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BUSN 3350 > ch 10: Performance Management > Flashcards

ch 10: Performance Management Flashcards

1
Q

what is performance appraisal?

A

evaluating an employee’s current and/or past performance, relative to standards

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2
Q

what is performance management?

A
  • the process of all activities related to improving employee performance, productivity, and effectiveness
  • The performance management system must provide an integrated network of procedures across the organization that will influence all work behaviour
  • Managers need some way to review employees’ work-related performance
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3
Q

what does performance management involve?

A
  • linking individual goals and business strategy
  • showing leadership and accountability
  • relate appraisal results, rewards, and recognition
  • invest in employee development planning
  • establish an administratively efficient system
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4
Q

describe performance appraisals

A
  • considered to be legal documents in Canada
    • required by courts in assessing wrongful termination cases
  • failure to measure and use appraisal results invalidates the primary purpose of performance evaluations
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5
Q

why appraise performance?

A
  • pay, promotions and retention decisions are based on employee’s appraisal results
  • links performance of each employee to the company’s overall goals
  • allows manager and employee develop a plan for correcting deficiencies and reinforce strengths
  • provides an opportunity to review career plans
  • enable identification of training needs and/or remedial action
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6
Q

what are the steps of the performance management process?

A
  1. define performance expectations
  2. provide ongoing coaching and feedback
  3. performance appraisal/evaluation discussion
  4. determine performance rewards and/or consequences
  5. career development discussion
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7
Q

what is task performance?

A
  • shows the direct contribution to job-related processes
  • An individual’s direct contribution to their job-related processes
  • Focusing on tasks means that performance expectations are grounded in realistic job demands and align with the organization’s strategic objectives and implementation plans
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8
Q

what is contextual performance?

A
  • shows indirect contributions by improving organizational, social, and psychological behaviours that contribute to organizational effectiveness beyond those specified for the job.
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9
Q

what is performance management process linked to?

A

performance measurement

  • expectations need to be legally defensible, clear, and measurable, and communicated to employees
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10
Q

in what companies may performance appraisal critetia need to be modified to cultural norms and values?

A

global companies

  • In the West, performance criteria cannot be based on personal character, but instead need to focus on more objective criteria
  • Confucian values (used in parts of Asia including China) lead to an emphasis on appraisals that are based upon personal attitudes and moral characteristics
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11
Q

describe step 2 (provide ongoing coaching and feedback) of the performance management process

A
  • current performance management changes
    • ongoing feedback - progress discussions, open two-way communication
    • balance between individual and team assessment
    • decreased focus on ratings and rankings - use objective criteria
    • documentation - identify and deal wth poor performers
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12
Q

what is coaching?

A
  • A process for improving work performance, in a frequent contact, hands-on process aimed at helping employees improve performance and capabilities.
  • A focus on developing people requires more frequent and information conversations and coaching by managers, rather than annual reviews.
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13
Q

describe step 3 (performance appraisal/evaluation discussion) of the performance management process

A
  • generally conducted with the aid of a predetermined and formal method
  • web-based performance management is becoming industry standard
  • performance management systems provide employees with clear development path
  • electronic performance monitoring (EPM) has supervisors monitor the employees performance
  • formal appraisal discussions allow review of appraisal and make plans to remedy deficiencies and reinforce strengths
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14
Q

what is electronic performance monitoring (EPM)?

A

Having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his or her performance

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15
Q

what are formal appraisal discussions?

A

An interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths.

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16
Q

what are the different types of appraisal outcomes?

A
  • satisfactory - promotable
  • satisfactory - not promotable
  • unsatisfactory - correctable vs uncorrectable
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17
Q

describe a satisfactory-promotable appraisal outcome

A
  • the person’s performance is satisfactory and there is a promotion ahead
  • easiest of the three formal appraisal discussions
  • objective is to discuss the person’s career plans and to develop a specific action plan for the educational and professional development that the person needs to move to the next job
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18
Q

describe a satisfactory - not promotable appraisal outcome

A
  • interview is for employees whose performance is satisfactory but for whom promotion is not possible
  • The objective here is not to improve or develop the person but to maintain satisfactory performance
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19
Q

describe a unsatisfactory- correctable vs uncorrectable appraisal outcome

A
  • When the person’s performance is unsatisfactory but correctable, the interview objective is to lay out an action plan for correcting the unsatisfactory performance
  • If the employee’s performance is unsatisfac-tory and the situation uncorrectable, there is usually no need for any formal appraisal discussion because the person’s performance is not correctable anyway
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20
Q

how do you prepare for appraisal discussions?

A
  • assemble data - job descriptions, performance standards
  • prepare employee - give notice of discussion
  • find a mutually agreeable time and place, and allow plenty of time for the interview
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21
Q

how do you conduct the appraisal discussion interview?

A
  • be direct and specific - use objective work data and specific examples
  • do not get personal
  • encourage employee to talk
  • develop an action plan
    • be specific about performance that needs attention
    • ensure employee understands reasons for appraisal and how to improve
    • develop specific goals, expected results, and timeline
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22
Q

how do you handle criticism and defensive employees?

A
  • recognize that such behaviour is normal
  • concentrate on the act/behaviour/performance rather than the person
  • postpone action - give time for rational reaction by employees
  • recognize human limitations - do not expect to be able to solve every problem
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23
Q

what are the factors that determin eemployee satisfaction with appraisal discussion?

A
  • not feeling threatened during the interview
  • having opportunity to present their ideas
  • having a helpful and constructive supervisor conduct the interview
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24
Q

what are the 7 steps management shoud follow to ensure that performance appraisals have the desired effect and are legally defensible?

A
  1. let employee know when performance in unacceptable
  2. ensure minimum expectations are reasonable
  3. warn employees about consequences of failure to meet minimum standards
  4. Ensure that you take prompt corrective measures when required
  5. avoid mixed messages
  6. provide reasonable time to improve performance
  7. provide support to facilitate improvement
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25
Q

describe how to handle formal written warning

A
  • identify standards
  • ensure employee is aware of standards
  • specifiy violation of standard
  • indicate opportunity to correct behaviour
  • specify behaviour that must be corrected
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26
Q

what is the purpose of a written warning?

A
  • shake employee out of bad habits
  • help manager defend rating of employee
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27
Q

describe step 5 (career development discussion) of the performance management process

A
  • manager and employee discuss opportunities for development
  • strengthen or improve employee’s knowledge, skills and abilities
  • business needs must be balanced with employee’s preferences
  • focus on actions to boost performance for current goals or develop new knowledge aimed at future career plan
28
Q

what are the different comparative appraisal methods?

A
  • graphic rating scale
  • alternation ranking scale
  • paired comparison method
  • forced distribution method
29
Q

describe a graphic rating scale

A
  • simplest and most popoular technique
  • lists traits and a range of performance values
  • The employee is then rated by identifying the score that best describes his or her level of performance for each trait.
30
Q

describe the alternation ranking method

A
  • ranks employees from best to worst for each trait
  • First, list all employees to be rated, and then cross out the names of any not known well enough to rank
  • Then, on a form, indicate the employee who is the highest on the characteristic being measured and also the one who is the lowest
  • Then choose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked
31
Q

describe the paired comparison method

A
  • make chart of all possible pairs of employees and indicate the better employee of the pair
  • For every trait, every employee is paired with and compared with every other employee.
  • the number of times that an employee is rated as better is added up
32
Q

describe a forced distribution method

A
  • place predetermined percentage of employees in performance categories
  • criticized and little used
  • The remaining employees, by default, are considered the backbone of the workforce and receive moderate compensation increases and development opportunities
  • This method is useful in that organizations can focus resources, rewards and training on the top performers
33
Q

what are the qualitiative appraisal methods

A
  • critical incident method
  • narrative forms
34
Q

describe the critical incident method

A
  • record desirable and undesirable examples of incidents and reviewing the list with the employee at predetermined times
  • advantages
    • provides specific hard facts for appraisal
    • manager thinks about appraisal throughout the year
    • can be adapted to specific job expectations
    • used for identifying good and poor performance
  • It is not as useful by itself for comparing employees nor, therefore, for making salary decisions
35
Q

describe narrative forms

A
  • provide feedback with specific detail
  • performance problem is described in detail
  • improvement plan identifies measurable goals, direction for improvement
  • encourages employee to add ideas
  • constructive discussion between employee and manager
  • provides clarity on how to improve performance
36
Q

what are the advanced quantitative methods?

A
  • behaviourally anchored rating scales (BARS)
  • management by objectives (MBO)
  • mixing the methods
37
Q

describe behaviourally anchored rating scales (BARS)

A
  • combines benefits of narratives, critical incidents, and quantified ratings
  • advantages:
    • more accurate measure of performance
    • clearer standards
    • feedback
    • independent dimensions
    • consistency
38
Q

describe management by objectives (MBO)

A
  • manager and employee jointly set specific measuable goals and discuss progress
  • goals must not be too easy or too difficult
  • motivate performance with fair and attainable goals:
    • set organization’s and department’s goals
    • discuss departmental goals
    • define expected results with individual goals
    • measure results in performance reviews
    • provide feedback on progress
39
Q

what are potential problems with MBO (management by objective)?

A
  • setting unclear, unmeasurable objectives
  • time consuming
  • employee may push for lower goals
  • manager pushes for higher goals
40
Q

describe mixing appraisal methods

A
  • most firms combine several appraisal techniques
  • determining factors incluse resource constraints and organizational factors
41
Q

what are some appraisal problems?

A
  • employees tend to be overly optimistic about their own ratings
  • honest appraisal involves emotions that can cause difficulties when managers are not trained properly
    • results in dishonest appraisals or avoidance
  • the numerous structural problems that can cast serious doubt on just how fair the whole process is
  • acceptable system can increase employee trust in management
42
Q

describe validity and reliability for appraisals

A
  • appraisal must be based on performance criteria that are valid for the specific position
  • system must produce consistent ratings
43
Q

criteria used for appraisals must be what?

A
  • relevant to the job being appraised
  • broad enough to cover all aspects of the job requirements
  • specific and precise to result in consistent measure of performance
44
Q

what are some rating scale problems?

A
  • unclear performance standards - open to interpretation
  • halo effect - influenced by rating on one specific trait
  • central tendency - overusing “average” rating
  • strictness/leniency - only using top or bottom of scale
  • appraisal bias - allow influence of individual differences not actual performance
  • recency effort - only use recent performance as basis
  • similar-to-me bias - higher ratings based on rater-ratee similarity or common interest
45
Q

what is unclear performance standards?

A

An appraisal scale that is too open to interpretation of traits and standards

46
Q

what is the halo effect in performance appraisal?

A

the problem that occurs when a supervisor’s rating of an employee on one trait biases the rating of that person on other traits.

47
Q

what is central tendency?

A
  • A tendency to rate all employees in the middle of the scale
  • can distort the evaluations, making them less useful for promotion, salary, or counselling purposes
  • Ranking employees instead of using a graphic rating scale can avoid this central tendency problem
48
Q

what is strictness/leniency?

A

The problem that occurs when a supervisor has a tendency to rate all employees either low or high.

49
Q

what is the appraisal bias?

A

The tendency to allow individual differences, such as age, race, and sex, to affect the appraisal ratings that these employees receive.

  • Not only does this bias result in inaccurate feedback, but it is also illegal under human rights legislation
  • Sometimes the rater may systematically overestimate improvement by a poor worker or decline by a good worker
50
Q

what is the recency effect?

A

The rating error that occurs when ratings are based on the employee’s most recent performance rather than on performance throughout the appraisal period

51
Q

how do you avoid appraisal problems?

A
  • make appraisers aware of common problems
  • provide training on how to eliminate rating errors
    • be aware of external factors such as union pressure or time constraints
  • choose the right appraisal tool
  • use multiple raters to offset individual biases or idiosyncrasies
52
Q

what is the advantage and disadvantage of a graphic rating scale?

A
  • advantage:
    • simple to use
    • provides a quantitative rating for each employee
  • disadvantages:
    • standards may be unclear
    • halo effect
    • central tendency
    • leniency
    • bias
53
Q

what is the advantage and disadvantage of a alternation ranking?

A
  • advantages
    • simple to use
    • avoids central tendency and other problems of rating scales
  • disadvantages
    • can cause disagreements among employees and may be unfair if all employees are, in fact, excellent
54
Q

what is the advantage and disadvantage of a paired comparison method?

A
  • advantages
    • a more precise ranking method that involves multiple traits
  • disadvantages
    • difficult to use as employee numbers increase
    • differences may not be noticeable enough to rank
55
Q

what is the advantage and disadvantage of a forced distribution method?

A
  • advantage
    • end up with a predetermined number of people in each group
  • disadvantage
    • appraisal results depend on the adequacy of the original choice of cut-off points
56
Q

what is the advantage and disadvantage of a critical incident method?

A
  • advantages
    • helps specify what is “right” and “wrong” about the employee’s performance
    • forces the supervisor to evaluate employees on an ongoing basis
  • disadvantages
    • difficult to rate or rank employees relative to one another
    • cannot be used to defend salary decisions
57
Q

what is the advantage and disadvantage of a narrative form?

A
  • advantages
    • explicitly states improvement goals and associated outcomes or consequences
  • disadvantages
    • employees may take these too personally
58
Q

what is the advantage and disadvantage of a behaviorally anchored rating scale (BARS)?

A
  • advantages
    • provide behavioural “anchors”
    • very accurate
    • high inter-rater reliability
  • disadvantge
    • difficult to develop
59
Q

what is the advantage and disadvantage of management by objectives?

A
  • advantages
    • tied to jointly agreed-upon performance objectives
  • disadvantages
    • risk of unclear performance measures
    • time-consuming
    • inflated/deflated goals due to tug of war
60
Q

who should do the appraising?

A
  • supervisors
  • self
  • committees
  • peers
  • subordinates
61
Q

why do supervisors do the appraising?

A

best and most often used

62
Q

why do you/self do the appraising?

A
  • used generally along with supervisors’ ratings
  • employees value to be heard
  • problem - employees usually rate themselves higher
63
Q

why do committees do the appraising?

A
  • immediate and other supervisors
  • composite ratings tend to be more reliable and valid
  • usually comprise the employee’s immediate supervisor and three or four other supervisors
  • Even when a committee is not used, it is common to have the appraisal reviewed by the manager immediately above the one who makes the appraisal
64
Q

why do peers do the appraising?

A
  • can be effective in predicting futrure management success
  • have more opportunity to observe each other
  • problem: logrolling where all peers agree to rate each other highly
  • used more in self-managing teams
  • gives perception of open communication and motivation
65
Q

why do subordinates do the appraising?

A
  • useful in flat organizations and with empowered workers
  • may be anonymous
  • diagnosis management styles
  • valuable if used for development rather than evalutaton
  • effective in improving supervisor behaviour
  • Upward feedback from reporting employees is quite effective in terms of improv-ing the supervisor’s behaviour, according to the research evidence
66
Q

what is a 360 degree appraisal and the features?

A
  • multisource feedback
  • A performance appraisal technique that uses multiple raters including peers, employees reporting to the appraisee, supervisors, and customers.
  • features
    • confidential and anonymous
    • completed by those with knowledge of performance
    • custom-design questionnaires linked to strategy, vision, and values
    • compiled into individualized reports for self-development purposes
    • shared with supervisor, used for career development and compensation management
67
Q

what are the guidelines for legally defensible process?

A
  • use job analysis
  • incorporate job characteristics into rating instrument
  • provide definite performance standards
  • use clear dimensions of job performance
  • avoid abstract trait names
  • use subjective ratings as only one component
  • train supervisors to use the rating instrument correctly
  • allow appraisers regular contact with employees
  • have more than one appraiser
  • document evaluations and reasons for terminations
  • provide corrective guidance to poor performers

BUSN 3350 (14 decks)

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