Presentation on theme: "Traditional Bases for Pay: Seniority and Merit"— Presentation transcript:
1Traditional Bases for Pay: Seniority and Merit Chapter FourTraditional Bases for Pay: Seniority and Merit
2Performance Dimension What is performance?Performance mgmt.Performance DimensionContextualTaskAdaptiveStructurexSupport
3How is performance measured? Performance can be measured through the record of BEHAVIORS or OUTCOMES produced on a specified job function during a specified time period.We should keep in mind that our goal is evaluating achievements rather than person characteristics or TRAITS (note the problems experienced by companies who tried to evaluate competencies such as “integrity” or “maturity”). Thus, evaluations need to be either behavior or outcome-oriented, so they can be adequately measured.
4Defining Performance Competencies or Dimensions Focus on valued BEHAVIORS or OUTCOMES as defined by the corporation’s strategy, internal, and external customers.Behavior or outcome-based evaluations? It depends on whether performance is observable (behavior) and outcomes are clear.Outcomes need to be measurable in terms of:QuantityQuality/precisionTimelinessCost-effectivenessNeed for supervisionInterpersonal impact.
5What would be a desirable outcome of… CompetencyOutcomes?Evaluated byTeam Player: Willing to work with others and participate in give and take interactions.QuantityQuality/precisionTimelinessCost-effectivenessNeed for supervisionInterpersonal impact
6What would be a desirable outcome of… CompetencyOutcomes?Evaluated byTolerance/Patience. Is patient with others; does not react on first impulse, even under stressful or adverse situations.QuantityQuality/precisionTimelinessCost-effectivenessNeed for supervisionInterpersonal impact
7What would be a desirable outcome of… CompetencyOutcomes?Evaluated byResponsibility: Assumes responsibility and stays in charge of what is required of him/her.QuantityQuality/precisionTimelinessCost-effectivenessNeed for supervisionInterpersonal impact
8Common Problems in Performance Measures (especially outcome measures) Deficiency: Measure does not capture entire scope of performance.Contamination: Measure is influenced by third-factors unrelated to performance.Think about whether and how are the following performance measures deficient and/or contaminated:MeasureHow is it deficient?How is it contaminated?Sales at BK restaurant (fast food restaurant manager)Number of customer calls answered per day (customer service agent)Square footage cleaned per hour (janitor)
9Importance of Job-related evaluations Focus on important and critical employee responsibilities or behaviors as identified through a job analysis.Develop a task inventory or other behavior oriented job analysis, so that critical/important job behaviors can be identified.Ask incumbents, supervisors, coworkers, and customers to identify what are the internal and external customers’ most valued outcomes.
10Sample Task Inventory Task Having incumbents or other subject matter experts complete a task inventory may help you identify the most important job behaviors to be included in the performance evaluation…TaskImportanceRatingDecide the kind of defense strategy most likely to result in the client’s absolution.(5=very important)Review witness’ depositions and police reports to determine inconsistencies.Present witness and evidence on behalf of the client.
11Testing your applied knowledge: Sample Task Inventory Report Based on these ratings of the task inventory ratings, which task would you consider the best candidate for inclusion in the performance appraisal form for this job?TaskMeanStd. DeviationDecide the kind of defense strategy most likely to result in the client’s absolution.6.02.5Review witness’ depositions and police reports to determine inconsistencies.3.51.0Present witness and evidence on behalf of the client.6.5.5
12Testing your applied knowledge: Sample Task Inventory Report The answer is…TaskMeanStd. DeviationDecide the kind of defense strategy most likely to result in the client’s absolution.6.02.5Review witness’ depositions and police reports to determine inconsistencies.3.51.0Present witness and evidence on behalf of the client.6.5.5Explanation: This is the task with the highest average importance rating and the lowest std. deviation, which captures the agreement or variation among raters (the higher the SD, the lower the agreement)
13Rating Scales and Formats Number of pointsWhat’s better, an even (e.g., 4) or an odd number (e.g., 5) of points on the scale?Mid-point exists only in odd numbers.Mid-points decrease variability & increase central tendency.But raters like to have mid-points & complain if they don’t.AnchorsOne should be careful about the “anchors” or labels placed at the various points of the scale; their meaning may count in court:5 = outstanding/excellent4 = above average/very good3 = satisfactory/average/marginal2 = unsatisfactory/needs improvement1 = very poor/requires immediate improvementThese have very different meanings; which word you use makes a significant difference
14Document PerformanceExtreme ratings or evaluations (e.g., poor or very poor performance) should be carefully documented.Allow blank space to document extreme evaluations.Teach raters to document poor performance by describing critical incidents:Describe the situationDescribe what the person did (behavior)Describe the consequences of the employee’s behavior
15The Critical Incident Technique Describe a situation involving poor/good employee performance (include a brief description of the primary job responsibilities)Describe how the employee responded to the situation. Please be as specific as possible in describing what s/he did.Describe why was the employee’s behavior effective/ineffective. Include a description of the positive/negative consequences of the employee’s behavior.Based on this kind of critical incident, performance requirements or dimensions relevant to the job can be inferred.
16Discussion Question 4-1Describe a short critical incident from a job with which you are familiar. Include a description of the situation, the person’s behavior, and the consequences.Include the definition of a competency that, based on this critical incident, seems to be required to perform this job.
17Goals of Rater Training in Performance Appraisal Ensure understanding of the competencies or dimensions under evaluation. Make sure raters understand the behaviors associated with different points on the scale (they use the same frame of reference in evaluating employees).Ensure that raters have sufficient opportunities to observe the employee’s performance on the specified competency.Be aware of tendency to rely excessively on SALIENT and UNREPRESENTATIVE events.
18Goals of Rater Training (cont’d) Ensure that the variability in the ratings mirrors the differences in the level of performance among employees.Be aware of one’s tendency to contrast employees with each other, rather than judge them on their job performance. Also, be aware of the manner in which the ORDER of evaluation affects the evaluations (CONTRAST EFFECTS).Be aware of HALO (your overall impression of the employee does not let you see his/her strengths and weaknesses) and LENIENCY effects.Be aware of the need to monitor/document performance.
19Frame of Reference Training Example This type of training helps raters use similar standards, so that a particular rater would not hold a very idiosyncratic view of what constitutes good performance, or be much more lenient (or harsh) than other raters. This is done through exercises such as:Rank-order the following behaviors (1 = worst performance, 4 = best performance) in terms of what level of the competency “oral communication” (defined as the effectiveness of expression in individual and group situations) they represent:___ A. The employee does not get to the point.___ B. The employee speaks too softly.___ C. The employee is often asked to repeat himself.___ D. The employee frequently interrupts others before they finish their sentences.
20LEGALLY SUSTAINABLE PERFORMANCE MANAGEMENT DoDon’tCompetencies based on job analysisCompetencies based on abstract terms.Standardized administration and scoringDifferential standards or administrationDocument poor performancePoorly specified or subjective performance standards
21LEGALLY SUSTAINABLE PERFORMANCE MANAGEMENT DoDon’tRater training.Raters did not understand the appraisal system.Sufficient opportunity to observe employees.Raters based their evaluations on “what they heard.”Employees have an opportunity to discuss evaluation.Employees do not understand why they received a poor evaluation.
22LEGALLY SUSTAINABLE PERFORMANCE MANAGEMENT DoDon’tRater is not afraid of giving negative evaluations when necessary.Rater inflated evaluation to avoid conflict with employee, and decided to terminate employee for poor performance later on.
232. Cooperation with others Sample Performance Appraisal Forms A Trait-Oriented Performance Appraisal Rating FormEmployee’s Name:Supervisor’s Name:Employee’s Position:Review Period:INSTRUCTIONS: For each trait below, circle the phrase that best represents the employee.1. Diligencea. outstanding b. above average c. average d. below average e. poor2. Cooperation with othersa. outstanding b. above average c. average d. below average e. poor3. Communication skillsa. outstanding b. above average c. average d. below average e. poor4. Leadershipa. outstanding b. above average c. average d. below average e. poor5. Decisivenessa. outstanding b. above average c. average d. below average e. poor
24Sample Performance Appraisal Forms A Paired Comparison Performance Appraisal Rating Form INSTRUCTIONS: Please indicate by placing an X which employee of each pair has performed most effective during the past year. Refer to the duties listed in the job description for animal keeper as a basis for judging performance._____ Bob Brown_____ Mary Green_____ Jim Smith_____ Allen JonesX_____ Mary Green_____ Jim Smith_____ Allen JonesXXXXX
25Sample Performance Appraisal Forms A Critical Incidents Performance Appraisal Rating Form INSTRUCTIONS: For each description of work behavior below, circle the number that best describes how frequently the employee engages in that behavior.1. The incumbent removes manure and the unconsumed food from the animal enclosures.1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often2. The incumbent haphazardly measures the feed items when placing them in the animal enclosures.1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often3. The incumbent leaves refuse dropped by visitors on and around the public walkways.1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often4. The incumbent skillfully identifies instances of abnormal behavior among the animals, which represent signs of illness.1. Never 2. Almost Never 3. Sometimes 4. Fairly Often 5. Very Often
26Sample Performance Appraisal Forms A Behaviorally Anchored Rating Scale for the Cleaning Dimension of the Animal Keeper JobINSTRUCTIONS: On the scale below, from 7 to 1, circle the number that best describes how frequently the employee engages in that behavior.7|654321The incumbent could be expected to thoroughly clean the animal enclosures and remove refuse from the public walkways as often as needed.The incumbent could be expected to thoroughly clean the animal enclosures and remove refuse from the walkways twice daily.The incumbent could be expected to clean the animal enclosures and remove refuse from the public walkways in a sketchy fashion twice daily.The incumbent could be expected to rarely clean the animal enclosures or remove refuse from the public walkways.
27The Feedback GapSome managers, through their own behavior, manage to isolate themselves from their subordinates. Because of these managers’ style or behavior, their subordinates do not seek feedback from them; in fact, their subordinates may even hide important information from them.Describe the kinds of managerial styles and/or behaviors that are likely to result in isolation and absence of feedback-seeking behavior from subordinates. What recommendations would you give to these managers to help them overcome these issues?
28Not everyone wants to receive feedback… You have been a good horse, a true pleasure to ride, but I believe you need to work on your galloping a bit…
29Not everyone wants to receive feedback… I said FEED-BAG, dummy, not feedback!
30Performance FeedbackHave you ever known someone who quitted a job because s/he received negative feedback? Feedback is a double-edge sword, because it can make an already poor performer even worse!In fact, we only have one in three chances of improving matters when we give negative feedback:
31A scale to measure how much do you like to receive feedback Please indicate how much do you agree with the following statements; then, sum your responses across all questions to compute your total score.5 = very strongly agree, 4 = agree, 3 = moderately agree, 2 = disagree, 1 = very strongly disagree.I like being told how well I am doing on a project.Even though I may think I have done a good job, I feel a lot more confident after someone else tells me so.Even when I think I could have done something better, I feel good when other people think well of what I have done.It is very important for me to know what people think of my work.
32Feedback can be very effective Feedback directs behavior.Feedback stimulates performance goals.Feedback is reinforcing. If properly delivered, people appreciate it.Feedback increases employees’ ability to detect errors.Feedback helps people clarify their beliefs about the effects of their behavior.Feedback increases one’s sense of control.Feedback increases sense of task ownership and responsibility.
33How to deliver effective feedback Diagnose the cause of performance problem. Pay attention to situational constraints.Open the evaluation on a positive tone. State your intent to help improve performance.Deliver behavioral feedback. Describe rather than evaluate performance problems.Seek employee’s opinions and participation about situational constraints. Listen actively. Show that you understand by re-stating employees’ concerns in your own words.“Sandwich” performance problems between positive results. Consider opening/closing on a positive note.
34Diagnose performance problems Be aware of the “fundamental attribution error:”We tend to attribute our failures to external factors (“I just didn’t have the support of my boss”).We tend to attribute others’ failures to their personal characteristics (“he is lazy”).Think of an example of poor performance that you are familiar with; then, diagnose the source of the problem by answering the questions in the table included next:
35Performance problems checklist AreaQuestionYesNoExpectationsAre the employee’s performance expectations clear and accurate?Are performance expectations realistic?Is employee clear about his/her level of autonomy?Is employee aware of performance consequences?
36Performance problems checklist AreaQuestionYesNoFeedbackDoes employee know when s/he has performed correctly or incorrectly?Is there a delay between performance and feedback?Is the feedback diagnostic so the incumbent can correct the problem?Is the feedback ambiguous or unclear?
38Performance problems checklist AreaQuestionYesNoSupportAre working conditions reasonable?Is clerical support available?Is there unnecessary “red tape”?Are tools available/properly working?Is poor coworker performance affecting the employee?Is manager’s style and level of support adequate?
39Delivering effective feedback DoDon’tBehavior: describe performance.“the amount of raw material waste that you produced was above average.”Conclusion: evaluate performance.“I can’t tolerate your laziness.”Problem solving orientation: conveys trust in the employee’s ability to solve the problem.“Have you thought about what can be done to reduce mistakes?”Control orientation: emphasizes the supervisor’s power over the employee.“I have decided that you should do X, Y, and Z.”
40Delivering effective feedback DoDon’tEmpathy: shows interest in the problem and in the employee.“I wasn’t aware of that; let me sure I understand…”Neutrality: lack of interest.“Too bad, but we all have our own problems.”Equality“I have to make a decision pretty soon, but why don’t you me your suggestions by Friday?”Superiority“I get paid to make decisions around here, not you.”
41Giving feedback Think of potentially better ways to deliver feedback than those listed below: Ineffective feedback?Better feedback?(secretary) “you don’t type quite fast enough and your error rate is too high.”(account rep) “you have been late for work too much lately. ”(waitress) “you are not as friendly with customers as you should be.”
42Giving feedback Think of potentially better ways to deliver feedback than those listed below: Ineffective feedback?Better feedback?(mechanic) “you seem to be having problems getting along with your coworkers.”(sales associate) “your sales last month were very good; 23 percent over goal. ”(TV news anchor person) “you are letting yourself get a little sloppy- looking and we are losing ratings.”
43Feedback conclusion and goal-setting Develop an action plan through goal-setting.Best goals are:Challenging yet attainable.Specific rather than broad.Measurable/include time frame.Established through a participatory process.Beware of relapse & propose relapse prevention:Identify high-risk situations that may endanger goal achievement.Think about coping responses to face such high- risk situations.
44Trends in performance management PastFutureManager roleEmployee coach roleSingle source feedback360 degree feedback.Feedback for administrative vs. developmental purposesPerformance info gathered indirectly.Performance data gathered online through electronic performance monitoring.Compensation loosely tied to performance evaluation.Compensation primarily driven by performance evaluation.Evaluations based on fixed and stable job responsibilities.Evaluations based on strategic or core competencies.
45Performance discussion-Practice one (think about how you’d handle this situation) Manager’s role: one of the employees working for you has been with the organization for about a year. This employee is full of energy, is bright, and has done well on all assignments. The employee literally tears into any assignment and comes on like gang-busters to get it done. The problem that you have noticed is that the employee lacks any sort of tact. The employee has offended more than a few of the other employees to the point that some of them would rather not work with this employee. Some have complained that this employee is too pushy. You have decided to raise these problems with him/her. During the last performance period, the goals have been: (1) complete and implement new product introduction plans by October 1st, (2) obtain a 30% sales growth by October 1st, and (3) obtain a 20% return on investment by October 1st. All of these goals have been met. In fact, sales growth was 35% and return on investment was 28%. It is October 15, and time for the annual review.
46Performance discussion-Practice one (continued) Employee’s role: You have been working for the organization for about a year. It has been a good experience. You have had numerous assignments and have done excellently on all of them. You are hoping a promotion is coming soon. If you are going to make it up the corporate ladder to where you want to be, you are going to have to move fast. You have no real complaints about your job. The one frustration you have is that everyone seems to be too involved in office politics. They let their feelings and attitudes towards each other get in the way of performance. You have had to straighten a few of your coworkers out; you told them to forget the bickering and get on with the job. Once they realized you meant to complete the assignments and do a top-notch job, they seemed to kick it in gear and really perform. During the last performance period, your goals have been: (1) complete and implement new product introduction plans by October 1st, (2) obtain a 30% sales growth by October 1st, and (3) obtain a 20% return on investment by October 1st. All of these goals have been met. In fact, sales growth was 35% and return on investment was 28%. It is October 15, and time for the annual review.
47Performance discussion-Practice two (think about how you’d handle this situation) Manager’s role: one of the employees working for you has been with the organization for eight years in various positions. The employee probably knows more about the organization and people than anyone around. The employee has been on the present job for four years. Any job you give the employee gets done –not so spectacularly or particularly fast, but it gets done. The employee is well respected in the organization and often serves as an informal counselor to younger workers with personal problems. You have tried numerous times to get the employee more involved in the organization. You think if the employee was ever willing to help out on some of the decisions by making recommendations and participating it would really help. As it is, the employee tends to wait for a specific assignment and then do it. The employee doesn’t seem to be able to get the big picture and help solve some of the problems or decide what needs to be done. The goals for this period were: (1) achieve an average of accounts receivable not to exceed 25 days by June 1st, (2) complete training of three replacements for key positions in shipping by June 1st, (3) complete design specifications for the new inventory system by June 1st. It is January 1st; you suspect that the employee lacks self-motivation. Nothing is done on the training and accounts receivable. The design specifications are already done. You suspect the employee is waiting for specific instructions.
48Performance discussion-Practice two (continued) Employee’s role: You have been working for the organization for eight years. You have survived three top administrators and six department heads. Things never change. They are still as messed up as they were 20 years ago. Why try? You do your job and you do it well, but you are not about to go sticking your neck out anymore. Let the younger people fight the system. You will be glad to work an honest forty hours a week, but you are not about to get ulcers and worry about work at home. Life’s too short. Let the managers do the worrying. That’s what they are paid for. The goals for this period were: (1) achieve an average of accounts receivable not to exceed 25 days by June 1st, (2) complete training of three replacements for key positions in shipping by June 1st, (3) complete design specifications for the new inventory system by June 1st. You have completed the specifications. You tried a couple of times to get the accounts receivable problem solved, but no one wants to cooperate. Training the three replacements has been hard because they don’t have the right background and are kept so busy doing other things they never have time to sit down and learn. It is now January 1st.
49Discussion Question 4-2A Customer Service Representative is entering incorrect zip codes, U.P.S accounts, and Sales Reps codes in the MAS 200 order system. As a result, many shipments have ended at the wrong address. There was a meeting held between the employee and his manager. Examples of the errors mentioned above were presented to the employee. Further training was offered to minimize errors. The employee did not take the criticism too well. He explained that the errors were minor, and that “we all make mistakes”. The employee then asked if he would be put on the commission incentive plan. He was told that he will not receive the incentive until his performance is reviewed again in 6 weeks.Think about the recommendations that you would provide to the employee’s manager regarding how to handle the upcoming performance review meeting in six weeks.