Copyright © 1999 Harcourt Brace & Company Canada, Ltd. Chapter 11 Performance Management Falkenberg, Stone, and Meltz Human Resource Management in Canada Fourth Edition

11.1 Chapter Overview n n Performance management defined n n Relation to other HRM functions n n Designing a performance management system

11.2 Performance Management: Relation to Other HRM Functions Job Analysis Human Resource Development Performance Management Human Resource Planning Selection Career Planning Compensation

11.3 HRM Professionals Responsibility in Designing a Performance Management System n n Identifying the information needed n n Identifying appropriate evaluation method(s) n n Applying measurement standards n n Implementing the performance management system n n Responding to developmental problems

11.4 Performance Management Information n n Systems assessment n n Administrative assessment n n Developmental needs

11.5 Identifying Appropriate Evaluation Methods n n Management by objectives (MBO) n n Ranking and forced distribution methods n n Rating scales n n Team-style peer review n n Multi-source assessment

11.6 Management by Objectives n n Relate goals to the organizations strategic objectives n n Establish when and how to measure progress. n n Identify problem or growth areas. n Review progress and achievement of goals n Identify performance factors that enhance or limit goal achievement n Ensure goals are of appropriate difficulty Goal-Setting Phase Performance Review Session

11.7 Characteristics of Good Rating Scales n n Have clearly defined performance dimensions n n Use behaviourally based scales that allow a rater to support all ratings with objective, observable evidence n n Have anchors or points that are briefly defined in terms relevant to the dimension itself n n Avoid abstract trait names such as loyalty or honesty unless they can be defined in terms of observable behaviours

11.7 Rating Errors with Graphic Rating Scales Rating ErrorDescription HaloAn individual perceived as high or low on one performance dimension receives the same rating on all other dimensions. LeniencyAll group members, regardless of performance, receive an above-average rating. StrictnessAll group members, regardless of performance, receive a below-average rating. Central tendencyAll group members are rated as average, regardless of performance level. ContrastGroup members are compared with one member rather than with an objective standard.

11.9 Reasons for the Popularity of Multi-Source Appraisals n n The additional feedback from multiple sources is useful for development n n Managers can compare their self- evaluations with the perceptions of others n n The consequences of an employee's performance affect all the people with whom he or she comes in contact, so it is reasonable to receive feedback from them

11.10 Applying Measurement Standards to a Performance Management System n n Does the system/method provide reliable information? n n Does the system/method provide valid information? n n Are the components of the system/method practical? n n Do the various components of the system/method ensure that distributive and procedural justice is obtained?

11.11 Implementing the Performance Management System n n Reducing resistance to the evaluation process n n Reducing perceptual barriers n n Communicating performance appraisal information

11.12 Communicating Performance Evaluation Information To start the performance evaluation interview: 1. Review the purpose of the interview and/or expected outcome 2. Highlight the need for two-way communication and feedback

Communicating Performance Evaluation Information (contd.) To develop communication within the interview: 1. Use probing questions to increase the exchange of information information 2. Appeal to the individuals values and/or aspirations aspirations 3. Involve the individual in planning and goal setting 4. Avoid using threats 5. Maintain calmness and limit defensive reactions 6. Apologize when appropriate

11.14 Three Approaches to Appraisal Interviews n n Tell and sell to communicate evaluation and get employees to change n n Tell and listen to communicate evaluation and encourage discussion n n Problem-solving to stimulate growth and development of employee