Ch 8 Flashcards
Performance management
the process of creating a
work environment in which people can perform to
the best of their abilities
Performance reviews
a process in which a manager
evaluates an employee’s performance relative to the
requirements of the job and uses the information to
show the person where and how improvements can
be made
- More frequent, short reviews that provide employees
with feedback regularly are more effective
Purposes of Performance Management
- improving a firm’s overall
performance and profitability - developmental purposes
- administrative purposes
- Employers need to maintain accurate, objective employee performance records to defend themselves against possible charges of discrimination when it comes to promotions, salaries, and terminations
developmental purposes
- provide performance feedback
- identify individual strengths and weaknesses
- recognize individual performance achievements
- help employees identify goals
administrative purposes
- document personnel decisions
- promote employees
- identify performance problems and develop ways to correct them
- meet legal requirements
Why Performance Management Systems Sometimes Fail
Employees and managers alike often dread appraisals and complain that they are time-consuming and ineffective
What Are the Performance Standards?
Performance standards describe the accepted level of performance to be achieved by an employee
- should be based on job-related
requirements derived from a job analysis and reflected in an employee’s job description and job specifications
Calibration
a process whereby managers meet to discuss the performance of individual employees to ensure their employee evaluations are in line with one another
Acceptability
relates to how difficult it is to administer and use the performance management system
what can how managers view how well their employees are doing on the job/how they
rate them
Organizational politics, a firm’s culture and history, and current
competitive conditions
Performance ratings
must be job related, with performance standards developed through a job analysis
appeals procedure
appeals procedure should be established to enable employees to express their disagreement with the review
Sources of Performance Review Information
- Manager and/or supervisor review
- Self-evaluation
- Subordinate evaluations
- Peer evaluation
- Team evaluation
- Customer evaluations
Self-evaluation
best used for developmental purposes rather than for administrative decisions
Subordinate evaluations
to avoid any problems with retaliation, subordinate reviews should be submitted anonymously, and the
results of the individuals combined in a single report
Peer evaluation
ratings should be tallied to arrive at a composite score and the comments summarized by the worker’s supervisor
Team evaluation
a performance evaluation that recognizes team
accomplishment rather than individual performance
Customer evaluations
a performance evaluation that includes evaluation from both a firm’s external and internal customers
360-degree evaluation
a performance evaluation
done by different people who interact with the employee, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employee’s manager
Training Appraisers
-can vastly improve the performance review process
- firms should make accurately evaluating and developing their subordinates a standard by which the supervisors themselves will be evaluated
Error of central tendency (A Distribution Error)
a performance rating error in which all employees are rated about average
Leniency or strictness error
a performance rating error in
which the appraiser tends to give employees either unusually
high or unusually low ratings
Forced distribution
a performance ranking system whereby raters are required to place a certain percentage of employees into various performance categories
Peer ranking
employees in a work group are ranked against
one another from best to worst
Temporal (recency) error
having the rater routinely document employee accomplishments and failures throughout the whole evaluation period can minimize the recency error
Contrast error
most likely when raters are required to rank employees in order from the best to the poorest
Similar-to-me error
can be powerful, and when the similarity is based on race, religion, or gender, it can result in discrimination
Trait methods
Graphic rating scale
method, Mixed-standard scale
method, Forced-choice method, Essay method
Graphic rating scale
method
a trait approach to performance rating whereby each employee is rated according to a scale of characteristics
- Subjectivity bias is reduced when the dimensions on the scale and the scale points are
defined as precisely as possible
Mixed-standard scale
method
a trait approach to performance rating similar to other scale methods but based on comparison with (better than, equal to, or worse than) a
standard
Forced-choice method
a trait approach to performance
rating that requires the rater to choose from statements
designed to distinguish between successful and unsuccessful
performancE
Essay method
a trait approach to performance rating that requires the rater to compose a statement describing
employee behaviour
Behavioural methods
Critical incident, Behavioural checklist method, Behaviourally anchored rating scale (BARS), Behaviour observation scale (BOS),
Critical incident
an unusual event that denotes
superior or inferior employee performance in some part of the job
Behavioural checklist method
requires the rater to check statements on a list that describe
characteristics of the employee’s behaviour
Behaviourally anchored rating scale (BARS)
a behavioural approach to performance rating that
consists of a series of vertical scales, one for each important dimension of job performance
– The procedures followed in developing a BARS result
in scales that have a high degree of content validitY
Behaviour observation scale (BOS)
a behavioural approach to performance rating that measures the frequency of observed behaviour
– Preferred by users of the system
Results methods
Management by objectives (MBO), The balanced scorecard (BSC)
Management by objectives (MBO)
a results review process that rates the performance of
employees based on their achievement of goals set mutually by them and their manager
The balanced scorecard (BSC)
can be used to appraise individual employees, teams, business units, and the organization itself
– The BSC evaluation method is similar to an MBO system in that it translates broad corporate goals into divisional, departmental, team, and individual goals in a cascading way
Types of Performance Review Meetings and Feedback Sessions
Tell-and-sell, Tell-and-listen, Problem solving, Feed-forward interview
Tell-and-sell
requires a manager to skillfully use motivational and persuasive techniques to try to change the behaviour
Tell-and-listen
first, the appraiser or supervisor
communicates the strong and weak points of an employee’s
job performance, then the employee’s feelings about the
evaluation are thoroughly explored
Problem solving
for example, begin with the employee’s self- evaluation, then the manager and employee can compare where they agree and disagree, and focus on problem-solving
Feed-forward interview
using an interview protocol that
focuses on the positive aspects of employee experiences,
instead of focusing on “what is wrong”
Conducting the Performance Review Meeting or Feedback Session
Ask for a self-evaluation, Invite participation, Express appreciation, Minimize criticism, Establish mutual goals, Follow up day-to-day
Improving Performance
Competency issue = training and development needed
Motivational issue = coaching, reward incentives
Situational issue = changing the context, job design
If the ineffective performance persists ___
transfer the employee, take
disciplinary action, or discharge the person from the organization
