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Performance Management Managing People in a Global Environment Wayne F. Cascio October 10, 2008.

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Presentation on theme: "Performance Management Managing People in a Global Environment Wayne F. Cascio October 10, 2008."— Presentation transcript:

1 Performance Management Managing People in a Global Environment Wayne F. Cascio October 10, 2008

2 Challenges of Performance Review  In forced ranking, all employees are ranked against each other and grades are distributed along a bell-shaped curve  Do you support the use of forced rankings?  If the criteria used to determine an employee’s rank are more qualitative than quantitative, does this undermine the forced-ranking system?  Suppose all the members of a given team are superstars. Can forced ranking deal with that situation?

3 Facts About Performance Appraisals  Employees are often less certain where they stand after the appraisal interview than before it  Employees tend to evaluate their supervisors less favorably after the interview than before it  Employees feel that the authoritarian, “tell-and- sell” approach to appraisal is out of sync with today’s democratic business structure

4 What is Performance Management?  A willingness and a commitment to focus on improving performance at the level of the individual or team every day

5 Key Elements of a P. M. System  Sr. Management involvement in the process  Employee involvement in the process  Common performance measures  An emphasis on coaching and feedback

6 Why Do P. M. Systems Fail?  Focusing on the wrong things  Ignoring sr. managers, operating managers, and employees  Poor communication about the process and changes in it  Making the process difficult  Implementing “flavor-of-the-month” programs

7 Hewitt Assoc. Study of 437 Firms  Firms with successful P. M. systems outperformed those without them on every financial and productivity measure used in the study:  Profits  Cash flow  Stock market performance

8 Firms with Successful P. M. Systems  Measure what really matters  Foster open communication among employees about what really counts


10 Performance Appraisal Systematic description of job-relevant strengths and weaknesses of an individual or group


12 How Often?  Once or twice a year is not enough  Difficult to remember specifics over a 6- or 12- month period  Many organizations require more frequent, informal “progress” reviews  90-day plans

13 Effective Appraisal Systems Are  Relevant  Acceptable  Sensitive  Reliable  Practical

14 Acceptability  Do raters use standardized procedures?  Do employees believe results are fair & accurate?  Does the form accommodate special or unique circumstances?  Do you get feedback

15 Acceptability  Does the rater suggest how you could improve?  Do you get resources to improve?  Does management care about how appraisals are done?

16 Legal Issues in Appraisal  ID essential functions using job analysis  Base all ratings on essential job functions  Train supervisors  Have formal appeal mechanisms + higher-level review  Document appraisals + any reasons for termination  Provide counseling for poor performers

17 Strategic Dimension of Appraisal  What kind of behavior do you want to encourage?  Short-term: bottom-line results for current quarter  Long-term: customer satisfaction, market share  Remember: Managers get the kind of performance they reward!

18 Alternative Methods  Essay  Ranking/paired comparisons  Forced distribution  Behavioral checklist  Critical incidents  Graphic rating scales  Behaviorally-anchored rating scales  Management by objectives

19 Which Method Is Best?  None is an unqualified success when used for merit pay or promotion

20 Who Should Evaluate?  Immediate supervisor  Peers  Subordinates  Self-appraisal  Customers  Computers

21 To Improve 360-Degree Feedback  Be clear about the purpose of the appraisal – employee development  Train raters to understand the overall process, show them how to complete forms, and to avoid common rating errors  Seek a variety of types of information about performance  Make all raters accountable to upper-level review

22 To Improve 360-Degree Feedback  Help employees interpret and react to the ratings, and include goal setting.  Implement 360-degree reviews regularly, so employees can track their progress over time  Take the time to evaluate the overall system

23 Managers Who Excel in This Area Do the Following  Listen well  Relinquish control, encourage employee participation + open communication  Approach “negative” information slowly and with caution

24 Managers Who Excel in This Area Do the Following  Focus on observable behavior & give specific examples  Avoid arguments; allow the employee to save face  Focus on problems and solutions, not on the employee’s personality

25 Things to Do Before Appraisal  Communicate frequently with subordinates about their performance  Get training in appraisal interviewing  Use a problem-solving approach, not “tell and sell”  Encourage subordinates to prepare for review sessions

26 Things to Do During Appraisal  Encourage participation  Judge performance, not personality and mannerisms  Be specific  Be an active listener  Set goals for future improvements  Avoid destructive criticism

27 Things to Do After Appraisal  Communicate frequently with subordinates about their performance  Periodically assess progress toward goals  Tie rewards to performance

28 How to Give Feedback  Develop an agenda  Take the time to listen; no interruptions  Communicate that you genuinely want to help  Be accepting and non-judgmental  Watch for verbal and non-verbal cues

29 How to Give Feedback  Focus on the future  Summarize what was said  Record responses immediately  Never betray a confidence

30 Basic Rules of Performance Counseling  Be prepared  Be factual  Support the employee’s good performance  Help the employee improve performance  Plan for the future

31 How to Document Performance- Related Incidents  Describe what led up to the incident - the problem & the setting  What actually happened that was so effective or ineffective? (Names, dates, times, facts)  Describe the consequences of the effective or ineffective behavior

32 Managing Your Boss  Recognize that your boss needs you in order to do his or her job well  Understand his or her goals + how you can help the boss reach them  Appreciate the pressures & problems the boss faces  Tell the boss your aspirations & goals

33 Managing Your Boss  Learn how the boss likes to receive information  Keep the boss informed about your successes & problems  Making working with you efficient & enjoyable for the boss  Make it easy for the boss to discuss problems & conflicts

34 Managing Your Boss  Assess yourself + your needs:  Your strengths & weaknesses  Your personal style  Are you a dependent or an independent person?

35 Managing Your Boss  Develop & maintain a relationship that:  Fits both your needs & styles  Includes mutual expectations  Keeps your boss informed  Is based on dependability & honesty  Uses your boss’s time & resources selectively

36 Do Not Assume That:  The boss knows your aspirations, problems, & needs  You can talk to your boss only when he/she asks  The boss will start a discussion when there are problems  The boss gets paid so well that he/she doesn’t have to be thanked

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