Performance Management
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    Performance Management Performance Management Presentation Transcript

    • Chapter 20 Performance Management
      • Explain the importance of performance feedback
      • Describe the process of performance appraisal
      • Identify the components of effective appraisals
      • Demonstrate the skills required for a good appraisal
      Objectives Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -1
      • Describe 360-degree feedback
      • Explain the opposition to appraisal systems
      • Distinguish between effective and ineffective feedback
      … Objectives Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -2
    • Performance Management System - Defined
      • A performance management system is a
      • process of establishing performance
      • standards and evaluating performance to
      • ensure that goals are being effectively
      • accomplished
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -3
    • The Balanced Scorecard
      • Customer perspective – How do customers see the organization?
      • Internal business perspective – What must the organization excel at in order to succeed?
      • Innovation and learning perspective – How can the organization continue to improve and create value?
      • Financial perspective – How does the organization look to shareholders?
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -4
    • Basics of Performance Management
      • Develop rigorous systems that differentiate between three groups of employees
      • Create conditions that foster goal accomplishment
      • Establish a culture of accountability
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -5
    • Function Of Performance Feedback
      • Contributes to self-concept
      • Reduces uncertainty about whether employee is on track
      • Signals which organizational goals are most important
      • Helps people master their environment and feel competent
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -6
    • Manager’s Role?
      • Not a judge, but a coach
      • Not “gotcha” but “How can I help you do better and achieve your goals?”
      • Managers’ attitude toward appraisal and their skill in appraising and giving feedback are crucial
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -7
    • Basic Objectives of Performance Appraisal Systems
      • Provide employees with feedback
      • Provide management with data for personnel decisions
      • Recognize skill acquisition and identify skill deficits for further training and development
      • Motivate employees to be more effective
      • Comply with equal opportunity regulations and ensure fairness
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -8
    • The Appraisal Process
      • Review legal requirements
      • Translate organizational goals into job descriptions
      • Set clear job expectations
      • Provide job training or coaching to meet expectations
      • Supply adequate supervision
      • Acknowledge accomplishments, diagnose strengths and weaknesses in interview
      • Establish performance goals and development plan
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -9
    • Bias and Appraisals
      • Incorrect attributions can bias appraisals
      • Potential for bias is reduced when:
        • Employees make their work visible to the appraiser
        • Appraisers and appraisees together clarify objectives and task responsibilities
        • Appraisers use behaviorally-based appraisal scales
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -10
    • Does Performance Appraisal Work?
      • Feedback generally improves performance, but it can also diminish performance
      • Appraisals used for developmental rather than administrative reasons (e.g., promotions, bonuses) are more likely to produce positive reactions
      Meta-analysis results Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -11
    • For Team Appraisals
      • Determine KSAs required for team’s task and process-oriented skills
      • Identify who should be involved in the appraisal
      • Use both individual and team performance measures
      • Address social loafing
      • Ensure peers are trained in performance appraisal
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -12
    • Multirater/Multisource Feedback - Defined
      • Multirater or multisource feedback, such as
      • 360-degree feedback, incorporates
      • feedback from various sources, such as:
      • superiors, peers, subordinates, suppliers,
      • and customers
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -13
    • 360-Degree Multirater Feedback Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -14 Employee Manufacturers’ & Customers’ ratings Suppliers’ ratings Employee’s self-rating Superiors’ ratings Other Team Members’ Ratings Subordinates’ ratings
    • For Effective 360-Feedback
      • Ratees are held accountable for using the feedback
      • Raters are held accountable for the accuracy or usefulness of their feedback
      • Management provides resources to support the ratee’s behavioral change
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -15
    • Eliminate Performance Appraisal
      • Deming’s criticisms of appraisals:
      • Usually lack objectivity
      • Ignore factors outside the employee’s control
      • Encourage individual rather than team focus
      • Promote short-sightedness and short-term focus
      • Encourage employee to see boss as their “customer” rather than the real customer, which can result in fear, rivalry, and politics
      • The TQM solution : recognize outstanding
      • performers and coach poor performers; teams
      • continuously gather data on own performance
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -16
    • Forced Distribution Systems - Defined
      • In forced distribution or forced ranking
      • systems, managers have to rank all
      • employees and fit them into a pre-determined
      • distribution with only a certain percentage of
      • employees allowed in each category
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -17
    • Results of Forced Distribution Systems
      • Employee skepticism
      • Lower morale
      • Less collaboration
      • Lower productivity
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -18
    • Develop Strengths, Not Weaknesses
      • Focusing on Flaws
      • Evokes negative memories/emotions
      • Creates self-doubt
      • Lowers motivation, energy, productivity and self-assurance
      • Focusing on
      • Strengths is more
      • productive
      • Discover each employee’s unique strengths
      • Capitalize on them
      • Work around their weaknesses
      Marcus Buckingham Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -19
      • Ineffective
        • Evaluative
        • General
        • Directed at personality traits
        • Imposed
        • Delayed
        • Prescribes ways to improve
        • Intended to punish
        • Occurs when giver is ready
      Effective Vs. Ineffective Feedback
      • Effective
        • Descriptive
        • Specific, data-based
        • Directed at controllable behaviors
        • Solicited
        • Immediate
        • Suggests ways to improve
        • Intended to help
        • Occurs when receiver is ready to listen
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -20
    • Steps in the Interview Process
      • Explain the format and purpose
        • Discover employee opinions regarding performance and career goals
        • Provide supervisor’s appraisal
        • Problem solve about performance if necessary
        • Plan for next period
      • Employee presents self-appraisal
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -21
    • ...Steps in the Interview Process
      • Respond to employee self-appraisal and convey feedback
      • Ask about conditions or problems that hinder performance
      • Problem solve about what both could do to improve employee performance
      • Together set objectives and design plan for next period
      • Discuss long-term career goals and development needs
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -22
    • When Does Culture Matter in Performance Appraisal?
      • Different cultures have different perceptions
      • about the purpose of performance appraisal
      • and how it should be carried out
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -23
    • Culture and Performance Appraisal
      • Harmony and face-saving
        • In Eastern cultures, negative feedback is likely to be interpreted as a loss of face and public humiliation
      • Power distance
        • In low power-distance cultures, employees are more willing to question superiors
        • In high power-distance cultures, employees are more fearful of disagreeing with their boss
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -24
    • … Culture and Performance Appraisal
      • Uncertainty avoidance
        • In cultures characterized by high uncertainty avoidance, appraisal systems are more formalized with more detailed regulations and procedures
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -25
    • … Culture and Performance Appraisal
      • Individualistic Cultures
      • emphasize
      • Individual achievement
      • Individual incentive schemes
      • Formal appraisal processes with feedback on performance
      • Merit-based hiring and promotion
      • Collectivist Cultures
      • emphasize
      • Group achievement
      • Group incentive schemes
      • Informal appraisals
      • Hire and fire based on loyalty and seniority
      Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 20 -26