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  • Three broad purposes include: Strategic purposes: helps the organization achieve its business objectives Administrative purposes: the ways in which the organization uses the system to provide information for day-to-day decisions about salary, benefits, and recognition programs Developmental purposes: serves as a basis for developing employees’ knowledge and skills
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  • Performance

    1. 1. Performance
    2. 2. Outline <ul><li>Performance </li></ul><ul><ul><li>Task </li></ul></ul><ul><ul><li>OCB </li></ul></ul><ul><ul><li>Counterproductive </li></ul></ul><ul><li>Performance Management </li></ul><ul><ul><li>Purposes </li></ul></ul><ul><ul><li>Measurement </li></ul></ul><ul><ul><li>Problems and Errors </li></ul></ul><ul><ul><li>Providing Feedback </li></ul></ul>
    3. 3. Performance
    4. 4. Discussion Question <ul><li>How do we typically define job performance? </li></ul><ul><li>How do we typically measure it? </li></ul>
    5. 5. Class Model
    6. 6. A Multi-Dimensional Approach to Performance Job Performance Task Performance OCB Counterproductive Behavior
    7. 7. Measures of Job Performance <ul><li>Objective Measures </li></ul><ul><ul><li>Specific, measurable indicators of performance </li></ul></ul><ul><ul><li>Examples: Value of sales, delivery rating, number of defects, customer service rating, wins & losses </li></ul></ul><ul><li>Subjective Measures </li></ul><ul><ul><li>Indications of performance based on supervisor or peer perceptions </li></ul></ul><ul><ul><li>Examples: Teamwork, communication, effort </li></ul></ul>
    8. 8. Task Performance <ul><li>Task performance includes employee behaviors that are directly involved in the transformation of organizational resources into the goods or services that the organization produces. </li></ul><ul><ul><li>Tasks, duties, and responsibilities that are a core part of the job </li></ul></ul><ul><ul><li>Set of explicit obligations that an employee must fulfill to receive compensation and continued employment </li></ul></ul>
    9. 9. Discussion Question <ul><li>What are some examples of task performance? </li></ul>
    10. 10. Organizational Citizenship Behavior (OCB) <ul><li>Organizational citizenship behavior is defined as voluntary employee activities that may or may not be rewarded but that contribute to the organization by improving the overall quality of the setting in which work takes place. </li></ul><ul><ul><li>Engaging in behaviors beyond one’s job description to help the organization. </li></ul></ul>
    11. 11. Discussion Question <ul><li>What would motivate an employee to engage in OCB? </li></ul>
    12. 12. Types of OCB <ul><li>Interpersonal </li></ul><ul><ul><li>Helping </li></ul></ul><ul><ul><li>Courtesy </li></ul></ul><ul><ul><li>Sportsmanship </li></ul></ul><ul><li>Organizational </li></ul><ul><ul><li>Voice </li></ul></ul><ul><ul><li>Civic virtue </li></ul></ul><ul><ul><li>Boosterism </li></ul></ul>
    13. 13. Discussion Questions <ul><li>What human resource management (HRM) practices encourage OCB? </li></ul><ul><li>What are some management difficulties (or pitfalls) associated with employee OCB? </li></ul>
    14. 14. Counterproductive Work Behavior <ul><li>Counterproductive work behavior is defined as employee behaviors that intentionally hinder organizational goal accomplishment </li></ul>
    15. 15. Quick Quiz <ul><li>What percentage of all employees engage in theft? </li></ul><ul><li>What percentage of employees admitted to cutting corners on quality control, covering up incidents, abusing or lying about sick days, lying or deceiving customers, cheating on expense accounts, any paying or accepting kickbacks? </li></ul>
    16. 16. Types of Counterproductive Work Behaviors Organizational Interpersonal Minor Serious <ul><li>Production Deviance </li></ul><ul><li>Wasting resources </li></ul><ul><li>Substance abuse </li></ul><ul><li>Property Deviance </li></ul><ul><li>Sabotage </li></ul><ul><li>Theft </li></ul><ul><li>Political Deviance </li></ul><ul><li>Gossiping </li></ul><ul><li>Incivility </li></ul><ul><li>Personal Aggression </li></ul><ul><li>Harassment </li></ul><ul><li>Abuse </li></ul>
    17. 17. Discussion Question <ul><li>What factors influence the display of counterproductive work behavior? </li></ul><ul><li>What are some of the costs to the organization? </li></ul>
    18. 18. Discussion Question <ul><li>Can you think of someone in sports with high task performance but low OCB and high counterproductive behavior? </li></ul><ul><ul><li>How about our friend TO… </li></ul></ul>
    19. 19. Terrell Owens <ul><li>Wide Receiver, Dallas Cowboys </li></ul><ul><li>5 consecutive seasons with 1000+ yards (SF, Philadelphia) </li></ul><ul><li>In 2004, led Eagles and league in 2004 with 14 TDs, 77 receptions, 1200 yards </li></ul><ul><li>Broke his leg; returned to make 9 receptions in Super Bowl </li></ul>
    20. 20. Terrell Owens <ul><li>2004 and early 2005: Inappropriate celebrations & pre-game promotions, whining, and public expression of threats and demands to management </li></ul><ul><li>Pre-season 2005 : Lobbied for new contract (one year after a 7-year, $49million contract was signed). </li></ul><ul><li>Early 2005 : In separate interviews… </li></ul><ul><ul><li>Said he would not have signed with Eagles </li></ul></ul><ul><ul><li>Wore rival Cowboys jersey </li></ul></ul><ul><ul><li>Complained about playing time (league leader in catches) </li></ul></ul><ul><ul><li>Said the team would be undefeated with a different QB </li></ul></ul><ul><ul><li>Criticized the class and integrity of management </li></ul></ul><ul><li>November 5, 2005 : Eagles suspend Owens for conduct detrimental to the team. </li></ul><ul><li>November 7, 2005 : Eagles announced that Owens will not return this season </li></ul>
    21. 21. Performance Management
    22. 22. Quick Comic
    23. 23. Quick Comic
    24. 24. Discussion Questions <ul><li>Have you received a performance appraisal at your job? </li></ul><ul><li>Did you feel good about the process? Why or why not? </li></ul>
    25. 25. Discussion Questions <ul><li>What is the ultimate goal of a performance appraisal? </li></ul><ul><li>What percentage of performance appraisals are effective? </li></ul>
    26. 26. Purposes of Performance Management <ul><li>Three purposes </li></ul><ul><ul><li>Developmental </li></ul></ul><ul><ul><li>Administrative </li></ul></ul><ul><ul><li>Strategic </li></ul></ul>
    27. 27. Developmental and Administrative
    28. 28. Discussion Question <ul><li>How could a performance management system be strategic ? </li></ul>
    29. 29. Measurement Methods <ul><li>Traits </li></ul><ul><li>Behaviors </li></ul><ul><li>Results </li></ul><ul><li>Disclaimer: We’ll go through this quickly! </li></ul>
    30. 30. Trait Methods <ul><li>Forced-choice method </li></ul><ul><ul><li>Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. </li></ul></ul><ul><li>Graphic-rating scale method </li></ul><ul><ul><li>A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics. </li></ul></ul><ul><li>Mixed-standard scale method </li></ul><ul><ul><li>An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard. </li></ul></ul><ul><li>Essay method </li></ul><ul><ul><li>Requires the rater to compose a statement describing employee behavior. </li></ul></ul>
    31. 31. Forced-Choice Distribution Scale
    32. 32. Graphic Rating Scale
    33. 33. Mixed-Standard Scale
    34. 34. Behavioral Methods <ul><li>Behaviorally anchored rating scale (BARS) </li></ul><ul><ul><li>A performance appraisal that consists of a series of vertical scales, one for each dimension of job performance. </li></ul></ul><ul><li>Behavior observation scale (BOS) </li></ul><ul><ul><li>A performance appraisal that measures the frequency of observed behavior. </li></ul></ul><ul><li>Critical incident </li></ul><ul><ul><li>An unusual event denoting superior or inferior employee performance in some part of the job. </li></ul></ul>
    35. 35. Behaviorally Anchored Rating Scale (BARS) FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
    36. 36. Behavior Observation Scale (BOS)
    37. 37. Results Methods <ul><li>Productivity </li></ul><ul><ul><li>How much do you get done? </li></ul></ul><ul><li>Management by objectives (MBO) </li></ul><ul><ul><li>A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. </li></ul></ul><ul><ul><li>Key MBO ideas </li></ul></ul><ul><ul><ul><li>Employee involvement creates higher levels of commitment and performance. </li></ul></ul></ul><ul><ul><ul><li>Encourages employees to work effectively toward achieving desired results. </li></ul></ul></ul><ul><ul><ul><li>Performance measures should be measurable and should define results. </li></ul></ul></ul>
    38. 38. Discussion Question <ul><li>Which of these three approaches would you like to be used in your own performance appraisal at work? </li></ul><ul><li>Which one do you think is most effective? </li></ul>
    39. 39. Summary of Appraisal Methods ADVANTAGES DISADVANTAGES TRAITS Inexpensive Meaningful Easy to use Potential for error Poor for counseling Poor for allocating rewards Poor for promotional decisions BEHAVIOR Specific dimensions Accepted by employees Useful for feedback OK for reward/promotion Time consuming Costly Some rating error RESULTS Less subjectivity bias Accepted by employees Performance-reward link Encourages goal setting Good for promotion decisions Time consuming Focus on short term
    40. 40. Introduction to Appraisal Problems <ul><li>Rate the following movies on a scale of 1 (poor) to 5 (outstanding) </li></ul><ul><ul><li>Karate Kid I </li></ul></ul><ul><ul><li>Back to the Future I </li></ul></ul><ul><ul><li>Ferris Bueller’s Day Off </li></ul></ul><ul><ul><li>Breakfast Club </li></ul></ul><ul><ul><li>Pretty in Pink </li></ul></ul>
    41. 41. Common Appraisal Problems <ul><li>Inadequate preparation on the part of the manager. </li></ul><ul><li>Employee is not given clear objectives at the beginning of performance period. </li></ul><ul><li>Manager may not be able to observe performance or have all the information. </li></ul><ul><li>Inconsistency in ratings among supervisors or other raters. </li></ul><ul><li>Performance standards may not be clear. </li></ul><ul><li>Rating personality rather than performance. </li></ul>
    42. 42. Common Appraisal Problems (Ctd.) <ul><li>Inappropriate time span (either too short or too long). </li></ul><ul><li>Overemphasis on uncharacteristic performance. </li></ul><ul><li>Subjective or vague language in written appraisals. </li></ul><ul><li>Organizational politics or personal relationships cloud judgments. </li></ul><ul><li>No thorough discussion of causes of performance problems. </li></ul><ul><li>Manager may not be trained at evaluation or giving feedback. </li></ul><ul><li>No follow-up and coaching after the evaluation. </li></ul>
    43. 43. Discussion Question <ul><li>Why are performance appraisals often high even when performance is not up to par? </li></ul>
    44. 44. Common Rating Errors <ul><li>Halo/horn </li></ul><ul><ul><li>Overly focusing on specific performance ratings or stereotyping employee by a single personal characteristic. </li></ul></ul><ul><li>Leniency </li></ul><ul><ul><li>Rating all employees higher than they should be. </li></ul></ul><ul><li>Strictness </li></ul><ul><ul><li>Rating all employees lower that they should be. </li></ul></ul><ul><li>Central tendency </li></ul><ul><ul><li>Rating all employees as average when individual employee performance actually varies. </li></ul></ul>
    45. 45. Common Rating Errors (Ctd.) <ul><li>Primacy </li></ul><ul><ul><li>Using initial information that supports the rating decision while ignoring later information does not. </li></ul></ul><ul><li>Recency </li></ul><ul><ul><li>Basing the rating decision primarily on the most recent performance information while placing much less emphasis on past performance. </li></ul></ul><ul><li>Contrast effects </li></ul><ul><ul><li>Comparing one employee to another rather than applying a common standard to all employees. </li></ul></ul>
    46. 46. Quick Comic
    47. 47. Oliver
    48. 48. Quick Comic
    49. 49. Quick Comic
    50. 50. Providing Feedback <ul><li>Issues to consider when providing feedback </li></ul><ul><ul><li>Differing perspectives </li></ul></ul><ul><ul><li>Timing </li></ul></ul><ul><ul><li>Preparation </li></ul></ul><ul><ul><li>Content of the discussion </li></ul></ul><ul><ul><li>Follow-up </li></ul></ul>
    51. 51. Discussion Questions <ul><li>Why is it so difficult to provide feedback? </li></ul><ul><li>How can you provide negative feedback that leads to motivation rather than withdrawal? </li></ul>
    52. 52. Providing Feedback (Ctd.) <ul><li>Differing perspectives </li></ul><ul><ul><li>Combining evaluative and developmental goals </li></ul></ul><ul><ul><ul><li>Need to be candid and protect employee’s self-esteem </li></ul></ul></ul><ul><li>Self-serving employee attributions that interfere with performance improvement </li></ul><ul><ul><li>Discounting role of external forces in good performance </li></ul></ul><ul><ul><li>Over-emphasizing external effects in poor performance </li></ul></ul>
    53. 53. Providing Feedback (Ctd.) <ul><li>Timing </li></ul><ul><ul><li>Providing immediate feedback is most useful </li></ul></ul><ul><ul><li>Giving only as much information as the receiver can use </li></ul></ul><ul><li>Preparation </li></ul><ul><ul><li>Scheduling feedback sessions in advance </li></ul></ul><ul><ul><li>Clarifying purpose and content of meeting </li></ul></ul><ul><ul><li>Giving both participants time to prepare </li></ul></ul>
    54. 54. Providing Feedback (Ctd.) <ul><li>Content of the discussion: The problem-solving approach </li></ul><ul><ul><li>Diagnosis: Seek to understand the factors that affect performance. </li></ul></ul><ul><ul><li>Roadblocks: Seek agreement with the employee on an action plan to address issues such as: </li></ul></ul><ul><ul><ul><li>Lack of resources </li></ul></ul></ul><ul><ul><ul><li>Need for additional information and training </li></ul></ul></ul><ul><ul><ul><li>Improving ongoing communications and feedback </li></ul></ul></ul><ul><ul><li>Mutual goal setting: Employee participation increases employee acceptance of goals. </li></ul></ul>
    55. 55. Follow-Up to the Feedback Session <ul><li>Positive reinforcement </li></ul><ul><ul><li>Use of positive rewards to increase occurrence of desired performance </li></ul></ul><ul><ul><ul><li>People perform in ways that they find most rewarding </li></ul></ul></ul><ul><ul><ul><li>By providing proper rewards, it is possible to improve performance </li></ul></ul></ul><ul><li>Punishment </li></ul><ul><ul><li>Decreases frequency of undesired behavior </li></ul></ul><ul><ul><li>Gets immediate results and has vicarious power </li></ul></ul><ul><ul><li>Can have undesirable side effects —employee anger and contingent bad behavior </li></ul></ul>
    56. 56. Take-Home Points <ul><li>Performance is multi-dimensional </li></ul><ul><li>Appraising performance is difficult and if biases are not eliminated feedback can actually hurt performance </li></ul>