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Performance Management

This lecture discusses performance management and performance appraisal. It defines performance management as a systematic approach to improving individual and team performance to increase organizational effectiveness. The purposes of performance appraisals are listed as informational, motivational, developmental, and administrative. Methods of measuring performance discussed include relative vs absolute judgments and focusing on traits, behaviors, or outcomes. Advantages and disadvantages of each method are provided.

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Muhammad Shoaib
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129 views

Performance Management

This lecture discusses performance management and performance appraisal. It defines performance management as a systematic approach to improving individual and team performance to increase organizational effectiveness. The purposes of performance appraisals are listed as informational, motivational, developmental, and administrative. Methods of measuring performance discussed include relative vs absolute judgments and focusing on traits, behaviors, or outcomes. Advantages and disadvantages of each method are provided.

Uploaded by

Muhammad Shoaib
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Human Resources Management Course

Karachi University Business School

Lecture #8, Performance Management


By: Aamir Baig

February 28, 2009 1 By Aamir Baig


Performance Management
Performance management is defined as a
systematic approach to improving and developing
the performance of individuals and teams, in-order
to increase overall organization’s effectiveness and
achieve its objectives.

It involves the identification, measurement and


management of human performance in
organizations.

February 28, 2009 2 By Aamir Baig


Purposes of Performance Appraisals

• Informational
• Motivational
• Developmental
• Administrative

February 28, 2009 3 By Aamir Baig


Identifying Performance Dimensions

• Goals/Objectives
• Traits
• Behaviors (exhibits certain traits including
values)
• Competencies
• Results/Outcomes/Key performance
indicators

February 28, 2009 4 By Aamir Baig


Measurement Tools
The formats for measuring performance can be
classified in two ways:
1. Relative and Absolute Judgments;
whether the type of judgment being called for is
relative or absolute.

2. Trait, Behavioral and Outcome Data; The


performance measurement system can also
be classified by the type of performance data
on which they focus: trait data, behavioral
data, or outcome data.

February 28, 2009 5 By Aamir Baig


Relative and Absolute Judgment
Relative Judgment
An appraisal format that asks supervisors to compare an
employee’s performance to the performance of other
employees doing the same job.
Advantages of Relative Judgment Scales
It forces managers to differentiate among employees, otherwise
they may be reluctant to do so.

Disadvantages of Relative Judgment Scales


• Doesn’t make it clear, how big or small the differences between
the employees are?
• Doesn’t provide any absolute information, so the managers
cannot determine, how good or bad the employees at the extreme
ratings are?
• It forces, managers to identify differences among workers, where
none may truly exist. It could cause conflicts among
employees/between employee and manager.

February 28, 2009 6 By Aamir Baig


Relative and Absolute Judgment
Absolute Judgment
An appraisal format that asks supervisors to make
judgments about an employee’s performance based
solely on performance standards.

Advantages of Absolute Judgment Scales


• Theoretically, absolute formats allow employees from different
groups to be compared. The feedback to employees performance
can be more specific and helpful.

• It avoids creating conflicts among employees/between employee


and manager.

Disadvantages of Absolute Judgment Scales


•Raters errors can distort the ratings of employees, if one
supervisor is a strict rater, while another is a lenient rater. All
employees can receive same ratings.
February 28, 2009 7 By Aamir Baig
Trait, Behavioral and Outcome Data
Trait Appraisal Instrument; An appraisal tool that asks
a manager to make judgments about an employee
characteristics that tends to be consistent and enduring.

• Trait based scales are easy to develop and use.


• Trait ratings are considered too ambiguous and
subjective.
• Focus is on the person, not on the performance.

February 28, 2009 8 By Aamir Baig


Trait, Behavioral and Outcome Data
Behavioral Appraisal Instrument; An appraisal tool
that asks a Manager to assess an employees
behaviors.

Advantages
Performance Standards are concrete, behaviors across the range of
dimensions are included in the behavioral scale like Behavioral Anchored
Rating Scale (BARS).
It provide employees specific examples what type of behavior to engage.
Managers/Supervisors should be involved in developing behavioral scales.

Disadvantages
Time consuming and difficult to prepare.
Many managers feel that it is unnatural way to assessing employees.

February 28, 2009 9 By Aamir Baig


Trait, Behavioral and Outcome
Data
Outcome Appraisal Instrument; An appraisal tool to
assess the actual results/outcome achieved by
employees.

Advantages
More objective, a clear and unambiguous criteria by which an
employees performance can be evaluated.
More flexible, targets can be adjusted due to any organizational
changes.

Disadvantages
Can give distorted view of employee’s performance.
Achieving the targets/results at any cost mentality.

February 28, 2009 10 By Aamir Baig

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