Copyright © 2011 Pearson Canada Inc. Performance Management Dessler & Cole Human Resources...

Copyright © 2011 Pearson Canada Inc.

Performance Management

Dessler & Cole

Human Resources Management in Canada

Canadian Eleventh Edition


Performance Management

process encompassing all activities related to improving

employee performance, productivity, and effectiveness

includes goal setting, pay for performance, training and

development, career management, and disciplinary

action

process encompassing all activities related to improving

employee performance, productivity, and effectiveness

includes goal setting, pay for performance, training and

development, career management, and disciplinary

action

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Performance Management Process

Performance Management Process contains five steps:

1. defining performance expectations

2. providing ongoing feedback and coaching

3. conducting performance appraisal and evaluation discussions

4. determining performance rewards/consequences such as

promotions, salary, increases and bonuses

5. conducting development and career opportunities discussions

Performance Management Process contains five steps:

1. defining performance expectations

2. providing ongoing feedback and coaching

3. conducting performance appraisal and evaluation discussions

4. determining performance rewards/consequences such as

promotions, salary, increases and bonuses

5. conducting development and career opportunities discussions

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Step 1: Defining Performance Expectations

job description often insufficient to clarify performance expectations

measurable standards related to strategic objectives should be developed for each position

job description often insufficient to clarify performance expectations

measurable standards related to strategic objectives should be developed for each position

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Step 2: Providing Ongoing Coaching and Feedback

important to have open two-way communication

both the employee and the manager need to check in frequently throughout the performance management process to talk about progression toward goals

important to have open two-way communication

both the employee and the manager need to check in frequently throughout the performance management process to talk about progression toward goals

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Copyright © 2011 Pearson Canada Inc. 10-6


Step 3: Performance Appraisal and Evaluation

Discussion the appraisal itself is generally conducted with the aid of

a predetermined and formal method such as: graphic rating scale

alternation ranking method

forced distribution method

critical incident method

narrative forms

behaviourally anchored rating scales

management by objectives

computerized and web based performance appraisal

the appraisal itself is generally conducted with the aid of a predetermined and formal method such as: graphic rating scale

alternation ranking method

forced distribution method

critical incident method

narrative forms

behaviourally anchored rating scales

management by objectives

computerized and web based performance appraisal 10-7


Graphic Rating Scale

a scale that lists a number of traits and a range of performance for each

the employee is then rated by identifying the score that best describes his or her level of performance for each trait

a scale that lists a number of traits and a range of performance for each

the employee is then rated by identifying the score that best describes his or her level of performance for each trait

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Insert Figure 10.2 HereSample Graphic Rating Scale Form


Alternation Ranking Method

ranking employees from best to worst on a particular trait

ranking employees from best to worst on a particular trait

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Alternation Ranking Scale

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Paired Comparison Method

ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair

ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair

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Ranking Employees by the Paired Comparison Method

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Forced Distribution Method

predetermined percentages of ratees are placed in various performance categories

for example, it may be decided to distribute employees as follows:• 15 percent high performers

• 20 percent high-average performers

• 30 percent average performers

• 20 percent low-average performers

• 15 percent low performers

predetermined percentages of ratees are placed in various performance categories

for example, it may be decided to distribute employees as follows:• 15 percent high performers

• 20 percent high-average performers

• 30 percent average performers

• 20 percent low-average performers

• 15 percent low performers

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Critical Incident Method

keeping a record of uncommonly good or undesirable examples of an employee’s work-related behaviour and reviewing the list with the employee at predetermined times

keeping a record of uncommonly good or undesirable examples of an employee’s work-related behaviour and reviewing the list with the employee at predetermined times

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Critical Incident Method

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Narrative Forms

some employers use narrative forms to evaluate employees

for example, the form in Figure 10.5 presents a suggested format for identifying a performance issue and presenting a performance improvement plan

some employers use narrative forms to evaluate employees

for example, the form in Figure 10.5 presents a suggested format for identifying a performance issue and presenting a performance improvement plan

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Behaviourally Anchored Rating Scales

an appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance

an appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance

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generate critical incidents job experts specify effective and ineffective performance

develop performance dimensions cluster the incidents into a smaller set of performance

dimensions

reallocate incidents different experts group incidents into same clusters and

retain incidents similarly assigned twice

generate critical incidents job experts specify effective and ineffective performance

develop performance dimensions cluster the incidents into a smaller set of performance

dimensions

reallocate incidents different experts group incidents into same clusters and

retain incidents similarly assigned twice

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scale the incidents rate the behaviour described in the incident as to how

effectively or ineffectively it represents performance

develop the final instrument a subset of the incidents is used as behavioural anchors for

each dimension

scale the incidents rate the behaviour described in the incident as to how

effectively or ineffectively it represents performance

develop the final instrument a subset of the incidents is used as behavioural anchors for

each dimension

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Advantages more accurate measure clearer standards assists feedback independent dimensions consistency

Disadvantage time consuming

Advantages more accurate measure clearer standards assists feedback independent dimensions consistency

Disadvantage time consuming

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Management by Objectives (MBO)

1. set the organization’s goals2. set departmental goals3. discuss departmental goals4. define expected results (individual goals)5. performance reviews: measure the

results6. provide feedback

1. set the organization’s goals2. set departmental goals3. discuss departmental goals4. define expected results (individual goals)5. performance reviews: measure the

results6. provide feedback

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Computerized and Web-Based Performance Appraisal

enables managers to keep computerized notes on employees, combine these with ratings on several performance traits, and then generate written text to support each part of the appraisal

most web-based performance management systems provide advanced reporting capabilities, which allow managers to track the status of performance management initiatives easily

electronic performance monitoring (EPM) refers to having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his or her performance

enables managers to keep computerized notes on employees, combine these with ratings on several performance traits, and then generate written text to support each part of the appraisal

most web-based performance management systems provide advanced reporting capabilities, which allow managers to track the status of performance management initiatives easily

electronic performance monitoring (EPM) refers to having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his or her performance

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Performance Appraisal Problems

validity and reliability

rating scale problems unclear performance standards halo effect central tendency leniency or strictness appraisal bias recency effect similar-to-me bias

validity and reliability

rating scale problems unclear performance standards halo effect central tendency leniency or strictness appraisal bias recency effect similar-to-me bias

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A Graphic Rating Scale with Unclear Standards

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Important Advantages and Disadvantages of Appraisal Tools

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Who Should Do the Appraising?

supervisors peers committees self subordinates 360-degree appraisal (all of the above)

supervisors peers committees self subordinates 360-degree appraisal (all of the above)

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Appraisal Interviews

an interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths

three basic types of appraisal interviews include:

1. Satisfactory (promotable) - make development plans

2. Satisfactory (not promotable ) - maintain performance

3. Unsatisfactory (correctable) - plan correction

an interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths

three basic types of appraisal interviews include:

1. Satisfactory (promotable) - make development plans

2. Satisfactory (not promotable ) - maintain performance

3. Unsatisfactory (correctable) - plan correction

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Preparing for the Appraisal Interview

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How to Conduct the Interview

1. be direct and specific

2. do not get personal

3. encourage the person to talk

4. develop an action plan

1. be direct and specific

2. do not get personal

3. encourage the person to talk

4. develop an action plan

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Example of an Action Plan

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How to Handle Criticism and Defensive Employees

recognize that defensive behaviour is normal

never attack a person’s defenses

postpone action

recognize human limitations

recognize that defensive behaviour is normal

never attack a person’s defenses

postpone action

recognize human limitations

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Ensuring That the Appraisal Interview Leads to Improved Performance

Legal experts suggest following these seven steps: Let the employee know that his or her performance is unacceptable and explain

your minimum expectations

Ensure that your expectations are reasonable

Let employees know that warnings play a significant role in the process of establishing just cause

Ensure that you take prompt corrective measures when required

Avoid sending mixed messages, such as a warning letter together with a “satisfactory” performance review.

Provide the employee with a reasonable amount of time to improve performance

Be prepared to provide employees with support to facilitate improvement

Legal experts suggest following these seven steps: Let the employee know that his or her performance is unacceptable and explain

your minimum expectations

Ensure that your expectations are reasonable

Let employees know that warnings play a significant role in the process of establishing just cause

Ensure that you take prompt corrective measures when required

Avoid sending mixed messages, such as a warning letter together with a “satisfactory” performance review.

Provide the employee with a reasonable amount of time to improve performance

Be prepared to provide employees with support to facilitate improvement

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Step 4: Determine Performance Rewards/Consequences

two most important aspects used to determine the appropriate reward/consequence are: achievement of goals

how the employee meets the defined standards

two most important aspects used to determine the appropriate reward/consequence are: achievement of goals

how the employee meets the defined standards

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Step 5: Career Development Discussion

manager and employee discuss opportunities for development to strengthen or improve the employee’s knowledge, skills, and abilities

business needs must be balanced with the employee’s preferences

manager and employee discuss opportunities for development to strengthen or improve the employee’s knowledge, skills, and abilities

business needs must be balanced with the employee’s preferences

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The Future of Performance Management

Effective performance management involves:

linking individual goals and business strategy

showing leadership and accountability at all levels of the organization

ensuring close ties among appraisal results, rewards, and recognition outcomes

investing in employee development planning

having an administratively efficient system with sufficient communication support

Effective performance management involves:

linking individual goals and business strategy

showing leadership and accountability at all levels of the organization

ensuring close ties among appraisal results, rewards, and recognition outcomes

investing in employee development planning

having an administratively efficient system with sufficient communication support

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