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
Error of central tendency
a performance rating error in which all employees are rated about average
Leniency or strictness error
a performance rating error in which the appraiser tends to give employees either unusually high or low ratings
Forced distribution -
a performance ranking system whereby rates are required to place a certain percentage of employees into various performance categories
Temporal (recency) error -
a performance rating error in which the evaluation is based largely on the employees most recent behaviour rather than on behaviour throughout the evaluation period
Contrast error -
a performance error in which an employees evaluation is biased either upward or downward because of comparison with another employee just previously evaluated
Similar to me error
- a performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual connection
Halo error
focuses on one positive aspect about an employee and generalizes it into an overall positive evaluation
Horn error
focuses on one negative aspect about an employee and generalizes it into an overall negative evaluation
Feedback training
raters can provide some pointers managers can use to provide performance feedback to employees on an ongoing basis during formal reviews and feedback sessions
Feedback training - Covers three important areas
- Communicating effectively to gain the employees support
- diagnosing the root cause of performance problems
- Setting goals and objectives for the employee to achieve in conjunction with the feedback
Trait Methods
Designed to measure the extent to which an employee possess certain characteristics - such as dependability, reactivity, initiative, and leadership - that are viewed as important for the job and the organization in general
- graphic rating scale
- mixed standards scale method
- Forced choice method
- Essay method
Graphic rating scale -
a trait approach to performance rating whereby each employee is rated according to a scale of characteristics
Mixed standard scale method -
a trait approach to performance rating similar to oter scale methods but based on comparison with (better than, equal to, or worse than) a standard
Forced choice method
a trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance
Essay method
a trait approach to performance rating that requires the rater to compose a statement describing employee behaviour
Behavioural Methods
- critical incident
- behavioural checklsit
- behaviourally anchored rating scales (BARS)
- bheaviour observation scale (BOS)
Critical incident
an unusual event that denotes superior or inferior employee performance in some part of the job
Behavioural checklist method
rater to check statements on a list that describe characteristics of the employees behaviour
Behaviourally anchored rating scale (BARS)
a behavioral approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance
Behvaiour observation scale (BOS) -
a behavioral approach to performance rating that measures the frequency of observed behaviour
Results Methods
Evaluate employees accomplishments
- productivity measures
- managment by objectives (MBO)
- balanced scorecard
Productivity measures -
sales volume, number of units produced (dependent on the job)
Management by objectives (MBO)
a results review process that rates the performance of employees based on their achievement of goals set mutually by them and their manager
The balanced scorecard -
financial measures, customer measures, process measures, and learning measures
Tell and sell
the skills required in the tell and sell format include the ability to persuade an employee to change their behaviour in a certain way
Tell and listen
the appraiser or supervisor communicates the strong and weak points of an employee’s job performance during the first part of the session
Problem solving
seeks to obtain the employees buy in for a mutually agreed upon way to overcome and improve a persons performance
Ask for a self evaluation
can be used to discuss areas in which the manager and the employee have reached different conclusions, ensures that the employee knows what criteria they are being evaluated on
Invite participation
employee participation is strongly related to the person satisfaction with the feedback delivered, the extent to which the person believes it is fair and useful and the desire improve their performance
Express appreciation
praise is a powerful motivator and employees are seeking positive feedback, it is frequently beneficial to start the session by expressing appreciation for what the employee has done well
Be supportive and demonstrate that you care
by the manager being open and supportive, the manager conveys to the employee that they will try to eliminate roadblocks and will work with the employee to achieve a higher standard
Minimize criticism
consider whether it is really necessary, consider the person’s ability to handle it, be specific and do not exaggerate, what your timing, focus on the problem behaviour, not the person, make improvement your goal
Establish mutual goals
emphasize employee strengths, drop unproductive tasks, limit improvement plans to a few important items (SMART goals)
Follow up day to day
- informal periodic talks
Identifying the sources of ineffective performance -
three primary concerns - ability, motivation, and environment
Performance diagnosis
behavioural measures are less affected by external constraints
Managing ineffective performance
providing training in areas that would increase the knowledge and skills the employee needs to perform effectively
Focus on changing behaviour, not the person
Aceptable ways of performing
