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Performance Measures Criteria Criteria used to evaluate Performance Management Systems: 1.Strategic Congruence  Extent to which performance mgt systems.

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

1 Performance Measures Criteria Criteria used to evaluate Performance Management Systems: 1.Strategic Congruence  Extent to which performance mgt systems elicits job performance that is congruent with org strategy, goals and culture.  Critical Success Factors 2.Validity  Extent to which a performance measure assess all relevant aspects of performance  Not Deficient or Contaminated 3.Reliability  Consistency of a performance measure  3 types:  Interrater – 2 individuals give the same evaluations of the person’s job performance  Internal Consistency  Test-retest reliability – reliability over time

2 Performance Measures Criteria Criteria used to evaluate Performance Management Systems: 4. Acceptability  Refers 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. Specificity  Extent to which a performance measure tells employees what is expected of them and how they can meet these expectations.

3 APPROACHES TO MEASURING PERFORMANCE

4 The Comparative Approach I.Ranking o Simple Ranking o Alternation Ranking II.Forced Distribution o Entails putting certain percentages of employees into predetermined categories o Forces managers to evaluate based on Job- related criteria rather than to be lenient. III.Paired Comparison o Requires managers to compare every employee with every other employee in the work group o # of times employee gets favorable decision = Employee’s Performance Score Comparison of an individual’s performance with others Seeks to develop ranking of individuals within a group

5 The Comparative Approach Evaluating the Comparative Approach:  Effective tool in differentiating employee performance  Eliminates problems of liniency  Common failure to be linked with to strategic goals of the organization due to:  Subjective nature of ratings  Validity and reliability depend on raters themselves  Multiple evaluations can be done to reduce bias  Lacks Specificity (for feedback purposes)  Low Acceptability  employee performance related to employee in group/ team rather than measured against an absolute standard of excellence.


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