Ch 6 - Managing performance Flashcards
Define a performane management system
system is a set of integrated management practices that
- maximize employee potential
- help increase employee satisfaction
What are the 4 purposes of performance management systems?
- Compensation: basis for salary increases, bonuses,
- Administrative: basis for other HR practices (promotions, transfers, layoffs)
- Overall performance: influences future behaviours and help assess strenghts and weaknesses
- Development: helps identify training needs and provides feedback on strenghs and weaknesses
What are some examples of pitfalls with performance management systems?
- Can be seen as a punishment tool
- Perceived to belong to the HR department
- Performance review interview is seen as unpleasant
- Employees are not clear about how they will be assessed
- Continous coaching and frequent feedback are not done
- Forcing out poor performers instead of helping them improve
- LIttle or no training for managers on how to use the system
- Exployees do not know what is expected of them
What are the steps of an effective performance management system?
- Clarify the work to be done: set expectations
- Set goals/establish performance plan: along with business strategy and with employee cooperation
- Provide regular and frequent coaching
- Conduct formal performance review: discuss areas to improve and focus on goal accomplishments
- Recognize and reward: financian and non financial rewards
- Create an action plan: to improve performance
What are the sources of information for performance evaluation?
–> Deciding who should provide performance information about the evaluated employee
- Subordinates: Employees reviewing their supervisors, should be confidential with clear criteria
- Peers (equal rank) : likely more accurate and valid. Not useful in a competitive environment. should be confidential with clear criteria
- Team (Equal rank + Work closely): useful when difficult to separate individually vs team performance
- _Customers: (Internal + External): _Useful for attainment of customer service goals (should be linked to them)
- Supervisor: most common, often in best position but not always possible time wise
- Employee (Self): Increases employment involvment and useful for employee development
What is a 360-Degree Review?
Feedback form intended to provide employees with as accurate a view of their performance as possible: by getting input from all angles
Performance management systems must comply with the law to be fair to employees. What are some of the general guidelines they must follow?
- Ratings must be job related, with performance standards related to job analysis
- Employee given written copy of standards
- Managers should be trained on how to:
- set goals/ standards
- conduct a formal review session
- write a review report
- reviews should be discussed openly
- employees be able to disagree
What are the pros and cons of the 360 degree feedback?
PROS:
- broad perspective on employee performance
- helps figure out areas for improvement
- feedback is useful for development
- employee can determine who provides input
- provides more qualitative information
CONS:
- can damage morale
- confidentiality needs to be protected
- People not being objective
- System requires training to work well
- Administratively complex, time consuming
What are the 3 methods to review performance?
- Trait Methods (Characteristics)
- Behavioural Methods (Actions)
- Results Methods (Achievements)
What are the pros and cons of the Trait Method review method?
Which approach does it use?
Pros: Cheap, easy to implement
Cons: Highly subjective, easy errors, vague
Approach: Graphic rating scales
(Rating the employee 1 to 5 for example on certain characteristics: dependability, creativity, initiative, leadership, etc)
What are the pros and cons of the Behavioural Methods?
Which approaches does it use?
Pros: more objective, more likely to be perceived as fair
Cons: More complex to implement and time consuming
Approaches:
- Behavioural checklist: Checking √ statements that describe the employee
- Behaviourally Anchored Rating Scale (BARS): assessing employees on scales representing important dimensions of the performance of the job. (1 scale per aspect, i.e: communication skills)
- Behaviour Observation Scales (BOS): SImilar, except supervisor observes frequency of behaviour
What are the pros and cons of the Results Method?
Which approaches does it use?
Pros: Even more objective than other methods,
Cons: requires adequate criteria, time consuming, complex
Approaches:
- Productivity Measures: employee evaluated based on a measure of productivity. i.e: sales, # of units without defects
- Management by objectives (MBO): employee evaluated based on attainment of goals established jointly with the supervisor
- Balanced Scorecard: helps managers translate strategic goals into operational objectives. (Assessed in 4 categories: financial / Customer / Processes / Learning
What is the Management by Objective (MBO) process (steps) ?
- Use corporate strategy to set company-wide goals
- Set department-level goals (Aligned w/ 1)
- Employee and manager agree on individual-level goals (Aligned w/ 1 +2)
- Interim Review: periodically meet to monitor progress and provide feedback - Modify objectives if needed
- Review employee performance: identify reasons for successes or failures
- Review organization performance
Outline the characteristics of an effective performance review interview
- Ask employee to review and assess own performance prior to the interview
- Invite/Encourage active participation by employee
- Express appreciation for what employee has done well
- Minimize criticism
- Change the behaviour, not the person
- Establish future goals
- Follow up
How to improve performance ?
**1. Indentify sources of ineffective performance **
- Organization: ineffective management, training, etc
- Job: poorly designed, unclear requirements, etc
- Environment: unions, mngt conflicts,
- Employee: personal problems, low motivations, lack of KSAs
2. Manage ineffective performance
- Offer training
- Transfer employee
- Modify working conditions
- Redesign the job
