PERFORMANCE MANAGEMENT WEEK 9, 2019
PERFORMANCE MANAGEMENT
Performance Management – is the continuous process of
identifying, measuring, and developing the performance of
individuals and teams and aligning their performance with the
organization’s goals.
THE NATURE OF PERFORMANCE MANAGEMENT
MANAGERS ROLE IN PERFORMANCE MANAGEMENT
The right philosophy
Aim for continuous improvement
Drive out fear so that everyone may work effectively, etc.
On-the-job behaviors
Linking employees’ goals to the company’s goals
Giving employees continuous feedback
Providing required resources and coaching
Rewarding good performance, etc.
COMPONENTS OF A PERFORMANCE-FOCUSED CULTURE
PERFORMANCE APPRAISAL
Performance Appraisal – is the process of determining how well
employees do their jobs relative to a standard an communicating
that information to them.
BASICS OF PERFORMANCE APPRAISAL
The performance appraisal process steps
1. Sets work standards
2. Assesses performance
3. Provides feedback to the employee
WHY APPRAISE PERFORMANCE?
Five reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company goals
3. The manager can correct deficiencies and reinforce
strengths
4. With appraisals employee’s can review career plans
5. Training needs are identified
TYPICAL DIVISION OF HR RESPONSIBILITIES: PERFORMANCE APPRAISAL
WHO SHOULD CONDUCT THE APPRAISING?
1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by Subordinates
5. 360-Degree Feedback
IDENTIFYING AND MEASURING EMPLOYEE PERFORMANCE
TYPES OF
PERFORMANCE
INFORMATION
EXAMPLE PERFORMANCE STANDARDS FOR WAITERS
TECHNIQUES FOR APPRAISING PERFORMANCE
1. Graphic Rating Scale 6. Narrative Forms
2. Alternation Ranking 7. Behavior Anchored Rating
Scale (BARS)
3. Paired Comparison
8. Mixed Standards Scales
4. Forced Distribution
9. Management by Objectives
5. Critical Incident Method
(MBO)
CATEGORY SCALING METHODS
Graphic rating scale: Allows the rater to mark an
employee’s performance on a continuum indicating low to
high levels of a particular characteristic
CATEGORY SCALING METHODS
Aspects of Performance Measured
Descriptive Job Behavioral
Categories Duties Dimensions
CATEGORY SCALING METHODS
Behaviorally anchored rating scale (BARS): Describes specific
examples of job behavior which are then “anchored” or measured
against a scale of performance levels
Creating a BARS system
Identify important job dimensions
Write short statements of job behaviors (anchors)
Assign anchors to job dimensions
Set scales for anchors
BEHAVIORALLY ANCHORED RATING SCALE FOR CUSTOMER SERVICE SKILLS
COMPARATIVE METHODS
Ranking: Listing of employees from highest to
lowest in performance levels and relative
contributions
Drawbacks
Does not indicate size of differences in performance between employees
Implies that lowest-ranked employees are unsatisfactory performers
Becomes an unwieldy process if the group to be ranked is large
COMPARATIVE METHODS
Forced distribution: Ratings of employees’ performance levels are
distributed along a bell-shaped curve
FORCED DISTRIBUTION
Advantages Disadvantages
• Helps deal with “rater inflation” • Managers resist placing people in the
• Makes managers identify high, lowest or highest groups
average, and low performers • Explanation for placement can be
• Ensures that compensation increases difficult
reflect performance differences • Performance may not follow normal
among individuals distribution
• Managers may make false distinctions
between employees
FORCED DISTRIBUTION ON A BELL-SHAPED CURVE
NARRATIVE METHODS
Critical incident: Manager keeps a written record of highly
favorable and unfavorable employee actions
NARRATIVE METHODS
Essay: Manager writes a short essay describing an
employee’s performance
Drawback
Depends on the supervisors’ writing skills and their ability to express
themselves
MANAGEMENT BY OBJECTIVES (MBO)
Management by objectives (MBO): Performance appraisal
method that highlights the performance goals that an
individual and manager identify together
STAGES IN THE MBO PROCESS
1. Job review and
agreement
2. Development of
performance standards
3. Setting of objectives
4. Continuing performance
discussions
TRAINING MANAGERS AND EMPLOYEES IN PERFORMANCE APPRAISAL
TYPES OF RATER ERRORS
Varying Standards
Recency and Primacy Effects
Central Tendency, Leniency, and Strictness
Rater Bias
Halo and Horns Effects
Contrast Error
Similar-to-Me/Different-from-Me Errors
Sampling Error
EFFECTIVE PERFORMANCE MANAGEMENT
High, average, low
performance is clear
Effective in
Beneficial as a
documenting
development tool
performance Effective
Performance
Management
System
Viewed as fair by Useful as an
employees administrative tool
Is legal and job
related
ELECTRONIC PERFORMANCE MONITORING
HOW TO HANDLE A DEFENSIVE SUBORDINATE
Recognize behavior
Never Attack defenses
Postpone Action
Recognize Limitations
EMPLOYEE ENGAGEMENT BY APPRAISING
Employees should understand how they and their departments contribute to the
company’s success
Meaningful job (that one’s role in the organization is worthwhile and valuable)
“Psychological safety” (that it’s safe to bring oneself to a role without fear of
damage to self-image, status, or career)
Efficacy drives engagement
Managers should be honest, but don’t unnecessarily emphasize the negatives
Involvement in decision making and letting employees voice their opinions
Make sure that employees view the appraisal and the rewards or remedial
actions as fair
THANK YOU
