2 Performance management Flashcards
process in which appraisers assess performance in relation to specified criteria and do not make direct comparisons among employees
absolute standards formats
an annual review of employee performance providing feedback over the year
anniversary approach
the use of multiple objective measures that tap into numerous different dimensions of performance
balanced scorecard approach
evaluation criteria that focus on how work is performed
behavioral criteria
an appraisal report on how frequently employees engage in specific behaviors
behavioral observation scales
an appraisal report that offers specific examples of the behaviors that go along with each value that can be assigned to an employee’s performance
behaviorally anchored rating scales
technologies using unique qualities of body parts for identification
biometric technologies
process in which appraisers evaluate the individual or team and make comparisons to others
comparative formats
performance measurement that assesses something that is unimportant or irrelevant to a job
contaminated performance measure
performance measurement that does not assess all of the behaviors and results that are important and relevant to a job
deficient performance measure
a means of measuring performance using objective, impersonal criteria, such as productivity, absenteeism, and turnover
direct index approach
relationship between making an effort and performing well
expectancy
theory that people choose their behaviors and effort levels after considering whether their behaviors and effort will improve their performance and lead to desired consequences (e.g., recognition and rewards).
expectancy theory
a means of measuring performance for all employees at approximately the same time
focal point approach
an approach in which the appraiser distributes employees across several categories of performance following a set rule about the permitted distribution of ratings “bottom 10%, highest 10%”
forced distribution
the circumstances under which performance management is tightly integrated with other hr activities to improve workforce competencies, attitudes, and motivation
high performance work system (HPWS)
relationship between performing well and its consequences
instrumentality
management approach that begins with the establishment of performance objectives (goals) for the upcoming performance period; performance is then measured against the objectives that were set
Management by objectives (MBO)
process of making decisions about which behaviors to engage in and how much effort to expend
motivation
behaviors that support the social and psychological environment in which task performance takes place
organizational citizenship behaviors
the process of evaluating performance based on the judgments and opinions of subordinates, peers, supervisors, other managers, and even the employees themselves
performance appraisal
the dimensions against which the performance of an incumbent, a team, or a work unit is evaluated
performance criteria
formal, structured process used to measure, evaluate, and influence employees’ job-related attitudes, behaviors, and performance results
Purposes:
-enhance employee motivation and productivity
-support achievement of organization’s strategic goals
-facilitate strategic planning and change
performance management
company culture that depends on effective performance management
performance- driven culture
the use of positive rewards to increase the occurrence of the desired performance
positive reinforcement
an action that decreases the frequency of undesirable behavior
punishment
criteria that focus on what was accomplished or produced rather than on how it was accomplished or produced
results criteria
process of employees assessing their own performance
self appraisal
a process in which an appraiser lists the focal employees (or teams of employees) in order, from best to worst, usually on the basis of overall performance
straight ranking
criteria that focus on personal characteristics, such as loyalty, dependability, communication ability, and leadership
trait based criteria
use of surveys to evaluate the performance of specific managers
upward appraisal
value of the consequences to the employee
valence
measurement that accurately reflects all aspects of the job, and nothing else
valid performance measure
Helps to direct & motivate employees to maximize their
efforts on behalf of the organization by:
Defining clear performance goals & measures.
Conducting performance appraisals.
Providing ongoing performance feedback.
Linking performance results to rewards & consequences
Providing career planning & development opportunities.
effective performance management
- decreased employee morale
- inability to achieve strategic goals
- decreased employee productivity
- increased employee turnover
- negative impact on financial performance
inneffective performance management processes lead to
expectancy theory: people chose their behaviors and effort levels- choices made on beliefs that behaviors and efforts will lead to desired consequences
enhancing motivation and productivity
split into administrative and developmental
- administrative (compensation, job evaluation)
- developmental (individual evaluation, training, career planning)
performance appraisal
- motivation (feelings of frustration or satisfaction, ambition, goals/expectations)
- environment (equipment, job design, economic conditions, management support, laws and regulations)
- ability (technical skills, interpersonal skills, problem solving skills, analytical, communication, physical limitations)
factors that influence performance
- low competency = possible skill issue, training development
- high competency, poor behavior = motivational issue, coaching incentives
- high behavior rating, poor results = work environment, work redesign
performance diagnosis
-Performance Goals: Goals should be clearly defined, difficult but achievable, & accepted as a positive effect on productivity.
-Interdependent Others: When employees need other employees to help
accomplish their job, even highly motivated
employees may perform poorly if their coworkers’
performance is poor.
-Satisfaction: Satisfaction is determined by perceptions of
whether the rewards are fair
factors affecting motivation
- internal environment: performance driven culture
- technology: makes it possible for employees to receive detailed information about behaviors and performance
- external environment: laws and regulations
performance management within integrated HRM system
line managers: develop valid performance measures, measure employee performance and give constructive/honest feedback, be open to feedback, develop performance improvement strategies
HR Professionals: provide legal performance managers, prevent performance appraisal errors, coordinate feedback, train how to give and receive feedback, provide personal assistance to employees if requested
Employees: set performance expectations, appraise work of coworkers, self appraisal, seek and accept constructive feedback, develop performance improvement strategies
HR Triad in performance management
- performance criteria
- personal traits “loyalty, dependability” (but difficult to measure)
- behaviors “not late for 6 months”
- objective resutls (what is accomplished or produced)
- multiple weighted criteria that capture all aspects of job
what to measure
- focal point approach: all employees evaluated at the same time (easier to standardize but is burdensome on managers)
- anniversary approach (on employees anniversary, doesn’t tie in performance to overall organizational performance, ratings earlier in year may be more lenient, difficult to make comparisons to other employees)
- natural time span of job (feedback given when most useful- quarterly, annually, semi-annually)
timing
- 360 degree appraisals (evaluations collected from all, less susceptible to bias)
- customers (most useful when large # of customers respond and results are not biased by few with negative experiences)
- supervisors (usually most reliable judgments)
- subordinate (useful if anonymity is guaranteed and contains specific improvements)
- self appraisal (accuracy might be biased, vary by culture)
- peer appraisal (often have best opportunity to observe behavior, are useful predictors of future performance)
participants/sources for employee appraisals
- recognize relevant information
- store information in memory
- revise information based on new rater perception
- make performance judgment
- record official performance judgment
rating process
Halo/Horn (tendency to think of employee as good/bad is carried over into specific performance ratings)
Leniency (all employees rated higher than should be)
Strictness (all employees rated lower than should be)
Central Tendency (all employees rated as average, when performance varies)
Primacy (raters may use initial information to categorize a person as good/bad performer and information that supports this initial judgment is amassed while other info is ignored)
Recency (ignore employee performance until appraisal date is near- recent events have more weight than they should)
Contrast (when compared with weak employees, average will appear outstanding and vice versa)
common rating errors
- precise rating scale format (each dimension rated separately, ambiguous terms avoided)
- provide memory aids
- provide rater training
- reward timely and accurate appraisals
- use multiple raters (increases employee acceptance of evaluation results)
improving rater accuracy
Sources of Conflict Associated with Providing
Performance Feedback:
Understanding Attributions (need to be candid and protect employee’s self esteem).
Timing (immediate feedback most useful, giving only as much information as receiver can use)
Preparation (scheduling feedback sessions in advance, clarifying purpose and content of meeting) .
Content of the Discussion (problem solving approach- diagnosis, removing roadblocks, mutual goal setting) .
Follow-Up (positive reinforcements)
punishment (decreases frequency of undesired behavior but can have side effects like employee anger)
providing feedback
transfer- when employee and job are not well matched
neutralize - assign noncritical tasks to minimize the impact of deficiencies
terminate - things that cannot be corrected
When nothing else works after you’ve tried all feedback methods
-Task Completion: Accuracy, speed, Creativity, cost
-Team Development: Cohesiveness, Flexibility, preparedness for new tasks
-Stakeholder Satisfaction: Customer, team & other teams’ satisfaction with procedures &
outputs
performance criteria for teams
- Task Performance: Accuracy, speed, creativity, & efficiency
- Relationships with Others: Understanding others’ perspectives, Trust by others, New friendships
- Personal Development: Development of competencies, technical knowledge, & skills, Development of networks of colleague
individual performance of team members
- organizational culture
- time of employment
- manager to employee ratio
- place of growth
- consider what to focus on
factors to consider for performance reviews
- opportunity to motivate
- essential to improving performance
- way to keep learning
- method to change or reinforce behavior
reasons for doing performance feedback in a company
