HRM Chp. 10 manage performance
the strategic purpose of effective performance management
-help the organization achieve its business objectives -helps link employee's behavior w/ the organization's goals -perf mgmt starts w/ defining what the org expects from each employee. it measures each employee's performance to identify where those expectations are and are not being met. this enables the org to take corrective action, such as training, incentives, or discipline -perf mgmt can achieve this purpose only when measurements are truly linked to the org's goals + when the goals + feedback about perf are communicated to the employees
developmental purpose of effective performance management
-it serves as a basis for developing employees' knowledge + skills -even employees who are meeting expectations can become more valuable when they hear + discuss perf feedback -GE, which once was known for performance mgmt systems that emphasized sorting the high from the low achievers, has been placing more emphasis on the his purpose of perf mgmt -employees seek input from their customers and use it to set goals -managers are charged w/ inspiring + empowering their people, rather than simply rating them
horns error
-when bias involves negative ratings. -this can cause employees to feel frustrated and defensive.
halo error
-when bias is in a favorable direction. -this can mistakenly tell employees they don't need to improve in any area.
distributional error
A common error in performance ratings, so called because it refers to ratings that fail to use the entire rating scale. -raters make this error when they tend to use only one part of a rating scale
organizational behavior modification (OBM)
A plan for overseeing and controlling employee behavior by way of an official system of both feedback and reinforcement is called _____.
developmental
After the manager told Miles he was doing a great job, Miles used what his manager told him about his work performance to do an even better job. This demonstrates how a performance management system has a(n) _____ purpose.
Answer: B Bill makes the rating error of strictness with his team, as he favors lower rankings. He makes the rating error of halo for Jan because his opinion of one quality (her punctuality) colors his opinion of her in a favorable light.
Bill rates all of his employees very low except for Jan. Bill gives Jan above average ratings because she consistently comes to work on time. Bill makes the rating errors of _____ for his team and of _____ for Jan. A.leniency; horn B.strictness; halo C.similar-to-me; central tendency D.horn; strictness
1. tell top performers they are valued 2. encourage communication between managers + their employees 3. establish consistent standards for evaluating employees 4. help the org identify its strongest + weakest employees
Elements of effective performance management
privacy
The biggest concern with the use of electronic monitoring of an employee's performance is _____.
graphic rating scale
The most common method for rating employee traits and qualities is called the _____.
motivation + ability
To perform at or above the acceptable standards, what are the two essential qualities an employee must demonstrate?
1. Define a set of key behaviors necessary for job performance. 2. Provide feedback and reinforcement to employees. 3. Use a measurement system to see if employees exhibit behaviors. 4. Inform employees of the key behaviors.
What are the four components typically used in an OBM technique?
1) Define performance outcomes for company division and department. 2) Develop employee goals, behavior, and actions to achieve outcomes. 3) Provide support like training, necessary resources and tools, and ongoing performance discussions and feedback. 4) Evaluate performance. 5) Both the employee and the manager identifying what the employee can do to capitalize on performance strengths and address weaknesses 6) Provide consequences for achieving (or failing to achieve) performance results.
What are the steps in the performance management process?
It allows companies to treat employees like robots. It places too much emphasis on time spent at one's desk. It might be used as a substitute for careful management.
What concerns are often expressed by those who criticize electronic monitoring of employee productivity?
It requires large amounts of information.
What is a major disadvantage of using a behavior observation scale (BOS) to rate employees?
The ranking system is not linked to the organization's goals.
What is a major drawback of using a ranking system to evaluate employee performance?
when the members of a certain group vary greatly in terms of their performance
When does the forced-distribution method of performance measurement work best?
Unjust dismissal suit
Which of the following describes a lawsuit filed on the grounds that a person was fired for reasons besides the ones that the employer states?
unjust dismissal suit
Which of the following describes a lawsuit filed on the grounds that a person was fired for reasons besides the ones that the employer states?
discrimination claim
Which of the following describes a lawsuit that alleges that a performance management system is biased against employees on the basis of their race or sex?
simple ranking
Which technique for making comparisons as part of a performance appraisal asks that managers order employees in a ranked group from highest performer to lowest performer?
Because manager ratings tend to be subjective
Why does rating employee attributes on a graphic rating scale have low reliability?
Behavioral Observation Scale (BOS)
_____ is a variation of BARS that uses all behaviors necessary for effective performance to rate performance at a task. - also asks the manager to rate frequency with which the employee has exhibited the behavior during rating period
contrast errors
if the rater compares an individual, not against an objective standard, but against other employees - a competent performer who works with exceptional people may be rated lower than competent simply because of the __________ error
First 2 steps of the performance management process
involve identifying what the company is trying to accomplish (its goals or objectives) and developing employee goals and actions to achieve these outcomes -the outcomes benefit customers, the employee's peers or team members, and the organization itself. The goals, behaviors, and activities should be measurable and become part of the employee's job description
Step 4 of the performance management process
involves evaluating performance: the manager + employee discuss + compare targeted goals + supporting behavior with actual results; this step includes the annual formal performance review
forced-distribution method
method of performance measurement that assigns a certain percentage of employees to each category in a set of categories the org might establish the following percentages + categories: exceptional -5% exceeds standards - 25% meets standards - 55% room for improvement - 10% not acceptable - 5%
paired-comparison method
method of performance measurement that compares each employee with each other employee to establish rankings -the employee with the highest number of points is considered the top-ranked employee.
graphic rating scale
method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait
Behaviorally Anchored Rating Scale (BARS)
method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance -rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance.
simple ranking
method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer -the manager decides which employee is best and crosses that person's name off the list. from the remaining names, the manager selects the worst employee and crosses off that name -the manger selects the second best, second worst, third best, etc. until all the employees have been ranked -major disadv. involves validity; to state a perf measure as broadly as best or worst doesn't define what exactly is good or bad about the person's contribution to the org; raises ques about fairness
Step 3 of the performance management process
organizational support; involves providing employees with training, necessary resources + tools, and ongoing feedback between the employee and manager, which focuses on accomplishments as well as issues + challenges that influence performance -for effective performance management, both the manager and the employee have to value feedback + exchange it on a regular basis--not just once or twice a year. Also, the manager needs to make time to provide ongoing feedback to the employee and learn how to give + receive it
1. strategic 2. administrative 3. developmental
organizations establish performance management systems to meet 3 broad purposes:
Management by Objectives (MBO)
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.
1. develop the process 2. determine how the information will be used 3. determine timing 4. ensure that performance standards and clear and specific for managers and employees
performance appraisal process
rater bias
raters often let their opinion of one quality color their opinion of others
the critical-incident method
rating approach asks that managers maintain a detailed log of specific examples of employees' effective and ineffective work behaviors -employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals
administrative purpose of effective performance management
refers to the ways in which orgs use the system to provide info for day-to-day decisions about salary, benefits, and recognition programs =perf mgmt can also support decision making related to employee retention, termination for poor behavior, and hiring or layoffs -info in a perf appraisal can have a great impact on the future of individual employees -mgers recognize this ^^ which is the reason they may feel uncomfortable conducting perf appraisals when the appraisal info is negative, and therefore, likely to lead to a layoff, disappointing pay increase, or other negative outcome
performance management
the process through which managers ensure employees' activities and outputs contribute to the organization's goals
strictness error
when the rater favors lower rankings -understates performance
central tendency error
when the rater puts everyone near the middle of the scale
leniency error
when the reviewer rates everyone near the top -overstates performance
