Performance Management




       MSHRD UWI -2006
Performance Management


Identify  the major determinants of individual performance.
Discuss the three general purposes ...
Performance Management


Choose   the most effective approach to performance
measurement for a given situation.
Discuss ...
Performance Management


Understand   the performance appraisal process
Conduct an effective performance feedback sessio...
Introduction
Performance   management is the process through
 which managers ensure that employee activities
 and outputs...
PERFORMANCE APPRAISAL VS
   PERFORMANCE MANAGEMENT
Performance appraisal -- setting standards,
 informing employees, rati...
GOALS OF PERFORMANCE
          MANAGEMENT
 Improve  employee performance
 Develop people for promotional opportunities

...
3 PARTS OF PERFORMANCE SYSTEM


  DEFINING   PERFORMANCE

  MEASURING   PERFORMANCE

  FEEDBACKINFORMATION OF
   PERFOR...
An Organizational Model of
               Performance Management
                                Organizational
          ...
Purposes of Performance
                    Management


                           Strategic
          Administrative    ...
Performance Measures Criteria
Five performance criteria stand out:
                                    Strategic congruenc...
Performance Measures Criteria

All approaches and techniques used for measuring and
 managing performance must be evaluate...
STRATEGIC CONGRUENCE

DEFINITION:
The extent to which the performance management
system elicits its job
 performance that ...
VALIDITY

DEFINITION:
The extent to which the performance measure
assesses all the relevant – and only the relevant
aspect...
Validity continued
Validity is concerned with maximizing the overlap
 between actual job performance and the measure of
 ...
Contamination and Deficiency of a Job
      Performance Measure



        Job
                             Actual, or tru...
RELIABILITY
 DEFINITION:
The extent to which the performance is consistent;
the degree to which a performance measure is f...
3 TYPES OF RELIABILITY
INTERRATER    RELIABILITY

INTERNAL  CONSISTENCY
 RELIABILITY

TEST-RETEST   RELIABILITY
ACCEPTABILITY


DEFINITION:
 The extent to which a performance measure
is deemed to be satisfactory or adequate by
those w...
Categories of Perceived Fairness & Implications for Performance
                          Management Systems
Fairness     ...
SPECIFICITY

DEFINITION:
The extent to which the performance measure gives detailed
guidance to employees about what is ex...
APPROACHES TO MEASURING
        PERFORMANCE
What   is a performance measure? A
 generic term encompassing the
 quantitati...
Uses of Performance Measures
Aim  is to manage performance by focusing on
 employee attributes, behaviors, or results.
M...
Approaches to Measuring
             Performance
Comparative

Attribute

Behavioral

Results Approach
Quality Approach
Approaches to Measuring Performance
                  Types of Rating Scales

Comparative                Attribute        ...
The Comparative Approach
Ranking
       Simple ranking ranks from highest to lowest performer.
       Alternation ranki...
1. Ranking
Simple    Ranking - rank employees from best to
 worse.
Alternation Ranking- subjective elimination of
 worst...
2.Forced distribution

Also  requires a ranking format.ranking done in
 groups.
Manger groups employees into predetermin...
3. Paired Comparison
Managers   compare employee with each other in
 work group/units. Each employee is given a score
 of...
Evaluating the Comparative Approach to
             Measuring Performance
 Can  be an effective tool in differentiating e...
The Attribute Approach
Graphic            rating scales
      A  list of traits is evaluated by a five-
        point ra...
Advantages of the Attribute Approach


 Stillpopular
 Easy to Develop

 Generalize

 Identifies and defines attributes...
Disadvantages of the Attribute Approach

•Little congruence between techniques
and company strategy
•Used widely because i...
Behavioral Approach

Defines  behaviors an employee must exhibit
 to be effective in the job

There   are 5 techniques u...
Behavioral Approach
    Criticalincidents approach - requires managers to keep
     record of specific examples of effect...
Critical Incidents

Log  is kept for recording observable behavior
 demonstrated by an employee that is both effective
 a...
Behavioral Observation
          Scales - (BOS)
Variation of BARS , using critical incidents
BOS useful in differentiati...
Behaviorally Anchored Rating Scales
                     (BARS)
Expansion   of the critical incidents approach and is
 us...
Four actions in using BARS
1.   Define key behaviors
2.   Use a measurement system to assess
     behaviors
3.   Inform em...
Organizational Behavior Modification
                           (OBM)

Managing   behavior through a system of feedback
 ...
Assessment Centers

Normally  used in selection /promotion , but also
 for measuring performance
Simulations are carried...
Advantages of the Behavioral Approach
Can be effective
Provides for strategic congruence
Provides specific guidance & f...
Disadvantages of the Behavioral Approach
Weaknesses:
Behaviors need to be constantly monitored and
 revised to ensure str...
Arguments
:
 Behavioral systems are” person based outcomes ”
  employees do not have complete control over these
  outcom...
Results Approach
Management           by objectives                                                   Goals
       top  ...
The Results Approach
 Focuses  on managing the objective, measurable
  results of a job or workgroup
 Management team de...
What is MBO?

A goal directed and results oriented approach to
 performance appraisal in which employees and
 their manag...
Common components of the MBO
           System
They  require specific objective goals
Goals are set with managers’ and e...
What is an Objective
Objectives describe:
Conditions that will exist when the desired
 outcome has been established
A ti...
GOOD OBJECTIVES ARE
           “SMART”
S   Specific
M   Measurable
A   Aligned with organizational/unit goals
R   Real...
What is a Standard?

  Standards are established criteria used by an
    organisation to objectively measure the
         ...
Performance Standards

A well written performance standard
is:
   1.Clearly Defined
   2. Reliable
   3.Valid
Clearly Defined Performance Standards

These standards are congruent with the
 organisation’s strategy, goals and objecti...
Reliability

Refers to the consistency of the
 performance standards and
 measures
Validity
Validity refers to the extent to which the
 performance standards measure all/only the
 relevant aspects of perf...
Performance Standards
Performance standards are used to minimise:
  Prejudices

  Rating Errors

  Personal biases
Productivity Measurement
           Systems(ProMES)
Aims    to motivate employees to higher levels of
 production
Has me...
4 Steps in the ProMES Process

1.   Employees identify the
     products/activities/objectives to be
     accomplished by ...
Advantages of the Results Approach
Minimises   subjectivity, objective and quantifiable
 indicators of performance are us...
Disadvantages of the Results Approach

Weaknesses:
Measures can be contaminated and deficient

Employees tend to focus o...
Quality Approach
A performance management system designed with a
 strong quality orientation can be expected to:
       E...
Quality Approach (cont.)
Statistical  process quality control
    techniques used:
       Process-flow  analysis
      ...
Recommendations for designing an
       Effective Performance System
1.    Aim for Precision in defining and measuring
   ...
CURRENT ISSUES IN PERFORMANCE
        MANAGEMENT
The focus on ratings and rewards
Too much for one rater to appraise

T...
PERFORMANCE MANAGEMENT
          INNOVATIONS
Increased employee involvement
Less focus on ratings and rewards

Multi-ra...
IMPLEMENTATION ISSUES AND
        STRATEGIES
Involvement  of users in development
Pilot programs

Implementation in one...
OBSTACLES TO SUCCESSFUL
         IMPLEMENTATION
Lack  of commitment from the top
Overselling the program

A program exc...
PERFORMANCE APPRAISAL


  THE APPRAISAL PROCESS
PERFORMANCE APPRAISAL VS PERFORMANCE
             MANAGEMENT

 Performance   management -- “all of those processes
  led ...
Why Appraise?

 Appraisal is designed as a means of
    monitoring the progress and
 achievement of the organisation ,to
e...
Objective of Performance Appraisal



Performance Appraisal is the systematic evaluation
of an individual’s job performanc...
Effective Characteristics for Managing
                Performance
 Know your organisation’s performance cycle
 Demonstr...
Sources for Performance
                         Information
                                 Supervisors




            ...
Rater Errors in Performance
                    Measurement
       Similar to me
       Contrast
       Distributional ...
Following Legal Guidelines
Conduct  a valid job analysis related to
 performance.
Base system on specific behaviors or r...
Reducing Errors and Appraisal
                    Politics
Two            Approaches to reducing rater error:
       Rat...
Purposes of Performance Appraisals

 Monitor  progress &           Identify training &
  achievements of                ...
Benefits To the Organization

Identification   of skills to enhance organization’s
 performance
Employees are motivated
...
Benefits To The Manager
 Builds the relationship with the
  employee
 Enhance employee’s motivation
 Evaluate employee’...
Benefits To The Employee


 Fairness of system measurement enhances/effects outcomes
 Recognition and rewards for contri...
Challenges Associated With Performance Appraisals

   Managers  are uncomfortable providing feedback
   Culture of the o...
Challenges Associated With Performance Appraisals-
                     continued

 Managers/Supervisor:

  Often resist
...
Preparing for Performance Review
 Scheduletime and place for appraisal
 Assemble data

 Compare performance to standard...
Choosing a Performance Review Approach

Tell & Sell
Tell & Listen

Problem Solving
Appraisal Styles


        Interview dominated by Managers




                                           Interview shared...
OVERCOMING BIASES
 Recognize  the ones you have.
 Share expectations with the appraisee.

 Keep a “log” of events durin...
The Appraiser’s Role
Be Ready
Establish trust

Empower

Find Out

Listen

Negotiating

Agreeing
Conducting Appraisal
 Review  purpose of the interview
 Be direct and specific

 Start out with the positives

 Don’t ...
Handling Defensive Employees


Recognise  that defensive behavior s normal
Never attack a person’s defensives

Postpone...
Appraisal of Teams
Types of teams:
 Work   or service Teams

 Project   Teams

 Network    Teams
Challenges of Team Performance
                 Management
 How   do we assess relative individual contribution?

 How  ...
3Types of Team Performance
1.   Individual performance

2.   Individual performance that
     contributes to team performa...
Factors to consider for effective
          measurement of Teams
Key Success Factors- Competencies
 1.   Communication
 2....
Appraisal of Teams
Using Four dimensions for measurement of team
   performance:
1. Effectiveness

2. Efficiency

3. Learn...
Performance Feedback



Characteristics of an Effective
     Feedback Process
What is Coaching?

 A directive process by a
 manager/supervisor to train and orient an
 employee to the realities of the ...
Benefits of Coaching
 Builds your reputation as a people developer
 Increases productivity when employees know what
  th...
Improving Performance Feedback
 Feedback  should be given every day, not once a year.
 Create the Right Context for Disc...
Characteristics Shared by Effective Supervisors

They   explore causes    They empower
                           worker...
Managing Performance of Marginal
           Performers
 Solid         performers
       High  ability and motivation; ma...
The Process
 Feedback   should be given
   Frequently
 Encourage employee to
  rate his/her performance
 Create the rig...
Coaching For Improved Performance

              Critical Discussion Steps
   Set informal tone
   Clarify discussion pu...
Coaching For Improved Performance -
                    continued
Recognise  effective
 performance
Focus on solving
 pr...
Coaching For Improved Performance-
                   continued
SETTING EXPECTATIONS
 Review organizational and unit goal...
Upcoming SlideShare
Loading in …5
×

Performance Management MSHRD UWI -2006

6,331 views
6,278 views

Published on

Published in: Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
6,331
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
290
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Performance Management MSHRD UWI -2006

  1. 1. Performance Management MSHRD UWI -2006
  2. 2. Performance Management Identify the major determinants of individual performance. Discuss the three general purposes of performance management. Identify the five criteria for effective performance-management systems. 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- management systems.
  3. 3. Performance Management 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.
  4. 4. Performance Management Understand the performance appraisal process Conduct an effective performance feedback session. Identify the characteristics of a performance measurement system that follows legal guidelines.
  5. 5. Introduction Performance management is the process through which managers ensure that employee activities and outputs are congruent with the organization's goals. Performance Appraisal is the process through which an organization gets information on how well an employee is doing his or her job. Performance Feedback is the process of providing employees information regarding their performance effectiveness. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  6. 6. PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT 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.”
  7. 7. GOALS OF PERFORMANCE MANAGEMENT  Improve employee performance  Develop people for promotional opportunities  Meet employee need for feedback  Ensure that employees are working toward organizational goals  Provide the data needed to make and defend important human resources decisions
  8. 8. 3 PARTS OF PERFORMANCE SYSTEM DEFINING PERFORMANCE MEASURING PERFORMANCE FEEDBACKINFORMATION OF PERFORMANCE
  9. 9. An Organizational Model of Performance Management Organizational Strategy Long and short term goals and values Individual Attributes Individual Objective (skills, abilities) Behaviors Results Situational Constraints Culture and economic conditions McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  10. 10. Purposes of Performance Management Strategic Administrative Developmental McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  11. 11. Performance Measures Criteria Five performance criteria stand out: Strategic congruence Specificity Validity Acceptability Reliability McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  12. 12. Performance Measures Criteria All approaches and techniques used for measuring and managing performance must be evaluated against the criteria of : - Strategic Congruence - Validity -Reliability - Acceptability -Specificity
  13. 13. STRATEGIC CONGRUENCE DEFINITION: The extent to which the performance management system elicits its job performance that is congruent with the organisation’s strategy, goals and culture.
  14. 14. VALIDITY DEFINITION: The extent to which the performance measure assesses all the relevant – and only the relevant aspects of performance.
  15. 15. Validity continued Validity is concerned with maximizing the overlap between actual job performance and the measure of job performance 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
  16. 16. Contamination and Deficiency of a Job Performance Measure Job Actual, or true Performance job performance measure Contamination Validity Deficiency
  17. 17. RELIABILITY DEFINITION: The extent to which the performance is consistent; the degree to which a performance measure is free from random error
  18. 18. 3 TYPES OF RELIABILITY INTERRATER RELIABILITY INTERNAL CONSISTENCY RELIABILITY TEST-RETEST RELIABILITY
  19. 19. ACCEPTABILITY DEFINITION: The extent to which a performance measure is deemed to be satisfactory or adequate by those who use
  20. 20. Categories of Perceived Fairness & Implications for Performance Management Systems 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 rewards
  21. 21. SPECIFICITY DEFINITION: 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.
  22. 22. APPROACHES TO MEASURING PERFORMANCE What is a performance measure? A generic term encompassing the quantitative basis by which objectives are established and performance is assessed and gauged. These include performance objectives and criteria, performance standards and other means that evaluate the success in achieving a specified goal.
  23. 23. 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 performance.
  24. 24. Approaches to Measuring Performance Comparative Attribute Behavioral Results Approach Quality Approach
  25. 25. 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 Results Quality Focuses on managing the Focuses on customer objective, measurable orientation and prevention results of a job of errors
  26. 26. The Comparative Approach Ranking  Simple ranking ranks from highest to lowest performer.  Alternation ranking - crossing off best and worst employees. Forced distribution  Employees are ranked in groups. Paired comparison  Managers compare every employee with every other employee in the work group. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  27. 27. 1. Ranking Simple Ranking - rank employees from best to worse. Alternation Ranking- subjective elimination of worst employees based on best employee Overall process considered to be subjective.
  28. 28. 2.Forced distribution Also requires a ranking format.ranking done in groups. Manger groups employees into predetermined categories, employees are categorized based on distribution rules, not on their performance. Also considered to be subjective
  29. 29. 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 performance score.
  30. 30. Evaluating the Comparative Approach to Measuring Performance  Can be an effective tool in differentiating employee performance, eliminates some rater errors (leniency, distributional errors).  Disadvantage is failure to link with strategic goals of the organisation.  Subjective, therefore validity and reliability is dependent on rater.  Feed back mechanisms excluded.  Low acceptance by employees- normative rather than absolute standards used.
  31. 31. The Attribute Approach Graphic rating scales A list of traits is evaluated by a five- point rating scale.  Legally questionable. Mixed-standard scales  Define relevant performance dimensions and then develop statements representing good, average, and poor performance along each dimension. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  32. 32. Advantages of the Attribute Approach  Stillpopular  Easy to Develop  Generalize  Identifies and defines attributes relevant to job performance  Can be reliable & valid 
  33. 33. Disadvantages of the Attribute Approach •Little congruence between techniques and company strategy •Used widely because its easy to use •Performance standards vague- reliability/validity low •No feedback mechanisms
  34. 34. Behavioral Approach Defines behaviors an employee must exhibit to be effective in the job There are 5 techniques used in this approach
  35. 35. Behavioral Approach Criticalincidents approach - requires managers to keep record of specific examples of effective and ineffective performance. Behaviorally anchored rating scales (BARS) Behavioral observation scales (BOS) Organizational behavior modification - a formal system of behavioral feedback and reinforcement. Assessment centers - multiple raters evaluate employees’ performance on a number of exercises. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  36. 36. Critical Incidents Log is kept for recording observable behavior demonstrated by an employee that is both effective and ineffective. Log is used to provide feedback to employees and is used as an aid in goal/ objective setting
  37. 37. Behavioral Observation Scales - (BOS) Variation of BARS , using critical incidents BOS useful in differentiating good from poor performers, objectivity, providing feedback, training. BOS is easy to use, but does require more information
  38. 38. Behaviorally Anchored Rating Scales (BARS) 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 information recall
  39. 39. Four actions in using BARS 1. Define key behaviors 2. Use a measurement system to assess behaviors 3. Inform employee of behaviors to be measured 4. Provide feedback and reinforcement to employee
  40. 40. Organizational Behavior Modification (OBM) Managing behavior through a system of feedback and reinforcement Uses the behaviorist approach which indicates that future behavior is influenced by past behaviour that has been positively reinforced
  41. 41. Assessment Centers 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 performance Allows for specific feedback & individual developmental plans
  42. 42. 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
  43. 43. Disadvantages of the Behavioral Approach Weaknesses: 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
  44. 44. Arguments :  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 behavior.  Suggests that: performance feedback should given to employees using both objective and subjective feedback  Employees should not be categorized for performance ratings  Relies on combination of attribute & results for measurement of performance
  45. 45. Results Approach Management by objectives Goals  top management passes down company’s strategic goals to next layer of management, and these managers define the goals they must achieve. Productivity Measurement and Hierarchy Evaluation System (ProMES)  goal is to motivate employees to higher levels of productivity. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  46. 46. 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 Management commitment  They effectively link employees’ performance with organization's strategic goals.
  47. 47. 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
  48. 48. Common components of the MBO System They require specific objective goals Goals are set with managers’ and employees’ participation Managers provide objective feedback throughout the rating period to monitor progress towards goals
  49. 49. What is an Objective Objectives describe: Conditions that will exist when the desired outcome has been established A time frame during which the outcome is to be completed Resources that the organisation is willing to commit.
  50. 50. GOOD OBJECTIVES ARE “SMART” S Specific M Measurable A Aligned with organizational/unit goals R Realistic and results-oriented T Timed
  51. 51. 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.
  52. 52. Performance Standards A well written performance standard is: 1.Clearly Defined 2. Reliable 3.Valid
  53. 53. Clearly Defined Performance Standards These standards are congruent with the organisation’s strategy, goals and objectives They must also satisfy the following criteria: (SMART) Specific Measurable Attainable Realistic Time Bound
  54. 54. Reliability Refers to the consistency of the performance standards and measures
  55. 55. Validity 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.
  56. 56. Performance Standards Performance standards are used to minimise: Prejudices Rating Errors Personal biases
  57. 57. Productivity Measurement Systems(ProMES) Aims to motivate employees to higher levels of production Has measurement and feedback mechanisms. It is effective, in increasing productivity
  58. 58. 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
  59. 59. Advantages of the Results Approach Minimises subjectivity, objective and quantifiable indicators of performance are used. High acceptability Links individual performance to organisation's strategy & goals.
  60. 60. Disadvantages of the Results Approach Weaknesses: 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
  61. 61. Quality Approach A performance management system designed with a strong quality orientation can be expected to:  Emphasize an assessment of both person and system factors in the measurement system.  Emphasize that managers and employees work together to solve performance problems.  Involve both internal and external customers in setting standards and measuring performance.  Use multiple sources to evaluate person and system factors. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  62. 62. Quality Approach (cont.) Statistical process quality control techniques used:  Process-flow analysis  Cause-and-effect diagrams  Pareto chart  Control chart  Histogram  Scattergram McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  63. 63. Recommendations for designing an Effective Performance System 1. Aim for Precision in defining and measuring performance. 2. Link Performance dimensions to meeting internal and external customer requirements. 3. Measure and correct for the impact of situational constraints.
  64. 64. CURRENT ISSUES IN PERFORMANCE MANAGEMENT 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
  65. 65. PERFORMANCE MANAGEMENT INNOVATIONS Increased employee involvement Less focus on ratings and rewards Multi-rater systems (i.e., 360 degree feedback, peer reviews)
  66. 66. IMPLEMENTATION ISSUES AND STRATEGIES Involvement of users in development Pilot programs Implementation in one unit Staggered implementation
  67. 67. OBSTACLES TO SUCCESSFUL IMPLEMENTATION Lack of commitment from the top Overselling the program A program excessive in paperwork and administrative requirements Failing to train and retrain appraisers Changing the system Failing to monitor the program and deal with non- compliance
  68. 68. PERFORMANCE APPRAISAL THE APPRAISAL PROCESS
  69. 69. PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT  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.
  70. 70. Why Appraise? 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 changing world
  71. 71. 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.
  72. 72. Effective Characteristics for Managing Performance  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 solution-oriented  Be objective and focus attention towards the problem  Be able to provide feedback
  73. 73. Sources for Performance Information Supervisors Customers Peers Self Subordinates McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  74. 74. Rater Errors in Performance Measurement Similar to me Contrast Distributional errors Halo and horns Recency Stereotypes Selective perception Bias McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  75. 75. Following Legal Guidelines Conduct a valid job analysis related to performance. Base system on specific behaviors or results. Train raters to use system correctly. Review performance ratings and allow for employee appeal. Provide guidance/support for poor performers. Use multiple raters. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  76. 76. Reducing Errors and Appraisal Politics Two Approaches to reducing rater error:  Rater error training  Rater accuracy training Appraisal politics - a situation in which evaluators purposefully distort ratings to achieve personal or company goals. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  77. 77. 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 performance
  78. 78. Benefits To the Organization Identification of skills to enhance organization’s performance Employees are motivated Proactive identification of training and development needs Provides a competitive advantage by managing behavior and results of employees.
  79. 79. Benefits To The Manager  Builds the relationship with the employee  Enhance employee’s motivation  Evaluate employee’s effectiveness against strategic goals  Identify training & developmental needs  Builds a rational basis for constructing rewards  Provides documentation for legal purposes.
  80. 80. Benefits To The Employee  Fairness of system measurement enhances/effects outcomes  Recognition and rewards for contributions to the organization  Enables employee to improve performance  Provides for feedback  Enhances communication between employee and manager  Acts as a motivator to improve performance
  81. 81. 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 properly administered  Rater Errors can cause bias in appraising actual performance.  Whether to focus on individual or team performance  Legal Issues
  82. 82. Challenges Associated With Performance Appraisals- continued Managers/Supervisor:  Often resist  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
  83. 83. Preparing for Performance Review  Scheduletime and place for appraisal  Assemble data  Compare performance to standards  Review previous performance appraisals
  84. 84. Choosing a Performance Review Approach Tell & Sell Tell & Listen Problem Solving
  85. 85. Appraisal Styles Interview dominated by Managers Interview shared between manager and subordinate Manager tells Manager tells& Sells Manager tells & Listen Manager Shares problems & solutions
  86. 86. OVERCOMING BIASES  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 appraisal conference.
  87. 87. The Appraiser’s Role Be Ready Establish trust Empower Find Out Listen Negotiating Agreeing
  88. 88. Conducting Appraisal  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
  89. 89. Handling Defensive Employees Recognise that defensive behavior s normal Never attack a person’s defensives Postpone action Recognise your own limitations
  90. 90. Appraisal of Teams Types of teams:  Work or service Teams  Project Teams  Network Teams
  91. 91. Challenges of Team Performance Management  How do we assess relative individual contribution?  How do we balance individual and team performance?  How do we identify individual and team measures of performance?
  92. 92. 3Types of Team Performance 1. Individual performance 2. Individual performance that contributes to team performance 3. Team performance
  93. 93. Factors to consider for effective measurement of Teams Key Success Factors- Competencies 1. Communication 2. Decision Making 3. Collaboration Key Accountabilities 1. Goals to be reached 2. Performance standards
  94. 94. Appraisal of Teams Using Four dimensions for measurement of team performance: 1. Effectiveness 2. Efficiency 3. Learning and Growth 4. Team Member Satisfaction
  95. 95. Performance Feedback Characteristics of an Effective Feedback Process
  96. 96. 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. Crisp 1989
  97. 97. 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 appraisals  Increases creativity and innovation of unit as employees feel safe to take risks  Increases team cohesiveness due to clarified goals and roles
  98. 98. Improving Performance Feedback  Feedback should be given every day, not once a year.  Create the Right Context for Discussion.  Ask employees to rate their performance before the session.  Encourage the subordinate to participate in the session.  Recognize effective performance through praise.  Focus on solving problems.  Focus feedback on behavior or results, not on the person.  Minimize criticism.  Agree to specific goals and set a date to review progress. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  99. 99. Characteristics Shared by Effective Supervisors They explore causes They empower worker solutions They direct attention They direct to causes communication at performance
  100. 100. Managing Performance of Marginal Performers  Solid performers  High ability and motivation; managers should provide development opportunities  Misdirected effort  Lack of ability but high motivation; managers should focus on training  Underutilizers  High ability but lack motivation; managers should focus on interpersonal abilities  Deadwood  Low ability and motivation; managerial action, outplacement, demotion, firing. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  101. 101. The Process  Feedback should be given Frequently  Encourage employee to rate his/her performance  Create the right context for the discussion  Encourage employee to participate in discussion
  102. 102. 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 date
  103. 103. Coaching For Improved Performance - continued Recognise effective performance Focus on solving problems Focus feedback on behavior or results,not the person Minimize criticism
  104. 104. Coaching For Improved Performance- continued SETTING EXPECTATIONS  Review organizational and unit goals and individual performance expectations.  Identify duties,objectives, and projects.  Describe performance measures and standards.  Identify performance factors.  Develop a monitoring plan  Agree to specific goals  Monitor performance,  Set progress review dates.

×