Leaders are Readers How to be a Star at Work 1999 Robert E
Kelley What average performers think it is: The talent for
brownnosing and schmoozing in the workplace to help me get noticed
by the right people. What star performers know it to be: A work
strategy that enables me to navigate the competing interests in an
organization to promote cooperation, address conflicts and get
things done.
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Performance Management and Execution Who Says Elephants Cant
Dance? (2003) Louis Gerstner Fixing IBM was all about execution. We
had to stop looking for people to blame, stop tweaking the internal
structure and systems. I wanted no excuses.
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Measuring Individual Employee Performance Individual
Performance Factors Individual ability to do the work Effort level
expended Organizational support Performance (P) = Ability (A) x
Effort (E) x Support (S)
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Components of Individual Performance
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Individual Motivation Motivation The desire within a person
causing that person to act to reach a goal. (Greek mohere which
means to move) Challenges in diagnosing a motivation problem
Inconsistency in organizational rewards Organizational support for
employee efforts Accurate measurement of employee performance
Desirability of organizational rewards by employees Equipment,
training, product-market fit Need broad-based strategies and
tactics to address all individuals.
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Preface: Global Cultural Differences in Performance Management
Uncommon for managers in other cultures to rate employees or to
give direct feedback. Younger subordinates do not engage in joint
discussions with their managers due their high respect for
authority and age. Criticism from superiors is viewed as personally
devastating rather than as useful feedback.
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Jack Welch (Winning) Be a meritocracy through differentiation
of people. Categorize your people as the top 20, middle 70 and
bottom 10 percent who turn over in 1 year or less. You manage the
70 by identifying people who have the potential to move up and
cultivating them. You manage the top 20 by rewarding them like
crazy. Use a rigorous non-bureaucratic evaluation system, monitored
for integrity with the same intensity of Sarbanes-Oxley Act
compliance.
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Top Issues in Performance Management 1. Bommer et al meta
analysis results- Manager performance ratings are TERRIBLE 2.
Procedural Justice- need to know HOW decision was made (examples of
good and bad performance) 3. Standards are clear and communicated
in advance 4. Rating instruments must be simple and easy for the
rater and ratee to understand 5. Ratees (employees) must have input
into the process
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Components of Effective Performance Management
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What is Performance Management Performance Management Processes
used to identify, encourage, measure, evaluate, improve, and reward
employee performance Provide information to employees about their
performance. Clarify organizational performance expectations.
Identify the development steps that are needed to enhance employee
performance. Document performance for personnel actions. E.g.,
promotions (more appropriate than the promotion pit)promotion pit
Provide rewards for achieving performance objectives.
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Performance appraisal The process of determining how well
employees do their jobs relative to a standard and communicating
that information to the employee.
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What is Employee Performance Performance What an employee does
and does not do. Quantity of output Quality of output Timeliness of
output Presence at work Cooperativeness Not usually ethics-
why?
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An effective performance management system must Link
organizational strategy to ultimate results. Translate
organizational strategies into unit-level actions. Assign
unit-level actions to individual employees.
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Types of Performance Information
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Performance Standards What are Performance Standards Expected
levels of performance Benchmarks, goals, and targets What are
characteristics of well-defined standards Realistic Measurable
Clearly understood
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How do we ensure our system is legally defensible Legally
Defensible PA System: Appraisal criteria based on job analysis
Absence of disparate impact and evidence of validity Formal
evaluation criterion that limit managerial discretion Formal rating
instrument linked to job duties and responsibilities Personal
knowledge of and contact with ratee Training of supervisors in
conducting appraisals Review process to prevent undue control of
careers Counseling to help poor performers improve
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Philosophical Challenges to Performance Appraisal
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Who Conducts Appraisals Supervisors who rate their subordinates
Employees who rate their supervisors Team members who rate each
other Employees self-appraisal Outside sources rating employees
Multisource (360 feedback) appraisal
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Employee Rating of Managers Advantages Helps in identifying
competent managers Serves to make managers more responsive to
employees Can contribute to the career development of managers
Disadvantages Negative reactions by managers to employee ratings
Subordinates fear of reprisals may inhibit them from giving
realistic (negative) ratings
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Team/Peer Rating Advantages Helps improve the performance of
lower- rated individuals Peers have opportunity to observe other
peers. Peer appraisals focus on individual contributions to
teamwork and team performance. Disadvantages Can negatively affect
working relationships. Can create difficulties for managers in
determining individual performance. Organizational use of
individual performance appraisals can hinder the development of
teamwork Has anyone evaluated a team member?
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Multisource Appraisal
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Category Scaling Methods Graphic Rating Scale A scale that
allows the rater to indicate an employees performance on a
continuum of job behaviors. John has good customer service skills.
1 (Disagree), 3 (Neutral), 5 (Agree) Drawbacks Restrictions on the
range of possible rater responses Differences in the
interpretations of the meanings of scale items and scale ranges by
raters
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Behavioral/Objective Methods Behavioral Rating Approach
Assesses employees behaviors instead of other characteristics
Consists of a series of scales created by: Identifying important
job dimensions Creating statements describing a range of desired
and undesirable behaviors (anchors) Example- Next Slide
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Behaviorally-Anchored Rating Scale for Customer Service
Skills
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Category Rating Methods Checklists A performance appraisal tool
that uses a list of statements or work behaviors that are checked
by raters. Can be quantified by applying weights to individual
checklist items. Ranking A listing of all employees from highest to
lowest in performance. Drawbacks Does not show size of differences
in performance between employees Implies that lowest-ranked
employees are unsatisfactory performers. Becomes an unwieldy
process if the group to be ranked is large.
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Comparative Methods (contd) Forced Distribution Performance
appraisal method in which ratings of employees are distributed
along a bell-shaped curve. Drawbacks Assumes a normal distribution
of performance. Resistance by managers to placing individuals in
the lowest or highest groups. Providing explanation for placement
in a higher or lower grouping can be difficult. Is not readily
applicable to small groups of employees.
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Forced Distribution on a Bell-Shaped Curve
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Narrative Methods Critical Incident Manager keeps a written
record of highly favorable and unfavorable employee actions.
Drawbacks Variations in how managers define a critical incident
Time involved in documenting employee actions Most employee actions
are not observed and may become different if observed Employee
concerns about managers black books Essay Manager writes a short
essay describing an employees performance. Drawback- Depends on the
managers writing skills and their ability to express themselves.
Teachers, BECU Corporate
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Criticisms of Performance Appraisal Focus is too much on the
individual contribution and does little to develop employees.
Employees and supervisors believe the appraisal process is
seriously flawed. Appraisals are inconsistent, short-term oriented,
subjective, and useful only at the extremes of performance.
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Management by Objectives (MBO) Management by Objectives
Specifying the performance goals that an individual and his or her
manager agree the employee will to try to attain within an
appropriate length of time. Key MBO Ideas Employee involvement
creates higher levels of commitment and performance. Encourages
employees to work effectively toward achieving desired results.
Performance measures should be measurable and should define
results.
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What MBO Tries to Accomplish The 7 Habits of Highly Effective
People Stephen R Covey (2004) #2 Begin with the End in Mind The HP
Way, David Packard (2005) We thought if we could get everyone to
agree on what our objectives were and to understand what we were
trying to so, then we could turn them loose and they would move in
a common direction. This is MBO
Slide 35
The MBO Process Job Review and Agreement Development of
Performance Standards Objective Setting Continuing Performance
Discussions This is transactional leadership- contingent
reward
Slide 36
Training of Managers and Employees Appraisal Training Topics:
Performance criteria and job standards that should be considered
How to communicate positive and negative feedback How to avoid
common rating errors (Next Slide)
