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    Chapter 09 - Performance Management

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    MODULE 7: LECTURE NOTES 

    LEARNING OBJECTIVES FOR MODULE 7 –  CHAPTER 9. 

     NOTE: With regards to the material in Module 7 - Chapter 9, the multiple choice andTrue/False questions on the Midterm Exam and Comprehensive Final Exam will be based on

    the questions immediately below, the lecture notes that follow, and the online quiz questionsthat accompany each module.After reading and completing Module 7, you will be able to answer the following questions:

    CHAPTER LEARNING OBJECTIVES (SECTION)

    Questions this chapter will help managers answer:

    1.  What steps can I, as a manager, take to make the performance management processmore relevant and more acceptable to those who will be affected by it? 

    2.  How can we best fit our approach to performance management with the strategic

    direction of our department and business? 3.  Should managers and nonmanagers be appraised from multiple perspectives — for

    example, by those above, by those below, by coequals, and by customers? 

    4.  What strategy should we use to train raters at all levels in the mechanics of performance management and in the art of giving feedback? 

    5.  What would an effective performance management process look like? 

    MANAGING FOR MAXIMUM PERFORMANCE

      Performance management is likened to a compass — one that indicates actual

    direction as well as desired direction.  The job of the manager is to indicate where the individual or team is now, and to help

    focus attention and effort on the desired direction.

      Many managers incorrectly equate it with performance appraisal.

      There are solid organizational payoffs for implementing strong performancemanagement systems.

      Organizations with strong performance management systems are 51 percent more

    likely to outperform their competitors on financial measures, and 41 percent are morelikely to outperform their competitors on nonfinancial measures.

      Performance appraisal is a necessary, but far from sufficient, part of performancemanagement.

     

    Performance management requires willingness and a commitment to focus onimproving performance at the level of the individual or team every day.

      At a general level, the broad process of performance management requires that youdo three things well:

      Define performance

      Facilitate performance

      Encourage performance

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    Define Performance

      A manager who defines performance ensures that individual employees or teamsknow what is expected of them, and that they stay focused on effective performance.

      A manager does this by paying attention to three key elements:

      Goals

     

    Measures  Assessment

      Setting a goal:

      Directs attention to the specific performance in question  Mobilizes efforts to accomplish higher levels of performance

      Fosters persistence for higher levels of performance.

      Specific and challenging goals clarify precisely what is expected and leads to high

    levels of performance.

      On average, productivity improves by 10 percent when goal setting is used.

      The mere presence of goals is not sufficient. Managers must also be able to measurethe extent to which goals have been accomplished.

     

    In defining performance, the third requirement is assessment.   Regular assessment of progress toward goals focuses the attention and efforts of

    an employee or a team.

      There should be no surprises in the performance management process — and regularappraisals help ensure that there won’t be. 

    Facilitate Performance

      Managers who are committed to managing for maximum performance have threemajor responsibilities:

      Eliminate roadblocks to successful performance.

      Roadblocks can include:  Outdated or poorly maintained equipment

     

    Delays in receiving supplies  Inefficient design of work spaces  Inefficient work methods

      Provide adequate resources to get a job done right and on time; capital resources,

    material resources, or human resources.  A final aspect of performance facilitation is the careful selection of employees.

      Having people who are ill suited to their jobs (e.g., by temperament or

    training) often leads to overstaffing, excessive labor costs, and reduced

     productivity.

      In leading companies, even top managers often get involved in selecting new

    employees

      If you’re truly committed to managing for maximum performance, you pay attentionto all of the factors that might affect performance, and leave nothing to chance.

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    Encourage Performance

      To encourage performance, especially repeated good performance, it is important to provide a sufficient amount of rewards that employees really value in a timely and

    fair manner.

     Ask your people what’s most important to them, then tailor your awards programso that employees or teams can choose from a menu of similarly valued options.

      Provide rewards in a timely manner, soon after major accomplishments.

     

    If there is excessive delay between effective performance and receipt of the

    reward, then the reward loses its potential to motivate subsequent high

     performance.

      Provide rewards in a manner that employees consider fair. Fairness is a subjectiveconcept, but it can be enhanced by adhering to four important practices:

      Voice. Collect employee input through surveys or interviews.

     

    Consistency. Ensure that all employees are treated consistently when seekinginput and communicating about the process for administering rewards.

      Relevance. As noted earlier, include rewards that employees really care about.

      Communication. Explain clearly the rules and logic of the rewards process.

    Performance Management in Practice

      A 2004 study by Rainmaker Thinking of more than 500 managers found that few of

    them consistently provide their direct reports with the five management basics:

      Clear statements of what’s expected of each employee 

     

    Explicit and measurable goals and deadlines

      Detailed evaluation of each person’s work  

      Clear feedback

      Rewards distributed fairly

    PURPOSES OF PERFORMANCE APPRAISAL SYSTEMS

      In general, appraisal serves a twofold purpose:

      To improve employees’ work performance by helping them realize and use their

    full potential in carrying out their firms’ missions, and 

      To provide information to employees and managers for use in making work-

    related decisions.

    REQUIREMENTS OF EFFECTIVE APPRAISAL SYSTEMS

      Legally and scientifically, the key requirements of any appraisal system are:

      Relevance

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      Sensitivity

      Reliability

    Relevance

      Relevance implies that there are:

      Clear links between the performance standards for a particular job and

    organizational objectives and

      Clear links between the critical job elements identified through a job analysis and

    the dimensions to be rated on an appraisal form.

      Relevance is determined by answering the question “What really makes the

    difference between success and failure on a particular job, and according to whom?” 

      The answer to this question is simple: the customer.

      Customers may be internal or external.

     

    In all cases, it is important to pay attention to the things that the customer believesare important.

      Performance standards translate job requirements into levels of acceptable or

    unacceptable employee behavior.

      Job analysis identifies what is to be done. Performance standards specify how wellwork is to be done.

      Such standards may be quantitative or qualitative.

      Relevance also implies the periodic maintenance and updating of job analyses, performance standards, and appraisal systems.

    Sensitivity

      Sensitivity implies that a performance appraisal system is capable of distinguishingeffective from ineffective performers.

      A major concern here is the purpose of the rating.

      Raters process identical sets of performance appraisal information differently,

    depending on whether a merit pay raise, a recommendation for furtherdevelopment, or the retention of a probationary employee is involved.

      Appraisal systems designed for administrative purposes demand performance

    information about differences between individuals.

      Systems designed to promote employee growth demand information about

    differences within individuals.

      The two different types of information are not interchangeable in terms of purposes, and that is why performance management systems designed to meet

     both purposes are more complex and costly.

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    Reliability

      A third requirement of sound appraisal systems is reliability (consistency of judgment).

      For any given employee, appraisals made by raters working independently of one

    another should agree closely. In practice, ratings made by supervisors tend to bemore reliable than those made by peers.

      To provide reliable data, each rater must observe what the employee has done and

    the conditions under which he/she has done it.

      By making appraisal systems relevant, sensitive, and reliable, we can assume that theresulting judgments are valid.

    Acceptability

      In practice, acceptability is the most important requirement of all.

     

    HR programs must have the support of those who will use them.  Evidence indicates that appraisal systems that are acceptable to those who will be

    affected by them lead to more favorable reactions to the process, increased motivation

    to improve performance, and increased trust for top management.

      Smart managers enlist the active support and cooperation of subordinates or teams bymaking explicit exactly what aspects of job performance they will be evaluated on.

    Practicality

      Practicality implies that appraisal instruments are easy for managers and employeesto understand and use.

      Those that are not easy, or that impose inordinate time demands, are not practical;managers will resist using them.

      Managers need as much encouragement and organizational support as possible ifthoughtful performance management is to take place.

      The crucial question to be answered in regard to each appraisal system is whether its

    use results in fewer (and less costly) human, social, and organizational errors.

    PERFORMANCE APPRAISAL

     

    To avoid legal difficulties, consider taking the following steps:  Conduct a job analysis to determine the characteristics necessary for successful

     job performance.

      Incorporate these characteristics into a rating instrument.

     

    Provide written instructions and train supervisors to use the rating instrument

     properly.

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      Establish a system to detect potentially discriminatory effects or abuses of the

    appraisal process.

      Include formal appeal mechanisms, coupled with higher-level review of

    appraisals.

      Document the appraisals and the reason for any termination decisions.

      Provide some form of performance counseling or corrective guidance to assist poor performers.

      The type of evidence required to defend performance ratings is linked to the purposesfor which the ratings are made.

      To assess adverse impact, organizations should keep accurate records of who iseligible for and interested in promotion.

      Eligibility and interest, define the applicant group.

      Implementing scientifically sound, court-proof appraisal systems requires diligent

    attention by organizations, plus a commitment to making them work.

      In developing a performance appraisal system, the most basic requirement is todetermine what you want the system to accomplish.

    ALTERNATIVE METHODS OF APPRAISING EMPLOYEE PERFORMANCE

      Many regard rating methods or formats as the central issue in performance appraisal.

    However, broader issues must also be considered, such as:

      Trust in the appraisal system

     

    The attitudes of managers and employees

     

    The purpose, frequency, and source of appraisal data

      Rater training

      Behavior-oriented rating methods focus on employee behaviors, either bycomparing the performance of employees to that of other employees (relative ratingsystems) or by evaluating each employee in terms of performance standards without

    reference to others (absolute rating systems).

      Results-oriented rating systems place primary emphasis on what an employee

     produces.

      Ratings are not strongly related to results.

     

    Because these processes are complex, there may be errors of judgment in theratings.

      Results depend heavily on conditions that may be outside the control of the

    individual worker.

      Most measures of results provide only partial coverage of the overall domain of job performance.

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    Paired Comparisons

      Use of paired comparisons is a more systematic method for comparing employees to

    one another.

      Each employee is compared with every other employee, usually in terms of an overallcategory such as “present value to the organization.” The rater’s task is simply to

    choose the “better” of each pair, and each employee’s rank is determined by counting

    the number of times he/she was rated superior.

      The number of comparisons becomes quite large as the number of employees

    increases.

      Methods that compare employees to one another are useful for generating initialrankings for purposes of employment decisions.

    Forced Distribution

      Forced distribution is another method of comparing employees to one another.

     

    The overall distribution of ratings is forced into a normal, or bell-shaped, curve underthe assumption that a relatively small portion of employees is truly outstanding, a

    relatively small portion is unsatisfactory, and everybody else falls in between.

      Forced distribution eliminates clustering almost all employees at the top of thedistribution (rater leniency), at the bottom of the distribution (rater severity), or in the

    middle (central tendency).

      However, it can foster a great deal of employee resentment if an entire group of

    employees is either superior or substandard.

      It is most useful when a large number of employees must be rated and there is more

    than one rater.

    Behavioral Checklist

      The rater is provided with a series of statements that describe job-related behavior.His/her task is simply to “check” which of the statements, or the extent to which eachstatement, describes the employee.

      Raters are not so much evaluators as reporters whose task is to describe job behavior.

      Descriptive ratings are likely to be more reliable than evaluative (good-bad) ratings.

      With a Likert method of summed ratings: 

     

    A declarative statement (e.g., “He/she follows up on customer complaints”) isfollowed by several response categories, such as “always,” “fairly often,”

    “occasionally,” and “never.” The rater checks the response category that he/shethinks best describes the employee.

      Each category is weighted, for example, from 5 (“always”) to 1 (“never”) if the

    statement describes desirable behavior.

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      The overall numerical rating (or score) for each employee is the sum of the

    weights of the responses that were checked for each item.

    Critical Incidents

      Critical incidents are brief anecdotal reports by supervisors of things employees do

    that are particularly effective or ineffective in accomplishing parts of their jobs.

      They focus on behaviors, not traits.

      They can provide the basis for training programs.

      Critical incidents lend themselves to appraisal interviews because supervisors canfocus on actual job behaviors rather than on vaguely defined traits.

      Supervisors may find that recording incidents for their subordinates on a daily or even

    a weekly basis is burdensome.

      Incidents alone do not permit comparisons across individuals or departments; graphicrating scales may overcome this problem.

    Graphic Rating Scales

      Many different forms of graphic rating scales exist.

      In terms of the amount of structure provided, the scales differ in three ways:

      The degree to which the meaning of the response categories is defined.

      The degree to which the individual who is interpreting the ratings can tell clearly

    what response was intended.

      The degree to which the performance dimensions are defined for the rater.

     

    Graphic rating scales may not yield the depth of essays or critical incidents, but they:  Are less time-consuming to develop and administer.

      Allow results to be expressed in quantitative terms

      Consider more than one performance dimension

      Facilitate comparisons across employees.

      Graphic rating scales, when compared to more sophisticated forced-choice scales,have proved just as reliable and valid and are more acceptable to raters.

    Behaviorally Anchored Rating Scales

     

    A variation of the simple graphic rating scale is behaviorally anchored rating scales (BARS).

      The major advantage of BARS is that they define the dimensions to be rated in behavioral terms and use critical incidents to describe various levels of performance.

      BARS therefore provide a common frame of reference for raters.

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      BARS require considerable effort to develop, yet there is little research evidence tosupport the superiority of BARS over other types of rating systems.

      The participative process required to develop them provides information that is usefulfor other organizational purposes, such as communicating clearly to employees

    exactly what “good performance” means in the context of their jobs. 

    Results-Oriented Rating Methods

    Management by Objectives

      Management by objectives (MBO) relies on goal-setting to establish objectives forthe organization as a whole, for each department, for each manager within each

    department, and for each employee.

      MBO is not a measure of employee behavior; rather, it is a measure of eachemployee’s contribution to the success of the organization. 

     

    To establish objectives, the key people involved should do three things:  Meet to agree on the major objectives for a given period of time

      Develop plans for how and when the objectives will be accomplished, and

      Agree on the measurement tools for determining whether the objectives have been

    met.

      In theory, MBO promotes success in each employee because, as each employeesucceeds, so do that employee’s manager, the department, and the organization. 

    Work Planning and Review

     

    Work planning and review is similar to MBO; however, it places greater emphasison the periodic review of work plans by both supervisor and subordinate in order to

    identify goals attained, problems encountered, and the need for training.

    When Should Each Technique Be Used?

      The rating format is not as important as the relevance and acceptability of the ratingsystem.

      An extensive review of the research literature that relates the various rating methodsto indicators of performance appraisal effectiveness found no clear “winner.” 

      However, the researchers provided several “if . . . then” propositions and general

    statements based on their study:

      If the objective is to compare employees across raters for important employment

    decisions, don’t use MBO and work planning and review. They are not based on astandardized rating scheme for all employees.

      If you use a BARS, also make diary keeping a part of the process. This will

    improve the accuracy of the ratings, and it also will help supervisors distinguish

     between effective and ineffective employees.

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      If objective performance data are available, MBO is the best strategy to use.

      In general, the appraisal methods that are best in a broad, organizational sense — 

    BARS and MBO — are the most difficult to use and maintain.

      Methods that focus on describing, rather than evaluating, behavior (e.g., BARS,

    summed rating scales) produce results that are the most interpretable across ratersand help remove the effects of individual differences in raters.

       No rating method has been an unqualified success when used as a basis for merit

     pay or promotional decisions.

      When certain statistical corrections are made, the correlations between scores on

    alternative rating formats are very high. Hence all the formats measure essentiallythe same thing.

    WHO SHOULD EVALUATE PERFORMANCE?

      The most fundamental requirement for any rater is that he/she has an adequate

    opportunity to observe the ratee’s job performance over a reasonable period of time. 

    The Immediate Supervisor

      He/she is probably most familiar with the individual’s performance and, in most jobs,has had the best opportunity to observe actual job performance.

      Is probably the person best able to relate the individual’s performance to what the

    department and organization are trying to accomplish.

      Because he/she also is responsible for reward (and punishment) decisions, and formanaging the overall performance management process, feedback from supervisors is

    more highly related to performance than that from any other source.

    Peers

      In some jobs, the immediate supervisor may observe a subordinate’s actual job performance only rarely. In other environments, such as self-managed work teams,

    there is no “supervisor.” 

      Peers can provide a perspective on performance that is different from that ofimmediate supervisors.

      To reduce potential friendship bias while increasing the feedback value of theinformation provided, it is important to specify exactly what the peers are to evaluate.

     

    In light of the potential problems associated with peer appraisals, it is wise not to relyon them as the sole source of information about performance.

    Subordinates

      Appraisal by subordinates can be a useful input to the immediate supervisor’sdevelopment.

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      Subordinates know firsthand the extent to which the supervisor actually delegates,how well he/she communicates, the type of leadership style he/she is most

    comfortable with, and the extent to which he/she plans and organizes.

      Managers who met with their direct reports to discuss their upward feedbackimproved more than other managers.

      What managers do with upward feedback is related to its benefits.

      Should subordinate ratings be anonymous?

      Managers want to know who said what, but subordinates prefer to remain

    anonymous to avoid retribution.

      Collect and combine the ratings in such a manner that a manager’s overall rating

    is not distorted by an extremely divergent opinion.

      Evidence indicates that ratings provided by peers and subordinates are

    comparable, for they reflect the same underlying dimensions.

    Multi-Rater or 360-Degree Feedback

      Many organizations now use input from managers, subordinates, peers, andcustomers to provide a perspective on performance from all angles (360 degrees).

      There are at least four reasons why such an approach is potentially valuable:

      It includes observations from different perspectives, and perhaps includes

    different aspects of performance that ca pture the complexities of an individual’s performance in multiple roles.

     

    Feedback from multiple sources may reinforce feedback from the boss, thereby

    making it harder to discount the viewpoint of that single person.

      Discrepancies between self-ratings and those received from others may create an

    awareness of one’s needs for development, and motivate individuals to improvetheir performance in order to reduce or eliminate such discrepancies.

      At least some senior managers believe that if they can improve leadership among

    their organization’s leaders, ultimately that will benefit the bottom line. 

    WHEN AND HOW OFTEN SHOULD APPRAISAL BE DONE?

      Research shows that the practice of annual or semi-annual appraisals are far tooinfrequent.

     

    This is why some firms add frequent, informal “progress” reviews between the

    annual ones.

      If a rater is asked to assess an employee’s performance over a 6- to 12-month period, biased ratings may result, especially if information has been stored in the rater’s

    memory according to irrelevant, oversimplistic, or otherwise faulty categories.

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      There should be no “surprises” in appraisals, and one way to ensure this is to do themfrequently.

    Evaluating the Performance of Teams

      Team-based organizations do not necessarily outperform organizations that are not

    structured around teams, but there seems to be an increased interest in organizing how

    work is done around teams.

      Performance management systems should target not only individual performance butalso an individual’s contribution to the performance of his/her team, as well as the performance of teams as a whole.

      If individual performance is not assessed and recognized, social loafing may occur;

    when other team members see there is a “free rider,” they are likely to reduce their

    efforts.

      Assessing team performance should be seen as complementary to the assessment and

    recognition of individual performance his/her contribution to team performance.

     

    There are three types of teams:  Work or service teams.

      Project teams.   Network teams.

      End-of-project outcome measures should be geared toward the type of team.

      Raters are likely to make intentional or unintentional mistakes in assigning performance scores.

      Raters can be trained to minimize such biases.

    SECRETS OF EFFECTIVE PERFORMANCE FEEDBACK INTERVIEWS

    Communicate Frequently

      Once-a-year performance appraisals are of questionable value.

      Coaching should be a day-to-day activity —  particularly with poor performers or new

    employees.

      Feedback has maximum impact when it is given as close as possible to the action.

      Communication of performance feedback in an interview is most effective when thesubordinate already has relatively accurate perceptions of his/her performance before

    the session.

    Get Training in Performance Feedback and Appraisal Interviewing

      Train raters to observe behavior more accurately and fairly.

      Focus on managerial characteristics that are difficult to rate and on characteristics that

     people think are easy to rate but which generally result in disagreements.

      Use a problem-solving, rather than a “tell-and-sell,” approach. 

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    Encourage Subordinates to Prepare

      Subordinates who spend more time prior to performance feedback interviewsanalyzing their job responsibilities and duties, problems they encounter on the job,and the quality of their performance are more likely to:

     

    Be satisfied with the performance management process  Be motivated to improve their performance

      Actually improve.

    Encourage Participation

      A perception of ownership is related strongly to subordinates’ satisfaction with theappraisal interview, the appraisal system, motivation to improve performance, and the

     perceived fairness of the system.

      Participation provides an opportunity for employee voice in performance appraisal.

     

    It encourages the belief that the interview was fair, that it was a constructive activity,that some current job problems were cleared up, and that future goals were set.

    Judge Performance, Not Personality

      In addition to the potential legal liability of dwelling on personality rather than on job performance, supervisors are far less likely to change a subordinate’s personality than

    they are performance.

      Maintain a problem-solving, job-related focus.

      An emphasis on the employee as a person or his/her self-concept, as opposed to task

    and task performance only, is likely to lead to lower levels of future performance.

    Be Specific, and Be an Active Listener

      Maximize information relating to performance improvements and minimize

    information concerning the relative performance of other employees.

      By being an active listener, the supervisor demonstrates genuine interest in thesubordinate’s ideas. 

      Active listening requires that you do five things well:

    (1) Take the time to listen — hold all phone calls and do not allow interruptions.

    (2) Communicate verbally and nonverbally that you genuinely want to help.

    (3) As the subordinate begins to tell his/her side of the story, do not interrupt and do

    not argue.(4) Watch for verbal as well as nonverbal cues regarding the subordinate’s agreement

    or disagreement with your message.

    (5) Summarize what was said and what was agreed to.

      Specific feedback and active listening are essential to subordinates’ perceptions of thefairness and accuracy of the process.

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    Avoid Destructive Criticism

      Destructive criticism is general in nature, frequently delivered in a biting, sarcastictone, and often attributes poor performance to internal causes (e.g., lack of motivationor ability).

     

    It leads to three predictable consequences.(1) It produces negative feelings among recipients and can initiate or intensify

    conflict;(2) It reduces the preference of individuals for handling future disagreements with the

    giver of the feedback in a conciliatory manner (e.g., compromise, collaboration); and

    (3) It has negative effects on self-set goals and on feelings of self-confidence.

      This is one type of communication to avoid.

    Set Mutually Agreeable Goals

      Studies demonstrate that goals direct attention to the specific performance in

    question, that they mobilize effort to accomplish higher levels of performance, and

    that they foster persistence for higher levels of performance.

      Set specific, challenging goals, for this clarifies for the subordinate precisely what isexpected and leads to high levels of performance.

    Continue to Communicate, and Assess Progress toward Goals Regularly

      Periodic tracking of progress toward goals has three advantages:(1) It helps keep behavior on target,

    (2) It provides a better understanding of the reasons behind a given level of performance, and

    (3) It enhances the subordinate’s commitment to perform effectively. 

      All of this helps to improve supervisor-subordinate work relationships, which in turn

    has positive effects on performance.

    Make Organizational Rewards Contingent on Performance

      If subordinates see a link between appraisal results and employment decisions, theyare more likely to prepare for performance feedback interviews, to participate actively

    in them, and to be satisfied with the overall performance management system.

    CHALLENGING QUESTIONS

    What would an effective performance management system look like?

    An effective system for one organization will not “look like” that of another. The keyis in the development of the system. Employees and supervisors should be involved to

    as great an extent as possible in the development of the system. Managers should

    receive initial training on the rationale and importance of the system, and on how toconduct appraisal interviews. Such training should involve filmed models of effective

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    and ineffective appraisal interviews, and an opportunity for role-play practice and

    reinforcement. It is a good idea to start any change effort – such as implementation of

    new performance management system--at the top of the organization and indepartments that are most receptive to the idea. The early successes can generate

    momentum for the program. It is important to recognize that changes in appraisal

    systems signal major changes in the way of doing business, and therefore should behandled similarly to large-scale organization development projects.

    Whatever the final form of the performance management system, it should be legally

    defensible.

    What is the difference between performance management and performance appraisal?

    A performance appraisal is generally done once or twice a year and is used to identifyand discuss job-relevant strengths and weaknesses of individuals and teams.

    Performance management is used on a more frequent basis to help individuals and

    teams determine where they are now and in what direction they should be headed.

    You have been asked to design a rater-training program. What types of elements would

    you build into the process?

    The rater training program would be designed to help raters understand: (a) the

     philosophy and uses for the system, (b) the system itself, (c) the roles and

    responsibilities of the employees and raters, (d) common rating errors, (e) theimportance of providing ongoing feedback, (f) how to give feedback in a way that

    minimizes defensiveness, and (g) how to identify and address training and

    development needs. Further, raters should understand the legal issues surrounding the

    evaluation process.

    How is performance appraisal for teams different from performance appraisal for

    individuals?

    Individual performance appraisals focus on how well the individual performed andhow this performance contributed to the success of the team.

    Performance evaluations for teams focus on the performance of the team as a whole

    and how well the team contributed to the success of the organization.

    How can we overcome employee defensiveness in performance feedback interviews?

    Given the intensely emotional nature of such interviews, it is unlikely thatdefensiveness can be totally eliminated. However, defensiveness may be reduced by

    following the steps suggested in the text:

    (a) communicate performance feedback regularly so that there are “no surprises”come appraisal time;

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    Chapter 09 - Performance Management

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    (b) use a problem-solving, rather than “tell-and-sell,” approach;

    (c) encourage subordinate preparation prior to the meeting and participation during

    the meeting;(d) judge performance, not personality;

    (e) communicate clearly and listen actively;

    (f) participatively set goals for future performance;(g) follow-up by assessing progress toward goals; and(h) make organizational rewards contingent on performance.

    Beyond the advice in the text, other approaches are to:(a) ask subordinates to come to the interview with a completed self-appraisal for

    comparison with the supervisor's,

    (b) ask subordinates to evaluate the supervisor in terms of how well he/she has

    assisted them over the appraisal period,(c) keep the discussion focused on future development and performance improvement

    rather than on past deficiencies, and

    (d) separate discussions of development from those involving salary considerations.

    Should discussions of employee job performance be separated from salary

    considerations?

     No, discussions of employee performance should not be separated from salary

    considerations because if employees see a link between appraisal results and

    employment decisions, they are more likely to try to achieve the performance goalsset for them.

    However, employees must understand what the performance goals are before the

     performance review, in order to set their behavior patterns. Finding out that they didnot meet expectations at the time of the review leads to confusion, anger, and

    resentment, and possibly decreased effort.