Performance Management
Performance Management Defined The means through which managers ensure that employees’ activities and outputs are congruent with the organization's goals.
The Performance Management Process Identify specific performance goals (organization’s strategy) Establish job expectations (job analysis ==> performance measures) Examine work performed Evaluate performance Give feedback to employee (interview)
Issues to be Considered in Developing a Performance Management System Purposes of performance management Criteria for evaluating performance measures What to measure Methods for measurement Who should provide information Controlling rating errors Giving feedback
What was the purpose of the meeting? –Administrative (Evaluative) –Developmental –Strategic –Planning
Criteria for Evaluating Performance Measures Strategic congruence Validity Reliability Acceptability Specificity COST!!!
What to Measure Question = Intended Use if PAY is the issue, focus on JOB RESULTS –how WELL is the job being done if TRAINING is the issue, focus on BEHAVIOR –HOW the job is done (e.g. effort) Tailor criteria based on –objectives –the job –employee needs
Methods for Measurement Comparative –straight ranking –alternation rankings –paired comparisons –forced distribution Attribute –graphic rating scale –mixed standard scales –forced choice –essay Behavioral –critical incidents –Behavioral Checklist –BARS –BOS –assessment centers Results –Productivity –MBO –TQM
Methods for Measurement Comparative –straight ranking –alternation rankings –paired comparisons –forced distribution Attribute –graphic rating scale –mixed standard scales –forced choice –essay Behavioral –critical incidents –Behavioral Checklist –BARS –BOS –assessment centers Results –Productivity –MBO –TQM
The Biggest Hazard Employees’ Reactions Key to reactions = –understanding –fairness –care about results Key = Participation
Who Should Provide Information?
Controlling Rating Errors
Perceptual Problems in Performance Appraisal Halo error Horns error Recency error Time delay error Leniency error Strictness error Central tendency error
Perceptual Problems, Continued Similar-to-me error Contrast error -- other employees Contrast error -- personal Attribution error Expectations Proximity error
The Biggest Challenge -- Giving Feedback Conveying the information, whether evaluative and/or development, via an interview!
Textbook suggestions Feedback should be given frequently Create the right context for the discussion Ask the employee to rate his/her performance before the session Encourage the subordinate to participate in the session Recognize effective performance through praise Focus on problem solving Focus feedback on behavior or results Minimize criticism Agree on specific goals and set a date to review progress
Suggestions Ask for a self-assessment Invite participation Express appreciation Minimize criticism Change the behavior not the person Focus on solving problems Be supportive Establish goals Follow up day to day