Presentation on theme: "CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE"— Presentation transcript:
1 CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE Fundamentals of human resource management 5th edition By R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. WrightCHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE
2 IntroductionPerformance 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 desiredObserving whether they occurProviding 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 strategyValidityReliabilityAcceptabilitySpecific feedback
5 Methods for Measuring Performance ComparativeAttributeBehaviorResultsQuality
6 Measuring Performance: Making Comparisons Simple RankingRequires managers to rank employees in their group from the highest performer to the poorest performer.Forced DistributionAssigns a certain percentage of employees to each category in a set of categories.Paired ComparisonCompares 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’:ManagersPeersSubordinatesSelfCustomers
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 topStrictness: the rater favors lower rankingsCentral 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 goalsA 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