2 Performance Management Performance Appraisal IntroductionPerformance ManagementThe means through which managers ensure that employees’ activities and outputs are congruent with the organization's goals.Performance AppraisalThe process through which an organization gets information on how well an employee is doing his or her job.Performance FeedbackThe process of providing employees information regarding their performance effectiveness.
3 The Practice of Performance Management How different organizations deal with performance management systems?
4 An Organization Model of Performance Management OrganizationalStrategyLong and shortterm goalsand valuesIndividualAttributes(skills, abilities)ObjectiveResultsIndividualBehaviorsSituationalConstraintsCulture andeconomicconditions
5 Purposes of Performance Management Strategic PurposeAdministrative PurposeDevelopmental Purpose
6 Performance Measure Criteria Strategic CongruenceThe extent to which the performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture.ValidityThe extent to which the performance measure assesses all the relevant—and only the relevant—aspects of job performance.ReliabilityThe consistency of the performance measure “The degree to which performance measure is free from random error”.AcceptabilityThe extent to which a performance measure is deemed to be satisfactory or adequate by those who use it. “Whether the people who use the performance measure accept it”.SpecificityThe extent to which a performance measure gives specific guidance to employees about what is expected of them and how they can meet these expectations.
7 Approaches to Measure Performance The Comparative ApproachRanking / Alternation RankingForced DistributionPaired ComparisonThe Attribute ApproachGraphic Rating ScaleMixed Standards Scale
8 Approaches to Measure Performance The Behavioral ApproachCritical IncidentsBehaviorally Anchored Rating Scales (BARS)Behavioral Observation Scales (BOS)Organizational Behavior ModificationAssessment Centers
9 Approaches to Measure Performance The Results ApproachManagement by ObjectivesProductivity Management and Evaluation SystemEvidence Based HRThe Quality ApproachStatistical process quality control techniques used:Process-flow analysis - Cause-and-effect diagrams - Pareto chart - Control chart – Histogram - ScattergramSurvey Feedback Interventions
10 Choosing A Source for Performance Information Data Collection Sources1- Managers2- Peers3- Subordinates (Up word feedback)4- Self5- CustomersDegree Appraisal
11 Raters Errors in Performance Measurement 1- Similar to Me3- Distributional Errors2- Contrast4- Halo and HornsReducing Rater ErrorsRater error training - Rater accuracy trainingAppraisal Politicsa situation in which evaluators purposefully distort ratings to achieve personal or company goals
12 The Manager’s Role in an Effective Performance Feedback Process 1- Feedback should be given frequently, not once a year.6- Focus on solving problems.2- Create the right context for the discussion.7- Focus feedback on behavior or results, not on the person.3- Ask employee to rate his or her performance before the session.8- Minimize criticism.4- Encourage the subordinate to participate in the session.9- Agree to specific goals and set a date to review progress.5- Recognize effective performance through praise.
13 Diagnosing the Causes of Poor Performance What Managers Can Do to Diagnose Performance Problems and Manage Employee PerformanceDiagnosing the Causes of Poor Performance1- Input2- Employee characteristics3- Feedback4- Performance standards/Goals5- Consequences
14 Actions for Managing Employees’ Performance What Managers Can Do to Diagnose Performance Problems and Manage Employee PerformanceActions for Managing Employees’ PerformanceMarginal EmployeesAn employee performing at a barely acceptable level because of lack of ability and / or motivation to perform well, not poor work conditionsSolid PerformersHigh ability and motivation; managers should provide development opportunitiesMisdirected EffortLack of ability but high motivation; managers should focus on trainingUnderutilizersHigh ability but lack motivation; managers should focus on interpersonal abilitiesDeadwoodLow ability and motivation; managerial action, outplacement, demotion, firing.