Human Resource Management Chapter 8: Managing Employee Performance

Total Quality management (TQM) (3)

*A way to measure performance by measuring quality 1. Provides methods for performance measurement and management 2. Combines measurements of attributes and results 3. Must balance subjective feedback with statistical quality control

Characteristics of Management by Objectives (MBO)

*A way to measure performance by measuring results - Stresses participation at each organizational level to set goals that flow from top to bottom - Goals at each levels should contribute to organization's overall goals -These goals become the standards for evaluating each employee's performance - Has to happen with employer and manager working together - Good for small departments

Strategic purpose of performance management

*One of the three purposes of performance management - Helps organization achieve business objectives

Administrative purpose of performance management

*One of the three purposes of performance management - provide information for day-to-day decisions about salary, benefits, promotions, terminations, etc.

Developmental purposes of Performance management

*One of the three purposes of performance management -Serves as basis for developing employees' skills and knowledge

Characteristics of contrast errors

*One of the three types of performance measurement rating errors - Compares an individual against other employees, not against an objective standard

Characteristics of Distributional errors

*One of the three types of performance measurement rating errors - Tends to use only one part of rating scale - Leniency, Strictness, Central tendency

Rater Bias Characteristics

*One of the three types of performance measurement rating errors -Opinions about one quality impact opinion of others - Halo error, horns error

Forced Distribution

*One of the three ways to measure performance by making comparisons - Assigns certain percentage of employees to each performance category

Paired comparison

*One of the three ways to measure performance by making comparisons - Compares each employee with each other employee to establish rankings

Simple ranking

*One of the three ways to measure performance by making comparisons -Requires managers to rank employees from highest performer to poorest performer

Halo error definition

*Part of rater bias - Bias involves favorable ratings

Horns error definition

*Part of rater bias - bias involves negative ratings

Critical incident method

- Based on managers' records of specific examples of employee behaviors - Employees should receive feedback about what they are doing and how that helps the organization achieve its goals *One of the 4 ways to measure performance based on rating individual behaviors

Graphic rating scale

- Lists traits and provides a rating scale for each trait (usually 1-5) - Employer uses the scale to indicate extent to which an employee displays each trait *One of the two ways to measure performance by rating attributes

Behavioral observation scale (BOS)

-A variation of BARS (behaviorally anchored rating scale) which uses all behaviors necessary for effective performance - Also asks manager to rate frequency with which employee exhibits the behavior *One of the 4 ways to measure performance based on rating individual behaviors

Legal issues in performance management

-Most lawsuits involve discrimination or wrongful termination - Performance management systems must be legally defensible

Two sources of performance information

1. 360-degree performance appraisal 2. Calibration meetings

Ways to make performance management legally defensible (4)

1. Based on valid job analyses, descriptions, specifications 2. Evaluates behaviors or results, not traits 3. Uses multiple raters 4. Provides appeals mechanism

Methods for Measuring Performance (5)

1. Comparative 2. Attribute 3. Behavior 4. Results 5. Quality

Table 8.1- Basic approaches to performance management

1. Comparative 2. Attribute 3. Behavioral 4. Results 5. Quality

Types of performance measurement rating errors (3)

1. Contrast errors 2. Distributional errors 3. Rater bias

4 ways to measure performance based on rating individual behaviors

1. Critical incident method 2. Behaviorally anchored rating scale (BARS) 3. Behavioral observation scale (BOS) 4. Organizational behavior modification (OMB)

Steps in the performance Management Process (6)

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

Criteria for effective performance management (5)

1. Fit with strategy 2. Validity 3. Reliability 4. Acceptability 5. Specific feedback

Two types of measuring performance in rating individuals- attributes

1. Graphic rating scale 2. Mixed-standard scale

What does performance management require? (3)

1. Knowing what activities and outputs are desired 2. Observing whether they occur 3. Providing feedback to help employees meet expectations

Improving performance Figure (4 types of people)

1. Misdirected effort 2. Solid performers 3. Deadwood 4. Underutilizes

Three topics of giving performance feedback

1. Scheduling performance feedback 2. Preparing for a feedback session 3. Conducting feedback sessions

Characteristics of preparing for a feedback session

1. Select an appropriate location 2. Minimize distractions

Three ways to measure performance by making comparisons

1. Simple ranking 2. Forced distribution 3. Paired comparison

Purposes of performance management (3)

1. Strategic 2. Administrative 3. Developmental purpose

Three approaches to conducting feedback sessions

1. Tell-and-sell 2. Tell-and-listen 3. Problem-solving

Strictness definition

Reviewer rates everyone near the bottom *Part of distributional errors

Leniency Definition

Reviewer rates everyone near the top *Part of distributional errors

Characteristics of scheduling feedback

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

What is the problem with Behavioral Observation Scale (BOS) method?

Since it assesses all behaviors, it can get really big really fast. - You get really good objective data - BUT it takes a ton of time

Characteristics of 360-degree performance appraisals

Combine performance measurement information from - Managers - Peers - Subordinates - Self - Customers *One of the two sources of performance information

Calibration meetings

Discuss employee performance rating scales and what they actually mean to minimize personal bias *One of the two sources of performance information

Ethical issues in performance management

Employee monitoring via electronic devices raises concerns over privacy

If your performance management system creates competition among team members, you should . . .

Make collaboration a characteristic to be evaluated - could also increase the specificity of the feedback in certain situations

Characteristics of problem-solving approach to conducting feedback

Managers and employees work together to solve performance problems

Characteristics of Tell and sell approach to conducting feedback

Managers tell employees their ratings and then justify them

Characteristics of Tell and listen approach to conducting feedback

Managers tell employees their ratings and then let employees explain their perspectives

Organizational Behavior Modification (OBM)

Manages behavior of employees through formal system of feedback and reinforcement - Needs to be frequent and continuous - need to reinforce close to when the behavior happens *One of the 4 ways to measure performance based on rating individual behaviors

Contamination & Deficiency of a Job Performance Measure

Overlap of Job performance measure and Actual or true job performance - Contamination, Validity, and deficiency -Figure 8.2

Definition of Performance Management

Process managers use to ensure employees' activity and outputs contribute to organizational goals

Behaviorally anchored rating scale (BARS)

Rates behavior on a scale showing specific statements describing different levels of performance *One of the 4 ways to measure performance based on rating individual behaviors

Central tendency definition

Rates everyone near the middle *Part of distributional errors

Mixed-standard scale

Uses several statements describing each trait to produce a final score for that trait *One of the two ways to measure performance by rating attributes

Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors bill makes are ______ and __________ respectively

strictness and halo