Chapter 10 Flashcards
Performance Management
Process encompassing all activities related to improving employee performance, productivity + effectiveness
Aspects of Performance Management
Includes:
- goal setting
- pay for performance
- training + development
- career management
- disciplinary action
Steps in the Performance Management Process
- Define Performance Expectations (task performance, contextual performance, correlate performance to expectations of job activities)
- Provide Ongoing Coaching + Feedback (important to have open two-way communication, employee responsible for monitoring their own performance - use a Performance Improvement Plan (PIP))
- Performance Appraisal + Evaluation Discussion
- Determine Performance Rewards/Consequences (merit pay, extra pay)
- Career Development Discussion (look into future, make a plan)
Formal Performance Appraisal Methods
[Step 3 in Performance Management Process]
- Graphic Rating Scale (range of ratings for traits)
- Alternation Ranking Method (Ranking employees from best to worst)
- Paired Comparison (pair employees and rank + or - for traites, employee with most +’s is ranked first (and so on))
- Forced Distribution Method (pre-determined percentages categories) (Disadvantage: can be demotivating due to most employees will be averge/below avg.)
- Critical Incident Method (keeping record of great or unsatisfactory work-related behaviour + reviewing w/ employee)
- Narrative Forms (Free form report of performance - possible in form of a PIP)
7 . Behaviourally Anchored Rating Scales (BARS) (Anchoring specific narrative examples with a quantified scale) (Adv: more accurate, cleaner examples. Disadv: time-consuming)
- Management by Objectives (MBO)
Steps in Management by Objectives (MBO)
[Formal Appraisal Method]
- Set Organizational goals
- Set departmental goals
- discuss departmental goals
- Define expected results (individual goals)
- Performance reviews
- Provide feedback
Issues: Unclear objectives, time consuming, can result in a “tug of war”
Use of tech in performance appraisals
- enables automated record keeping/reports
- overall performance management process
- advanced reporting capabilities, electronic performance monitoring (EPM)
Problems w/ Performance Appraisals
- Validity/Reliability
- Rating Scale Problems (halo effect, central tendency, leniency/strictness, appraisal bias, regency effect, similar-to-me bias)
Who should do the appraising
360 Degree Appraisal (all) :
- supervisors
- self
- peers
- committees
- subordinates
3 Types of Formal Appraisal Discussions
- Satisfactory Performance (Promotable - make development plan)
- Satisfactory Performance (Non-Promotable - maintain performance)
- Unsatisfactory performance (Correctable - plan correction)
How to Conduct the Interview (Performance)
- Be direct - use objective work data
- Do not get personal - compare against standard
- Encourage the person to talk - open ended questions
- Develop an action plan - agree on future steps
How to handle criticism and defensive employees (in performance interview)
- Recognize defensive behaviour is normal
- Never attack
- Postpone action
- Recognize human limitations
How to ensure performance interviews lead to improved performance
- Explain minimum expectations
- Ensure expectations are reasonable
- Explain warnings and process
- Take prompt connective measures
- Avoid sending mixed messages
- Provide support and reasonable time for improvement
Legal and Ethical Issues in performance Management
Legal should be the BEDROCK of performance
- use clearly defined dimensions
- document evaluations
- use formal appeal mechanism
- provide corrective guidance to low performers
Future of Performance Management
- linking individual goals w/ business strategy
- showing leadership + accountability
- investing in employee development planning
