Managing Employee Performance Flashcards
What does effective performance do?
Tells top performers they are valued
Encourage communication between managers and their employees
Establish consistent standards for evaluating employees
Help the org identify its strongest and weakest employees
Performance management process
Step1: Identifying and defining the important outcomes for company division and department
Step2: Develop employee goals, behaviour, and actions to achieve outcomes
Step3. Provide support and and ongoing performance discussion
Step4: Evaluate performance
Step5: Identify improvements needed
Step 6: Provide consequences for performance results
Purposes of performance management
Strategic purpose
Administrative purpose
Developmental purpose
Strategic purpose
Linking employees’ behaviour with company goals.
Goals and feedback must be communicated t employees
Administrative purpose
Way in which organisation use their performance management system to provide information for day-to-day decisions about: salary benefits recognition programs decisions about employees retention termination for poor performance Hiring Layoffs
Developmental purpose
Basis for developing employees’ knowledge and skills.
Feedback makes employees aware of strengths and areas to improve. The cause of weakness should be identified to know how to improve
Criteria for effective performance management
Fit with strategy Validity Reliability Acceptability Specific feedback
Fit with strategy
Performance management should aim at achieving employee behaviour and attitudes, which support the organisation’s strategy, goals and culture.
Validity
Whether appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.
Reliability
Consistency of the results that performance measure will deliver
Contamination
Gathered, but irrelevant information
Deficiency
Not gathered, but relevant information
Inter-rater reliability
Refers t consistency of results when more than one person measures the performance
Test-retest reliability
Consistency of results over time
Internal consistency reliability
Extent to which all the items are internally consistent
Acceptability
Extent to which a performance measure is deemed to be valid and reliable by those who use it, both the manager and the employee.
Specific feedback
Implies that a performance measure should specifically tell employees what is expected from them and how they can meet those expectations.
Comparative approach
Indicates that the rater has to compare one individual’s performance with that of others.
Simple ranking
Manager rank employees from the highest to the lowest performer.
Alternation ranking
Is a variation of simple ranking
Crossing out best and worst employee, which end up in ranking.
Forced distribution method
Assigns certain percentage of employees to specific category in a set of categories. This way employees are ranked in groups.
Paired-comparison method
Comparing each employee with each other employee to establish ranking
Comparative performance measuring methods
Simple ranking
Forced distribution method
Paired-comparison method
Rating individuals
Rating attributes
Rating behaviours
Rating attributes
Graphic rating scale: lists traits and provides a discrete or continuous rating scale for each trait.
Mixed-standard scales: use several statements describing each trait to produce a final score for that trait.
Rating behaviours
Determines the behaviours that employees need to show in order to be effective in their jobs.
a) Critical-Incident methods
b) Behaviourally anchored rating scales
c) Behavioural observation scale
d) Organisational behaviour modification
Behaviorally anchored rating scales
Define performance dimensions specifically using statements of behaviour that describe different levels of performance
Behavioural observation scale
variation of BARS, which uses all behaviours necessary for effective performance to rate performance at a task.
Organizational behaviour modification
Plan for managing the behaviour of employees through a formal system of feedback and reinforcement.
Critical-Incident method
based on managers’ records of specific examples of when the employee acts in a way that are either ineffective or effective
OBM components
Define a set of key behaviours necessary for job performance
Use a measurement system to assess whether the employee exhibits the key behaviour
Inform employees of the key behaviours, perhaps in terms if goals for how often to exhibit the behaviours
Provide feedback and reinforcement based on employees’ behaviour
Most widely used measurement methods
Productivity
Management by objectives or the use of objectives
Management by objectives or the use of objectives
System in which people at each level of the organisation set goals in a process that flows from the top to the bottom.
Components of standards of evaluating employees
- Goals are specific, difficult and objective
- Managers and employees work together to set the goals
- The manager gives objective feedback throughout the rating period
Total quality management
Assesses both individual performance and the system within which the individual works
Feedback in the quality approach should be?
- Subjective feedback from managers, peers and customers about the employee’s personal qualities such as cooperation and initiative
- objective feedback based on the work process
Distribution error
Only one part of the scale is used
Leniency: rating everyone at the top
Strictness: rating everyone at the bottom
Central tendencies
Appraisal politics most likely to occur
Raters are accountable to the employee being rated
The goals of the rating are not compatible with one another
Performance appraisal is directly linked to highly desirable rewards
Top executives tolerate or ignore distorted ratings and spread them around
Calibration meetings
Meeting in which managers give performance ratings and provide evidence
Approaches in feedback sessions
Tell and sell –> tell and justify
Tell and listen –> tell and let employee explain
Problem solving–> work together to solve problem
