HRM Chapter 8

Performance Management
(1) Identify the major determinants of individual performance (2) Discuss the three general purposes of performance management (3) Identify the five criteria for effective performance-management systems (4)Discuss the four approaches to performance management, the specific techniques used in each approach, and the way these approaches compare with the criteria for effective performance management systems. (4)Choose the most effective approach to performance measurement for a given situation (5)Discuss the advantages and disadvantages of the different sources of performance information (6)choose the most effective source(s) for performance information for any situation (7)Distinguish types of rating errors and explain how to minimize each in a performance evaluation (8)Identify the characteristics of a performance measurement system that follows legal quidelines (9)Conduct an effective perofrmance feedback session
Performance Management
the process through which managers ensure that employee activities and outputs are congruent with the organization’s goals
Performance Appraisal
the process through which an organization gets information on how well an employee is doing his or her job
Performance Feedback
the process of providing employees information regarding their performance effectiveness
Performance Measures Criteria/ Five Performance criteia stand out:
Strategic congruence, Validity, Reliability, Acceptability, Specificity
The Comparative Approach
RANKING – Simple ranking ranks from highest to lowest performer. (b)Alternation ranking -crossing best and worst employees. FORCED DISTRIBUTION – Employees are ranked in groups PAIRED COMPARISON – Managers compare every employee with rvrty other employee in the work group
The Attribute Approach
Graphic Rating Scales – A list of traits evaluated by a five-point rating scale. Legally questionable. MIXED-STANDARD SCALES – Define relevant performance dimensions and then develop statements representing good , average, and poor performance along each dimension
Behavior Approach
CRITICAL INCIDENTS APPROACH-requires managers to keep recored of specific examples of effective and ineffective performance BEHAVIORALLY ANCHORED RATING SCALES (BARS) BAHAVIORIAL OBSERVATION SCALES (BOS) ORGANIZATIONAL BEHAVIOR MODIFICATION – a formal system of behavioral feebdback and reinforcement ASSESSMENT CENTERS- multiple taters evaluate employees’ performance on a number of exercises
Results Approach–Management by Objestives
top management passes down company’s strategic goals to next layer of management, and these managers define the goals they must achieve
Sources of Performance Information
Supervisors, Peers, Subordinates, Self, Customers
Rater Errors in Performance Measuremet
Similar to me, Contrast, Distributional errors, Halo and Horns
Reducing Errors and Appraisal Politics
TWO APPROACHES TO REDUCING RATER ERROR: Rater error training (b) Rater accuracy training. APPRAISAL POLITICS – a situation in which evalustors purposefully distort ratings to achieve personal or company goals.
Improving Performance Feedback
Feedback should b given everyday, not once a year (b) Create the Right Context for Discussion (c)Ask employees to rate their performance before the session (d) Encourage the subordinate to participate in the session (e) Recognize effective performance through praise (e)Focus on solving problems (f)Focus feedback on behavior or results, not on the person (g)minimize criticism (h) Agree to specific goals and set a date to review progress
Managing Performance of Marginal Performers
SOLID PERFORMERS-High ability and motivation;managers should provide development opportunities MISDIRECTED EFFORT- Lack of ability but high motivation;managers should focus on training UNDERUTILIZERS – High ability but lack motivation;managers should focus on interpersonal abilities DEADWOOD- Low ability and motivation; managerial action, outplacement, demotion, firing