Week 8 Flashcards
Performance Management
activities/meeting to improve employee performance, productivity, effectiveness
Performance management activities (4)
goal setting, training and development, career management, disciplinary action
3 Major Purposes of Performance Management
- Align employee actions with strategic goals
- culture change
- development and compensation
Performance Management Process. (5)
- Define Performance Expectations
- feedback and coaching
- performance appraisal and evaluation discussion
- Determine performance rewards/consequences
- Conduct development and career opportunity discussion
- Define Performance Expectations
employees understand how work contributes to business results
Task Performance
Direct contribution to job-related processes
Contextual Performance (3)
- indirect contribution to organizations social responsibility values
- positive attitude & take initiative
- go beyond job description
- Provide Ongoing Coaching and Feedback - managers
managers communicate change strategies and objectives
- Provide Ongoing Coaching and Feedback - Employees
employees monitor own performance and ask for help
- Conduct Performance Appraisal and Evaluate Discussion: Performance as… (2)
1.Effort/Behaviour
2. Results
Performance as Effort/Behavior (4)
Fits____jobs
Monitoring ____ ________
____ective
behaviour monitoring?
Fits many jobs
monitoring costs high
subjective
bad behaviour curbed
Performance as Results (4)
Fits jobs with ____
Monitoring ____ ________
____ective
behaviour monitoring?
Fits jobs with output
Monitoring costs low
objective
behaviour hard to control
Formal Appraisal Method - Graphic Rating Scale (2)
- simple and most popular
- traits vs performance scale rating
Formal Appraisal Method - Alternation Ranking Scale process
On characteristic measured:
First, choose highest and lowest
then,
choose next highest and next lowest
then,
alternate between high and low until all employee rated have been ranked
Formal Appraisal Method - Paired Comparison Method process (3)
- each trait list all possible pairs of employees
- each pair +: higher ranked, - : lower ranked
- rank by + scores
Formal Appraisal Method -Forced Distribution Model
Predetermine percentages of rates placed in various performance categories
GE’s Bell Curve distribution:
1. Top 10-20 percent
2. Bottom 10 Percent
3. Remaining 70-80%
- exceed expectations, highest compensation, advancement
- not meeting expectations, focus on coaching, improvement vs termination
- Backbone of workforce, moderate compensation, development
Forced Distribution Advantage and Disadvantage
- Advantage: effort and resource for top performers, motivative employees for bonuses or pay
- disadvantage: demotivating when large portion of workforce is at or below average
Formal Appraisal Method: Critical Incident Method
record of good or undesirable employee work behaviour -> correct deficiencies
Critical Incident Method Examples (3)
C D
T
C I
Continuing Duties: schedule production for plant
Targets: Full utilization of employees and machinery in plant, orders delivered on time
Critical Incidents: Instituted new production schedule system
Formal Appraisal Method: Narrative Forms
performance improvement plan - detailed written analysis
Formal Appraisal Method: Behavioural Anchored Rating Scales (BARS) (3)
anchor quantified scale with examples of good/poor performance
BARS aims to combine benefits of (3)
narratives, critical incidents and qualified ratings
BARS advantage (4) acfc
accurate, clear, feedback, consistency
BARS Disadvantage
time consuming to develop
Formal Appraisal Method: Management By Objectives
set SMART goals with each employee, periodically review progress
Steps of MBO: (6)
- set organization goals
- set departmental goals
- discuss departmental goals
- define expected results
- performance review
- feedback
MBO Advantages
employees engaged and committed -> higher rate of sucess
MBO Disadvantages and what does MBO stand for
unclear, unmeasurable objectives
time-consuming
Slide 40 of week 9
all formal appraisals
Performance Appraisal Problems: Employees (2)
employees know their raises, career programs
employees overly optimistic w/ ratings
Performance Appraisal Problems: structural problems cast doubt on (3)
- fairness of performance appraisal
- clarity of performance standards
- Halo Effect: rate on one trait
Common rating scale problems: Central tendency
rate all employees toward average
Common rating scale problems: Leniency or strictness
rate all employees either high or low
Recency Effect
rate employee based on most recent performance
appraisal systems must be based on performance criteria that are ____ for the position being rated and must be _____ in that their application must produce consistence rating for same performance
valid, reliable
criteria for PAP (3)
relevant to job appraised
broad enough: cover aspects of job requirement
specific
PAP Solutions and calibration
reduce error in performance appraisal
managers meet to discuss performance of individual
who does appraising: (6) more info on slide 51-53
supervisor, self, peers, committees, subordinates, 360-degree appraisal
360- degree appraisal advice (3-4)
- performance criteria developed by people with experience
- clear about who will have access to reports
- training for all participants
- confidentiality and evaluation
Formal Appraisal discussions: Supervisor and employee (3)
review appraisal, plan to correct deficiencies, reinforce strengths
Satisfactory Interview promotable:
development plans
satisfactory Interview not promotable:
maintain performance
unsatisfactory Interview correctable
action plan to correct performance
How to handle criticism and defensive employees (4)
- defensive behaviour is normal
- never attack person defences
- postpone action
- recognize human limitations
Step 4. Determine Performance Rewards/ Consequences
- determine appropriate reward/ consequence (2)
merit pay, benefits
determine appropriate reward/ consequence: achievement of goals, how employee meets defined standards
Step 5: Career development discussion
2. based on…..
3. business needs balanced with..
- manager and employee discuss opportunities for development
- based on current job requirements or future development
- business needs balanced with employee preference
Legal and Ethical Issues of Performance (3-5)
train supervisors, more than one rater, formal appeal mechanism, document evaluations and reason for termination, guidelines for lower performers.
