Performance ManagementPerformance Appraisal is a systematic description of job relevant strengths and development needs of an employee’s actual performance relative to established standards.
Performance Management …is a process to control employee work behaviors and outputs through providing feedback on performance.
Performance Management …Benefits: An Employee Perspective Improved Performance requires Assessment and Feedback Fairness results when performance is measured objectively and outcomes are equitable Recognition of performance can motivate employee improvement
Performance Management … Administrative/Evaluative pay, promotions, layoffs Developmental training, career development, HR research Legal (minimize exposure to EEO) Job related appraisal Avoid vague/subjective performance criteria Implement a review and appeals process Respect employee privacy and confidentiality
Performance Management Uses of Performance Appraisal Systems Rewards Staffing/Career Decisions Training/Development Assessment Motivation Validate HR Research
Performance Management Requirements for an Effective Performance Appraisals Relevant Acceptable (Evaluators and Employees) Practical (Organization and Evaluators) Reliable Sensitive to Employee Issues and Needs
Performance Management Performance Appraisal Criteria Traits (focus on the Person) Observable personality dimensions Reliable, decisive, loyal Ambiguous and open to bias Behavioral (focus on worker behaviors) Behaviors required to accomplish the job More legally defensive (than Traits), expensive, time consuming and limits application across jobs (more job specific) Outcomes Clear, Unambiguous Criteria Eliminates subjective rater error ~ subject to criteria contamination and deficiency
Performance Management Comparative Methods Ranking, Forced Distribution, Essay Advantage Differentiates employees Disadvantages Degree of differences unclear Difficult to compare across groups May cause conflict among workers Vague feedback-difficult to defend
Performance Management Adjective Descriptor Methods Behavioral Checklist, Graphic Rating Scale Advantages Avoids conflict Allows comparison across work groups Feedback of Specific performance dimensions Disadvantages Open to Rater Error Inconsistency Across Raters
Performance Management Expected Outcome Methods Management by Objectives, Behavioral Anchored Rating Scales (BARS) BARS measures actual performance behaviors exhibited by an employee relative to pre-defined behaviors of a critical performance dimension. MBO is a mutual goal setting process comparing actual performance to agreed upon performance objectives.
Performance Management Effective Performance Evaluators should be Knowledgeable of job requirements Able to observe performance Accurate, unbiased, able to differentiate performance levels
Performance ManagementSources of Evaluators Peers Self appraisals (Employee) Subordinates Outside personnel Computer monitoring§The 360 degree method§Choice Depends on Objectives
Performance Management Evaluator Error (Bias) Halo/horn Harshness/strictness Leniency Central Tendency Recency Contrast- similar or dissimilar to me Anchoring- biased by prior appraisal
Performance Management Scheduling (Timing) of Performance Appraisal Intermittent v. Continuous (Formal v. Informal) Purpose: Developmental v. Pay Adjustment Intermittent v. Continuous Formal ~ usually intermittent (monthly, semi-annual, annual) Informal ~ should be continuous (daily if necessary) Communicate when required – support positive results or correct developmental (deficient) performance areas Development v. Pay (Two separate Appraisal Interviews) First discuss performance strengths and developmental needs Second discuss pay issues
Performance Management Improving Performance Appraisal Process Give daily not once a year Have employee’s rate their performance Encourage the employee to participate Emphasize Constructive criticism Provide constant Feedback Focus on behavior (performance) not the person Mutually agree on specific goals, timelines, and developmental programs/assignments