Capitulo 7 - Performance Management Flashcards
1. Identify the activities involved in performance management. 2. Discuss the purposes of performance management systems. 3. Define five criteria for measuring the effectiveness of a performance management system. 4. Compare the major methods for measuring performance. 5. Define types of rating errors and explain how to minimize them. 6. Summarize ways to produce improvement in unsatisfactory performance.
What is performance management?
The process through which managers ensure that employees’ activities and outputs contribute to the organisation’s goals.
An employee’s performance measurement differs from job to job.
Example: a car dealer’s performance is measured by the dollar amount of sales, the number of new customers, and customer satisfaction surveys.
What does performance management require?
- Knowing what activities and outputs are desired
- Observing whether they occur
- Providing feedback to help employees meet expectations
What are the stages of the performance management process?
step 1: define performance outcomes for company division and department.
step 2: develop employee goals, behaviour, and actions to achieve outcomes.
step 3: provide support and ongoing performance discussions.
step 4: evaluate performance.
step 5: identity improvements needed.
step 6: provide consequences for performance results.
What are the three purposes of performance management?
Strategic purpose, administrative purpose, developmental purpose.
purposes of performance management
What is strategic purpose?
Means effective performance management helps the organization achieve its business objectives.
purposes of performance management
What is administrative purpose?
Refers to the ways in which organisations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.
purposes of performance management
What is developmental purpose?
Means that it serves as basis for developing employees’ knowledge and skills.
What is the criteria for effective performance management?
- Fit with strategy
- Validity
- Reliability
- Acceptability
- Specific feedback
What is Contamination and Deficiency of a Job Performance Measure?
Contamination is present in job performance measure
Deficiency id present in Actual, or “true”, job performance
Validity is present in both
How is the measure Job Performance?
A performer (individual or team) - TRAIT (caracteristicas) - Trait Approach Empahsizes individual traits and attributes of employees.
In a given situation
Engages in certain behavior - BEHAVIOR - Behavior Approach Emphasizes how employees do the job.
That produce various results - RESULTS - Results Approach Emphasizes what employees produce.
What are the two scales used for measuring performance of traits/attributes?
Graphic rating scale and mixed-standard scale.
What is a graphic rating scale?
- Lists traits and provides a rating scale for each trait.
- The employer uses the scale to indicate the extent to which an employee displays each trait.
What is a mixed-standard scale?
Uses several statements describing each trait to produce a final score for that trait.
Give examples of Graphic Taing Sales
Performance Dimension (Traits):
- Knowledge
- Communication
- Judgement
- Managerial Skill
- Quality performance
- Teamwork
- Interpersonal skills
- Initiative
- Creativity
- Problem solving
Rating:
- Distinguished
- Excellent
- Commendable
- Adequate
- Poor
What are the three methods of measuring performance of rating behaviours?
Critical-incident method, behaviourally anchored rating scale (BARS) and behavioural observation scale (BOS).
What is the critical-incident method?
- Based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective.
- Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals.
What is the behaviourally anchored rating scale (BARS)?
Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance.
What is behavioural observation scale (BOS)?
- A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task.
- A BOS also asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period.
What is and example of measuring results?
Management by objectives (MBO): people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals.
These goals become the standards for evaluating each employee’s performance.
In fixed standards vs comparisons, what are the absolute measures?
Predefined standard:
- compares each employee to predefined standards
- performance of colleagues does not affect individual scores.
In fixed standards vs comparisons, what are the relative measures?
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.
What are the sources of performance information?
360-degree performance appraisal
Performance measurement that combines information
from the employees’:
- Managers
- Peers
- Subordinates
- Self
- Customers
Types of Performance Measurement Rating Errors
What are the types of performance measurements rating errors?
Congrats errors, distributional errors, rater bias.
Types of Performance Measurement Rating Errors
What are contrast errors?
The rater compares an individual, not against an objective standard, but against other employees.
Types of Performance Measurement Rating Errors
What are distributional errors?
The rater tends to use only part of a rating scale.
Types of Performance Measurement Rating Errors
What are the three types of distributional errors? Explain each one.
- 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.
Types of Performance Measurement Rating Errors
What is rater bias?
Raters often let their opinion of one quality color their opinion of others.
Types of Performance Measurement Rating Errors
What is one types of rater bias? Explain it.
Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they don ́t need to improve in any area.
Summarize ways to produce improvement in unsatisfactory performance.
Improving Performance (4 types of people)
Low Ability | High Motivation
Misdirected effort
High Ability | High Motivation
Solid performes
High Ability | Low Motivation
Underutilizers
Low Ability | Low Motivation
Dreadwood
Improving performance
What Misiderected consists of?
- Coaching
- Frequent performance feedback
- Goal setting
- Training or temporary assignment for skill development
- Restructured job assignment
What Solid Performers consists of?
- Reward good performance
- Identify development opportunities
- Provide honest, direct feedback
What Underutilizers consists of?
- Give honest, direct feedback
- Provide conseling
- Use team building and conflit resolution
- Link rewards to performance outcomes
- Offer training for needed knowledge or skills
- Manage stress levels
What Deadwood consists of?
- Withholding (retenção na fonte) pay increases
- Demotion
- Outplacement
- Firing
- Specifi, direct feedback on performance problems
