluate the content of employees email and other communications.

develop employee goals, behavior, and actions to achieve outcomes

step 2 of performance management process

provide support and ongoing performance discussions

step 3 of performance management process

evaluate performance

step 4 of performance management process

identify improvements needed

step 5 of performance management process

provide consequences for performance results

step 6 of performance management process

define performance outcomes for company devision and department

step one of performance management process

internal consistency reliability

th extent to which all the items rated are internally consistent

interrater reliability

the consistency among the individuals who evaluate the employee's performance

reliability

the consistency of a performance measure; the degree to which a performance measure is free from random error.

Acceptability

the extent to which a performance measure is deemed to be satisfactory or adequate by those who use it.

Performance Feedback

the process of providing employees information regarding their performance effectiveness

procedural, interpersonal, outcome

three categories of perceived fairness

defining performance (primarily through job analysis), measuring performance (performance appraisal), and feeding back performance information (performance feedback)

three parts of the performance management system

ranking, forced distribution, and paired comparison

three techniques under the comparative approach

forced distribution

uses a ranking format, but employees are ranked in groups. Most commonly, employees are grouped into three, four, or five categories usually of unequal size indicating best workers, worst workers, and one or more categories in between. (exceeds, meets, etc.).

test-retest reliability

when measures are reliable over time.

strategic, administrative, developmental

3 purposes of performance management

360-degree appraisal

A performance appraisal process for managers that includes evaluations from a wide range of persons who interact with the manager. The process includes self-evaluations as well as evaluations from the manager's boss, subordinates, peers, and customers.

strategic purpose

A performance management system should link employee activities with the organization's goals.

appraisal politics

A situation in which evaluators purposefully distort ratings to achieve personal or company goals

gamification

Game-based strategies applied to performance management to make it a fun, effective, transparent, and inclusive process for employees and managers

calibration meetings

Meetings attended by managers in which employee performance ratings are discussed and evidence supporting the ratings is provided. The purpose of the meetings is to reduce the influence of rating errors and politics on performance appraisals.

administrative purpose

Organizations use performance management information (appraisals) in many decisions: salary administration (pay raises), promotions, retention-termination, layoffs, and recognition of individual performance.

Pros: generalizable across a variety of jobs Cons: vague performance standards

Pros & Cons of attribute approach

Pros: based on in depth job analysis; link strategy to desired behaviors cons: must be constantly monitored & revised

Pros & Cons to behavioral approach

Pros: relies on attributes & results Cons: companies may be unwilling to abandon traditional performance management systems.

Pros & cons of the quality approach

Pros: relatively easy to develop Cons: Common failure to link to goals of the organization

Pros/Cons of the comparative approach

leniency

Rater gives high ratings to all employees regardless of their performance

specific (clearly stated), measureable (compared to a standard), attainable (difficult but achievable), relevant (link to organizational success factors or goals), timely (measured in deadline, due dates, cycles, or schedules)

SMART goals stands for:

BARS, BOS, Competency Models

Techniques used in the behavioral approach

validity

The extent to which a performance measure assesses all the relevant—and only the relevant—aspects of job performance.

specificity

The extent to which a performance measure gives detailed guidance to employees about what is expected of them and how they can meet these expectations

strategic congruence

The extent to which the performance management system elicits job performance that is consistent with the organization's strategy, goals, and culture.

Performance Management

The means through which managers ensure that employees' activities and outputs are congruent with the organization's goals.

Performance Appraisal

The process through which an organization gets information on how well an employee is doing his or her job.

graphic rating scale

a list of traits is evaluated by five-point (or some other number of points) rating scale. The manager considers one employee at a time, circling the number tht signifies how much of that trait the individual has. Can be discrete or continuous).

contaminated

a measure is this if it evaluates irrelevent aspects of performance or aspects that are not job related.

deficiency

a performance measure is this if it does not measure all aspects of performance.

Behavioral Observation Scale (BOS)

a variation of BARS and is developed from critical incidents. However it differs in 2 ways: rather than discarding a large number of the behaviors that exemplify effective or ineffective performance, this uses many of them to more specifically define all the behaviors that are necessary for effective performance ALSO rather than assessing which behavior best reflects an individuals performance, this requires managers to rate the frequency with which the employee has exhibited each behavior during the rating period.

problem-solving

approach where managers and employees work together to solve performance problems in an atomosphere of respect and encouragement.

tell and sell

approach where managers tell employees how they have rated them and then justify these ratings

tell and listen

approach where managers tell employees how they have rated them and then let the employees explain their side of the story

rater accuracy training (frame-of-reference) training

attemps to emphasize the multidimensional nature of performance and to get raters to understand and use the same idea of high, medium, and low perofrmance when making evaluations.

behavioral approach

attempts to define the behaviors an employee must exhibit to be effective in the job

rater error training

attempts to make managers aware of rating eroors and helps them develop strategies for minimizing those errors.

quality approach

characteristics include customer orientation, a prevention approach to errors, and continuous improvement

use of objectives, balanced scorecard, productivity measurement and evaluation system (ProMES)

components of the results approach

alternation ranking

consists of a manager looking at a list of employees, deciding who is the best employee, and crossing that person's name off the list. From the remaining names, the manager decides who the worst employee is and crosses that name off the list - and so forth.

customer perspective

defines value for customers

Behaviorally Anchored Rating Scale (BARS)

designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance. First gather a large number of critical incidents that represent effective and ineffective performance on the job. These incidents are classified into performance dimensions, and the ones that experts agree clearly represent a particular level of performance are used as behaviorial examples (or anchors) to guide the rater. The manager then considers an employee's performance along each dimension and determine where on the dimension the employee's performance fits using the behaviorial anchors as guides.

mixed-standard scales

developed to get around some of the problems with graphic rating scales. First define the relevant performance dimensions and then develop statements representing good, average, and poor performance along each dimension. These statements are then mixed ith the statements from other dimensions on the actual rating instrument.

histograms

display distributions of large sets of data

kaizen

employee practices that emphasize continuous improvement of business processes

cause-and-effect diagrams

events or causes that result in undesirable outcomes are identified

critical success factors (CSFs)

factors in a company's business strategy that give it a competitive edge. Employees can be held accountable and rewarded for behaviors that directly relate to the company attaining these. May also use Key Performance Indicators (KPIs)

input, employee characteristics, feedback, performance standard/goals, consequences

factors to consider in analyzing poor performance