Chapter 8 - Performance Management Flashcards
Performance management
the process of creating a work environment in which people can perform to the best of their abilities
Performance management steps
- Goals set to align with higher level goals
- Behavioural expectations and standards set and then aligned with employee and organizational goals
- Ongoing performance feedback provided during cycle
- Performance appraised by manager
- Formal review session conducted
- HR decision making (pay, promotion)
Performance review -
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
Performance Standards -
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 employees job description and specifications
Strategic relevance
refers to the extent to which performance standards relate to or serve the strategic objectives of the organization in which they are applied
Criterion deficiency
the performance standards should capture the entire range of an employee’s performance not just one part,
Criterion Deficiency: when they focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions,
Criterion contamination
factors outside an employees control that can influence their performance
Reliability
refers to the stability or consistency of a standard or the extent to which individuals tend to maintain a certain level of performance over time
Calibration
a process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another
Fairness and Acceptability
managers, organizational politics, firms culture, current competitive conditions can all affect how managers rate and view how well employees are doing on a job, can inflate reviews
Legal Issues
- relevance
- timeliness
- avoid subjectivity
- transperency
- Fairness
Relevance
must be job related with performance standards developed through a job analysis. Only evaluate those areas that are necessary for effective job performance.
Timeliness
Employees must be provided with clear, written job standards in advance of their evaluations so they understand what they need to do to get top ratings
Avoid subjectivity
Managers who conduct the reviews must be able to observe the behaviour they are rating. This implies having measurable standards with which to compare employee behaviour.
Transparency
The reviews should be discussed openly with employees and counselling, or corrective guidance offered to help poor performers improve their performance.
Fairness
An appeals procedure should be established to enable employees to express their disagreement with the reviews.
Manager and or supervisor review -
- a performance evaluation done by an employees manager and often reviewed by a manager one level higher
The employee - self evaluation
employees are asked to evaluate themselves on a self-review form, get them thinking about what their strengths and weaknesses are
Subordinate evaluations
a performance review of a superior by an employee, which is more appropriate for developmental than for administrative purposes
Peer evaluations
a performance evaluation done by ones fellow employees, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employees manager
Team members
a performance evaluation that recognizes team accomplishment rather than individual performance
Customer evaluations -
- a performance evaluation that includes evaluation from both a firm’s internal and external customers
360-degree evaluations -
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 employees manager
Establishing a review plan -
follows a systematic process that begins by explaining the objectives of the firms performance management system