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Chapter 20 Performance Management
<ul><li>Explain the importance of performance feedback </li></ul><ul><li>Describe the process of performance appraisal </l...
<ul><li>Describe 360-degree feedback </li></ul><ul><li>Explain the opposition to appraisal systems </li></ul><ul><li>Disti...
Performance Management System - Defined <ul><li>A performance management system is a  </li></ul><ul><li>process of establi...
The Balanced Scorecard <ul><li>Customer perspective  – How do customers see the organization? </li></ul><ul><li>Internal b...
Basics of Performance Management <ul><li>Develop rigorous systems that differentiate between three groups of employees </l...
Function Of Performance Feedback <ul><li>Contributes to self-concept </li></ul><ul><li>Reduces uncertainty about whether e...
Manager’s Role? <ul><li>Not a judge, but a coach </li></ul><ul><li>Not “gotcha” but “How can I help you do better and achi...
Basic Objectives of Performance Appraisal Systems <ul><li>Provide employees with feedback </li></ul><ul><li>Provide manage...
The Appraisal Process <ul><li>Review legal requirements </li></ul><ul><li>Translate organizational goals into job descript...
Bias and Appraisals <ul><li>Incorrect attributions can bias appraisals </li></ul><ul><li>Potential for bias is reduced whe...
Does Performance Appraisal Work? <ul><li>Feedback generally improves performance, but it can also diminish performance </l...
For Team Appraisals <ul><li>Determine KSAs required for team’s task and process-oriented skills </li></ul><ul><li>Identify...
Multirater/Multisource Feedback - Defined <ul><li>Multirater or multisource feedback, such as  </li></ul><ul><li>360-degre...
360-Degree Multirater Feedback Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin...
For Effective 360-Feedback   <ul><li>Ratees are held accountable for using the feedback </li></ul><ul><li>Raters are held ...
Eliminate Performance Appraisal <ul><li>Deming’s criticisms of appraisals: </li></ul><ul><li>Usually lack objectivity </li...
Forced Distribution Systems - Defined <ul><li>In forced distribution or forced ranking  </li></ul><ul><li>systems, manager...
Results of Forced Distribution Systems <ul><li>Employee skepticism </li></ul><ul><li>Lower morale  </li></ul><ul><li>Less ...
Develop Strengths, Not Weaknesses <ul><li>Focusing on Flaws   </li></ul><ul><li>Evokes negative memories/emotions </li></u...
<ul><li>Ineffective </li></ul><ul><ul><li>Evaluative </li></ul></ul><ul><ul><li>General </li></ul></ul><ul><ul><li>Directe...
Steps in the Interview Process <ul><li>Explain the format and purpose </li></ul><ul><ul><li>Discover employee opinions reg...
...Steps in the Interview Process  <ul><li>Respond to employee self-appraisal and convey feedback </li></ul><ul><li>Ask ab...
When Does Culture Matter in Performance Appraisal? <ul><li>Different cultures have different perceptions </li></ul><ul><li...
Culture and Performance Appraisal <ul><li>Harmony and face-saving </li></ul><ul><ul><li>In Eastern cultures, negative feed...
… Culture and Performance Appraisal <ul><li>Uncertainty avoidance </li></ul><ul><ul><li>In cultures characterized by high ...
… Culture and Performance Appraisal <ul><li>Individualistic Cultures  </li></ul><ul><li>emphasize </li></ul><ul><li>Indivi...
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Performance Management

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Transcript of "Performance Management"

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