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