SHRMN ch10

CHAPTER 10:

PERFORMANCE MANAGEMENTAND FEEDBACK

Copyright © 2005 South-Western. All rights reserved

Copyright © 2005 South-Western. All rights reserved. 1–2

Performance Management & Performance Management & FeedbackFeedback

Performance Management & Performance Management & FeedbackFeedback

• Organizations need broader performance Organizations need broader performance measures to insuremeasures to insure– Performance deficiencies addressed in timely Performance deficiencies addressed in timely

manner through employee development programsmanner through employee development programs– Employee behaviors channeled in appropriate Employee behaviors channeled in appropriate

direction toward performance of specific objectivesdirection toward performance of specific objectives– Employees provided with appropriate & specific Employees provided with appropriate & specific

feedback to assist with career developmentfeedback to assist with career development

• Organizations need broader performance Organizations need broader performance measures to insuremeasures to insure– Performance deficiencies addressed in timely Performance deficiencies addressed in timely

manner through employee development programsmanner through employee development programs– Employee behaviors channeled in appropriate Employee behaviors channeled in appropriate

direction toward performance of specific objectivesdirection toward performance of specific objectives– Employees provided with appropriate & specific Employees provided with appropriate & specific

feedback to assist with career developmentfeedback to assist with career development


Exhibit 10-2Exhibit 10-2

Strategic Choices in Performance Strategic Choices in Performance ManagementManagement


Strategic Choices in Performance Strategic Choices in Performance ManagementManagement



Reciprocal Relationship Between T&D & Reciprocal Relationship Between T&D & Performance ManagementPerformance Management


Reciprocal Relationship Between T&D & Reciprocal Relationship Between T&D & Performance ManagementPerformance Management


Who Evaluates?Who Evaluates?Who Evaluates?Who Evaluates?

• Problems with immediate supervisors conducting Problems with immediate supervisors conducting performance evaluationsperformance evaluations

– Lacking appropriate information to provide informed Lacking appropriate information to provide informed feedback on employee performancefeedback on employee performance

– Insufficient observation of employee’s day-to-day work to Insufficient observation of employee’s day-to-day work to validly assess performancevalidly assess performance

– Lack of knowledge about technical dimensions of Lack of knowledge about technical dimensions of subordinate’s worksubordinate’s work

– Lack of training or appreciation for evaluation processLack of training or appreciation for evaluation process– Perceptual errors by supervisors that create bias or lack of Perceptual errors by supervisors that create bias or lack of

subjectivity in evaluationssubjectivity in evaluations

• Problems with immediate supervisors conducting Problems with immediate supervisors conducting performance evaluationsperformance evaluations

– Lacking appropriate information to provide informed Lacking appropriate information to provide informed feedback on employee performancefeedback on employee performance

– Insufficient observation of employee’s day-to-day work to Insufficient observation of employee’s day-to-day work to validly assess performancevalidly assess performance

– Lack of knowledge about technical dimensions of Lack of knowledge about technical dimensions of subordinate’s worksubordinate’s work

– Lack of training or appreciation for evaluation processLack of training or appreciation for evaluation process– Perceptual errors by supervisors that create bias or lack of Perceptual errors by supervisors that create bias or lack of

subjectivity in evaluationssubjectivity in evaluations


Perceptual Errors of RatersPerceptual Errors of RatersPerceptual Errors of RatersPerceptual Errors of Raters

• Halo effectHalo effect– Rater allows single trait, outcome or consideration to Rater allows single trait, outcome or consideration to

influence other measures of performanceinfluence other measures of performance

• StereotypingStereotyping– Rater makes performance judgments based on employee’s Rater makes performance judgments based on employee’s

personal characteristics rather than employee’s actual personal characteristics rather than employee’s actual performanceperformance

• Recency errorRecency error– Recent events & behaviors of employee bias rater’s Recent events & behaviors of employee bias rater’s

evaluation of employee’s overall performanceevaluation of employee’s overall performance

• Halo effectHalo effect– Rater allows single trait, outcome or consideration to Rater allows single trait, outcome or consideration to

influence other measures of performanceinfluence other measures of performance

• StereotypingStereotyping– Rater makes performance judgments based on employee’s Rater makes performance judgments based on employee’s

personal characteristics rather than employee’s actual personal characteristics rather than employee’s actual performanceperformance

• Recency errorRecency error– Recent events & behaviors of employee bias rater’s Recent events & behaviors of employee bias rater’s

evaluation of employee’s overall performanceevaluation of employee’s overall performance


Perceptual Errors of RatersPerceptual Errors of RatersPerceptual Errors of RatersPerceptual Errors of Raters

• Central tendency errorCentral tendency error– Evaluator avoids higher & lower ends of rating in favor of Evaluator avoids higher & lower ends of rating in favor of

placing all employees at or near middle of scalesplacing all employees at or near middle of scales

• Leniency or strictness errorsLeniency or strictness errors– Evaluator’s tendency to rate all employees above (leniency) Evaluator’s tendency to rate all employees above (leniency)

or below (strictness) actual performance levelor below (strictness) actual performance level

• Personal biases & organizational politicsPersonal biases & organizational politics– Have significant impact on ratings employees receive from Have significant impact on ratings employees receive from

supervisorssupervisors

• Central tendency errorCentral tendency error– Evaluator avoids higher & lower ends of rating in favor of Evaluator avoids higher & lower ends of rating in favor of

placing all employees at or near middle of scalesplacing all employees at or near middle of scales

• Leniency or strictness errorsLeniency or strictness errors– Evaluator’s tendency to rate all employees above (leniency) Evaluator’s tendency to rate all employees above (leniency)

or below (strictness) actual performance levelor below (strictness) actual performance level

• Personal biases & organizational politicsPersonal biases & organizational politics– Have significant impact on ratings employees receive from Have significant impact on ratings employees receive from

supervisorssupervisors


Purposes of Performance Purposes of Performance Management SystemsManagement Systems


• Facilitate employee developmentFacilitate employee development– Determine specific training & development needsDetermine specific training & development needs– Assess individual & team strengths & weaknessesAssess individual & team strengths & weaknesses

• Determine appropriate rewards & compensationDetermine appropriate rewards & compensation– Salary, promotion, retention, & bonus decisionsSalary, promotion, retention, & bonus decisions– Employees must understand & accept performance Employees must understand & accept performance

feedback systemfeedback system

• Enhance employee motivationEnhance employee motivation– Employee acknowledgment & praise reinforces desirable Employee acknowledgment & praise reinforces desirable

behaviors & outcomesbehaviors & outcomes

• Facilitate employee developmentFacilitate employee development– Determine specific training & development needsDetermine specific training & development needs– Assess individual & team strengths & weaknessesAssess individual & team strengths & weaknesses

• Determine appropriate rewards & compensationDetermine appropriate rewards & compensation– Salary, promotion, retention, & bonus decisionsSalary, promotion, retention, & bonus decisions– Employees must understand & accept performance Employees must understand & accept performance

feedback systemfeedback system

• Enhance employee motivationEnhance employee motivation– Employee acknowledgment & praise reinforces desirable Employee acknowledgment & praise reinforces desirable

behaviors & outcomesbehaviors & outcomes




• Facilitate legal complianceFacilitate legal compliance– Documentation is strong defense against Documentation is strong defense against

charges of unlawful biascharges of unlawful bias

• Facilitate HR planning processFacilitate HR planning process– Alert organization to deficiencies in overall Alert organization to deficiencies in overall

level & focus of employee skillslevel & focus of employee skills

• Facilitate legal complianceFacilitate legal compliance– Documentation is strong defense against Documentation is strong defense against

charges of unlawful biascharges of unlawful bias

• Facilitate HR planning processFacilitate HR planning process– Alert organization to deficiencies in overall Alert organization to deficiencies in overall

level & focus of employee skillslevel & focus of employee skills


Other Performance Feedback Other Performance Feedback SystemsSystems


• PeersPeers– Only effective when political considerations & consequences Only effective when political considerations & consequences

are minimized, & employees have sense of trustare minimized, & employees have sense of trust

• SubordinatesSubordinates– Insights into interpersonal & managerial stylesInsights into interpersonal & managerial styles– Excellent measures of individual leadership capabilitiesExcellent measures of individual leadership capabilities– Same political problems as peer evaluationsSame political problems as peer evaluations

• CustomersCustomers– Feedback most free from biasFeedback most free from bias

• PeersPeers– Only effective when political considerations & consequences Only effective when political considerations & consequences

are minimized, & employees have sense of trustare minimized, & employees have sense of trust

• SubordinatesSubordinates– Insights into interpersonal & managerial stylesInsights into interpersonal & managerial styles– Excellent measures of individual leadership capabilitiesExcellent measures of individual leadership capabilities– Same political problems as peer evaluationsSame political problems as peer evaluations

• CustomersCustomers– Feedback most free from biasFeedback most free from bias




• Self-evaluationsSelf-evaluations– Allow employees to participate in critical employment Allow employees to participate in critical employment

decisionsdecisions– More holistic assessment of performanceMore holistic assessment of performance

• Multi-rater systems or 360-degree feedback Multi-rater systems or 360-degree feedback systemssystems

– Can be very time-consumingCan be very time-consuming– More performance data collected, greater overall facilitation More performance data collected, greater overall facilitation

of assessment & development of employeeof assessment & development of employee– Costly to collect & processCostly to collect & process– Consistent view of effective performance relative to strategyConsistent view of effective performance relative to strategy

• Self-evaluationsSelf-evaluations– Allow employees to participate in critical employment Allow employees to participate in critical employment

decisionsdecisions– More holistic assessment of performanceMore holistic assessment of performance

• Multi-rater systems or 360-degree feedback Multi-rater systems or 360-degree feedback systemssystems

– Can be very time-consumingCan be very time-consuming– More performance data collected, greater overall facilitation More performance data collected, greater overall facilitation

of assessment & development of employeeof assessment & development of employee– Costly to collect & processCostly to collect & process– Consistent view of effective performance relative to strategyConsistent view of effective performance relative to strategy


What to Evaluate?What to Evaluate?What to Evaluate?What to Evaluate?

• Traits measuresTraits measures– Assessment of how employee fits with Assessment of how employee fits with

organization’s culture, not what s/he actually organization’s culture, not what s/he actually doesdoes

• Behavior-based measuresBehavior-based measures– Focus on what employee does correctly & Focus on what employee does correctly &

what employee should do differentlywhat employee should do differently

• Traits measuresTraits measures– Assessment of how employee fits with Assessment of how employee fits with

organization’s culture, not what s/he actually organization’s culture, not what s/he actually doesdoes

• Behavior-based measuresBehavior-based measures– Focus on what employee does correctly & Focus on what employee does correctly &

what employee should do differentlywhat employee should do differently


What to Evaluate?What to Evaluate?What to Evaluate?What to Evaluate?

• Results-based measuresResults-based measures– Focus on accomplishments or outcomes that can be Focus on accomplishments or outcomes that can be

measured objectivelymeasured objectively– Problems occur when results measures are difficult to obtain, Problems occur when results measures are difficult to obtain,

outside employee control, or ignore means by which results outside employee control, or ignore means by which results were obtainedwere obtained

– LimitationsLimitations• Difficult to obtain results for certain job responsibilitiesDifficult to obtain results for certain job responsibilities

• Results sometimes beyond employee’s controlResults sometimes beyond employee’s control

• Ignores means or processesIgnores means or processes

• Fails to tap some critical performance areasFails to tap some critical performance areas

• Results-based measuresResults-based measures– Focus on accomplishments or outcomes that can be Focus on accomplishments or outcomes that can be

measured objectivelymeasured objectively– Problems occur when results measures are difficult to obtain, Problems occur when results measures are difficult to obtain,

outside employee control, or ignore means by which results outside employee control, or ignore means by which results were obtainedwere obtained

– LimitationsLimitations• Difficult to obtain results for certain job responsibilitiesDifficult to obtain results for certain job responsibilities

• Results sometimes beyond employee’s controlResults sometimes beyond employee’s control

• Ignores means or processesIgnores means or processes

• Fails to tap some critical performance areasFails to tap some critical performance areas


Job Performance CompetenciesJob Performance CompetenciesJob Performance CompetenciesJob Performance Competencies

• Closely tied to organization’s strategic Closely tied to organization’s strategic objectivesobjectives

• Can take tremendous amount of time to Can take tremendous amount of time to establishestablish

• Must be communicated clearly to Must be communicated clearly to employeesemployees

• Must be tied in with organization’s reward Must be tied in with organization’s reward structurestructure

• Closely tied to organization’s strategic Closely tied to organization’s strategic objectivesobjectives

• Can take tremendous amount of time to Can take tremendous amount of time to establishestablish

• Must be communicated clearly to Must be communicated clearly to employeesemployees

• Must be tied in with organization’s reward Must be tied in with organization’s reward structurestructure



Multilevel Corporate Competency Multilevel Corporate Competency ModelModel


Multilevel Corporate Competency Multilevel Corporate Competency ModelModel


Capital One Success Factors & Capital One Success Factors & CompetenciesCompetencies

Capital One Success Factors & Capital One Success Factors & CompetenciesCompetencies

• Builds relationshipsBuilds relationships– Communicates clearly & openlyCommunicates clearly & openly– Treats others with respectTreats others with respect– Collaborates with othersCollaborates with others

• Applies integrative thinkingApplies integrative thinking– Analyzes informationAnalyzes information– Generates & pursues ideasGenerates & pursues ideas– Develops & shapes strategiesDevelops & shapes strategies– Identifies & solves problemsIdentifies & solves problems– Applies integrated decision makingApplies integrated decision making

• Drives toward resultsDrives toward results– Focuses on strategic prioritiesFocuses on strategic priorities– Organizes & manages multiple tasksOrganizes & manages multiple tasks– Directs & coordinates workDirects & coordinates work– Gets job doneGets job done

• Builds relationshipsBuilds relationships– Communicates clearly & openlyCommunicates clearly & openly– Treats others with respectTreats others with respect– Collaborates with othersCollaborates with others

• Applies integrative thinkingApplies integrative thinking– Analyzes informationAnalyzes information– Generates & pursues ideasGenerates & pursues ideas– Develops & shapes strategiesDevelops & shapes strategies– Identifies & solves problemsIdentifies & solves problems– Applies integrated decision makingApplies integrated decision making

• Drives toward resultsDrives toward results– Focuses on strategic prioritiesFocuses on strategic priorities– Organizes & manages multiple tasksOrganizes & manages multiple tasks– Directs & coordinates workDirects & coordinates work– Gets job doneGets job done

• Leads in learning Leads in learning environmentenvironment

– Recruits talentRecruits talent– Motivates & developsMotivates & develops– Builds & leads teamsBuilds & leads teams– Influences othersInfluences others– Promotes culturePromotes culture

• Takes personal ownershipTakes personal ownership– Takes responsibilityTakes responsibility– Learns continuouslyLearns continuously– Embraces changeEmbraces change– Initiates opportunities for Initiates opportunities for

improvementimprovement– Shows integrityShows integrity– Maintains perspectiveMaintains perspective

• Leads in learning Leads in learning environmentenvironment

– Recruits talentRecruits talent– Motivates & developsMotivates & develops– Builds & leads teamsBuilds & leads teams– Influences othersInfluences others– Promotes culturePromotes culture

• Takes personal ownershipTakes personal ownership– Takes responsibilityTakes responsibility– Learns continuouslyLearns continuously– Embraces changeEmbraces change– Initiates opportunities for Initiates opportunities for

improvementimprovement– Shows integrityShows integrity– Maintains perspectiveMaintains perspective


How to Evaluate?How to Evaluate?How to Evaluate?How to Evaluate?

• Absolute measurementAbsolute measurement– Measured strictly by absolute performance Measured strictly by absolute performance

requirements or standards of jobsrequirements or standards of jobs

• Relative assessmentRelative assessment– Measured against other employees & ranked on Measured against other employees & ranked on

distance from next higher to next lower performing distance from next higher to next lower performing employeeemployee

– Ranking allows for comparison of employees but Ranking allows for comparison of employees but does not shed light on distribution of performancedoes not shed light on distribution of performance

• Absolute measurementAbsolute measurement– Measured strictly by absolute performance Measured strictly by absolute performance

requirements or standards of jobsrequirements or standards of jobs

• Relative assessmentRelative assessment– Measured against other employees & ranked on Measured against other employees & ranked on

distance from next higher to next lower performing distance from next higher to next lower performing employeeemployee

– Ranking allows for comparison of employees but Ranking allows for comparison of employees but does not shed light on distribution of performancedoes not shed light on distribution of performance


Forced Ranking/DistributionForced Ranking/DistributionForced Ranking/DistributionForced Ranking/Distribution

• Arguments in favor of forced rankingArguments in favor of forced ranking– Best way to identify highest-performing employeesBest way to identify highest-performing employees– Data-driven bases for compensation decisionsData-driven bases for compensation decisions– Forces managers to make & justify tough decisionsForces managers to make & justify tough decisions

• Arguments critical of forced rankingArguments critical of forced ranking– Can be arbitrary, unfair, & expose organization to lawsuitsCan be arbitrary, unfair, & expose organization to lawsuits– Inherent subjectivityInherent subjectivity

• Forced rankings tend to be more effective in Forced rankings tend to be more effective in organizations with high-pressure, results-driven organizations with high-pressure, results-driven cultureculture

• Arguments in favor of forced rankingArguments in favor of forced ranking– Best way to identify highest-performing employeesBest way to identify highest-performing employees– Data-driven bases for compensation decisionsData-driven bases for compensation decisions– Forces managers to make & justify tough decisionsForces managers to make & justify tough decisions

• Arguments critical of forced rankingArguments critical of forced ranking– Can be arbitrary, unfair, & expose organization to lawsuitsCan be arbitrary, unfair, & expose organization to lawsuits– Inherent subjectivityInherent subjectivity

• Forced rankings tend to be more effective in Forced rankings tend to be more effective in organizations with high-pressure, results-driven organizations with high-pressure, results-driven cultureculture


Measures of EvaluationMeasures of EvaluationMeasures of EvaluationMeasures of Evaluation

• Graphic rating scalesGraphic rating scales

• Weighted checklistsWeighted checklists

• Behaviorally anchored rating scales Behaviorally anchored rating scales (BARS)(BARS)

• Behavioral observation scales (BOS)Behavioral observation scales (BOS)

• Critical incident methodCritical incident method

• Management by objectives (MBO)Management by objectives (MBO)

• Graphic rating scalesGraphic rating scales

• Weighted checklistsWeighted checklists

• Behaviorally anchored rating scales Behaviorally anchored rating scales (BARS)(BARS)

• Behavioral observation scales (BOS)Behavioral observation scales (BOS)

• Critical incident methodCritical incident method

• Management by objectives (MBO)Management by objectives (MBO)



Graphic Rating ScalesGraphic Rating ScalesExhibit 10-6Exhibit 10-6

Graphic Rating ScalesGraphic Rating Scales



Weighted ChecklistWeighted ChecklistExhibit 10-7Exhibit 10-7

Weighted ChecklistWeighted Checklist



Behaviorally Behaviorally Anchored Rating Anchored Rating

Scale (BARS)Scale (BARS)


Behaviorally Behaviorally Anchored Rating Anchored Rating

Scale (BARS)Scale (BARS)



Behavioral Observation Scale (BOS)Behavioral Observation Scale (BOS)Exhibit 10-9Exhibit 10-9

Behavioral Observation Scale (BOS)Behavioral Observation Scale (BOS)


Objectives-Based Performance Objectives-Based Performance MeasurementMeasurement


• Enhanced employee motivationEnhanced employee motivation

• Employees can far more committed to Employees can far more committed to reaching performance objectives they reaching performance objectives they have agreed tohave agreed to

• When employee participates, his/her When employee participates, his/her trust & dependability placed on linetrust & dependability placed on line

• Enhanced employee motivationEnhanced employee motivation

• Employees can far more committed to Employees can far more committed to reaching performance objectives they reaching performance objectives they have agreed tohave agreed to

• When employee participates, his/her When employee participates, his/her trust & dependability placed on linetrust & dependability placed on line




• Three common oversightsThree common oversights– Setting vague objectivesSetting vague objectives– Setting unrealistically difficult objectivesSetting unrealistically difficult objectives– Not clarifying how performance will be measuredNot clarifying how performance will be measured

• Objectives selected must be validObjectives selected must be valid

• Three common oversightsThree common oversights– Setting vague objectivesSetting vague objectives– Setting unrealistically difficult objectivesSetting unrealistically difficult objectives– Not clarifying how performance will be measuredNot clarifying how performance will be measured

• Objectives selected must be validObjectives selected must be valid


Other ConsiderationsOther ConsiderationsOther ConsiderationsOther Considerations

• Ensure link between performance management, Ensure link between performance management, training & development, & compensationtraining & development, & compensation

• Assignments & responsibilitiesAssignments & responsibilities• Traditional performance evaluation may need Traditional performance evaluation may need

redesign due to changes in contemporary redesign due to changes in contemporary organizationsorganizations

• Degree of standardization or flexibility of Degree of standardization or flexibility of performance management systemperformance management system– Standardization important to prevent job biasStandardization important to prevent job bias– Flexibility important differing levels of responsibility Flexibility important differing levels of responsibility

& accountability& accountability

• Ensure link between performance management, Ensure link between performance management, training & development, & compensationtraining & development, & compensation

• Assignments & responsibilitiesAssignments & responsibilities• Traditional performance evaluation may need Traditional performance evaluation may need

redesign due to changes in contemporary redesign due to changes in contemporary organizationsorganizations

• Degree of standardization or flexibility of Degree of standardization or flexibility of performance management systemperformance management system– Standardization important to prevent job biasStandardization important to prevent job bias– Flexibility important differing levels of responsibility Flexibility important differing levels of responsibility

& accountability& accountability


Reasons Managers Resist or Ignore Reasons Managers Resist or Ignore Performance ManagementPerformance Management

Reasons Managers Resist or Ignore Reasons Managers Resist or Ignore Performance ManagementPerformance Management

• Process is too complicatedProcess is too complicated

• No impact on job performanceNo impact on job performance

• Possible legal challengesPossible legal challenges

• Lack of control over processLack of control over process

• No connection with rewardsNo connection with rewards

• Complexity & length of formsComplexity & length of forms

• Process is too complicatedProcess is too complicated

• No impact on job performanceNo impact on job performance

• Possible legal challengesPossible legal challenges

• Lack of control over processLack of control over process

• No connection with rewardsNo connection with rewards

• Complexity & length of formsComplexity & length of forms


Strategies for Improving Performance Strategies for Improving Performance Management SystemManagement System

Strategies for Improving Performance Strategies for Improving Performance Management SystemManagement System

• Involve managers in design of systemInvolve managers in design of system

• Hold managers accountable for Hold managers accountable for performance & development of performance & development of subordinatessubordinates

• Set clear expectations for performanceSet clear expectations for performance

• Set specific objectives for systemSet specific objectives for system

• Tie performance measures to rewardsTie performance measures to rewards

• Gain commitment from senior managersGain commitment from senior managers

• Involve managers in design of systemInvolve managers in design of system

• Hold managers accountable for Hold managers accountable for performance & development of performance & development of subordinatessubordinates

• Set clear expectations for performanceSet clear expectations for performance

• Set specific objectives for systemSet specific objectives for system

• Tie performance measures to rewardsTie performance measures to rewards

• Gain commitment from senior managersGain commitment from senior managers


Reading 10.1Reading 10.1

Has 360 Degree Feedback Gone Amok?Has 360 Degree Feedback Gone Amok?Reading 10.1Reading 10.1

Has 360 Degree Feedback Gone Amok?Has 360 Degree Feedback Gone Amok?

• Purposes of 360 Degree feedback systemsPurposes of 360 Degree feedback systems– Furthering management & leadership developmentFurthering management & leadership development– Facilitating organizational change & improvement Facilitating organizational change & improvement

initiatives that allow organization to become more initiatives that allow organization to become more open & participativeopen & participative

– Expand formal appraisal system by making Expand formal appraisal system by making feedback evaluative & linking more with formal feedback evaluative & linking more with formal performance appraisalperformance appraisal

• Purposes of 360 Degree feedback systemsPurposes of 360 Degree feedback systems– Furthering management & leadership developmentFurthering management & leadership development– Facilitating organizational change & improvement Facilitating organizational change & improvement

initiatives that allow organization to become more initiatives that allow organization to become more open & participativeopen & participative

– Expand formal appraisal system by making Expand formal appraisal system by making feedback evaluative & linking more with formal feedback evaluative & linking more with formal performance appraisalperformance appraisal



Has 360 Degree Feedback Gone Amok?Has 360 Degree Feedback Gone Amok?Reading 10.1Reading 10.1

Has 360 Degree Feedback Gone Amok?Has 360 Degree Feedback Gone Amok?

• Recommendations for increasing likelihood that Recommendations for increasing likelihood that 360 feedback will benefit organization360 feedback will benefit organization

– Assign internal consultant or champion to oversee process & Assign internal consultant or champion to oversee process & hold him/her accountable for resultshold him/her accountable for results

– Initial implementation should be on limited basis to allow for Initial implementation should be on limited basis to allow for evaluation of process using pre-post test control group test evaluation of process using pre-post test control group test designdesign

– Create focus group to identify effectiveness criteria that Create focus group to identify effectiveness criteria that organization values & will be used in measurement processorganization values & will be used in measurement process

– Train all raters to avoid systematic rater errorsTrain all raters to avoid systematic rater errors

• Recommendations for increasing likelihood that Recommendations for increasing likelihood that 360 feedback will benefit organization360 feedback will benefit organization

– Assign internal consultant or champion to oversee process & Assign internal consultant or champion to oversee process & hold him/her accountable for resultshold him/her accountable for results

– Initial implementation should be on limited basis to allow for Initial implementation should be on limited basis to allow for evaluation of process using pre-post test control group test evaluation of process using pre-post test control group test designdesign

– Create focus group to identify effectiveness criteria that Create focus group to identify effectiveness criteria that organization values & will be used in measurement processorganization values & will be used in measurement process

– Train all raters to avoid systematic rater errorsTrain all raters to avoid systematic rater errors



“Super-Measure” (SM)“Super-Measure” (SM)Reading 10.2Reading 10.2

“Super-Measure” (SM)“Super-Measure” (SM)

• Single measure with great relevance up, Single measure with great relevance up, down, & across organization & customer down, & across organization & customer basebase

• Used to align behaviors & actions of Used to align behaviors & actions of various parts of firm with value propositionvarious parts of firm with value proposition

• Transcends other measures by unifying Transcends other measures by unifying actions of disparate organizational actions of disparate organizational functions & levelsfunctions & levels

• Single measure with great relevance up, Single measure with great relevance up, down, & across organization & customer down, & across organization & customer basebase

• Used to align behaviors & actions of Used to align behaviors & actions of various parts of firm with value propositionvarious parts of firm with value proposition

• Transcends other measures by unifying Transcends other measures by unifying actions of disparate organizational actions of disparate organizational functions & levelsfunctions & levels



“Super-Measure” (SM)“Super-Measure” (SM)Reading 10.2Reading 10.2

“Super-Measure” (SM)“Super-Measure” (SM)

• Clearest examples from firms within Clearest examples from firms within service sectorservice sector– Service encounters often require various Service encounters often require various

elements of supply system to have direct elements of supply system to have direct customer interfacecustomer interface

– Most powerful service guarantees are those Most powerful service guarantees are those that guarantee satisfaction with no exclusionsthat guarantee satisfaction with no exclusions

• Clearest examples from firms within Clearest examples from firms within service sectorservice sector– Service encounters often require various Service encounters often require various

elements of supply system to have direct elements of supply system to have direct customer interfacecustomer interface

– Most powerful service guarantees are those Most powerful service guarantees are those that guarantee satisfaction with no exclusionsthat guarantee satisfaction with no exclusions


Reading 10-2Reading 10-2

Reasons for Adopting SM Reasons for Adopting SM ManagementManagement


Reasons for Adopting SM Reasons for Adopting SM ManagementManagement

• Crises may provide pressure to resolve conflict & Crises may provide pressure to resolve conflict & to arrive at consensusto arrive at consensus

• Continuous improvementContinuous improvement• Achieve better alignment with strategyAchieve better alignment with strategy• Market-share-grabbing strategyMarket-share-grabbing strategy• Achieve rapid growthAchieve rapid growth• Maintain cultureMaintain culture• Decentralize managementDecentralize management

• Crises may provide pressure to resolve conflict & Crises may provide pressure to resolve conflict & to arrive at consensusto arrive at consensus

• Continuous improvementContinuous improvement• Achieve better alignment with strategyAchieve better alignment with strategy• Market-share-grabbing strategyMarket-share-grabbing strategy• Achieve rapid growthAchieve rapid growth• Maintain cultureMaintain culture• Decentralize managementDecentralize management



Selecting & Implementing SMSelecting & Implementing SMReading 10-2Reading 10-2

Selecting & Implementing SMSelecting & Implementing SM

• SMs tie directly to firm’s market & follow SMs tie directly to firm’s market & follow strategystrategy

• SMs are simple & common SMs are simple & common – Need not be comprehensive or balancedNeed not be comprehensive or balanced

• Nave horizontal & vertical relevance Nave horizontal & vertical relevance – Relevant from executives to employees, across functional Relevant from executives to employees, across functional

departments & are linked to marketdepartments & are linked to market• Both monetary & behavioral rewards tied to SMBoth monetary & behavioral rewards tied to SM• All employees must understand how they affect All employees must understand how they affect

SMSM• Dynamic reward systemDynamic reward system

• SMs tie directly to firm’s market & follow SMs tie directly to firm’s market & follow strategystrategy

• SMs are simple & common SMs are simple & common – Need not be comprehensive or balancedNeed not be comprehensive or balanced

• Nave horizontal & vertical relevance Nave horizontal & vertical relevance – Relevant from executives to employees, across functional Relevant from executives to employees, across functional

departments & are linked to marketdepartments & are linked to market• Both monetary & behavioral rewards tied to SMBoth monetary & behavioral rewards tied to SM• All employees must understand how they affect All employees must understand how they affect

SMSM• Dynamic reward systemDynamic reward system



Strategic Performance Appraisal in Team Strategic Performance Appraisal in Team OrganizationsOrganizations


Strategic Performance Appraisal in Team Strategic Performance Appraisal in Team OrganizationsOrganizations

• Effective performance-appraisal systems Effective performance-appraisal systems require careful consideration of team require careful consideration of team contingenciescontingencies– Team membership configurationTeam membership configuration– Team task complexityTeam task complexity– Nature of interdependencies among team & external Nature of interdependencies among team & external

groupsgroups

• Effective performance-appraisal systems Effective performance-appraisal systems require careful consideration of team require careful consideration of team contingenciescontingencies– Team membership configurationTeam membership configuration– Team task complexityTeam task complexity– Nature of interdependencies among team & external Nature of interdependencies among team & external

groupsgroups



Work or Service TeamsWork or Service TeamsReading 10-3Reading 10-3

Work or Service TeamsWork or Service Teams

• Well-developed social systemWell-developed social system• Quality of interpersonal relationships important Quality of interpersonal relationships important • Individual& team performance appraisals Individual& team performance appraisals

recommendedrecommended• Outcome-based performance appraisal Outcome-based performance appraisal

recommended for team, but not for individual recommended for team, but not for individual membersmembers

• Members typically responsible for monitoring & Members typically responsible for monitoring & documenting own performance on individual documenting own performance on individual taskstasks

• Well-developed social systemWell-developed social system• Quality of interpersonal relationships important Quality of interpersonal relationships important • Individual& team performance appraisals Individual& team performance appraisals

recommendedrecommended• Outcome-based performance appraisal Outcome-based performance appraisal

recommended for team, but not for individual recommended for team, but not for individual membersmembers

• Members typically responsible for monitoring & Members typically responsible for monitoring & documenting own performance on individual documenting own performance on individual taskstasks



Project TeamsProject TeamsReading 10-3Reading 10-3

Project TeamsProject Teams

• Assembled for specific purpose & expect to Assembled for specific purpose & expect to disband once task is completedisband once task is complete

• Focused more on tasks than on team Focused more on tasks than on team membersmembers

• Metrics developed that relate to various Metrics developed that relate to various stages of project stages of project – Teams can self-correct before things go too far off Teams can self-correct before things go too far off

coursecourse

• Assembled for specific purpose & expect to Assembled for specific purpose & expect to disband once task is completedisband once task is complete

• Focused more on tasks than on team Focused more on tasks than on team membersmembers

• Metrics developed that relate to various Metrics developed that relate to various stages of project stages of project – Teams can self-correct before things go too far off Teams can self-correct before things go too far off

coursecourse



Project TeamsProject TeamsReading 10-3Reading 10-3

Project TeamsProject Teams

• Multisource performance appraisal Multisource performance appraisal particularly usefulparticularly useful

• Project leader & peer ratings good sources Project leader & peer ratings good sources of behavioral ratingsof behavioral ratings

• Members rated on both individual Members rated on both individual performance & team contributionperformance & team contribution

• Multisource performance appraisal Multisource performance appraisal particularly usefulparticularly useful

• Project leader & peer ratings good sources Project leader & peer ratings good sources of behavioral ratingsof behavioral ratings

• Members rated on both individual Members rated on both individual performance & team contributionperformance & team contribution



Network TeamsNetwork TeamsReading 10-3Reading 10-3

Network TeamsNetwork Teams

• Virtual Virtual – Potential membership not constrained by time or spacePotential membership not constrained by time or space

• Work extremely nonroutineWork extremely nonroutine• Rapid-response units charged with strategically Rapid-response units charged with strategically

responding to market challengesresponding to market challenges• Performance of whole team often not assessed Performance of whole team often not assessed

formallyformally• Appraisal focused on Appraisal focused on

– Developing individual capacity to initiate, participate, & lead Developing individual capacity to initiate, participate, & lead improvisational action, rather than on past outcomesimprovisational action, rather than on past outcomes

• Virtual Virtual – Potential membership not constrained by time or spacePotential membership not constrained by time or space

• Work extremely nonroutineWork extremely nonroutine• Rapid-response units charged with strategically Rapid-response units charged with strategically

responding to market challengesresponding to market challenges• Performance of whole team often not assessed Performance of whole team often not assessed

formallyformally• Appraisal focused on Appraisal focused on

– Developing individual capacity to initiate, participate, & lead Developing individual capacity to initiate, participate, & lead improvisational action, rather than on past outcomesimprovisational action, rather than on past outcomes



Network TeamsNetwork TeamsReading 10-3Reading 10-3

Network TeamsNetwork Teams

• Competency-based appraisal systems optimalCompetency-based appraisal systems optimal• Employees assessed on extent to which theyEmployees assessed on extent to which they

– Apply learning to current activitiesApply learning to current activities– Set developmental goalsSet developmental goals– Seek out feedbackSeek out feedback

• Behavior-based appraisal used to assess extent to Behavior-based appraisal used to assess extent to which members engage in collaborative which members engage in collaborative communication & teamworkcommunication & teamwork

• Competency-based appraisal systems optimalCompetency-based appraisal systems optimal• Employees assessed on extent to which theyEmployees assessed on extent to which they

– Apply learning to current activitiesApply learning to current activities– Set developmental goalsSet developmental goals– Seek out feedbackSeek out feedback

• Behavior-based appraisal used to assess extent to Behavior-based appraisal used to assess extent to which members engage in collaborative which members engage in collaborative communication & teamworkcommunication & teamwork

Leadership & Management

SHRMN ch10