Week 4 - Chapter 8 Performance Management

Factors to consider in analyzing poor performance

1. Input 2. Employee Characteristics 3. Feedback 4. Performance standards/goals 5. Consequences

Source for Performance Information

1. Managers 2. Peers 3. Direct reports 4. Self 5. Customers

Unconscious bias

A judgment outside of our consciousness that affects decisions based on background, culture, and personal experience.

Strategic Purpose

First and foremost, a performance management system should link employee activities with the organization's goals. One of the primary ways strategies are implemented is through defining the results, behaviors, and, to some extent, employee characteristics that are necessary for carrying out those strategies, and then developing measurement and feedback systems that will maximize the extent to which employees exhibit the characteristics, engage in the behaviors, and produce the results.

Administrative Purpose

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

Effective performance systems

Should measure both what gets accomplished (objectives) and how it gets accomplished (behaviors).

Reliability

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

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.

Acceptability

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

Test-retest reliability

a method for determining the reliability of a test by comparing a test taker's scores on the same test taken on separate occasions

The attribute approach

focuses on the extent to which individuals have certain attributes (characteristics or traits) believed desirable for the company's success. Ex. initiative, leadership, and competitiveness

Forced distribution

method also uses a ranking format, but employees are ranked in groups. This technique requires the manager to put certain percentages of employees into predetermined categories.

Effective managers

provide specific performance feedback to employees in a way that elicits positive behavioral responses.

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.

The comparative approach

requires the rater to compare an individual's performance with that of others. At least three techniques fall under the comparative approach: ranking, forced distribution, and paired comparison.

Model of Effective Performance Process

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

Three categories of perceived fairness

1. Procedural 2. Interpersonal 3. Outcome fairness

The purposes of performance managements

1. Strategic 2. Administrative 3. Development

Performance Measures Criteria

1. Strategic congruence 2. Validity 3. Reliability 4. Acceptability 5. Specificity

Upward feedback

A performance appraisal process for managers that includes subordinates' evaluations.

Appraisal Politics

A situation in which evaluators purposefully distort a rating to achieve personal or company goals.

Developmental Purpose

A third purpose of performance management is to develop employees. Ideally, the performance management system identifies not only any deficient aspects of the employee's performance but also the causes of these deficiencies

Ranking

Simple ranking requires managers to rank employees within their departments from highest performer to poorest performer (or best to worst). Alternation ranking, by contrast, 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.

Social Performance Management

systems similar to Facebook, LinkedIn, and Yammer and apps that allow employees to quickly exchange information, talk to each other, provide coaching, and receive recognition.

Interrater reliability

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

Strategic Congruence

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

Validity

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

Performance management

the process through which managers ensure that employees' activities and outputs contribute to the organization's goals If used correctly, performance management can provide valuable benefits to both employees and the company. performance management systems should encourage more frequent manager-employee performance conversations, reduce or eliminate formal evaluation meetings, and move away from overall performance ratings.