Effective Performance Measures

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  • Fumie
  • Fumie
  • Norbi
  • Norbi
  • Fumie; handout of job description
  • Trait approaches to performance appraisal are designed to measure the extent to which an employee possesses certain characteristics that are viewed as important for the job and the organization in general. The trait method approach continues to be the most popular appraisal method, although such appraisals can be easily biased and subjective. Common traits methods are: Graphic Rating Scale Method . Here each trait or characteristic to be rated is represented by a scale on which the rater indicates the degree to which an employee possess that trait or characteristic. Mixed Standard Scale Method . The mixed standard scale is a modification of the basic rating scale method by basing the comparison for appraisal in relation to some standard (often an idealized one). Employee performance is then categorized as better, equal, or worse than the standard. Forced-Choice Method . This trait approach requires that the rater choose from statements designed to distinguish between successful and unsuccessful performance. Essay Method . This method requires the rater to compose a statement describing employee behavior. Typically, the rater must describe the employee’s strengths and weaknesses and make recommendations for her or his development. Fumie
  • The mixed-standard scale method is a modification of the basic rating-scale method. Rather than evaluating traits according to a single scale, the rater is given three specific descriptions of each trait . These descriptions reflect three levels of performance : superior, average, and inferior. After the three description for each trait are written, they are randomly sequenced to form the mixed-standard scale. As shown here, superiors (CEO, BOD, Peers) evaluate the HR director by indicating whether his or her performance is better than, equal to, or worse than the standard for each behavior.
  • Behavioral methods seek to overcome the often vague and subjective drawbacks of trait methods by focusing on describing specifically which actions should or should not be exhibited on the job and appraising employees on the basis of this observable action. Common behavioral methods include: Critical Incidents Method . As in job design, this is an unusual event that denotes superior or inferior employee performance in some part of the job. One advantage of this method is that it forces the appraiser to examine the entire appraisal period self-consciously for critical incidents, thus guarding against recency error. Behavioral Checklist Method . This consists of having a rater check those statements on a list that the rater believes are characteristic of the employee’s performance or behavior. Behaviorally Anchored Rating Scale (BARS) . This approach consists of a series of vertical scales, one for each important dimension of job performance. One advantage of a BARS is that it is typically developed by a committee that includes both subordinates and managers. ABARS requires considerable time and effort to develop, but it also shows a high degree of content validity. Behavior Observation Scales (BOS) . This approach measures the frequency of observed behavior. The value of a BOS is that it allows the appraiser to play the role of observer rather than judge. Sheryl
  • BARS - B ehaviourally A nchored R ating S cales are often used to reduce the subjectivity of performance assessment. The totality of an employee's performance (both positive and negative aspects) is captured through consultation with the employee, peers, and clients/customers. HR professionals or experts in BARS group the examples of performance behaviour into categories (such as knowledge, interpersonal relations, client relationship management, and conflict resolution skills). These are then placed on a numerical scale. These behaviours are said to be “anchored” in the scale. CRITICAL INCIDENT - In this method, the rater describes positive and negative employee behaviour related to the performance of key duties. These descriptions or statements are called critical incidents. In contrast to the forced choice method, critical incident affords the rater a wider scope in assessment, and consequently a higher level of feedback relevant to important or key job duties. BEHAVIORAL CHECKLIST Checklist Method The use of this method requires the rater to select descriptive statements of the employee's performance and personal characteristics. This becomes the “front end” of the appraisal process. The “back end” excludes the rater and involves the assignment of weights by management (HR). This weighted checklist allows a quantitative analysis of the contents. BEHAVIOR OBSERVATION SCALES - A behavior observation scale (BOS) is an appraisal method that measures behavior against levels of performance and also measures the frequency with which the behaviors occur.
  • Behavioral methods seek to overcome the often vague and subjective drawbacks of trait methods by focusing on describing specifically which actions should or should not be exhibited on the job and appraising employees on the basis of this observable action. Common behavioral methods include: Critical Incidents Method . As in job design, this is an unusual event that denotes superior or inferior employee performance in some part of the job. One advantage of this method is that it forces the appraiser to examine the entire appraisal period self-consciously for critical incidents, thus guarding against recency error. Behavioral Checklist Method . This consists of having a rater check those statements on a list that the rater believes are characteristic of the employee’s performance or behavior. Behaviorally Anchored Rating Scale (BARS) . This approach consists of a series of vertical scales, one for each important dimension of job performance. One advantage of a BARS is that it is typically developed by a committee that includes both subordinates and managers. ABARS requires considerable time and effort to develop, but it also shows a high degree of content validity. Behavior Observation Scales (BOS) . This approach measures the frequency of observed behavior. The value of a BOS is that it allows the appraiser to play the role of observer rather than judge. Norbi
  • Fumie; handout of job description
  • Effective Performance Measures

    1. 1. Effective Performance Measures May 20, 2009
    2. 2. Agenda <ul><li>Context of Performance Management </li></ul><ul><li>Definition of effective performance measures </li></ul><ul><li>Performance Predictors </li></ul><ul><li>Methods </li></ul><ul><li>Conclusion </li></ul>
    3. 3. Context PM and other HRM Functions Recruitment Selection Training & Development Compensation Labor Relations P M
    4. 4. Effective Performance Measurement <ul><li>Definition: </li></ul><ul><li>„… involves the selection, definition & application of performance indicators , which quantify the efficiency & effectiveness of (…) methods.“ </li></ul><ul><li>„… is a program evaluation tool that examines how efficiently & effectively a program is delivered…“ </li></ul>
    5. 5. Performance Predictors Predictors Practicality Reliability Relevancy Validity Trait Appraisal Methods Behavioral Appraisal Methods Results Appraisal Methods
    6. 6. Trait Methods Graphic Rating Scale Mixed Standard Scale Essay Forced-Choice Common Trait Methods of Appraisal
    7. 7. Mixed-Standard Scale for HR director <ul><li>DIRECTIONS: Please indicate whether the individual’s performance is </li></ul><ul><li>above (+), Equal to (0), or lower than (-) each of the following standards. </li></ul><ul><li>1.___   Employee recognizes and assesses several likely causal factors or ways of </li></ul><ul><li>interpreting the information available. (medium ANALYTICAL THINKING) </li></ul><ul><li>2.___   Employee presents appropriate information in a clear and concise manner, </li></ul><ul><li>both orally and in writing. (low COMMUNICATION) </li></ul><ul><li>3.___   Employee develops strategic plans considering short-term requirements as </li></ul><ul><li>well as long-term direction. (high PLANNING AND ORGANIZING) </li></ul><ul><li>4.___   Employee responds to and discusses issues in an understandable manner </li></ul><ul><li>without being defensive. (medium COMMUNICATION) </li></ul><ul><li>5.___   Employee monitors the attainment of own work objectives and/or quality </li></ul><ul><li>of the work completed. (low PLANNING AND ORGANIZING) </li></ul><ul><li>6.___   Employee anticipates issues and revise plans as required. </li></ul><ul><li>(medium PLANNING AND ORGANIZING) </li></ul><ul><li>7.___   Employee collects and analyses information from a variety of appropriate </li></ul><ul><li>sources. (low ANALYTICAL THINKING) </li></ul><ul><li>8.___   Employee thinks beyond the organization and into the future, balancing </li></ul><ul><li>multiple perspectives when setting direction. (high ANALYTICAL THINKING) </li></ul><ul><li>9.___   Employee communicates strategically to achieve specific objectives; </li></ul><ul><li>interprets organizational policies and procedures for superiors, </li></ul><ul><li>subordinates and peers. (high COMMUNICATION) </li></ul>
    8. 8. Behavioral Methods Critical Incidents Behavioral Checklist Behaviorally Anchored Rating Scale (BARS) Behavior Observation Scales Common Behavioral Appraisal Methods
    9. 9. Behavioral Checklist <ul><li>Checks with employee immediately after complaint </li></ul><ul><li>Gathers facts regarding the situation </li></ul><ul><li>Discusses complaint with employee </li></ul><ul><li>Plans each days activities ahead of time </li></ul><ul><li>Keeps employee’s information in confidence </li></ul><ul><li>These behaviors are assessed & given a rating based on the employees performance </li></ul>
    10. 10. Results Methods 360-degree feedback Self-managed teams Management by objectives (MBO) Common Results Appraisal Methods
    11. 11. Perspectives of Balanced Score Card
    12. 12. Performance Predictors Predictors Practicality Reliability Relevancy Validity Trait Appraisal Methods High High Moderate Behavioral Appraisal Methods   Moderate   Moderate Moderate Results Appraisal Methods   Low   Moderate   High
    13. 13. Conclusion <ul><li>Prerequisites </li></ul><ul><li>Strategic relevance </li></ul><ul><li>Clear definition of the purpose </li></ul><ul><li>Understanding of the culture, context & tasks </li></ul><ul><li>Right application of methods & tools </li></ul>
    14. 14. <ul><li>TIME FOR A COFFEE! </li></ul>

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