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Presentation on theme: "CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE"— Presentation transcript:

Fundamentals of human resource management 5th edition By R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE

2 Introduction Performance management: process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires: Knowing what activities and outputs are desired Observing whether they occur Providing feedback to help employees meet expectations

3 Purposes of Performance Management
Strategic Purpose - effective performance management helps the organization achieve its business objectives. Administrative Purpose –ways in which organizations use the system to provide information for day-to- day decisions about salary, benefits, and recognition programs. Developmental Purpose – serves as a basis for developing employees’ knowledge and skills.

4 Criteria for Effective Performance Management
Fit with strategy Validity Reliability Acceptability Specific feedback

5 Methods for Measuring Performance
Comparative Attribute Behavior Results Quality

6 Measuring Performance: Making Comparisons
Simple Ranking Requires managers to rank employees in their group from the highest performer to the poorest performer. Forced Distribution Assigns a certain percentage of employees to each category in a set of categories. Paired Comparison Compares each employee with each other employee to establish rankings.

7 Sources of Performance Information
360-Degree Performance Appraisal: performance measurement that combines information from the employees’: Managers Peers Subordinates Self Customers

8 Types of Performance Measurement Rating Errors
Contrast errors: rater compares an individual, not against an objective standard, but against other employees. Distributional errors: rater tends to use only one part of a rating scale. Leniency: the reviewer rates everyone near the top Strictness: the rater favors lower rankings Central tendency: the rater puts everyone near the middle of the scale

9 Types of Performance Measurement Rating Errors
Rater bias: raters often let their opinion of one quality color their opinion of others. Halo error: when bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area. Horns error: when bias involves negative ratings. This can cause employees to feel frustrated and defensive.

10 Political Behavior in Performance Appraisals
Distorting a performance evaluation to advance one’s personal goals A technique to minimize appraisal politics is a calibration meeting: Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating influence of rating errors


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