Chapter 9: Performance Management

Developmental Purposes

"Develop" -Tool to help employees improve their weaknesses and realize their long-term goals and career objectives

Performance Management in Practice:Regulatory Issues

- Efforts to reduce discrimination in the performance management process - The importance of documenting employee performance

Developing Action Plans to Improve Performance: Taking Action

- Removing Barrier to employee success - Training and Development Activities - Coaching and mentoring - Work Design and technology solutions - Addressing quality of employees perforamnce

Frame-of Reference Training

- to help raters understand performance standards and dimensions and develop common evaluation standards

Administrative Purposes

-"Documentation" -Tool for administrative decisions such as: compensation,promotions, retention-termination, layoffs, and recognition

Examples of Behaviroal

-Critical Incidents -Behaviorally Anchored Rating Scales( " BARS")

Results Based Appraoch

-Direct Measures Management -by- obejctives

Weighting Performance Critera

-Each job differs in terms of how it adds value to the organization -some forms of contributions may be more important than others for particualr jobs -weights are used to adjust the relative imporatnce of different perforamnce dimensions

Examples of Attribute

-Graphic Rating Scale - Forced Choice

Steps in Performance Management PRocess

-Identifying performance Dimensions -Developing performance Measures -Evaluation Performance -Providing Feedback -Developing Action Plans to improve Performance

Disadvantage of GRS

-If you get a new manager there criteria of above average and oustanding can be different from former manager

Performance Measure Standars

-Levels of performance that relate o levels of task or job effectiveness

How can reduce some of these measurement errors?

-Make rating formats more specific, defining precisely what is being evaluated -Use multiple raters -Provide Appraisal Training and Frame-of reference training

Source of Performance Data

-Supervisors -Co-workers -Self-Appraisal -Subordinates -Customers

Provide Feedback

-required to appraise employees every 6 months

Three main tyes of appraoches evaluation perforamnces

1. Individual Comparison 2. Absolute Approaches 3. Result based

Superviors

A key source but may not have time to monitor and observe employees every day

Global Perfoamnce Measure

A single score to reflect overall performance

Deficient Performance Measures

An incomplete appraisal of an individuals performance when important aspects are not measured

Behavioral

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

Absolute Approach: Measuring Traits and Behaviors

Comparing employees against certain standards rather than against each other -Each employees independent other,and include traits,attributes,and beahviors

Individual Comparison:Ranking Appraoch

Comparing employees to each other (best to worse)

Attribute

Designed to measure the extent to which an employee possess certain characteristics such as loyalty,dependability,creativity,initiative, and leadership; viewed as importarnt for the job and the organization in general

Individual Comparison: Paired Comparison

Each employee is compared to every other employee and points are assigned to the "better" individual, points are totaled and compared

Graphic Rating Scale

Evaluate employee performance on the following performance dimensions.Circle the most appropriate rating to refelct performance

Advantages of Forced Distribution?

It is easier to determine who to layoff or promote if need be -detemine who needs to imporve or look elsehwere for work

Individual Comparison: Forced Distribution

Managers are forced to distribute employees into predetermined categories and prevented from rating everyone as outstanding, or average -10% A's, 25% B's,35% C's....

Direct MEasures

Managers gauge outcomes of employees work such as sales,productivity, absenteeism

Management-objectives

Managers meet with employees and jointly set goals for them to accomplish during particular time period

Co-Workers

May be able to comment on cooperation and support, but may intentionally skew rating

Behaviorally Anchored Rating Scales( " BARS")

More Defined and gives example of what it is

Refers to Exhibit 9.3: Paired Comparison

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What are some advantages and disadvantages of the ranking method?

Ranking method managers don't like because of ranks -Employees don't like it because they are forced into boxes

Valid Measures

Reliability refers to how well a measure yields consistent results over time or across raters -Extent to which you are measuring what you want to measure and how well it is done

Customers

Satsifiaation level may only report extremely good or bad exeprienes

Develpoing Action Plans to Improve Performance: Understanding the Causes of Poor Performance

Seek to understand causes of poor performance,

Specificity

The clarity of the performance standars

Performance Dimension

The specific task and activities for which employees are responsible

Appraisal Training

To familiarize raters with errors that can occur

Causes of poor performance

Work environment Design of jobs Technology Support or performance of co-workers Employee's competencies, attitudes and behaviors

Self-Appraisal

can be useful starting point and developmental tool to help employee improve perforamne

Leniency Error

constantly rating employees on the high end of the scale

Strictness Error

constantly rating employees on the low end of the scale

Disadvantages of Forced Distirbution

forced to be placed into a certain group or box

The RANKING approach is an example of a_______.

indiviual comparasion

Performance Measurement Error: Contrast Effect

manager artificially inflates or deflates an employee's rating after comparing employee to another individual

Subordinates

may be hard to separate skill from "likebalitiy"

Performance Measurement Error: Halo/Horn Error

overall positive or negative view of employee's performance biases the ratings given on individual criteria

Recency error

rater focuses on employee's performance near the time of the evaluation

Error of Central Tendency

rating everyone "average"

Simlair-to-me error

when managers rate more highly employees who resemble them in some way

Primacy error

— rater's earlier impressions of individual biases later evaluations of the person