Presentation on theme: "Performance Measures Criteria Criteria used to evaluate Performance Management Systems: Strategic Congruence Extent to which performance mgt systems elicits."— Presentation transcript:
1 Performance Measures Criteria Criteria used to evaluate Performance Management Systems: Strategic CongruenceExtent to which performance mgt systems elicits job performance that is congruent with org strategy, goals and culture.Critical Success FactorsValidityExtent to which a performance measure assess all relevant aspects of performanceNot Deficient or ContaminatedReliabilityConsistency of a performance measure3 types:Interrater – 2 individuals give the same evaluations of the person’s job performanceInternal ConsistencyTest-retest reliability – reliability over time
2 Performance Measures Criteria Criteria used to evaluate Performance Management Systems: 4. AcceptabilityRefers to whether the people who use a performance measure accept it.Based on “perceived fairness”:Procedural – how it is done (ex. Employee participation on development of system)Interpersonal fairness – feedback (timely and complete)Outcome fairness – communication of outcomes (evaluation standards, expectations, rewards)5. SpecificityExtent to which a performance measure tells employees what is expected of them and how they can meet these expectations.
4 The Comparative Approach RankingSimple RankingAlternation RankingForced DistributionEntails putting certain percentages of employees into predetermined categoriesForces managers to evaluate based on Job-related criteria rather than to be lenient.Paired ComparisonRequires managers to compare every employee with every other employee in the work group# of times employee gets favorable decision = Employee’s Performance ScoreComparison of an individual’s performance with othersSeeks to develop ranking of individuals within a group
5 The Comparative Approach Evaluating the Comparative Approach:Effective tool in differentiating employee performanceEliminates problems of liniencyCommon failure to be linked with to strategic goals of the organization due to:Subjective nature of ratingsValidity and reliability depend on raters themselvesMultiple evaluations can be done to reduce biasLacks Specificity (for feedback purposes)Low Acceptabilityemployee performance related to employee in group/ team rather than measured against an absolute standard of excellence.