Chapter 10

There Will be a Quiz No. 3 Today HA Ha ha ha Hoodoo Assignment No.3 Due also today

Chapter 10 Establishing the Performance Management System

Performance Management Systems An iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success .

Performance Management systems Why Manage Performance ?To reach organizational mission and goalsEncourage and reward behaviors aligned with organizational mission and goalsCurb or redirect non-productive activities

Difficulties in Performance Management SystemsFocus on the individual -: Discussions may elicit strong emotions & may generate conflicts when subordinates and supervisors do not agree. Focus on the process -: Company policies & procedures may present barriers to a properly functioning appraisal process.

Performance Management by EEO What are the EEO issues in performance management?

All staff members are entitled to fair access to appropriate training and development opportunities.Assessments of all staff members must be based on evidence of their ability to carry out the stated duties of their particular jobs .All staff must be given the information and resources to enable them to carry out the tasks of their position .

AppraisalThe act of estimating or judging the nature or value of something or someone.

Comparing options to deliver an objective .

The Appraisal ProcessEstablishing performance standardsCommunicating standards and ExpectationsMeasuring the actual performanceComparing with StandardsDiscussing Results(Providing feedback)Decision Making Taking Corrective actionsAppraisal MethodsEvaluating Absolute StandardsCritical Incident AppraisalChecklist Appraisal Adjective Rating Scale Forced-Choice Behaviorally Anchored Rating Scales ( BARS )Relative standards MethodsGroup Order RankingIndividual Ranking Paired ComparisonOutcomes-Based or MBO methods

Evaluating Absolute Standards :-

Measuring an employees performance against established standards

Critical incident method :-

The critical incidents for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period

Checklist Appraisal :-

This method describe a performance appraisal method where rater familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behavior on jobs .

Adjective Rating Scale Appraisal :- Rate employee on job-related factors & attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills) competence.

Forced-Choice Appraisal :-

Appraisal is based on a choice from a number of pre-written statements. There is no provision for a rating that you think falls between two choices. This is the reason why it is called forced choice.

Behaviorally Anchored Rating Scales ( BARS ) :-

This method used to describe a performance rating that focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation.

Relative Standard Method :-

Evaluating an employees performance by comparing the employee with other employees

Group Order Ranking Individual RankingPaired Comparison

Management by objectives ( MBO ) :- MBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods) .

Outcomes-Based or MBO methodsFactors that can distort AppraisalsDistortionsHALO ErrorSimilarity ErrorCentral Tendency Inflationary pressuresInappropriate substitutesLeniency ErrorFactors that can distort Appraisals Leniency error :- Performance appraisal or interview bias which occurs when a manager or interviewer rate an employee or the interviewee too positively. Opposite of strictness error.

HALO error :- An effect whereby the perception of positive qualities in one thing or part gives rise to the perception of similar qualities in related things or in the whole.

Similarity error :-. More than fair rating given to an applicant or employee due to his or her personal or professional similarity to the interviewer or evaluator is called similarity error.

Low Appraiser Motivation

Evaluators may be reluctant to be accurate if important rewards for the employee depend on the results.

Central tendency :- Central tendency error is a trend exhibited by raters who assign average ratings to avoid the evaluation of all employees at the extreme ends of the scale.

Inflationary pressures :- Pressures for equality and fear of retribution for low ratings leads to less differentiation among rated employees.

Inappropriate Substitutes :-

During the appraisal process sometimes managers consider substitutes for appraisal , which might not be appropriate all the time , this leads to an error in appraisal process .

Attribution Theory

How individuals interpret causes ofbehavior based on their past knowledge and experiences. They can attribute behavior either to internal factors such as ability, skill or effort, or to external factors such as rules, policies or environment.This is known as our locus of control andcan influence our behavior at work.

Success Train AppraisersRate selectively=+Have multiple raters+Provide ongoing feedback+Combine Absolute Standards+Use Behavior-based measures+ Creating more Effective Performance Management SystemsInternational Performance Appraisal IPA creates an incentive system that can ensure international employees and overseas subsidiaries are acting in accordance with the home companys interests.

Who performs the evaluation ?Evaluation formats .

Videos

Assignment No. 3 Due Today

Possible

Questions

Question No. 1 No Appraisal system is perfect for evaluating the performance of employees . Why ?

Question No. 2 How can we overcome the difficulties which have been faced during performance management system ?Quiz No. 3

Which method you think would be best for Appraisal and why ?

Question No. 4 Is the internal use of performance management & continuous improvement a major objective ?

Question No. 5 What are the consequences of poor communication about performance ?

Question No. 6 What could be the reasons for the failure of performance management system ?

Question No. 7 Why do managers generally dislike performance appraisal programs ?

Question No. 8 Why do subordinates dislike performance appraisal programs ?

Question No. 9 Can an organization use more then one appraisal method , if yes , how ?

Question No. 10 What changes are there in performance appraisal when teams rather then individuals are evaluated ?