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The Nature of Performance The Nature of Performance ManagementManagement

• Performance Management Performance Management Processes used to identify, encourage, measure, Processes used to identify, encourage, measure,

evaluate, improve, and reward employee evaluate, improve, and reward employee performanceperformance Provide information to employees about their performance.Provide information to employees about their performance.

Clarify organizational performance expectations.Clarify organizational performance expectations.

Identify the development steps that are needed to enhance Identify the development steps that are needed to enhance employee performance.employee performance.

Document performance for personnel actions.Document performance for personnel actions.

Provide rewards for achieving performance objectives.Provide rewards for achieving performance objectives.

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Difference Between Performance Difference Between Performance Management and Performance Management and Performance AppraisalsAppraisals• Performance Management Performance Management

Processes used to identify, encourage, Processes used to identify, encourage, measure, evaluate, improve, and reward measure, evaluate, improve, and reward employee performanceemployee performance

• Performance AppraisalPerformance AppraisalProcess of evaluating how well employees Process of evaluating how well employees

perform their jobs, then communicating that perform their jobs, then communicating that information to employeesinformation to employees

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Components of Effective Performance Components of Effective Performance ManagementManagement

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Figure 6.Figure 6.1 1 Performance Performance Management Management LinkageLinkage

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Identifying and Measuring Employee Identifying and Measuring Employee PerformancePerformance

• PerformancePerformance What an employee does and does not do.What an employee does and does not do.

Quantity of outputQuantity of output • Quality of output• Quality of output Timeliness of outputTimeliness of output • Presence at work• Presence at work

• Job DutiesJob Duties Important elements in a given job that define what the Important elements in a given job that define what the

organization pays employees to doorganization pays employees to do The performance of individuals on job criteria should The performance of individuals on job criteria should

be measured and compared against standards.be measured and compared against standards.

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Types of Performance InformationTypes of Performance Information

• Trait-based informationTrait-based information Identifies a character trait of the employee—such as attitude, Identifies a character trait of the employee—such as attitude,

initiative, or creativity—and may or may not be job relatedinitiative, or creativity—and may or may not be job related

• Behavior-based information Behavior-based information Focuses on specific behaviors that lead to job successFocuses on specific behaviors that lead to job success

• Results-based informationResults-based information Considers employee accomplishmentsConsiders employee accomplishments

• Performance MeasuresPerformance Measures Objective measuresObjective measures can be observed directly. can be observed directly.

Subjective measuresSubjective measures require judgment on the part of the require judgment on the part of the evaluator.evaluator.

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Figure 6-2 Types of Performance Figure 6-2 Types of Performance InformationInformation

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Identifying and Measuring Employee Identifying and Measuring Employee PerformancePerformance

• Performance StandardsPerformance Standards Expected levels of performanceExpected levels of performance

Benchmarks, goals, and targetsBenchmarks, goals, and targets

Characteristics of well-defined standardsCharacteristics of well-defined standards RealisticRealistic MeasurableMeasurable Clearly understoodClearly understood

Behaviorally Anchored Rating ScaleBehaviorally Anchored Rating Scale

• Identify Critical Incidents using subject matter Identify Critical Incidents using subject matter experts (SMEs)experts (SMEs)

• Sort and analyze critical incidents into Sort and analyze critical incidents into categoriescategories

• Re-translate critical incidents into scale itemsRe-translate critical incidents into scale items

• Develop numeric scale for critical incidentsDevelop numeric scale for critical incidents

• From: Maiorca, J. (Aug., 1997). How to Construct Behaviorally Anchored Scales (BARS) for employee From: Maiorca, J. (Aug., 1997). How to Construct Behaviorally Anchored Scales (BARS) for employee evaluations. Vol. 58, No. 8, pp15-18.evaluations. Vol. 58, No. 8, pp15-18.

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Creating BARS for Supervisor Creating BARS for Supervisor CompetenciesCompetencies• From: From: www.dpa.ca.gov

• Analytical thinkingAnalytical thinking Customer focusCustomer focus• Change leadershipChange leadership CommunicationCommunication• Conflict ManagementConflict Management Decision makingDecision making• Developing othersDeveloping others Ethics and IntegrityEthics and Integrity• Fostering diversityFostering diversity Interpersonal SkillsInterpersonal Skills• Personal credibilityPersonal credibility Planning/organizingPlanning/organizing• Team LeadershipTeam Leadership ThoroughnessThoroughness• Vision/Strategic thinkingVision/Strategic thinking Workforce MgmtWorkforce Mgmt

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Creating BARS for Supervisor Creating BARS for Supervisor CompetenciesCompetencies• From: From: www.dpa.ca.gov

• Analytical ThinkingAnalytical Thinking• The ability to approach a problem by using a logical, systematic, The ability to approach a problem by using a logical, systematic,

sequential approach. sequential approach.

• Change Leadership Change Leadership • The ability to manage, lead, and enable the process of change and The ability to manage, lead, and enable the process of change and

transition while helping others to deal with their effects. transition while helping others to deal with their effects.

• Customer Focus Customer Focus • The ability to identify and respond to current and future customer's The ability to identify and respond to current and future customer's

needs. The ability to provide excellent service to internal and needs. The ability to provide excellent service to internal and external customers. external customers.

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Figure 6-3 Conflicting Uses of Figure 6-3 Conflicting Uses of Performance AppraisalsPerformance Appraisals

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FIGURE 6.FIGURE 6.4 4 Traditional Performance Traditional Performance Appraisal ProcessAppraisal Process

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Multisource AppraisalMultisource Appraisal

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Methods for Appraising PerformanceMethods for Appraising Performance

• Category Scaling MethodsCategory Scaling MethodsGraphic rating scalesGraphic rating scales

Focus should be on the job duties and Focus should be on the job duties and responsibilities identified in job descriptionsresponsibilities identified in job descriptions

Behavioral rating scalesBehavioral rating scalesDescribe specific examples of employee job Describe specific examples of employee job

behaviorsbehaviors

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Figure 6-5 Sample Terms for Defining Figure 6-5 Sample Terms for Defining StandardsStandards

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Comparative MethodsComparative Methods

• RankingRanking A listing of all employees from highest to lowest in A listing of all employees from highest to lowest in

performance.performance. Drawback: does not show size of differences in performance Drawback: does not show size of differences in performance

between employees.between employees.

• Forced DistributionForced Distribution Performance appraisal method in which ratings of Performance appraisal method in which ratings of

employees are distributed along a bell-shaped curve.employees are distributed along a bell-shaped curve. Drawbacks: Resistance by managers to placing individuals in Drawbacks: Resistance by managers to placing individuals in

the lowest or highest groups.the lowest or highest groups. Providing explanation for placement in a higher or lower Providing explanation for placement in a higher or lower

grouping can be difficult.grouping can be difficult.

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Narrative MethodsNarrative Methods

• Critical Incident and Essay MethodsCritical Incident and Essay Methods Critical incident methodCritical incident method: manager keeps a written record of : manager keeps a written record of

highly favorable and unfavorable employee actions.highly favorable and unfavorable employee actions. DrawbacksDrawbacks

Variations in how managers define a “Variations in how managers define a “critical incidentcritical incident”” Time involved in documenting employee actionsTime involved in documenting employee actions Most employee actions are not observed and may become different Most employee actions are not observed and may become different

if observedif observed Employee concerns about manager’s “black books”Employee concerns about manager’s “black books” Depends on managers’ writing skills and their ability to express Depends on managers’ writing skills and their ability to express

themselves themselves Essay methodEssay method: manager writes a short essay describing each : manager writes a short essay describing each

employee’s performance during rating periodemployee’s performance during rating period

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Management by Objectives (MBO)Management by Objectives (MBO)

• Management by ObjectivesManagement by Objectives Specifying performance goals individuals and their Specifying performance goals individuals and their

managers agree employees will to try to attain within managers agree employees will to try to attain within an appropriate length of timean appropriate length of time

• Combination of MethodsCombination of Methods Sensible in some circumstancesSensible in some circumstances

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The MBO Four-Stage ProcessThe MBO Four-Stage Process

Job Review and AgreementJob Review and AgreementJob Review and AgreementJob Review and Agreement

Development of Performance StandardsDevelopment of Performance StandardsDevelopment of Performance StandardsDevelopment of Performance Standards

Objective SettingObjective SettingObjective SettingObjective Setting

Continuing Performance DiscussionsContinuing Performance DiscussionsContinuing Performance DiscussionsContinuing Performance Discussions

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Common Rater ErrorsCommon Rater Errors

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Figure 6-6 Appraisal Interview Hints Figure 6-6 Appraisal Interview Hints

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Performance Appraisal FeedbackPerformance Appraisal Feedback

Reactions of Appraised Reactions of Appraised EmployeesEmployees

Reactions of Appraised Reactions of Appraised EmployeesEmployees

Appraisal Appraisal InterviewInterview

Appraisal Appraisal InterviewInterview

Reactions of Reactions of ManagersManagers

Reactions of Reactions of ManagersManagers

Appraisal Appraisal ProcessProcess

Appraisal Appraisal ProcessProcess