Article 1.3. The evolution of performance management: searching for value (Pulakos, Mueller-Hanson, & Arad, 2019)

Question 1

Previous studies about impact of PM on performance and business outcomes

Answer 1

Overall negative relationships.

• Much costs and time.
• Much dissatisfaction.
• No observable performance impact.

Question 2

IRT

Answer 2

Item response theory.

Setting up tests to measure performance.

Question 3

Rater training

Answer 3

Teach raters to avoid using common rating errors.

Question 4

MBO

Answer 4

Management by objectives.

Widely-adopted, but time consuming.

Question 5

Forced distribution

Answer 5

Ratings employees based on comparison to other employees.

Fairness and occuracy concerns.

Question 6

360-degree ratings =

+ advantages

Answer 6

Ratings based on different role-relationships of employees, which observe different aspects of performance.
Provides developmental feedback and supports decision making.
Decrements in quality when when used for decision making vs. development only.

Question 7

4 goals managers must negotiate and balance when evaluating employees

Answer 7

1. Interpersonal goals: maintaining or improving the relationship with the employee.
2. Internalized goals: rater’s personal beliefs about how to evaluate performance.
3. Strategic goals: increase the manager’s or workgroup’s standing in the organization.
4. Task performance goals: influencing future goals.

Question 8

Typical PM process is based on … and …

Answer 8

• Behaviors: “how” employees perform.

- Results: “what” they deliver.

Question 9

Cascading goals + problems (6)

Answer 9

Link organization’s strategic goals to each employee.
Problems:
- Quality differs per manager.
- Costs time and can be difficult.
- Unexpected events impact goals set at the beginning of the year.
- Often disconnect from organizational goals.
- Relative contributions are unclear when goals are not comparable.
- Based on available rather than optimal measures.

Question 10

2 approaches for changes in PM that will add most value

Answer 10

1. Change aspects of the formal system to reduce unnecessary, low-value steps, and processes that are too costly for its value.
   New practices: ongoing feedback, rating-less reviews, and crowd sourced reviews.
2. Focus on day-to-day manager and employee behaviors.
   Effective relationships and open communication lead to perceived fairness, procedural justice, and improved performance.
   Key PM behaviors for managers:
   - Set clear expectations, standards, success-criteria, and priorities.
   - Revise expectations in real time.
   - Provide informal feedback daily.
   - Check in with employees regularly.
   - Coach employees and help them solve problems.
   Key PM behaviors for employees:
   - Clear performance expectations.
   - Set expectations with peers.
   - Ask for and accept feedback openly and nondefensively.
   - Continuously improve performance via feedback.

Question 11

Boyatzis et al. (2015): comprehensive model of change

Answer 11

Comparing your ideal self to your real self.

Question 12

Cautions about successful behavior change

Answer 12

1. Organizations have unrealistic expectations about the time and effort it costs before meaningful change is embedded.
2. Change will only be succesful if the context is embedded.
3. Behaviors will be most successful by intentionally applying the behaviors in support of achieving an important performance goal.

Question 13

Success in PM transformation requires …

Answer 13

1. Engaging stakeholders.
2. Effective communication.
3. Gaining buy-in and support.
4. Empowering and enabling the workforce to embed the change.
5. Developing a business case.
6. Managing expectations.

Question 14

Levy et al. (2017): Trends in PM

Answer 14

1. PM is cumbersome and time consuming.

2. Ratings are inaccurate.