Performance Management

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Performance Management
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Performance Management Linkage
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Performance Management versus Performance
Appraisal
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Components of a Performance-Focused Culture
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Identifying and Measuring Employee Performance

• Quantity of output
• Quality of output
• Timeliness of output
• Presence
• Citizenship
• Team member

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Identifying and Measuring Employee Performance

• Job Duties
• Important elements in a job as identified from
  job descriptions.
• What an employer pays an employee to do.

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Types of Performance Information
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Relevance of Performance Criteria

• Factors
• Deficient measures
• Contaminated measures
• Overemphasized measures

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Example ACTFL Performance Standards for Speaking
Proficiency
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Performance Metrics in Service Businesses
Performance that is measured can be managed.
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Conflicting Uses for Performance Appraisal
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Decisions About the Performance Appraisal Process

1. Appraisal responsibilities
2. Informal vs. systematic processes
3. Timing of appraisals
4. Source(s) of performance information

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Legal Concerns and Performance Appraisals
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Typical Division of HR Responsibilities
Performance Appraisal
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Performance Information Sources

1. Supervisor ratings
2. Team member/peer evaluation
3. Subordinate evaluation
4. Self-appraisal
5. Customer feedback
6. 360 Degree

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Employee Rating of Managers
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Team/Peer Rating
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Performance Management Linkage
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Category Scaling Methods

• Graphic Rating Scale
• Allows the rater to indicate an employees
  performance on a continuum of job behaviors.

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Sample Performance Appraisal Form
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Graphic Rating Scales

• Disadvantages
• Restrictions on the range and type of rater
  responses
• Differences in rater interpretations of scale
  item meanings and scale ranges
• Rating form deficiencies limit effectiveness of
  the appraisal
• Poorly designed scales that encourage rater
  errors

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Sample Terms for Defining Anchors
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More Scaling Methods

• Behaviorally Anchored Rating Scale (BARS)
• Composed of job dimensions (specific descriptions
  of important job behaviors) that anchor
  performance levels on the scale.
• Developing a BARS
• Identify important job dimensions
• Write short statements of job behaviors
• Assign statements (anchors) to job dimensions
• Set scales for anchors

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Behaviorally-Anchored Rating Scale Example for
Customer Service Skills
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Comparative Methods

• Ranking
• Listing employees from highest to lowest
• Disadvantages
• Doesnt reflect size of differences between
  employees
• Implies that lowest-ranked employees are
  unsatisfactory performers.
• Laborious if the group to be ranked is large.
• Paired comparisons

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More Comparative Methods

• Forced Distribution
• Employee performance ratings distributed along
  bell-shaped curve.

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Forced Distribution on a Bell-Shaped Curve
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Narrative Methods

• Critical Incident
• Manager keeps written record of highly favorable
  and unfavorable employee perf.
• Disadvantages
• Variations in how managers define critical
  incident
• Time consuming and limited opportunity to observe
• Most employee actions are not observed and may
  change if observed

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Narrative Methods

• Essay
• Manager writes essay describing an employees
  performance.
• Disadvantages
• Depends on the managers writing skills and their
  ability to express themselves.
• Time consuming
• May lack opportunities to observe perf.

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Management by Objectives (MBO)

• Management by Objectives
• Performance goals that an individual and his/her
  manager agree the employee will to try to attain
  within appropriate length of time.
• Key MBO Ideas
• Employee involvement creates higher levels of
  commitment and performance.
• Employees encouraged to work effectively toward
  goals.
• Perf. measures should be measurable and should
  define results.

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The MBO Process
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MBO Process

1. Job Review and agreement
2. Development of performance standards
3. Setting of objectives
4. Continuing performance discussions

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Preparing Managers to Deliver Performance
Information

1. Procedure and timing
2. Performance criteria
3. Rating errors
4. Delivering feedback
5. Compensation decisions
6. Training needs assessment

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Common Rater Errors
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Hints for Delivering an Effective Performance
Appraisal
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Strategic Performance Management System

• Consistent with org strategic mission
• Documents performance
• Perceived as fair
• Legal and job-related
• Developmental toolleads to performance
  improvement, promotion, etc.