Identify the major determinants of individual performance.
Discuss the three general purposes of performance
Identify the five criteria for effective performance-management
Discuss the four approaches to performance management, the
specific techniques used in each approach, and the way these
approaches compare with the criteria for effective performance-
Choose the most effective approach to performance
measurement for a given situation.
Discuss the advantages and disadvantages of the different
sources of performance information.
Choose the most effective source(s) for performance
information for any situation.
Distinguish types of rating errors and explain how to minimize
each in a performance evaluation.
Understand the performance appraisal process
Conduct an effective performance feedback session.
Identify the characteristics of a performance measurement
system that follows legal guidelines.
PERFORMANCE APPRAISAL VS
Performance appraisal -- setting standards,
informing employees, ratings and feedback.
Performance management -- “all of those processes
led by managers to help employees perform as
effectively as they can.”
GOALS OF PERFORMANCE
Improve employee performance
Develop people for promotional opportunities
Meet employee need for feedback
Ensure that employees are working toward organizational
Provide the data needed to make and defend important
human resources decisions
3 PARTS OF PERFORMANCE SYSTEM
Performance Measures Criteria
All approaches and techniques used for measuring and
managing performance must be evaluated against the
criteria of :
- Strategic Congruence
The extent to which the performance management
system elicits its job
performance that is congruent with the
organisation’s strategy, goals and culture.
The extent to which the performance measure
assesses all the relevant – and only the relevant
aspects of performance.
Validity is concerned with maximizing the overlap
between actual job performance and the measure of
Performance measure is deficient if it does not
measure all aspects of performance
A contaminated measure evaluates irrelevant
aspects of performance that are not job related
Contamination and Deficiency of a Job
Actual, or true
Contamination Validity Deficiency
The extent to which the performance is consistent;
the degree to which a performance measure is free
from random error
The extent to which a performance measure
is deemed to be satisfactory or adequate by
those who use
Categories of Perceived Fairness & Implications for Performance
Fairness Importance for
Category Performance Mgmt System Implications
Procedural Development Give mgrs & employees opportunity to
Fairness participate in developing system.
Ensure consistent standards when
evaluating different employees.
Minimize rating errors & bias
Interpersonal Use Give timely& complete feedback. Allow
Fairness employees to challenge the evaluation.
Provide feedback in an atmosphere of
respect and courtesy.
Outcome Fairness Outcomes Communicate expectations regarding
performance evaluations & standards.
Communicate expectations regarding
The extent to which the performance measure gives detailed
guidance to employees about what is expected of them and
how they can meet these expectations.
APPROACHES TO MEASURING
What is a performance measure? A
generic term encompassing the
quantitative basis by which objectives are
established and performance is assessed
These include performance objectives
and criteria, performance standards and
other means that evaluate the success in
achieving a specified goal.
Uses of Performance Measures
Aim is to manage performance by focusing on
employee attributes, behaviors, or results.
Measure performance in a relative way, making
overall comparisons among individual’s
Approaches to Measuring Performance
Types of Rating Scales
Comparative Attribute Behavioral
Compares individual’s Focuses on extent to which Defines behaviors employee
performance with that of individuals have certain must exhibit to be effective
others attributes in the job
Focuses on managing the Focuses on customer
objective, measurable orientation and prevention
results of a job of errors
Simple Ranking - rank employees from best to
Alternation Ranking- subjective elimination of
worst employees based on best employee
Overall process considered to be subjective.
Also requires a ranking format.ranking done in
Manger groups employees into predetermined
categories, employees are categorized based on
distribution rules, not on their performance.
Also considered to be subjective
3. Paired Comparison
Managers compare employee with each other in
work group/units. Each employee is given a score
of 1 for each high activity.
Manager computes and compares the number of
times score is favorable. Sum of points is employee
Evaluating the Comparative Approach to
Can be an effective tool in differentiating employee
performance, eliminates some rater errors (leniency,
Disadvantage is failure to link with strategic goals of the
Subjective, therefore validity and reliability is dependent on
Feed back mechanisms excluded.
Low acceptance by employees- normative rather than
absolute standards used.
Advantages of the Attribute Approach
Easy to Develop
Identifies and defines attributes relevant to
Can be reliable & valid
Disadvantages of the Attribute Approach
•Little congruence between techniques
and company strategy
•Used widely because its easy to use
•Performance standards vague-
•No feedback mechanisms
Defines behaviors an employee must exhibit
to be effective in the job
There are 5 techniques used in this approach
Log is kept for recording observable behavior
demonstrated by an employee that is both effective
Log is used to provide feedback to employees and
is used as an aid in goal/ objective setting
Scales - (BOS)
Variation of BARS , using critical incidents
BOS useful in differentiating good from poor
performers, objectivity, providing feedback,
BOS is easy to use, but does require more
Behaviorally Anchored Rating Scales
Expansion of the critical incidents approach and is
used to develop behavioral anchors that define
different levels of performance.
Can increase interrater reliability by providing
precise and complete definition of the
performance, however behavioral anchors can bias
Four actions in using BARS
1. Define key behaviors
2. Use a measurement system to assess
3. Inform employee of behaviors to be
4. Provide feedback and reinforcement to
Organizational Behavior Modification
Managing behavior through a system of feedback
Uses the behaviorist approach which indicates that
future behavior is influenced by past behaviour that
has been positively reinforced
Normally used in selection /promotion , but also
for measuring performance
Simulations are carried out, multiple raters
evaluate employee performance
Provide an objective measure of an employee’s job
Allows for specific feedback & individual
Advantages of the Behavioral Approach
Can be effective
Provides for strategic congruence
Provides specific guidance & feedback for
employees about performance expected of them
Behaviors measured are valid
Acceptability usually high
Raters performance is usually high
Disadvantages of the Behavioral Approach
Behaviors need to be constantly monitored and
revised to ensure strategic congruence.
Approach assumes that there is only one way to do
the job and that behaviors are identifiable
Behavioral systems are” person based outcomes ”
employees do not have complete control over these
outcomes- may be regarded as contaminated, rather
“systems factors” should be used to evaluate
performance. Outcomes can result in dysfunctional
Suggests that: performance feedback should given to
employees using both objective and subjective
Employees should not be categorized for performance
Relies on combination of attribute & results for
measurement of performance
The Results Approach
Focuses on managing the objective, measurable
results of a job or workgroup
Management team defines organisation strategy.
Goals are cascaded
Requires specific, difficult objectives
Success of system dependent on
They effectively link employees’ performance with
organization's strategic goals.
What is MBO?
A goal directed and results oriented approach to
performance appraisal in which employees and
their managers/supervisors set goals together for
the upcoming evaluation period and for and
explicit time period
Common components of the MBO
They require specific objective goals
Goals are set with managers’ and employees’
Managers provide objective feedback
throughout the rating period to monitor progress
What is an Objective
Conditions that will exist when the desired
outcome has been established
A time frame during which the outcome is to be
Resources that the organisation is willing to
GOOD OBJECTIVES ARE
A Aligned with organizational/unit goals
R Realistic and results-oriented
What is a Standard?
Standards are established criteria used by an
organisation to objectively measure the
performance of employees.
Standards refer to ongoing performance criterion
that must be met consistently.
A well written performance standard
Clearly Defined Performance Standards
These standards are congruent with the
organisation’s strategy, goals and objectives
They must also satisfy the following criteria:
Refers to the consistency of the
performance standards and
Validity refers to the extent to which the
performance standards measure all/only the
relevant aspects of performance.
A performance standard is contaminated whenever
it measures irrelevant aspects of performance.
A performance standard is deficient if it does not
measure all aspects of performance.
Performance standards are used to minimise:
Aims to motivate employees to higher levels of
Has measurement and feedback mechanisms.
It is effective, in increasing productivity
4 Steps in the ProMES Process
1. Employees identify the
products/activities/objectives to be
accomplished by organisation.
2. Staff defines indicators of the product
3. Staff establishes the contingencies between
the quantity of the indicator and level of
evaluation associated with the amount
4. Feedback system is developed
Advantages of the Results Approach
Minimises subjectivity, objective and quantifiable
indicators of performance are used.
Links individual performance to organisation's
strategy & goals.
Disadvantages of the Results Approach
Measures can be contaminated and deficient
Employees tend to focus on measurable
aspects of performance- neglecting others
Feedback may not help employees improve-
feedback needs to focus on actual behavior
that needs to be changed
Recommendations for designing an
Effective Performance System
1. Aim for Precision in defining and measuring
2. Link Performance dimensions to meeting
internal and external customer requirements.
3. Measure and correct for the impact of situational
CURRENT ISSUES IN PERFORMANCE
The focus on ratings and rewards
Too much for one rater to appraise
The system is too top down
Team-based work systems
Total Quality Management
Increased employee involvement
Less focus on ratings and rewards
Multi-rater systems (i.e., 360 degree feedback, peer
IMPLEMENTATION ISSUES AND
Involvement of users in development
Implementation in one unit
OBSTACLES TO SUCCESSFUL
Lack of commitment from the top
Overselling the program
A program excessive in paperwork and
Failing to train and retrain appraisers
Changing the system
Failing to monitor the program and deal with non-
THE APPRAISAL PROCESS
PERFORMANCE APPRAISAL VS PERFORMANCE
Performance management -- “all of those processes
led by managers to help employees perform as
effectively as they can.”
Performance appraisal -- process involving setting
standards, informing employees, assigning ratings
and giving feedback.
Appraisal is designed as a means of
monitoring the progress and
achievement of the organisation ,to
encourage and support the continuing
development of the organisation in a
Objective of Performance Appraisal
Performance Appraisal is the systematic evaluation
of an individual’s job performance which seeks to
measure his/her performance in relation to the
achievement of an organization’s strategy.
Effective Characteristics for Managing
Know your organisation’s performance cycle
Demonstrate effective communication skills
Be able to explore causes of performance problems
Ability to develop action plans and empower employee to
Be objective and focus attention towards the problem
Be able to provide feedback
Purposes of Performance Appraisals
Monitor progress & Identify training &
achievements of development needs
organizations Link strategic goals with
Identify employees current employees’ activities
levels of performance Organizational
Encourage & motivate development
employees Provide for succession
Reward employees planning
Benefits To the Organization
Identification of skills to enhance organization’s
Employees are motivated
Proactive identification of training and
Provides a competitive advantage by managing
behavior and results of employees.
Benefits To The Manager
Builds the relationship with the
Enhance employee’s motivation
effectiveness against strategic
Identify training &
Builds a rational basis for
Provides documentation for legal
Benefits To The Employee
Fairness of system measurement enhances/effects outcomes
Recognition and rewards for contributions to the
Enables employee to improve performance
Provides for feedback
Enhances communication between employee and manager
Acts as a motivator to improve performance
Challenges Associated With Performance Appraisals
Managers are uncomfortable providing feedback
Culture of the organization/organizational politics
Process can be subjective rather than objective if not
Rater Errors can cause bias in appraising actual
Whether to focus on individual or team performance
Challenges Associated With Performance Appraisals-
May have limited contact with subordinate
May be poor at giving feedback.
Viewed as wasted paperwork
Fear the emotions that can be unleashed and fear
being unable to defend the ratings.
Don’t like giving negative feedback, fear reaction
Preparing for Performance Review
Scheduletime and place for appraisal
Compare performance to standards
Review previous performance appraisals
Interview dominated by Managers
Interview shared between
manager and subordinate
Manager tells Manager tells& Sells Manager tells & Listen Manager Shares
problems & solutions
Recognize the ones you have.
Share expectations with the appraisee.
Keep a “log” of events during the year.
Give regular feedback (no surprises!).
Review your draft appraisal with someone.
Remind yourself of your biases before every performance
The Appraiser’s Role
Review purpose of the interview
Be direct and specific
Start out with the positives
Don’t get personal
Encourage mutual communication
Don’t “skirt” performance issues
Pay attention to your non- verbals
Handling Defensive Employees
Recognise that defensive behavior s normal
Never attack a person’s defensives
Recognise your own limitations
Appraisal of Teams
Types of teams:
Work or service Teams
Challenges of Team Performance
How do we assess relative individual contribution?
How do we balance individual and team performance?
How do we identify individual and team measures of
3Types of Team Performance
1. Individual performance
2. Individual performance that
contributes to team performance
3. Team performance
Factors to consider for effective
measurement of Teams
Key Success Factors- Competencies
2. Decision Making
1. Goals to be reached
2. Performance standards
Appraisal of Teams
Using Four dimensions for measurement of team
3. Learning and Growth
4. Team Member Satisfaction
Characteristics of an Effective
What is Coaching?
A directive process by a
manager/supervisor to train and orient an
employee to the realities of the workplace
and to help the employee remove barriers to
optimum work performance.
Benefits of Coaching
Builds your reputation as a people developer
Increases productivity when employees know what
the goals are and how to achieve them
Positive recognition and feedback increases employee
motivation and initiative
Avoids surprises and defensiveness in performance
Increases creativity and innovation of unit as
employees feel safe to take risks
Increases team cohesiveness due to clarified goals
Feedback should be given
Encourage employee to
rate his/her performance
Create the right context for
Encourage employee to
participate in discussion
Coaching For Improved Performance
Critical Discussion Steps
Set informal tone
Clarify discussion purpose
Discuss relationship between observations & objectives
Ask for and discuss solutions
Mutually agree on necessary actions
Express confidence in employee and set next review
Coaching For Improved Performance -
Focus on solving
Focus feedback on
behavior or results,not
Coaching For Improved Performance-
Review organizational and unit goals and individual
Identify duties,objectives, and projects.
Describe performance measures and standards.
Identify performance factors.
Develop a monitoring plan
Agree to specific goals
Set progress review dates.