7/26/2019 Lesson 08 - Managing Employees_ Performance

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Managing Employees

Performance

Ch

Fundamentals of Human Resource Ma

Noe et

Discussed by: Orchid N. Le

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Learning Objectives

1. Identify the activities involved in performance management2. Discuss the purposes of performance management systems

3. Define five criteria for measuring the effectiveness of a perfomanagement system

4. Compare the major methods for measuring performance

5. Describe the major sources of performance information in t

their advantages and disadvantages6. Define types of rating errors, and explain how to minimize t

7. Explain how to provide performance feedback effectively

8. Summarize ways to produce improvement in unsatisfactoryperformance

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L01Identify theactivities involved

in performance

management

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L02

Discuss the purposes of performance

management systems

Strategic Purpose

means effective performance

management helps the organization achieve its busiobjectives by helping to link employees behavior wiorganizations goals.

Administrative Purpose

refers to the ways in whichorganizations use the system to provide informationto-day decisions about salary, benefits, and recognitprograms.

Developmental Purpose

means that is serves as a

developing employees knowledge and skills.

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L03

Define five criteria for measuring the effect

of a performance management system

Fit with Strategy define the kinds of behavior that contribugood customer service.

Validity extent to which a measurement tool actually meawhat it is intended to measure.

Reliability consistency of the results that the performance

will deliver. Acceptability practical standard of being acceptable to the

who use it.

Specific Feedback - tell employees what is expected of themthey can meet those expectations

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L04

Compare the major methods for measuring

performance

Making Comparisons Simple ranking managers rank employees in th

group from the highest performer to the pooresperformer.

Forced-distribution method assigns a certainpercentage of employees to each category in a scategories.

Paired-comparison method compares eachemployee with each other employee to establish

ranking

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L04: Compare the major methods formeasuring performance

Rating Individuals Rating Attributes

Graphic rating scale - uses scale to indicate the extentan employee displays each trait (Figure 8.3)

Mixed-standard scale uses several statements descrtrait to produce a final score for that trait (Figure 8.4)

Rating Behaviors

Critical Incident Method see pg 10

Behaviorally anchored rating scale (BARS) Figure 8.5

Behavioral Observation scale (BOS) Figure 8.6

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L04Compare the

major

methods for

measuringperformance

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L04Compare the

major

methods for

measuringperformance

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L04: Compare the major methods formeasuring performance

Critical-incident method method of performancemeasurement based on managers records of specifiexamples of the employee actin in ways that are eitheffective or ineffective.

i.e A customer called in about a refrigerator that was not

and was making a clicking noise every few minutes. The tprediagnosed the cause of the problem and checked his the necessary parts. When he found he did not have thechecked the parts out from inventory so that the customrefrigerator would be repaired on his first visit and the cuwould be satisfied promptly.

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L04Compare the

major

methods for

measuringperformance

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L04Compare the

major

methods for

measuringperformance

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L04: Compare the major methods formeasuring performance

Measuring Results

Management by Objective (MBO) a system in which people at eathe organization set goals in a process that flows from top to bottoemployees at all levels are contributing to the organizations overathese goals become the standards for evaluating each employeesperformance.

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L04: Compare the major methods for

measuring performance

Total Quality Management Subjective feedback from managers, peers, and custome

the employees personal qualities such as cooperation an

initiative;

Objective feedback based on the work process

Statistical quality control that uses charts to detail causesproblems, measures of performance, or relationships betwwork-related variables.

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L05: Describe the major sources of performa

information in terms of their advantages and

disadvantages

360-degree performance appraisal performance managemcombines information from the employees managers, peersubordinates, self, and customers.

Managers

Peers

Subordinates

Self

Customers

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L06: Define types of rating errors and ex

how to minimize them

Types of Rating Errors

Contrast Error rater compares the individual against individual than the objective standard.

Distributional Error when raters tend to use only one part of thscale. (timeliness how about cost, quality, etc.)

Leniency - rater rates everyone near the top

Strictness when rater favors lower rankings

Central tendency when rater puts everyone near the middle of the sca

Halo error if positive rating (i.e. perceived as helpful or talente

Horns error if negative rating of halo error (i.e. perceived as taunmotivated)

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L06: Define types of rating errors and ex

how to minimize them

Ways to reduce errors Training of employees

Raters can be trained to avoid errors

Political Behavior in Performance Appraisal People rating performance distort an evaluation on purp

advance their personal goals organizations try to identdiscourage appraisal politics.

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L07: Explain how to provide performanc

feedback effectively

Scheduling performance feedback should be regularmanagement activity. i.e. twice a year

Preparing for a feedback session neutral location, asshould have been prepared in advance.

Conducting the feedback session

Tell and sell approach mgrs. tell employees their rating tthe ratings

Tell and listen mgrs. Tell employees their rating then let temployees explain their side of the story

Problem-solving manager and employees work together

performance problems

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L08 : Summarize ways to produce

improvement in unsatisfactory performa

Finding solutions to performance problems Lack of ability (KSA) manager offer coaching, tra

and more detailed feedback.

Lack of motivation manager to explore ways todemonstrate that the employee is being treated f

rewarded adequately. Lack of both manager to direct the attention to

significance of the problem by withholding rewardproviding specific feedback. Demote or terminateemployee, if necessary.

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