ch.7 Flashcards
What is Workplace Performance?
Observable behavior that contributes to the accomplishment of an
organization’s goal
What is Performance management?
Process of ensuring that employees’ activities and outputs contribute to the organisation’s goals.
What are the 3 purposes of performance management?
strategic, administrative, developmental
Describe the strategic purpose of performance management
Helps organization achieve strategic objectives
* Links employees’ behaviour with the
organization’s goals
Describe the administrative purpose of performance management
Provides information for day-to-day decisions
e.g. salary and recognition
* Supports hiring decisions
ex: when to give someone a pay raise or promotion.
Describe the developmental purpose of performance management
Basis for developing employees
* Builds awareness of strengths and areas for
improvement
recognizes achievement
What is the criteria for effective performance management
- Strategic Congruence - elicits job performance that is
consistent with the company’s strategy, goals and culture - Validity - assesses all of the relevant – and only the
relevant – aspects of job performance - Reliability - is free from random error
- Acceptability - The extent to which a performance
measure is deemed to be satisfactory or adequate to
those who use it. - Specificity - gives detailed guidance to employees about
what is expected of them and how they can meet these
expectations
what are the six steps in the performance management process
strep 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: Identify improvements needed
Step 6: Provide consequences for performance results.
Explain step 1 and step 2 of the six steps
identifying what the company is trying to accomplish( its goals or objectives) and developing employee goals and actions to achieve these outcomes. The goals, behaviours, and activities should be measurable and become part of the employee’s job description.
Explain step 3 the performance management process
providing employees with training, necessary resources and tools, and ongoing feedback between the employee and manager that focuses on accomplishments as well as issues and challenges that influence performance.
Explain step 4 the performance management process
evaluating performance that is, when the manager and employee discuss and compare targeted goals and supporting behaviour with actual results.
Explain step 5 the performance management process
involves both the employee and manager identifying what the employee can do to capitalise on performance strengths and address gaps.
Explain step 6 the performance management process
provides consequences for achieving( or failing to achieve) performance outcomes, for example, pay increases, bonuses, or action plans.
What is the criteria for effective performance management
- Strategic Congruence
- Validity
- Reliability
- Acceptability
- Specificity
Explain strategic congruence
Strategic Congruence - elicits job performance that is
consistent with the company’s strategy, goals and culture
ex: if a company implements and emphasises good teamwork, then its performance management system should reflect and promote good teamwork
ex: a ranking system was used to evaluate job performance. It was detrimental, it inhibited innovation. Eventually, Microsoft abandoned the ranking system
Explain validity
assesses all of the relevant – and only the
relevant – aspects of job performance
- criteria deficiency
- criteria contamination
Explain criteria deficiency
- performance standards fail to capture the whole range of the employee’s job. Some aspects of employees responsibilities or tasks were not being assessed.
- Ex: a clerk in retailer is evaluated on sales revenue and not on customer service
Explain criteria contamination
- when a criteria used is influenced by other factors that are not part of the performance. Factors that are outside of employee’s control
- Ex: person working on retail. The stores may have less or more traffic. Or there are more or less competitors in this area. This affect the revenue of goods sold.
Explain reliability
should be free from random error and should be consistent across radars and time
Explain acceptability
The extent to which a performance measure is deemed to be satisfactory or adequate to those who use it.
Ex: ranking employee performance has been criticized bc it is too rigid and too time consuming. People do not accept it. It does not work
Explain specificity
gives detailed guidance to employees about
what is expected of them and how they can meet these
expectations
What are the 4 approaches to measuring performance
- Comparative
- Attributive
- Behavioural
- Results
Explain the comparative approach to measuring performance
The Comparative Approach requires the rater to compare an
individual’s performance to that of others.
Different methods include:
* Ranking including simple ranking or alternation ranking
* Forced distribution method
* Paired comparison method
Explain forced distribution
Raters (managers) must assign a certain % of employees into
categories
Example:
High performers – 20%
* performance rewards, developmental opportunities
Middle performers – 70%
* feedback to become high performer
Low performers – 10%
* feedback, specific improvement goals; termination
What are the advantages and disadvantages of forced distribution
Potential Benefits
* Avoids problem of inflated ratings
* Fosters performance-oriented culture
* Identifies high-potential employees
* Increase in organizational performance - poor performers improve or
are let go
* Potential Disadvantages
* % may not represent actual distribution of performance
* May over-reward some and punish others
* Could result in competitive, fearful culture
Explain the attributive approach to measuring performance
Attributive Approach - extent to which person possesses attributes
that contribute to job / organizational success
Most widely used method is the graphic (points) rating scale
managers consider one employee at a time, independent of others.
managers consider one employee at a time, independent of others.
Limitation so f attributes/ traits
Measurement of attributes may not be clearly linked
to the organization’s strategy.
* Subjective – may mean different things to different people. Dependability may mean come to work on time, but to others it may mean working late when you are asked to.
Explain the behavioural approach to measuring performance
Behavioural Approach – attempts to define the behaviours an
employee must exhibit to be effective in the job
Examples include:
* Critical Incidents
* Behaviourally-Anchored
Rating Scales (BARS)
Behavioural Observation Scale (BOS)
Explain critical incidents from the behavioural approach
managers recording specific examples of employee behaviour that are either effective or ineffective. Key tasks of the job.
Explain Behavioural-Anchored Rating Scales(BARS) from behavioural approach
multiple behaviours that may be needed in order to complete key tasks or demonstrate a certain attribute.
Method of performance measurement that rates behaviour in terms of a scale showing specific statements of behaviour that describe different levels of performance.
Behavioural Observation Scale (BOS)
Problem: Must be present in every case to observe the behaviour. You as the manager should maintain a log(diary) of critical incidents that you have seen
Explain the results approach
Results Approach - focus on what is accomplished / produced.
Measurable, “objective” results of one’s work. The purpose is to
reduce subjectivity
* Management by objectives (MBO) – goals/targets become
performance standard
* E.g.,
* Output - $ sales, units sold
* Quality – # of complaints, errors, commendations
Limitation: Results may be affected by factors outside of employees control
What should actually be measured in Performance approach?
Behaviour & Results
1. Behaviour
* Because it is what the person does
* Provides basis for feedback
2. Results
* Because they represent the outcomes
3. Context
* To diagnose if results were actually due to behaviour
Multisource- 360 degree feedback
includes the employee’s self-assessment. Help generate self-awareness and insight about one’s performance.
What are the guidelines for providing performance feedback?
- Should occur frequently – not once/year
- Choose neutral and private venue
- Encourage subordinate response to evaluation
* Hear their side of story - Praise good performance; discuss poor performance
- Focus feedback on behaviors (results), not on the person
- Take a problem-solving approach; agree on specific goals & followup
Factors to consider when conducting a performance analysis ( to diagnose the causes of poor performance)
:
1. Input
2. Employee Characteristics
3. Feedback
4. Performance Standard/Goals
5. Consequences
What is employee discipline
Discipline involves training/feedback that enforces organizational
rules
Preventive Discipline
* Action taken prior to an infraction to encourage employee to follow the rules – e.g,
communicate expectations
* Goal is to facilitate self-discipline
Corrective Discipline
* Action that follows a rule infraction and seeks to discourage further infractions - &
deter others
Explain progressive discipline
Type of corrective discipline
⁃ Small penalty with 1st violation; stronger penalties if violation occurs
again
* Goal is to provide opportunity for corrective action
Examples:
* Verbal warning / reprimand
* Written reprimand (goes on file)
* Stronger penalties – e.g., suspension
* … Up to and including termination
⁃ But, serious misconduct may be grounds for immediate termination
What are the 4 considerations regarding discipline
- government legislation
- collective bargaining agreement
- due process- procedural justice/ fairness
- hot-stove rule
Give an example of government legislation
- E.g., can’t discipline a worker who is asserting rights protected by
law - be part of union
- employee has the right to refuse unsafe work
collective bargaining agreement within the considerations regarding discipline
Whatever has been agreed to in that agreement, needs to be followed.
Due process – procedural justice/fairness
How is discipline done?
* E.g., allow for employee to respond to charges
Hot-stove rule
- Warning/predictable, immediate, consistent, impersonal
discipline has to be fair and consistent - when you touch a hot stove, you will be burnt. (metaphor)
- you get burned every time you touch a stove.
Explain conditions of employee dismissal
Employer may terminate nonunion employee at any time if “just
cause” exists
- In unionized environments - collective agreement may contain
provisions regarding ground and process for termination
In absence of just cause, there must be “reasonable notice” or
compensation in lieu of notice
What is just cause?
Dismissal that is warranted by employee behavior
* Behaviour that may undermine the operation or reputation of the
organization
* i.e., employer has legally defensible reason to terminate without notice or
pay in lieu of notice
⁃ Burden is on employer to demonstrate just cause
⁃ Economic factors do not constitute just cause
What are the 4 types of Just Cause
- Serious misconduct
* Theft, assault, harassment, intoxication, etc. - Willful disobedience of reasonable order
* Insubordination - Conflict of Interest
* When employee has multiple interests that may bias
* Activities that compromise or compete with employer’s business
interests - Poor performance (incompetent work)
* Employer must demonstrate that goal was performance improvement
Requirements regarding dismissal for poor performance ( what you need to do when you see poor performance)
Need to go through these steps to be able to get to termination
- Reasonable& objective performance standards
- Document employee’s failure to meet performance standard
- Evidence of warnings
- Show that employee was given time, training
- Document continued failure to meet standard
What is wrongful dismissal
- Without just cause, OR
⁃ Without reasonable notice, OR
⁃ Without compensation in lieu of notice
What is reasonable notice?
Period of time employee is entitled to before having
employment / pay terminated – when there is no just cause
⁃ Purpose – to provide time for employee to find employment
⁃ Can be time or pay in lieu of notice
⁃ Statutory minimum (from ESA)
* 1 week per year of service
When should reasonable notice give more time?
- worker is older, has more seniority
- higher level job
- unfavourable labour market
Pay in liu of notice and severance pay are the same
T or F
false
What is severance pay
Compensation given for loss of seniority and job-related benefits,
when employer ends employment of long-term employee
* Different than pay in lieu of notice – which focuses on time to find new
employment
Who qualifies for severance pay?
* In Ontario – according to ESA
* Employed with employer for 5+ years
* Employer has payroll of > 2.5 million
Severance pay not required if
- Employee refuses offer of “reasonable alternative employment”
- Employment ends because of misconduct
- Employment ends but employee retires on full pension
- SEA for other unique exceptions
How to calculate severance pay
Severance =
pay for regular week of work
X
# of years employment
⁃ ESA max = 26 weeks of pay
Explain Wallace Effect -set precedent
⁃ Wallace v. United Grain Growers (1997)
* Wallace recruited from competitor and promised job security
until retirement
* Performed well for years – considered top salesperson
* Then… was abruptly terminated w/o explanation
* Employee alleged it was “for cause”
* Later informed:due to “inability to perform duties
satisfactorily.”
⁃ Wallace v. United Grain Growers (1997)
* Supreme court added 9 months to the notice award of 15
months because because employer acted in “bad faith” in terminating
Wallace
To be awarded “Wallace” damages, employee must show that
vindictive, malicious
* And employee suffered damages or emotional upset as a result
What is constructive dismissal
Is a form of “wrongful dismissal” that is not dismissal, per se
⁃ Employer makes a significant change to a fundamental term of
employment without employee’s actual or implied consent, for
examples
* Pay cuts
* Reduced hours of work
* Demotion – reduced authority/status of position
* Forced relocation
What should an employee do when victim of constructive dismissal
⁃ Employee should resign soon after change (under 3 months)
* AKA “Disguised dismissal”; “quitting with cause”
* As if employee is forced to quit
* By not resigning, the employee indicates his/her acceptance of
the new employment conditions
⁃ If agreed to, it’s not constructive dismissal
* Must be unilateral to be CD
Explain David Matthews v. Ocean Nutrition Canada Ltd. case
⁃ David Matthews, hired in 1997, was a food scientist and chemist
⁃ Eventually became a VP and signed incentive plan that
guaranteed certain % if Ocean Nutrition was to be sold one day
⁃ Same year signed plan, company hired new COO, Daniel Emond
⁃ Emond did not like Matthews and did everything in his power to
drive Matthews out of the company including demoting him and
cutting his work
⁃ Eventually, Matthews had no choice but to resign
⁃ Matthews sued Ocean Nutrition for constructive dismissal
⁃ And for the lost income from the sale of the company
⁃ Initially awarded damages amounting to more than $1
million but Court of Appeal overturned the damages
⁃ Matthews took case to Supreme Court and in October 2020,
Supreme Court “set aside the Appeal Court ruling and
restored” the initial ruling including damages.
Considerations when firing employees
Where, when how and what else
Where?
* Neutral location – HR department; conference room
When?
* Avoid Fridays
* Because employment, health service unavailable on weekends
How?
* Compassion – how would I like to be treated?
* Be clear, honest, and tactful
* Prepare, rehearse, discuss with
Get to the point early in meeting
What else?
* Have necessary information ready
* Including severance pay, benefits
* How you will handle inquiries from future employees
* Escort / Security?
* Arrange transportation home
* Notify other staff
