Chapter 7 Performance Managment Flashcards
The 3 purposes
PM helps accurately measure 3 important aspects.
- (Strategic purpose) with is alignment between organizational goals and employee effort.
- (Administrative Purpose) has to do with day to day decisions and supports hiring decisions.
- (Developmental Purpose) Basis of developing EE’s. Building awareness of strengths and areas of improvement for EE’s and organization.
Performance Management
is a process of making sure EE activities align with organizational goals.
Performance Appraisal
Measures of certain areas of EE’s performance
Performance Management Process (3)
- Identify certain performance aspects
- Appraise performance
- Provide feedback
5 Aspects of Criteria for PM
1.Fit with Strategy
Should aim at achieving employee behaviour and mindset
that support the organization’s strategy, goals, and culture
2.Validity
Measures what it is intended to measure
– Minimizes contamination (collecting irrelevant information) – Minimizes deficiency (not collecting relevant information)
3. Reliability
Consistency of the results the performance management measure will deliver e.g. Inter-rater reliability
4.Acceptability
Practical standard of being acceptable to people who use it
5. Specific
Clear “what” and “how”
– May mean performance measures are quantitative
What are the 6 steps of PM Process?
- Define Performance outcomes for company, department and division.
- Develop EE’s goals, behaviour, and actions to achieve goals.
- Provide support to ongoing performances
- Evaluate the Performance
- Identify improvements needed
- Provide consequences for performance results
Attributes
- Graphic rating scale
- Widely used method
Behaviours
- Critical-incident method
- Behaviourally anchored rating scale (BARS)
- Organizational behaviour modification (OBM)
Results
- Management by objectives (MBO)
- Balanced scorecard is an organizational approach
Three parts to rate individuals on
- Attributes
- Behaviours
- Results
Graphic rating scale
a graphic rating scale based on attributes. ie ~Communication skills 1 2 3 4 5 6 7
~Creativity 1 2 3 4 5 6 7
~Teamwork 1 2 3 4 5 6 7
BARS
is based on behaviours. It rates the best situation outcome to the worst outcome vertically.
BOS
is based on behaviours, and it is a more in depth version of BARS.
~Listen to employee concerns
Almost Never 1 2 3 4 5 Almost Always
~Asking employees for helping during decision making
Almost Never 1 2 3 4 5 Almost Always
You need to add points up after and get the results for performance rating
Results
Is outcome based. Uses MBO and a balanced score card
MBO
set individual goals based on company goals, form action plans to reach goals, track progress towards goals, measure achievement at the end of the year.
Critical Incident Method
diarize key moments throughout the year
Balanced Scorecard
Managers will have a variety of objectives in different categories – not all objectives are financial
Ranking
Ranking employees from highest to lowest
Forced Distribution
assigned a certain amount of employees to each catagory.
Paired Comparison
Comparing employees to each other
360 degree performance assessment
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them.
Unconscious bias
Judgment outside our consciousness that affects decisions based on background, culture, and personal experience
Types of Rating Errors
Simliar to me Contrast Error Halo and Horns Company Politics Focus on Activities rather than Results
Errors in Management
- Humans have limitations in their information processing abiblity (heuristics)
- Unconscious bias
How to reduce error
Rater Training -Errors -Accuracy -Unconscious bias Calibration meetings Ratee training Using data analytics
Effective Feedback Should:
be frequent
balanced with employee behaviour and goal setting
Performance Feedback Interview Styles
- Tell-and-Sell Approach
- Tell-And-Listen Approach.
- Problem Solving Approach focusing on behaviors (e.g. you didn’t meet deadline – why was that? How to we fix this in the future?)
Note: The Problem Solving Approach is the preferred approach.
Psychological Harassment
going “over-the-top” on negativity feedback may be constructed as mental bullying
What should performance measurements be based on?
- Job analysis
- Clearly communicated
- Behaviour based
- Under take by multiple raters
How to improve performance
“lack of ability” (AKA can do) training, coaching
“Lack of motivation” (AKA will do) incentives, penalties
Sources of performance information
Quantitative mesures Peers Mangers Self Direct 360 review
