Chapter 09 Performance Management Mcgrawhillirwin3798

7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798

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Chapter 09

Performance

Management

McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.


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Questions This Chapter Will Help

Managers Answer What steps can I, as a manager, take to make the performance

management process more relevant and acceptable to those whowill be affected by it?

How can we best fit our approach to performance management with

the strategic direction of our dept. and business?

Should managers and nonmanagers be appraised from multipleperspectives for example, by those above, by those below, bycoequals, and by customers?

What strategy should we use to train raters at all levels in themechanics of performance management and in the art of givingfeedback?

What would an effective performance management process looklike?


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Managing For Maximum Performance

Performance management is a kind of

compassone that indicates actual direction as

well as desired direction

Many managers incorrectly equate it with

performance appraisalan exercise they

typically do once a year to identify and discuss

job-relevant strengths and weaknesses of

individuals or work teams


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The Process of Performance

Management

1.Define performance

2.Facilitate performance

3.Encourage performance


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Defining Performance

Key Elements

Goals

Measures

Assessment


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Encouraging Performance

1. Provide a sufficient amount of rewards that

employees really value

2. In a timely

3. Fair manner


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What is Fairness?

Important Practices

Voice

Collect employee input through surveys or interviews

Consistency

Ensure that all employees are treated consistentlywhen seeking input and communicating about the

process for administering rewards

Relevance

Include rewards that employees really care aboutCommunication

Explain clearly the rules and logic of the rewards

process


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Figure 9-1 Elements of a

Performance Management System


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Figure 9-2 Purposes of Performance

Appraisal Systems


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Requirements of

Effective Appraisal Systems

Legally and scientifically, the key requirements

of any appraisal system are

Relevance

Sensitivity Reliability

In the context of ongoing operations, the key

requirements are

Acceptability

Practicality


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Relevance

Implies th at there are

1. Clear links between the performance

standards for a particular job andorganizational objectives, and

2. Clear links between the critical job

elements identified through a job

analysis and the dimensions to berated on an appraisal form


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Performance Standards

translate job requirements into

levels of acceptable or

unacceptable employee behavior.They play a critical role in the job

analysis-performance appraisal

linkage.


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Figure 9-3 Relationship of Performance Standards

to Job Analysis and Performance Appraisal


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Rating Methods or Formats

Relative Rating Systems

Comparing the performance of employees to that of

other employees

Absolute Rating Systems

Evaluating each employee in terms of performance

standards without reference to others

Results-Oriented Systems

Emphasis is on what employee produces


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Ranking

Simple ranking requires only that a rater order all

employees from highest to lowest, from best

employee to worst employee.

Alternation ranking requires that a rater initially list

all employees on a sheet of paper. From this list

he/she chooses the best employee (No. 1), then the

worst employee (No. n), then the second best (no. 2),

then the second worst (No. n -1), and so forth,

alternating from the top to the bottom of the list untilall employees have been ranked.


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Behaviorally Anchored Rating Scales

The major advantage of BARS is that they

define the dimensions to be rated in behavioral

terms and use critical incidents to describe

various levels of performance


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Management By Objectives (MBO)

A process of managing that relies on

goal-setting to establish objectives for

the organization as a whole, for eachdepartment, for each manager within

each department, and for each

employee


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Establishing Objectives in MBO

What the Key People Involved Should Do

Meet to agree on the major objectives for a

given period of time

Develop plans for how and when the objectiveswill be accomplished

Agree on the measurement toolsfor

determining whether the objectives have beenmet


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Table 91: Advantages and Disadvantages

of Alternative Appraisal Methods


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Work Planning and Review

Work planning and review is similar to MBO;

however, it places greater emphasis on the periodic

review of work plans by both supervisor and

subordinate in order to identify goals attained,

problems encountered, and the need for training


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Who Should Evaluate Performance?

Possible Raters

The immediate supervisor

Peers

Subordinates

Self-appraisal

Customers served

Computers


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Multi-Rater or 360-Degree Feedback

Using input from managers,

subordinates, peers, and customers to

provide a perspective on performancefrom all angles


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Types of Teams

Work or Service Teams

Intact teams engaged on routine tasks

Project Teams

Teams assembled for a specific purpose andexpected to disband once their task is completed

Network Teams

Teams that include membership not constrainedby time/space and membership is not limited by

organizational boundaries


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Types of Appraisal Errors

Halo error raters assign their ratings on the basisof global (good or bad) impressions of ratees

Contrast error rater compares severalemployees to one another rather than to an objectivestandard of performance

Recency error rater assigns his/her ratings onthe basis of the employees most recent performance


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Frame-of-reference training

Of the many types of rater training programs

available today, frame-of-reference training (FOR)

is the most effective at improving the accuracy of

performance appraisals


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Table 9-3 Supervisory Activities Before, During,

and After Performance Feedback Interviews


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Key Terms Discussed in the Chapter

Performance management

Performance appraisal

Performance facilitation

Performanceencouragement

Relevance

Performance standards

Sensitivity

Reliability Acceptability

Practicality

Applicant group

Behavior-oriented rating

methods

Relative rating systems Absolute rating systems

Results-oriented rating

systems

Simple ranking

Alternation ranking Paired comparisons

Forced distribution


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Key Terms (contd.)

Severity

Central tendency

Likert method of summed

ratings Critical incidents

Graphic rating scales

Behaviorally anchored

rating scales (BARS)

Management by objectives(MBO)

Leniency

Work planning and

review

360-degree feedback

Halo error Contrast error

Recency error

Active listening

Destructive criticism

Frame-of-referencetraining

Narrative essay

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Chapter 09 Performance Management Mcgrawhillirwin3798