6–1 The Nature of Performance Management Performance ManagementPerformance Management  Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance  Provide information to employees about their performance.  Clarify organizational performance expectations.  Identify the development steps that are needed to enhance employee performance.  Document performance for personnel actions.  Provide rewards for achieving performance objectives.

6–2 Difference Between Performance Management and Performance Appraisals Performance ManagementPerformance Management  Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Performance AppraisalPerformance Appraisal  Process of evaluating how well employees perform their jobs, then communicating that information to employees

6–3 Components of Effective Performance Management

6–4 Figure 6.1 Performance Management Linkage

6–5 Identifying and Measuring Employee Performance PerformancePerformance  What an employee does and does not do.  Quantity of output Quality of output  Timeliness of output Presence at work Job DutiesJob Duties  Important elements in a given job that define what the organization pays employees to do  The performance of individuals on job criteria should be measured and compared against standards.

6–6 Types of Performance Information Trait-based informationTrait-based information  Identifies a character trait of the employee—such as attitude, initiative, or creativity—and may or may not be job related Behavior-based informationBehavior-based information  Focuses on specific behaviors that lead to job success Results-based informationResults-based information  Considers employee accomplishments Performance MeasuresPerformance Measures  Objective measures can be observed directly.  Subjective measures require judgment on the part of the evaluator.

6–7 Figure 6-2 Types of Performance Information

6–8 Identifying and Measuring Employee Performance Performance StandardsPerformance Standards  Expected levels of performance  Benchmarks, goals, and targets  Characteristics of well-defined standards  Realistic  Measurable  Clearly understood

Behaviorally Anchored Rating Scale Identify Critical Incidents using subject matter experts (SMEs)Identify Critical Incidents using subject matter experts (SMEs) Sort and analyze critical incidents into categoriesSort and analyze critical incidents into categories Re-translate critical incidents into scale itemsRe-translate critical incidents into scale items Develop numeric scale for critical incidentsDevelop numeric scale for critical incidents From: Maiorca, J. (Aug., 1997). How to Construct Behaviorally Anchored Scales (BARS) for employee evaluations. Vol. 58, No. 8, pp15-18.From: Maiorca, J. (Aug., 1997). How to Construct Behaviorally Anchored Scales (BARS) for employee evaluations. Vol. 58, No. 8, pp –9

Creating BARS for Supervisor Competencies From: Analytical thinkingCustomer focusAnalytical thinkingCustomer focus Change leadershipCommunicationChange leadershipCommunication Conflict ManagementDecision makingConflict ManagementDecision making Developing othersEthics and IntegrityDeveloping othersEthics and Integrity Fostering diversityInterpersonal SkillsFostering diversityInterpersonal Skills Personal credibilityPlanning/organizingPersonal credibilityPlanning/organizing Team LeadershipThoroughnessTeam LeadershipThoroughness Vision/Strategic thinkingWorkforce MgmtVision/Strategic thinkingWorkforce Mgmt 6–10

Creating BARS for Supervisor Competencies From: Analytical ThinkingAnalytical Thinking The ability to approach a problem by using a logical, systematic, sequential approach.The ability to approach a problem by using a logical, systematic, sequential approach. Change LeadershipChange Leadership The ability to manage, lead, and enable the process of change and transition while helping others to deal with their effects.The ability to manage, lead, and enable the process of change and transition while helping others to deal with their effects. Customer FocusCustomer Focus The ability to identify and respond to current and future customer's needs. The ability to provide excellent service to internal and external customers.The ability to identify and respond to current and future customer's needs. The ability to provide excellent service to internal and external customers. 6–11

6–12 Figure 6-3 Conflicting Uses of Performance Appraisals

6–13 FIGURE 6.4 Traditional Performance Appraisal Process

6–14 Multisource Appraisal

6–15 Methods for Appraising Performance Category Scaling MethodsCategory Scaling Methods  Graphic rating scales  Focus should be on the job duties and responsibilities identified in job descriptions  Behavioral rating scales  Describe specific examples of employee job behaviors

6–16 Figure 6-5 Sample Terms for Defining Standards

6–17 Comparative Methods RankingRanking  A listing of all employees from highest to lowest in performance.  Drawback: does not show size of differences in performance between employees. Forced DistributionForced Distribution  Performance appraisal method in which ratings of employees are distributed along a bell-shaped curve.  Drawbacks: Resistance by managers to placing individuals in the lowest or highest groups.  Providing explanation for placement in a higher or lower grouping can be difficult.

6–18 Narrative Methods Critical Incident and Essay MethodsCritical Incident and Essay Methods  Critical incident method: manager keeps a written record of highly favorable and unfavorable employee actions.  Drawbacks  Variations in how managers define a “critical incident”  Time involved in documenting employee actions  Most employee actions are not observed and may become different if observed  Employee concerns about manager’s “black books”  Depends on managers’ writing skills and their ability to express themselves  Essay method: manager writes a short essay describing each employee’s performance during rating period

6–19 Management by Objectives (MBO) Management by ObjectivesManagement by Objectives  Specifying performance goals individuals and their managers agree employees will to try to attain within an appropriate length of time Combination of MethodsCombination of Methods  Sensible in some circumstances

6–20 The MBO Four-Stage Process Job Review and Agreement Development of Performance Standards Objective Setting Continuing Performance Discussions

6–21 Common Rater Errors

6–22 Figure 6-6 Appraisal Interview Hints

6–23 Performance Appraisal Feedback Reactions of Appraised Employees Appraisal Interview Reactions of Managers Appraisal Process