Performance Management Process {Lecture Notes}

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–1

Performance Management Process:Performance Management Process:OverviewOverview

PrerequisitesPerformance PlanningPerformance ExecutionPerformance AssessmentPerformance ReviewPerformance Renewal and Recontracting

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Performance Management ProcessPerformance Management Process

Performance Review

Performance Renewal and Recontracting

Performance Assessment

Performance Execution

Performance PlanningPrerequisites

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–3

PrerequisitesPrerequisites

A. Knowledge of the organization’s mission and strategic goals

B. Knowledge of the job in question

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–4

A.A. Knowledge of mission Knowledge of mission and strategic goals and strategic goals

• Strategic planning – Purpose or reason for organization’s

existence– Where organization is going– Organizational goals– Strategies for attaining goals

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Mission and GoalsMission and Goals

Cascade effect throughout organization

Organization Unit Employee

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B.B. Knowledge of the jobKnowledge of the job

• Job analysis of key components– Activities, tasks, products, services, processes

• KSAs required to do the job– Knowledge– Skills– Abilities

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–7

Job DescriptionJob Description

• Job duties• KSAs• Working conditions

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Generic Job DescriptionsGeneric Job Descriptions

Occupational Informational Network (O*Net) http://online.onetcenter.org/

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Job analysisJob analysis

• Use a variety of tools– Interviews– Observation– Questionnaires (available on Internet)

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Job analysis follow-upJob analysis follow-up• All incumbents should

– review information and – provide feedback

re:– Task

• Frequency• Criticality

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–11

Performance Planning:Performance Planning:ResultsResults

Key accountabilities

Specific objectives

Performance standards

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Key AccountabilitiesKey Accountabilities

Broad areas of a job for which

the employee is responsible for producing results

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Specific ObjectivesSpecific Objectives

Statements of outcomes Important Measurable

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Performance StandardsPerformance Standards

• “Yardstick” to evaluate how well employees have achieved each objective

• Information on acceptable and unacceptable performance, such asqualityquantity costtime

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Performance Planning:Performance Planning:BehaviorsBehaviors

How a job is done

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–16

Performance Planning:Performance Planning:CompetenciesCompetencies

• Measurable clusters of KSAs

• Critical in determining how results will be achieved

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Performance Planning:Performance Planning:Development PlanDevelopment Plan

Areas for improvement Goals to be achieved in each area of

improvement

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Performance Execution:Performance Execution:Employee ResponsibilitiesEmployee Responsibilities

Commitment to goal achievement Ongoing requests for feedback and coaching Communication with supervisor Collecting and sharing performance data Preparing for performance reviews

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Performance Execution:Performance Execution:Manager ResponsibilitiesManager Responsibilities

• Observation and documentation• Updates• Feedback• Resources• Reinforcement

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Performance AssessmentPerformance Assessment

• Manager assessment• Self-assessment• Other sources (e.g., peers, customers, etc.)

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Multiple Assessments Are NecessaryMultiple Assessments Are Necessary

Increase employee ownershipIncrease commitmentProvide informationEnsure mutual understanding

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Performance ReviewPerformance ReviewOverview of Appraisal MeetingOverview of Appraisal Meeting

• Past– Behaviors and results

• Present– Compensation to be received

• Future– New goals and development plans

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Six Steps for Conducting Six Steps for Conducting Productive Performance ReviewsProductive Performance Reviews

1. Identify what the employee has done well and poorly

2. Solicit feedback3. Discuss the implications of changing behaviors

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Six Steps for Conducting Six Steps for Conducting Productive Performance ReviewsProductive Performance Reviews

4. Explain how skills used in past achievements can help overcome any performance problems

5. Agree on an action plan6. Set a follow-up meeting and agree on

behaviors, actions, attitudes to be evaluated

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver2–25

Performance Renewal andPerformance Renewal andRecontractingRecontracting

• Same as/different from Performance Planning– Uses insights and information from previous

phases– Cycle begins again

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Performance Management ProcessPerformance Management ProcessSummary: Key PointsSummary: Key Points

Ongoing processEach component is important

If one is implemented poorly, whole system suffersLinks between components must be clear