Presentation on theme: "Performance Measures Criteria Criteria used to evaluate Performance Management Systems: Strategic Congruence Extent to which performance mgt systems elicits."— Presentation transcript:
1Performance 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
2Performance 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.
4The 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
5The 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.