Performance Management (Week of 3/23)Presentation Transcript
Types of Ratings and Measurement Methods
Problems and Errors
Performance Management and Performance Appraisals
Performance management definition
Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance.
Performance appraisal definition
The process of evaluating how well employees perform their jobs and then communicating that information to the employees.
Have you received a performance appraisal at your job?
Did you feel good about the process? Why or why not?
Rate as True or False:
Performance ratings should be job-related.
Employees should not be given a written copy of their job standards in advance of appraisals.
Managers who conduct the appraisal should be able to observe the behavior they are rating.
Supervisors need not be trained to use the appraisal form correctly.
Appraisals should be discussed openly with employees and counseling or corrective guidance offered.
An appeals procedure should be established to enable employees to express disagreement with the appraisal.
What is the ultimate goal of a performance appraisal?
What percentage of performance appraisal are effective?
Purposes of Performance Management
Developmental and Administrative
Performance Management Process
Rate whether the HR Unit or Direct Supervisor generally handles the following tasks:
Designs and maintains appraisal system
Typically rates performance of employees
Prepares formal appraisal documents
Reviews appraisal with employees
Tracks timely receipt of appraisals
Reviews completed appraisals for consistency
Identifies developmental areas
Sources of Appraisal: Faceless People Supervisor Subordinates Peers Team Customers Self
What is it called when you get appraised by people at all different levels of the organization?
Do you think this approach is effective? Why or why not?
Disclaimer: We’ll go through this quickly!
Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.
Graphic-rating scale method
A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics.
Mixed-standard scale method
An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard.
Requires the rater to compose a statement describing employee behavior.
Forced-Choice Distribution Scale
Graphic Rating Scale
Behaviorally anchored rating scale (BARS)
A performance appraisal that consists of a series of vertical scales, one for each dimension of job performance.
Behavior observation scale (BOS)
A performance appraisal that measures the frequency of observed behavior.
An unusual event denoting superior or inferior employee performance in some part of the job.
Behaviorally Anchored Rating Scale (BARS) FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
Behavior Observation Scale (BOS)
How much do you get done?
Management by objectives (MBO)
A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
Key MBO ideas
Employee involvement creates higher levels of commitment and performance.
Encourages employees to work effectively toward achieving desired results.
Performance measures should be measurable and should define results.
Summary of Appraisal Methods ADVANTAGES DISADVANTAGES TRAITS Inexpensive Meaningful Easy to use Potential for error Poor for counseling Poor for allocating rewards Poor for promotional decisions BEHAVIOR Specific dimensions Accepted by employees Useful for feedback OK for reward/promotion Time consuming Costly Some rating error RESULTS Less subjectivity bias Accepted by employees Performance-reward link Encourages goal setting Good for promotion decisions Time consuming Focus on short term
Introduction to Appraisal Problems
Rate the following movies on a scale of 1 (poor) to 5 (outstanding)
Karate Kid I
Back to the Future I
Ferris Bueller’s Day Off
Pretty in Pink
Common Appraisal Problems
Inadequate preparation on the part of the manager.
Employee is not given clear objectives at the beginning of performance period.
Manager may not be able to observe performance or have all the information.
Inconsistency in ratings among supervisors or other raters.
Performance standards may not be clear.
Rating personality rather than performance.
Common Appraisal Problems (Ctd.)
Inappropriate time span (either too short or too long).
Overemphasis on uncharacteristic performance.
Subjective or vague language in written appraisals.
Organizational politics or personal relationships cloud judgments.
No thorough discussion of causes of performance problems.
Manager may not be trained at evaluation or giving feedback.
No follow-up and coaching after the evaluation.
Why are performance appraisals often high even when performance is not up to par?
Common Rating Errors
Overly focusing on specific performance ratings or stereotyping employee by a single personal characteristic.
Rating all employees higher than they should be.
Rating all employees lower that they should be.
Rating all employees as average when individual employee performance actually varies.
Common Rating Errors (Ctd.)
Using initial information that supports the rating decision while ignoring later information that does not.
Basing the rating decision primarily on the most recent performance information while placing much less emphasis on past performance.
Comparing one employee to another rather than applying a common standard to all employees.
Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively.
Similar-to-me; Central Tendency
K.C. and Dawson
Issues to consider when providing feedback
Content of the discussion
Why is it so difficult to provide feedback?
How can you provide negative feedback that leads to motivation rather than withdrawal?
Providing Feedback (Ctd.)
Combining evaluative and developmental goals
Need to be candid and protect employee’s self-esteem
Self-serving employee attributions that interfere with performance improvement
Discounting role of external forces in good performance
Over-emphasizing external effects in poor performance
Providing Feedback (Ctd.)
Providing immediate feedback is most useful
Giving only as much information as the receiver can use
Scheduling feedback sessions in advance
Clarifying purpose and content of meeting
Giving both participants time to prepare
Providing Feedback (Ctd.)
Content of the discussion: The problem-solving approach
Diagnosis: Seek to understand the factors that affect performance.
Roadblocks: Seek agreement with the employee on an action plan to address issues such as:
Lack of resources
Need for additional information and training
Improving ongoing communications and feedback
Mutual goal setting: Employee participation increases employee acceptance of goals.
Providing Feedback (Ctd.)
Diagnosing the causes of performance deficiencies
Does the employee have the competencies and the interest to perform as desired?
Have specific, difficult but attainable goals been communicated?
Is the employee certain about desired performance, the consequences of performance, his/her power (level of authority)?
Sample Checklist for Diagnosing the Causes of Performance
Follow-Up to the Feedback Session
Use of positive rewards to increase occurrence of desired performance
People perform in ways that they find most rewarding
By providing proper rewards, it is possible to improve performance
Decreases frequency of undesired behavior
Gets immediate results and has vicarious power
Can have undesirable side effects —employee anger and contingent bad behavior
Understand purpose of performance management
Aware of the various methods for assessing performance
Knowledge of difficulties of performance management and ways to improve it
Knowledge of best way to provide feedback when you are managing someone