Performance management

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Performance management

  1. 1. Gathering Performance Information:Overview• Appraisal Forms• Characteristics of Appraisal Forms• Determining Overall Rating• Appraisal Period and Number of Meetings• Who Should Provide Performance Information?• A Model of Rater Motivation• Preventing Rating Distortion through RaterTraining ProgramsPrentice Hall, Inc. © 2006
  2. 2. Major Components of Appraisal Forms (1)• Basic Employee Information• Accountabilities, Objectives, and Standards• Competencies and Indicators• Major Achievements and Contributions• Stakeholder Input• Employee Comments• SignaturesPrentice Hall, Inc. © 2006
  3. 3. Major Components of Appraisal Forms (2)(could be included in a separate form)• Developmental Achievements• Developmental– Needs– Plans– GoalsPrentice Hall, Inc. © 2006
  4. 4. Desirable Features for All Appraisal Forms1. Simplicity2. Relevancy3. Descriptiveness4. Adaptability1. Comprehensiveness2. Definitional Clarity3. Communication4. Time OrientationPrentice Hall, Inc. © 2006
  5. 5. Determining Overall Rating• Judgmental strategy• Mechanical strategyPrentice Hall, Inc. © 2006
  6. 6. Appraisal periodNumber of Meetings• Annual• Semi-annual• QuarterlyPrentice Hall, Inc. © 2006
  7. 7. When Review Is Completed• Anniversary date– Supervisor doesn’t have to fill out forms at sametime– Can’t tie rewards to fiscal year• Fiscal year– Rewards tied to fiscal year– Goals tied to corporate goals– May be burden to supervisor, depending onimplementationPrentice Hall, Inc. © 2006
  8. 8. 6 Types of Formal Meetings(can be combined)• System Inauguration• Self-Appraisal• Classical Performance Review• Merit/Salary Review• Development Plan• Objective SettingPrentice Hall, Inc. © 2006
  9. 9. Who Should Provide PerformanceInformation?Employees should be involved in selecting• Which sources evaluate• Which performance dimensionsWhen employees are actively involved• Higher acceptance of results• Perception that system is fairPrentice Hall, Inc. © 2006
  10. 10. Who Should Provide Performance Information?Direct knowledge of employeeperformance• Supervisors• Peers• Subordinates• Self• CustomersPrentice Hall, Inc. © 2006
  11. 11. Supervisors• Advantages– Best position to evaluate performance vs.strategic goals– Make decisions about rewards• Disadvantages– Supervisor may not be able to directlyobserve performance– Evaluations may be biasedPrentice Hall, Inc. © 2006
  12. 12. Peers• Advantages– Assess teamwork• Disadvantages– Possible friendship bias– May be less discriminatingPrentice Hall, Inc. © 2006
  13. 13. Subordinates• Advantages– Accurate when used for developmentalpurposes– Good position to assess some competencies• Disadvantages– Inflated when used for administrative purposes– May fear retaliation (confidentiality is key)Prentice Hall, Inc. © 2006
  14. 14. Self• Advantages– Increased acceptance of decisions– Decreased defensiveness during appraisalinterview– Good position to track activities during reviewperiod• Disadvantages– May be more lenient and biasedPrentice Hall, Inc. © 2006
  15. 15. Customers (external and internal)• Advantages– Employees become more focused onmeeting customer expectations• Disadvantages– Time– MoneyPrentice Hall, Inc. © 2006
  16. 16. Disagreement Across Sources• Expect disagreement• Ensure employee receives feedback bysource• Assign differential weights to scores bysource, depending on importancePrentice Hall, Inc. © 2006
  17. 17. Types of Rating Errors• Intentional errors– Rating inflation– Rating deflation• Unintentional errors– Due to complexity of taskPrentice Hall, Inc. © 2006
  18. 18. Expected Positive andNegative Consequencesof Rating AccuracyProbability ofExperiencing Positive &Negative ConsequencesExpected Positive andNegative Consequencesof Rating DistortionProbability ofExperiencing Positive &Negative ConsequencesMotivation to ProvideAccurate RatingsMotivation to DistortRatingsRating BehaviorA Model of Rater Motivation
  19. 19. Motivations for Rating Inflation• Maximize merit raise/rewards• Encourage employees• Avoid creating written record• Avoid confrontation with employees• Promote undesired employees out of unit• Make manager look good to his/hersupervisorPrentice Hall, Inc. © 2006
  20. 20. Motivations for Rating Deflation• Shock employees• Teach a lesson• Send a message to employee• Build a written record of poorperformancePrentice Hall, Inc. © 2006
  21. 21. Prentice Hall, Inc. © 2006Prevent Rating Distortion throughRater Training Programs
  22. 22. Rater Training Programs should cover:• Information• Motivation• Identifying, observing, recording andevaluating performance• How to interact with employees whenthey receive performance informationPrentice Hall, Inc. © 2006
  23. 23. Information - how the system works• Reasons for implementing theperformance management system• Information on the appraisal form andsystem mechanicsPrentice Hall, Inc. © 2006
  24. 24. Motivation – What’s in it for me?• Benefits of providing accurate ratings• Tools for providing accurate ratingsPrentice Hall, Inc. © 2006
  25. 25. Identifying, observing, recording, and evaluatingperformance• How to identify and rank job activities• How to observe, record, measureperformance• How to minimize rating errorsPrentice Hall, Inc. © 2006
  26. 26. How to interact with employeeswhen they receive performance information• How to conduct an appraisal interview• How to train, counsel, and coachPrentice Hall, Inc. © 2006

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