Performance Management
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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