11

Chapter 8

Performance Management

22

Introduction

The means through which managers ensure that employees’ activities and outputs are congruent with the organization's goals.

Performance Management

The process through which an organization gets information on how well an employee is doing his or her job.

Performance Appraisal

The process of providing employees information regarding their performance effectiveness.

Performance Feedback

33

The Practice of Performance Management

How different organizations deal with performance management systems?

44

An Organization Model of Performance Management

IndividualBehaviors

SituationalConstraintsCulture andeconomicconditions

IndividualAttributes

(skills, abilities)

OrganizationalStrategy

Long and shortterm goals and values

ObjectiveResults

55

Purposes of Performance Management

Strategic Purpose

Administrative Purpose

Developmental Purpose

66

Performance Measure Criteria

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

Strategic Congruence

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

Validity

The consistency of the performance measure “The degree to which performance measure is free from random error”.

Reliability

The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it. “Whether the people who use the performance measure accept it”.

Acceptability

The extent to which a performance measure gives specific guidance to employees about what is expected of them and how they can meet these expectations.

Specificity

77

Approaches to Measure Performance

The Comparative Approach

Ranking / Alternation Ranking

Forced Distribution

Paired Comparison

The Attribute Approach

Graphic Rating Scale

Mixed Standards Scale

88

Approaches to Measure Performance

The Behavioral Approach

Critical Incidents

Behaviorally Anchored Rating Scales (BARS)

Behavioral Observation Scales (BOS)

Organizational Behavior Modification

Assessment Centers

99

Approaches to Measure Performance

The Results Approach

Management by Objectives

Productivity Management and Evaluation System

Evidence Based HR

The Quality Approach

Statistical process quality control techniques used:Process-flow analysis - Cause-and-effect diagrams - Pareto chart - Control chart – Histogram - Scattergram

Survey Feedback Interventions

1010

Choosing A Source for Performance Information

1- Managers

2- Peers

3- Subordinates (Up word feedback)

4- Self

5- Customers

5- 360 Degree Appraisal

Data Collection Sources

1111

Raters Errors in Performance Measurement

1- Similar to Me

2- Contrast

3- Distributional Errors

4- Halo and Horns

Reducing Rater Errors

Rater error training - Rater accuracy training

Raters Errors

Appraisal Politics

a situation in which evaluators purposefully distort ratings to achieve personal or company goals

1212

Performance Feedback

The Manager’s Role in an Effective Performance Feedback Process

1- Feedback should be given frequently, not once a year.

2- Create the right context for the discussion.

3- Ask employee to rate his or her performance before the session.

4- Encourage the subordinate to participate in the session.

5- Recognize effective performance through praise.

6- Focus on solving problems.

7- Focus feedback on behavior or results, not on the person.

8- Minimize criticism.

9- Agree to specific goals and set a date to review progress.

1313

What Managers Can Do to Diagnose Performance Problems and Manage

Employee Performance

Diagnosing the Causes of Poor Performance

1- Input

2- Employee characteristics

3- Feedback

4- Performance standards/Goals

5- Consequences

1414

What Managers Can Do to Diagnose Performance Problems and Manage

Employee Performance

Actions for Managing Employees’ Performance

Marginal Employees

An employee performing at a barely acceptable level because of lack of ability and / or motivation to perform well, not poor work conditions

Solid Performers High ability and motivation; managers should provide development opportunities

Misdirected Effort Lack of ability but high motivation; managers should focus on training

Underutilizers High ability but lack motivation; managers should focus on interpersonal abilities

Deadwood Low ability and motivation; managerial action, outplacement, demotion, firing.