Class 9 - Performance Management Flashcards
Performance Management
the process to plan, measure, review, monitor, document and discuss performance to further the success of the employees and the organization
Performance Appraisal/Review
more narrowly is “a formal process in an organization whereby each employee is evaluated to determine how he or she is performing”
Resource-Based View of Firm
Effective management of resources and capabilities will lead to competitive advantage, resulting in superior performance and value creation
High correlation between quality of talent and business productivity
CASE: Alex Sander
Assess sander’s performance
Plan for meeting with Sander
Measuring performance
Performance = f( )
ability * motivation * opportunity
Components of Job Performance
Task performance
- Results and achievements – core substantive or technical tasks essential to job, meeting goals and objectives
Contextual performance
- Behaviours – how the job is performed, demonstrating traits that contribute to task performance and organizational effectiveness, organizational Citizenship Behaviors (OCB’s)
Causes of Poor Performance
External issues
- Competition
- Industry or economic decline
- Lega/regulatory issues
Organization issues
- Unclear objectives
- Ambiguity
- Unsupportive management
Job issues
- Unclear expectations
- Insufficient training
- Job design/requirements
- conflict
Personal issues
- Relationship problems
- Financial problems
- Moral/ethical constraints
- Lack motivation
- Incompetence
Performance Management System
Clear performance expectations
Clear and specific objectives
Ongoing coaching and feedback
Performance reviews
Recognizing & celebrating performance
Action plans for improvement
Types of Coaches
Coaching for employee growth with the goal of helping people develop and solve their own problems more effectively:
Expert coach
- Give advice, instructs, prescribes
Consultative coach
- Helps employees understand problem, explore alternatives, commit to actions
Counsel
- Focuses on attitudes
Measuring Performance
Criterion contamination – elements that affect the appraisal that are not part of actual performance
Strategic relevance – performance standards linked to organizational goals and competencies
Criterion deficiency – aspects of actual performance that are not measured
Want to be in zone of valid assessment!
Common Performance Appraisal Systems
Reviews conducted once or twice/year
- Standardized performance criteria
- Performance rankings
- Forced ranking
- Affect pay and promotion decisions
Issues in Performance Management & Appraisal
System issues
Employee issues
Measurement issues
Organization issues
Manager issues
Implementation issues
New Approaches to Performance Management
Focus on coaching and development of everyone (forward-thinking), not the past
I.e. Deloitte’s new system focuses on what rater would DO with employee, not what they THINK of them
Given what I know of their performance, I would always want him or her on my team (scale of 1-5)
