Chapter 10 (Performance Management) Flashcards
what is performance management
What is performance appraisal
managers ensure that employees’ behavior contributes to org goals
dynamic, continuous process
not the technique of performance appraisal, but rather a strategic process done on a daily basis
A performance appraisal is job performance of an employee is documented and evaluated.
steps in a performance management process
- define performance outcomes for company vision and department
SWOT - develop employee goals, behavior, and actions to achieve outcomes
define required behavior and job analysis - provide support and ongoing performance discussions
implies that it is an ongoing process
deal with issues and support accomplishments - evaluate performance
performance appraisal
compare targeted goals and supporting behavior with actual results - identity improvements needed
feedback - provide consequences for performance results
feedback
Purpose of performance management
- strategic purpose
link ee behavior with org goals
help achieve bus objectives - administrative purpose
can provide justification for firing people
provides info for day-to-day decisions about salary, benefits, promos, etc. - developmental purpose
serves as a basis for developing employees’ knowledge and skills
strengths and weaknesses
What is HR’s role in the performance appraisal process?
- ensures correct job analysis info
- designs and implements the perf review system
- ensures managers have required skills to offer timely, unbiased ratings
- monitors the process and makes sure documentation is complete and accurate
- establishes a due process for ees who disagree with ratings
ee can settle dispute within the company
highly recommended so that disputes do not escalate to EEOC - maintains records and ensures privacy
In Performance Management, HR must make sure everything is done:
Fairly
Objectively
Can hold up in court
effective performance management
contributes to company’s overall competitive advantage
must be given visible support by the CEO and other senior managers
performance managements improves:
productivity
ee knowledge about strengths and weaknesses
strategic process
helps orgs strategic initiatives be aligned with ee performance
communication between ee and managers regarding ee’s ability to help or hurt the company be strategic
contamination
when performance appraisal measures aspects unrelated to the job
validity
actually assessing good performance
deficiency
aspects of job performance not being captured by a job appraisal
Methods for measuring performance
Comparative Forced Distribution Paired Comparative Benefits Problems Attribute (Graphic rating scale) Behavior Critical Incident Behaviorally anchored reading scale (Bars) Behavioral Observation Scale (Bos)
comparative
Simple Ranking
required managers to rank ees in their group from highest performer to poorest performer
Forced Distribution
assignes a certain percentage of employees to each category in a set of categories
creates a cut-throat environment – certain % gets cut
Paired Comparison
compares each employee with each other employee to establish rankings
Benefits of Measure Performance
easy to make admin decisions
forces people to rank their best and worst employees
Problems for comparative, forced distribution, and pare comparison
can create legal issues (disparate impact)
creates a ‘Fight For It’ / cut-throat culture
generalized people as a good fit or a bad fit with nobody in-between
no individual feedback to why or how the rankings were chosen
attribute
ex. graphic rating scale
lists traits and provides a rating scale for each trait, used to indicate extent to which employee displays each trait
allows employers to assess multiple people across multiple dimensions
more behavioral-specific on how to improve performance
add up the points from each rank and compare
most commonly used
used for administrative and developmental purposes
issue:
distributel biases/errors - no common ground
not enough behavioral specificity - does not give employee meaning of rank
behavior
provides narrative or anecdote of effective or ineffective behavior
critical-incident method
based on managers’ record of specific examples of employees acting in ways that are either effective or ineffective
ees receive feedback about what they do well and what they do poorly as well as how the are helping the org achieve its goals
ex. salesperson at staples selling computers
issue: cannot compare people
Behaviorally Anchored Rating Scale (BARS)
rated behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
adds critical incidents (example behaviors) to attribute rating approach in order to show the rater what a good and poor performance is
best to group with a graphic rating scale
Behavioral Observation Scale (BOS)
variation of BARS which uses all behaviors necessary for effective performance to rate performance at a task
asks the manager to rate frequency in which the ee has exhibited the behavior during a rating period
BARS and BOS Advantages and disadvantages
advantages:
provides a lot of feedback
ees know exactly what they need to improve on
can still rank ees and make administrative decision
legally defensible
differences:
BOS includes frequency in which someone engages in a specific critical incident
Management By Objectives (MBO)
people at each level of the org set goals in a process that flows from top to bottom
all levels are contributing to the orgs overall goals
goals become the standard for evaluating each ees performance
steps:
set org goals
ex. Applebees
“We need to make this much $ in sales”
set departmental goals
managers decide how to complete headquarters’ goals
defining expected results (setting individual goals)
managers give waitstaff foal to complete for the night i.e. this $ in sales, push desserts, etc.
conducting periodic performance reviews
providing performance feedback
quality
Who collects job performance information?
- 360 degree feedback - multi-dimensional
Ask different people to reach different aspects of somebody’s performance
allows ee to be self-aware and accept negative feedback - supervisor
most familiar with job performance
direct job authority and decision making - self-ratings
identify discrepancies
input, make recommendations and limitations
voice opinions
motivates and engages ees
managers get insight to how someone thinks he/she is doing
ex. office clip showed in class – “Don’t know”
customer
problem: does not know objective of organization, how/what employee was told to do
policies/product reviews could be unrelated to ee - subordinate appraisal
only time to use: when anonymous and does not affect administrative decisions
do not allow disgruntled employees to ‘get back’ at someone
only for developmental purposes - peer
helpful for team settings
can create cut-throat environments
ex. Amazon & GE
