Module 7 Flashcards
Performance Management
Perfomance Management (PM)
The process of measuring employee performance.
When do we us PM in HR:
Compensation, promotions, training and development, performance improvement, and job re-design.
3 Factors of Employee Performance
- Ability
- Motivation
- Environment
Performance Appraials (PA)
PAs are meant to evaluate an employees job performance. The PA process is typically designed by HR and uniform across the organisation.
Ideally PA are:
Practical, Job-Related, and Use Dependable.
Ranking Methods
- Straight Ranking
- Alternation Ranking
- Paired Ranking
Straight Ranking
Employees are ranked relative to each other.
Alternation Ranking
Select best and worst employee first followed by next best, next worse and so on.
Paired Ranking
Each employee compared with each other employee in a group, and the employee with the most “wins” is best.
Rating Methods
- Standard Rating
- Behaviourally Anchored Rating Scales (BARS)
- Management by Objectives (MBO)
Standard Rating
Uses adjective anchors as absolute standards.
Behaviourally Anchored Rating Scale (BARS)
Anchors scales with specific behaviours.
Management by Objectives (MBO)
Requires setting specific goals and evaluate outcomes against goals.
(MBO is the most common form)
Errors in the Appraisal Process
Halo, Negative Halo, First Impression, Recency, Leniency, Strictness, Central Tendency, Similar-to-Me, Personal Prejudice, Spillover, and Contrast Errors.
Halo
Impressive performance in only one job function leads to overall favourable rating.
Negative Halo
Overall downgrading because of poor performance in one dimension.
First Impression
Opinion formed early in the review period influencing all later impressions/perceptions.
Recency
Performance at the end of the review period plays too large a roll.
Leniency
Consistently rating higher than deserved.
Strictness
Consistently rating lower than deserved.
Central Tendency
Avoid rating extremes.
Similar-to-Me
Individuals who are like the rater get better ratings.
Personal Prejudice
Giving lower ratings to individuals of certain groups.
Spillover
Continue to downgrade for low performance in previour periods.
Contrast Errors
Instead of comparing performance to an objective standard, performance is compared to that of another employee.
Errors in Observation
Rater influenced by general appearance.
Errors in Information Storage and Recall
Raters associate employees with certain traits, regardless of accuracy.
Errors in Actual Evaluation
Raters are influenced by context.
Performance Improvement Plans (PIPs)
Formal plans to improve employee performance.
