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1 Performance Management
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Performance Management
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Lecture Outline Definitions Purposes Process Sources Types of Ratings and Measurement Methods Problems and Errors Giving Feedback
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Performance Management and Performance Appraisals
Performance management definition Processes used to
identify, encourage, measure, evaluate, improve, and reward employee performance.
Performance appraisal definition The process of
evaluating how well employees perform their jobs and then communicating that information to the employees.
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Discussion Question Have you received a performance appraisal at
your job? Did you feel good about the process? Why or
why not?
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Quick Quiz Rate as True or False:
1. Performance ratings should be job-related.
2. Employees should not be given a written copy of their job standards in advance of appraisals.
3. Managers who conduct the appraisal should be able to observe the behavior they are rating.
4. Supervisors need not be trained to use the appraisal form correctly.
5. Appraisals should be discussed openly with employees and counseling or corrective guidance offered.
6. An appeals procedure should be established to enable employees to express disagreement with the appraisal.
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Discussion Question What is the ultimate goal of a performance
appraisal? What percentage of performance appraisal are
effective?
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Purposes of Performance Management
Three purposes Developmental Administrative Strategic
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Developmental and Administrative
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Performance Management Process
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Quick Quiz Rate whether the HR Unit or Direct Supervisor
generally handles the following tasks: Designs and maintains appraisal system Trains raters Typically rates performance of employees Prepares formal appraisal documents Reviews appraisal with employees Tracks timely receipt of appraisals Reviews completed appraisals for consistency Identifies developmental areas
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Supervisor
Subordinates
PeersTeam
CustomersSelf
Sources of Appraisal: Faceless People
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Discussion Question What is it called when you get appraised by
people at all different levels of the organization?
Do you think this approach is effective? Why or why not?
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Measurement Methods Traits Behaviors Results
Disclaimer: We’ll go through this quickly!
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Trait Methods Forced-choice method
Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.
Graphic-rating scale method A trait approach to performance appraisal whereby each employee is
rated according to a scale of individual characteristics. Mixed-standard scale method
An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard.
Essay method Requires the rater to compose a statement describing employee
behavior.
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Forced-Choice Distribution Scale
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Graphic Rating Scale
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Mixed-Standard Scale
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Behavioral Methods Behaviorally anchored rating scale (BARS)
A performance appraisal that consists of a series of vertical scales, one for each dimension of job performance.
Behavior observation scale (BOS)
A performance appraisal that measures the frequency of observed behavior.
Critical incident
An unusual event denoting superior or inferior employee performance in some part of the job.
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Behaviorally Anchored Rating Scale (BARS)
FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
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Behavior Observation Scale (BOS)
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Results Methods1. Productivity
How much do you get done?
2. Management by objectives (MBO) A philosophy of management that rates performance on
the basis of employee achievement of goals set by mutual agreement of employee and manager.
Key MBO ideas Employee involvement creates higher levels of commitment and
performance. Encourages employees to work effectively toward achieving
desired results. Performance measures should be measurable and should define
results.
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Summary of Appraisal Methods ADVANTAGE
SDISADVANTAGES
TRAITSInexpensiveMeaningfulEasy to use
Potential for errorPoor for counselingPoor for allocating rewardsPoor for promotional decisions
BEHAVIORSpecific dimensionsAccepted by employeesUseful for feedbackOK for reward/promotion
Time consumingCostlySome rating error
RESULTS
Less subjectivity biasAccepted by employeesPerformance-reward linkEncourages goal settingGood for promotiondecisions
Time consumingFocus on short term
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Introduction to Appraisal Problems
Rate the following movies on a scale of 1 (poor) to 5 (outstanding) Karate Kid I Back to the Future I Ferris Bueller’s Day Off Breakfast Club Pretty in Pink
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Common Appraisal Problems Inadequate preparation on
the part of the manager. Employee is not given
clear objectives at the beginning of performance period.
Manager may not be able to observe performance or have all the information.
Inconsistency in ratings among supervisors or other raters.
Performance standards may not be clear.
Rating personality rather than performance.
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Common Appraisal Problems (Ctd.) Inappropriate time span
(either too short or too long).
Overemphasis on uncharacteristic performance.
Subjective or vague language in written appraisals.
Organizational politics or personal relationships cloud judgments.
No thorough discussion of causes of performance problems.
Manager may not be trained at evaluation or giving feedback.
No follow-up and coaching after the evaluation.
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Discussion Question Why are performance appraisals often high
even when performance is not up to par?
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Common Rating Errors Halo/horn
Overly focusing on specific performance ratings or stereotyping employee by a single personal characteristic.
Leniency Rating all employees higher than they should be.
Strictness Rating all employees lower that they should be.
Central tendency Rating all employees as average when individual employee
performance actually varies.
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Common Rating Errors (Ctd.) Primacy
Using initial information that supports the rating decision while ignoring later information that does not.
Recency Basing the rating decision primarily on the most recent
performance information while placing much less emphasis on past performance.
Contrast effects Comparing one employee to another rather than applying a
common standard to all employees.
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Quick QuizBill rates all of his employees very low except
for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively.a. Leniency; Horn
b. Strictness; Halo
c. Similar-to-me; Central Tendency
d. Horn; Strictness
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Quick Comic
K.C.
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Dawson
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K.C. and Dawson
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Quick Comic
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Providing Feedback Issues to consider when providing feedback
Differing perspectives Timing Preparation Content of the discussion Follow-up
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Discussion Question Why is it so difficult to provide feedback? How can you provide negative feedback that
leads to motivation rather than withdrawal?
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Providing Feedback (Ctd.) Differing perspectives
Combining evaluative and developmental goals Need to be candid and protect employee’s self-esteem
Self-serving employee attributions that interfere with performance improvement Discounting role of external
forces in good performance Over-emphasizing external
effects in poor performance
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Providing Feedback (Ctd.) Timing
Providing immediate feedback is most useful Giving only as much information as the receiver
can use
Preparation Scheduling feedback sessions in advance Clarifying purpose and content of meeting Giving both participants time to prepare
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Providing Feedback (Ctd.) Content of the discussion: The problem-solving approach
Diagnosis: Seek to understand the factors that affect performance.
Roadblocks: Seek agreement with the employee on an action plan to address issues such as:
Lack of resources
Need for additional information and training
Improving ongoing communications and feedback
Mutual goal setting: Employee participation increases employee acceptance of goals.
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Providing Feedback (Ctd.) Diagnosing the causes of performance deficiencies
Does the employee have the competencies and the interest to perform as desired?
Have specific, difficult but attainable goals been communicated?
Is the employee certain about desired performance, the consequences of performance, his/her power (level of authority)?
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Sample Checklist for Diagnosing the Causes of Performance
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Follow-Up to the Feedback Session Positive reinforcement
Use of positive rewards to increase occurrence of desired performance People perform in ways that they find most rewarding By providing proper rewards, it is possible to improve
performance Punishment
Decreases frequency of undesired behavior Gets immediate results and has vicarious power Can have undesirable side effects—employee anger and
contingent bad behavior
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Take-Home Points Understand purpose of performance
management Aware of the various methods for assessing
performance Knowledge of difficulties of performance
management and ways to improve it Knowledge of best way to provide feedback
when you are managing someone
