Presentation on theme: "Performance Management 2 MANA 3320"— Presentation transcript:
1 Performance Management 2 MANA 3320 Dr. Jeanne Michalski
2 Performance Management Methods used for performance evaluation.Conducting an effective performance appraisal interview.
3 Appraisal Forms “Least important elements of the appraisal process” Appraisal forms most often contain multiple stylesApproaches to Appraisal FormsTraitBehaviorResults / OutcomesGlobal / Essay
4 Trait-Based Appraisals Characteristics that are enduring and generale.g. “Leadership” “Communication” “Decisiveness”Competency models vs. Trait-based appraisalAre the characteristics really related to performance?Potential ProblemsFocus on person rather than performanceMay be ambiguous or arbitraryPoor feedback and goal settingPoor reliability and validity
5 Behavior-Based Appraisal Focus on specific behaviors with examplesBehavioral Frequency / Observation Scale (BOS)Behaviorally Anchored Rating Scales (BARS)PositivesMore valid and reliableAcceptable to employeesBetter for development and improvement
6 Behavior-Based Appraisal Potential ProblemsDifficult and expensive to developNeeds to match jobs closely to be effectiveBehaviors may be hard to develop and interpretEmphasizes behaviors (at the expense of others?)Focuses on behavior rather than resultsMay be no more reliable and valid than simple scaleProcess of developing the rating system is more important than the system itself.
7 Behavioral Methods Behaviorally Anchored Rating Scale (BARS) Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.Behavior Observation Scale (BOS)A performance appraisal that measures the frequency of observed behavior (critical incidents).
8 BARS For Municipal Fire Companies FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
10 Results Methods Productivity Measures Criterion contamination Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.Criterion contaminationFocus on short-term resultsManagement by Objectives (MBO)A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
11 Results-Based Appraisal Uses future results as performance targetsChallenge is setting goals and measuresCan the goals be quantified?Unique goals for every individualAppraisal forms tend to be very simpleStill need a rating scale
13 Results Methods Have less subjectivity bias AdvantagesHave less subjectivity biasAre acceptable to employees and superiorsLink individual to organizational performanceEncourage mutual goal settingAre good for reward and promotion decisionsDisadvantagesAre time-consuming to develop/useMay encourage short-term perspectiveMay use contaminated criteriaMay use deficient criteria
14 Comparison of Appraisal Forms Ease of UseEmployee DevelopmentLegal DefensibilityTraitsHighLowBehaviorsMediumResults
15 Performance Rating Approaches Number of categoriesExample - 5 levelsConsistently exceeds expectations, exceeds expectations, meets expectations, does not meet expectations, does not meet any expectationsMany supervisors believe they can differentiate however have a hard time explaining these distinctions in a way that employees in a way that employees can understand and accept.
16 Performance Rating Approaches Number of categoriesCan be controversial- experts don’t agree on what number of categories are correctSome believe more categories - more accurately performance may be evaluatedOn other hand too many categories makes hard to objectively differentiate performance at each of the levels.Choice of words important - “no one wants to be average”Do you have an even or odd number of categoriesTrend is too fewer rating categories
17 Performance Management Cycle Planning Performance for the Upcoming PeriodDefining key results for each position (usually 5-8) that support the organization’s business strategyEstablishing performance standards against which key result areas will be measuredMay assign a weight to each key result since all key results are NOT equal – adds complexity
18 Performance Management Cycle Coaching Performance and Giving Feedback Throughout the PeriodStructured feedback like mid-period, quarterly, or monthly progress reviewsInformal feedback throughout the processRating Performance for the Just Completed PeriodOne of the most challenging aspects is the approach for rating employee performance
20 Managing Ineffective Performance Possible Courses of ActionProvide training to increase skills and abilitiesTransfer employee to another job or departmentAttention of actions to motivate employeeTake disciplinary actionDischarge the employeeCautionsAll actions taken must be objective and fair.
21 Diagnosing Performance Problems What determines human performance in any situation?
22 Diagnosing Performance Problems Performance = f (Ability, Motivation, Environment)AbilityTechnical SkillsAnalytical SkillsInterpersonal SkillsPhysical LimitationsBusiness KnowledgeMotivationGoals / ExpectationsCareer MotivationEmployee ConflictEmployee SatisfactionBoredom / FrustrationEnvironmentJob DesignEquipment / MaterialsRules and PoliciesEconomic ConditionsManagement Support