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Unit VI - Performance Management (Students Version)

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Unit VI - Performance Management (Students Version)

Uploaded by

Karlene Roberts
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Human Resource

Management
Unit VI – Performance Management
Performance Appraisal

Performance Appraisal – the process of


establishing written standards of performance
criteria and both telling employees about those
standards and frequently informing them how
they are performing in relation to the standards.”

2
Performance Management
Performance management – involves all the
foregoing processes under performance appraisal
that will help the employee perform as effectively
as possible. This includes defining
responsibilities, setting expectations, providing
the necessary resources, giving ongoing feedback,
periodically appraising performance, and utilizing
the resulting information.
Managing Human Resources in the 21st Century
Performance Management

• Performance management: the process


through which managers ensure that
employees’ activities and outputs contribute to
the organization’s goals.
• This process requires:
– Knowing what activities and outputs are desired
– Observing whether they occur
– Providing feedback to help employees meet
expectations
performance appraisal is only one aspect of
performance management. Performance appraisal
looks back and asks the question “How well as
the work done”

Performance management asks a future oriented


questions: “What can be done to help employees
perform as effectively as possible?
Performance Appraisal vs
Performance Management
Performance appraisal Performance management
Operational Strategic
Top-down assessment More likely to involve dialog
Retrospective for corrections Future-oriented for growth
Ongoing or continuous review, interspersed with
Typically once or twice per year
formal reviews
Often uses ratings or rankings Less likely to involve ratings
Rigid structure/system Flexible process
Not linked to business needs Linked to business needs
Combines quantitative and qualitative
Usually takes a quantitative approach
approaches
Individual Collective
Often linked to compensation Not usually linked to compensation
Often very bureaucratic with a focus on
Less concerned with documentation
paperwork/documents
Usually housed in HR department Conducted by managers and supervisors
Differences and Alignment
Performance appraisal show two (2) things:
employee performance
accountability
Performance appraisals also help in career
development and evaluate the success of
recruitment, selection, orientation, training, etc.
Purposes of Performance
Management
1. Strategic Purpose

2. Administrative Purpose

3. Developmental
Major Goals of Performance
Management
1. Improve Employee Performance
2. Develop People for Promotional Opportunities
3. Meet Employees’ Need for Feedback
4. Ensure that Employees are Working Toward
Organizational Goals.
5. Provide the information needed to make and defend
important human resources decisions
Benefits of Performance Management to
the Manager
Benefits of Performance Management
to the Employee
Benefits of Performance Management
to the Organization
Roles (Supervisor and HR
Department):
Supervisor
Supervisor conducts the actual performance appraisal
(Appraising too high or too low does a disservice to
the employee, the supervisor and the organization)
Supervisor must be familiar with basic appraisal
techniques, understand and avoid problems that can
cripple appraisals
Supervisor must know how to conduct appraisals
fairly.
Performance Appraisal Process
1. Setting the performance standards.
2. Communicating the performance standard to
employees.
3. Measuring the actual performance.
4. Comparing the actual with the standard
performance.
5. Providing feedback to employees on their
performance.
6. Initiating corrective actions (if necessary).
Stages of the Performance
Management Process
Giving Performance Feedback

• Scheduling Performance Feedback


– Performance feedback should be a regular, expected
management activity.
– Annual feedback is not enough.
– Employees should receive feedback so often that they
know what the manager will say during their annual
performance review.
• Preparing for a Feedback Session
– Managers should be prepared for each formal feedback
session.
• When giving
performance feedback,
do it in an appropriate
meeting place.
• Meet in a setting that
is neutral and free of
distractions.
• What other factors are
important for a
feedback session?
Giving Performance Feedback

• Conducting the Feedback Session


– During the feedback session, managers can take any of
three approaches:
1.“Tell-and-Sell” – managers tell employees their ratings
and then justify those ratings.
2.“Tell-and-Listen” – managers tell employees their ratings
and then let the employees explain their side of the story.
3.“Problem-Solving” – managers and employees work
together to solve performance problems.
Political Behavior in Performance
Appraisals
• Distorting a performance evaluation to advance
one’s personal goals
• A technique to minimize appraisal politics is a
calibration meeting:
– Meeting at which managers discuss employee
performance ratings and provide evidence
supporting their ratings with the goal of eliminating
the influence of rating errors
Uses/Outcome of Performance
Management Information
making decisions

identify and solve problems

development
Approaches/Methods to
Measuring Performance
Comparative Approach

Attribute Approach

Behavioural Approach

Results Approach
Methods for Measuring
Performance

Comparative

Quality Attribute

METHOD

Results Behavior
Approaches/Methods to Measuring
Performance
Comparative Approach
ranking
force-distribution
paired comparison
Attribute Approach
Graphic Rating Scales (Discrete Point Scales)
Mixed Standard Scales (Trait-oriented scales)
Behavioural Approach
Critical Incidents
Behaviourally Anchored Rating Scales (BARS)
Organizational Behaviour Modification
Assessment Centers

Results Approach
Management by Objectives
Productivity Measurement and Evaluation Systems
Basic Approaches to
Performance Measurement
Example of a Graphic Rating Scale
Example of a
Mixed-
Standard Scale
Example of
Task- BARS
Rating
Dimension for
a Patrol
Officer
Measuring Performance:
Measuring Results
• Management by Objectives (MBO): people at
each level of the organization set goals in a
process that flows from top to bottom, so that
all levels are contributing to the organization’s
overall goals.
• These goals become the standards for
evaluating each employee’s performance.
Management by Objectives –
Two Objectives for a Bank
Sources for Performance
Information
Managers

Peers

Subordinates

Self

Customers
Common Rating Errors
Common biases that affect the rating process:
Personal Biases (sexual, racism, personality conflict)
Halo
Horns
Recency
Leniency/Severity
Central tendency
Similarity
Stereotypes
Contrast effect
selective perception
Types of Performance Measurement
Rating Errors
• Contrast errors: the rater compares an
individual, not against an objective standard,
but against other employees.
• Distributional errors: the rater tends to use
only one part of a rating scale.
– Leniency: the reviewer rates everyone near the top
– Strictness: the rater favors lower rankings
– Central tendency: the rater puts everyone near the
middle of the scale
Types of Performance Measurement
Rating Errors (continued)
• Rater bias: raters often let their opinion of one
quality color their opinion of others.
– Halo error: when the bias is in a favorable direction. This
can mistakenly tell employees they don’t need to improve
in any area.
– Horns error: when the bias involves negative ratings.
This can cause employees to feel frustrated and
defensive.
Common Performance
Management Problems
Lack of standards
Irrelevant or subjective standards
Unrealistic standards
Poor measures of performance
Rater errors (as listed earlier)
Poor feedback to employees
Negative communications
Failure to apply evaluation data.
Variables Contributing to
Supervisor’s Failure
Length of time in position
Little job experience
Low level of trust between supervisor/employee
Failure by Supervisor to initiate structure for employee
Little confidence in appraisal system by employee
Failure to document critical incidents during the period
Key to providing Performance Feedback

Document employee performance


Solicit employee input
Focus on behaviours
be timely and specific
Direct your feedback only to aspect of the performance
situation that the employee can change
Inform workers of any deficiencies
Develop an action plan and follow up
Review yourself
Legal and Ethical Issues in
Performance Management
• Legal
– Performance management processes are often
scrutinized in cases of discrimination or dismissal.
• Ethical
– Employee monitoring via electronic devices and
computers may raise concerns over employee
privacy.
Legal Requirements for
Performance Management
• Lawsuits related to performance management
usually involve charges of:
– Discrimination
– Unjust dismissal
• To protect against both kinds of lawsuits, it is
important to have a legally defensible
performance management system.
Legal Requirements for
Performance Management (continued)
• A legally defensible performance management
system includes:
– Based on valid job analyses, with requirements for job
success clearly communicated to employees.
– Performance measurement should evaluate behaviors or
results, rather than traits.
– Multiple raters (including self-appraisals) should be used.
– All performance ratings should be reviewed by upper-level
managers.
– There should be an appeals mechanism for employees.

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