3 Questions This Chapter Will Help Managers Answer What steps can I, as a manager, take to make the performance management process more relevant and acceptable to those who will be affected by it?How can we best fit our approach to performance management with the strategic direction of our dept. and business?Should managers and non-managers be appraised from multiple perspectives – for example, by those above, by those below, by coequals, and by customers?What strategy should we use to train raters at all levels in the mechanics of performance management and in the art of giving feedback?
4 The Process of Performance Management Define performanceFacilitate performanceEncourage performance
5 Defining Performance Key Elements GoalsMeasuresAssessment
6 Encouraging Performance Provide a sufficient amount of rewards that employees really value2. In a timely3. Fair manner
7 What is Fairness? Important Practices VoiceCollect employee input through surveys or interviewsConsistencyEnsure that all employees are treated consistently when seeking input and communicating about the process for administering rewardsRelevanceInclude rewards that employees really care aboutCommunicationExplain clearly the rules and logic of the rewards process
8 Figure 9-1 Elements of a Performance Management System Define PerformanceSet objectivesTO ENERGIZE EMPLOYEE PERFORMANCEEncourage PerformanceProvide timely rewards that are valued by employeesFacilitate PerformanceProvide resources
9 Figure 9-2 Purposes of Performance Appraisal Systems Employment DecisionsDiagnosis of Organizational ProblemsPurposes of Performance Appraisal SystemsEmployee FeedbackObjectives for Training ProgramsCriteria in Test Validation
10 RelevanceImplies that there areClear links between the performance standards for a particular job and organizational objectives, and2. Clear links between the critical job elements identified through a job analysis and the dimensions to be rated on an appraisal form
11 Performance Standards … translate job requirements into levels of acceptable or unacceptable employee behavior. They play a critical role in the job analysis-performance appraisal linkage.
12 Figure 9-3 Relationship of Performance Standards to Job Analysis and Performance Appraisal Describes work and personal requirements of a particular jobTranslate job requirements into levels of acceptable /unacceptable performanceDescribes the job-relevant strengths and weaknesses of an individual or team
13 Rating Methods or Formats Relative Rating SystemsComparing the performance of employees to that of other employeesAbsolute Rating SystemsEvaluating each employee in terms of performance standards without reference to othersResults-Oriented SystemsEmphasis is on what employee produces
14 RankingSimple ranking requires only that a rater order all employees from highest to lowest, from “best” employee to “worst” employee.Alternation ranking requires that a rater initially list all employees on a sheet of paper. From this list he or she chooses the best employee (No. 1), then the worst employee (No. n), then the second best (no. 2), then the second worst (No. n -1), and so forth, alternating from the top to the bottom of the list until all employees have been ranked.
15 Management By Objectives (MBO) A process of managing that relies on goal-setting to establish objectives for the organization as a whole, for each department, for each manager within each department, and for each employee
16 Establishing Objectives in MBO What the Key People Involved Should Do Meet to agree on the major objectives for a given period of timeDevelop plans for how and when the objectives will be accomplishedAgree on the “yardsticks” for determining whether the objectives have been met
17 Who Should Evaluate Performance? Possible Raters The immediate supervisorPeersSubordinatesSelf-appraisalCustomers servedComputers
18 Multi-Rater or 360 Degree Feedback Using input from managers, subordinates, peers, and customers to provide a perspective on performance from all angles
19 Types of Teams Work or Service Teams Project Teams Network Teams Intact teams engaged on routine tasksProject TeamsTeams assembled for a specific purpose and expected to disband once their task is completedNetwork TeamsTeams that include membership not constrained by time/space and membership is not limited by organizational boundaries
20 Types of Appraisal Errors Halo error – raters assign their ratings on the basis of global (good or bad) impressions of rateesContrast error – rater compares several employees to one another rather than to an objective standard of performanceRecency error – rater assigns his or her ratings on the basis of the employee’s most recent performance
21 Table 9-3 Supervisory Activities Before, During, and After Performance Feedback Interviews Communicate frequently with subordinates about their performanceGet training in performance appraisal interviewingPlan to use a problem-solving approach rather than “tell-and-sell”Encourage subordinates to prepare for performance feedback interviewsDuringEncourage subordinates to participateJudge performance, not personality and mannerismsBe specificBe an active listener
22 Table 9-3 contd. After Avoid destructive criticism Set mutually agreeable goals for future improvementsAfterCommunicate frequently with subordinates about their performancePeriodically assess progress toward goalsMake organizational rewards contingent on performance