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Performance management
This document discusses components of performance appraisal forms and processes. It describes key sections of appraisal forms such as employee information, objectives, competencies, achievements, and development plans. It also outlines desirable features like simplicity and comprehensiveness. The document examines strategies for determining overall performance ratings and discusses appropriate appraisal periods and meeting frequency. It analyzes sources of performance information like supervisors, peers, customers and considers how to address disagreement across sources. Finally, the document explores a model of rater motivation and how training programs can prevent rating distortion.
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Performance management
- 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 Rater Training Programs Prentice Hall, Inc. © 2006
- 2. Major Components ofAppraisal Forms (1) • Basic Employee Information • Accountabilities, Objectives, and Standards • Competencies and Indicators • Major Achievements and Contributions • Stakeholder Input • Employee Comments • Signatures Prentice Hall, Inc. © 2006
- 3. Major Components ofAppraisal Forms (2) (could be included in a separate form) • Developmental Achievements • Developmental – Needs – Plans – Goals Prentice Hall, Inc. © 2006
- 4. Desirable Features forAll Appraisal Forms 1. Simplicity 2. Relevancy 3. Descriptiveness 4. Adaptability 1. Comprehensiveness 2. Definitional Clarity 3. Communication 4. Time Orientation Prentice Hall, Inc. © 2006
- 5. Determining Overall Rating •Judgmental strategy • Mechanical strategy Prentice Hall, Inc. © 2006
- 6. Appraisal period Number ofMeetings • Annual • Semi-annual • Quarterly Prentice Hall, Inc. © 2006
- 7. When Review IsCompleted • Anniversary date – Supervisor doesn’t have to fill out forms at same time – 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 on implementation Prentice Hall, Inc. © 2006
- 8. 6 Types ofFormal Meetings (can be combined) • System Inauguration • Self-Appraisal • Classical Performance Review • Merit/Salary Review • Development Plan • Objective Setting Prentice Hall, Inc. © 2006
- 9. Who Should ProvidePerformance Information? Employees should be involved in selecting • Which sources evaluate • Which performance dimensions When employees are actively involved • Higher acceptance of results • Perception that system is fair Prentice Hall, Inc. © 2006
- 10. Who Should ProvidePerformance Information? Direct knowledge of employee performance • Supervisors • Peers • Subordinates • Self • Customers Prentice Hall, Inc. © 2006
- 11. Supervisors • Advantages – Bestposition to evaluate performance vs. strategic goals – Make decisions about rewards • Disadvantages – Supervisor may not be able to directly observe performance – Evaluations may be biased Prentice Hall, Inc. © 2006
- 12. Peers • Advantages – Assessteamwork • Disadvantages – Possible friendship bias – May be less discriminating Prentice Hall, Inc. © 2006
- 13. Subordinates • Advantages – Accuratewhen used for developmental purposes – Good position to assess some competencies • Disadvantages – Inflated when used for administrative purposes – May fear retaliation (confidentiality is key) Prentice Hall, Inc. © 2006
- 14. Self • Advantages – Increasedacceptance of decisions – Decreased defensiveness during appraisal interview – Good position to track activities during review period • Disadvantages – May be more lenient and biased Prentice Hall, Inc. © 2006
- 15. Customers (external andinternal) • Advantages – Employees become more focused on meeting customer expectations • Disadvantages – Time – Money Prentice Hall, Inc. © 2006
- 16. Disagreement Across Sources •Expect disagreement • Ensure employee receives feedback by source • Assign differential weights to scores by source, depending on importance Prentice Hall, Inc. © 2006
- 17. Types of RatingErrors • Intentional errors – Rating inflation – Rating deflation • Unintentional errors – Due to complexity of task Prentice Hall, Inc. © 2006
- 18. Expected Positive and NegativeConsequences of Rating Accuracy Probability of Experiencing Positive & Negative Consequences Expected Positive and Negative Consequences of Rating Distortion Probability of Experiencing Positive & Negative Consequences Motivation to Provide Accurate Ratings Motivation to Distort Ratings Rating Behavior A Model of Rater Motivation
- 19. Motivations for RatingInflation • 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/her supervisor Prentice Hall, Inc. © 2006
- 20. Motivations for RatingDeflation • Shock employees • Teach a lesson • Send a message to employee • Build a written record of poor performance Prentice Hall, Inc. © 2006
- 21. Prentice Hall, Inc.© 2006 Prevent Rating Distortion through Rater Training Programs
- 22. Rater Training Programsshould cover: • Information • Motivation • Identifying, observing, recording and evaluating performance • How to interact with employees when they receive performance information Prentice Hall, Inc. © 2006
- 23. Information - howthe system works • Reasons for implementing the performance management system • Information on the appraisal form and system mechanics Prentice Hall, Inc. © 2006
- 24. Motivation – What’sin it for me? • Benefits of providing accurate ratings • Tools for providing accurate ratings Prentice Hall, Inc. © 2006
- 25. Identifying, observing, recording,and evaluating performance • How to identify and rank job activities • How to observe, record, measure performance • How to minimize rating errors Prentice Hall, Inc. © 2006
- 26. How to interactwith employees when they receive performance information • How to conduct an appraisal interview • How to train, counsel, and coach Prentice Hall, Inc. © 2006