Performance Management Chapter 7

Performance Management is________.
The process encompassing all activities related to improving employee performance, productivity, and effectiveness. It includes goal setting, pay for performance, training and development, career management, and disciplinary action
Performance Management Process
1. Defining performance expectations and goals
Includes Task Performance, Contextual performance and Legal considerations
Task Performance
Direct contribution to job related processes
Contextual Performance
Indirect contribution to the organization’s social responsibility values
Legal Considerations
Correlate performance expectation to job activities
2. Provide ongoing feedback and coaching
Includes Performance improvement plan (PIP)
3. Conducting performance appraisal and evaluation
graphic rating scale
alternation ranking
paired comparison
forced distribution
critical incident
narrative forms
behaviourally anchored rating scales (BARS)
management by objectives (MBO)
Graphic Rating Scale
is a list of a number of traits and a range of performance for each and the employee is given a rating that best describes the level of performance for each trait
Alternation Ranking Method
ranking employees from best to worst on a trait
Forced Distribution Method
predetermined percentages of ratees in performance categories and has been criticized as being demotivating, since the majority of the workforce are classified as at or below average.
Behaviourally Anchored Rating Scales (BARS)
An appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.

-a more accurate measure
-clearer standards
-assists in providing feedback
-independent dimensions


Paired Comparison Method
for each trait, list all possible pairs of employees
for each pair, indicate “+” for the higher ranked employee, “-” for the lower ranked
rank employees by trait based on number of “+” scores
Use of Technology in Performance Appraisals
enables managers to automate record keeping and report writing
provides overall performance management process
provides employees with clear development path
advanced reporting capabilities
electronic performance monitoring (EPM)
Critical Incident Method
Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behaviour and reviewing the list with the employee at predetermined times.
4. Determine Performance Rewards/Consequences
provide performance awards: merit pay, extra pay
important aspects used to determine the appropriate reward/consequence:
achievement of goals
how the employee meets the defined standards
Management by Objectives (MBO)
Step 1: Set the organization’s goals
Step 2: Set departmental goals
Step 3: Discuss departmental goals
Step 4: Define expected results (individual goals)
Step 5: Performance reviews: measure results
Step 6: Provide feedback
360 Degree Appraisal Advice
have performance criteria developed by people__________
familiar with the job
5. Career Development
manager and employee discuss opportunities for development
based on current job requirements or future development
business needs must be balanced with the employee’s preferences
be ______about who will have access to reports
provide _________ for all participants
__________360-degree system for fine-tuning
How to Conduct the Interview in these steps
Be direct and specific, Do not get personal, Encourage the person to talk, Develop an action plan
Be direct and specific means _______.
use objective work data
Don’t get personal means ________.
compare against standards
Encourage the person to talk means _______.
use open-ended questions, listen
Develop an action plan means _________.
agree on future steps