Effective Performance Effective Performance MeasuresMeasures

May 20, 2009May 20, 2009

AgendaAgenda

Context of Performance ManagementContext of Performance Management

Definition of effective performance Definition of effective performance measuresmeasures

Performance PredictorsPerformance Predictors

MethodsMethods

ConclusionConclusion

Recruitment

ContextContextPM and other HRM FunctionsPM and other HRM Functions

Selection

Training &Development

Compensation

Labor Relations

PPMM

Effective Performance Effective Performance MeasurementMeasurement

Definition:Definition:„…„…involves the selection, definition & involves the selection, definition &

application of application of performance performance indicatorsindicators, which , which quantify the quantify the efficiency & effectivenessefficiency & effectiveness of (…) of (…) methods.“methods.“

„…„…is a is a program evaluation toolprogram evaluation tool that that examines how examines how efficiently & efficiently & effectivelyeffectively a program is delivered…“ a program is delivered…“

Performance PredictorsPerformance Predictors

Predictors Practicality Reliability RelevancyValidity

Trait Appraisal Methods

Behavioral Appraisal Methods

Results Appraisal Methods

Trait MethodsTrait Methods

Graphic Rating Scale

Mixed Standard Scale

Essay

Forced-Choice

Common Trait Methods of Appraisal

Mixed-Standard Scale for HR directorMixed-Standard Scale for HR directorDIRECTIONS: Please indicate whether the individual’s performance isDIRECTIONS: Please indicate whether the individual’s performance is

above (+), Equal to (0), or lower than (-) each of the following standards.above (+), Equal to (0), or lower than (-) each of the following standards.

1.___1.___ 　　 Employee recognizes and assesses several likely causal factors or Employee recognizes and assesses several likely causal factors or ways of ways of

interpreting the information available. (medium ANALYTICAL interpreting the information available. (medium ANALYTICAL THINKING)THINKING)

2.___2.___ 　　 Employee presents appropriate information in a clear and concise Employee presents appropriate information in a clear and concise manner,manner,

both orally and in writing. (low COMMUNICATION)both orally and in writing. (low COMMUNICATION)

3.___3.___ 　　 Employee develops strategic plans considering short-term Employee develops strategic plans considering short-term requirements asrequirements as

well as long-term direction. (high PLANNING AND ORGANIZING)well as long-term direction. (high PLANNING AND ORGANIZING)

4.___4.___ 　　 Employee responds to and discusses issues in an understandable Employee responds to and discusses issues in an understandable mannermanner

without being defensive. (medium COMMUNICATION)without being defensive. (medium COMMUNICATION)

5.___5.___ 　　 Employee monitors the attainment of own work objectives and/or Employee monitors the attainment of own work objectives and/or quality quality

of the work completed. (low PLANNING AND ORGANIZING)of the work completed. (low PLANNING AND ORGANIZING)

6.___6.___ 　　 Employee anticipates issues and revise plans as required. Employee anticipates issues and revise plans as required.

(medium PLANNING AND ORGANIZING)(medium PLANNING AND ORGANIZING)

7.___7.___ 　　 Employee collects and analyses information from a variety of Employee collects and analyses information from a variety of appropriateappropriate

sources. (low ANALYTICAL THINKING)sources. (low ANALYTICAL THINKING)

8.___8.___ 　　 Employee thinks beyond the organization and into the future, Employee thinks beyond the organization and into the future, balancingbalancing

multiple perspectives when setting direction. (high ANALYTICAL multiple perspectives when setting direction. (high ANALYTICAL THINKING)THINKING)

9.___9.___ 　　 Employee communicates strategically to achieve specific objectives; Employee communicates strategically to achieve specific objectives;

interprets organizational policies and procedures for superiors, interprets organizational policies and procedures for superiors,

subordinates and peers. (high COMMUNICATION) subordinates and peers. (high COMMUNICATION)

Behavioral MethodsBehavioral Methods

Critical Incidents Behavioral Checklist

Behaviorally Anchored Rating

Scale (BARS)

Behavior Observation

Scales

Common Behavioral Appraisal Methods

Behavioral ChecklistBehavioral ChecklistChecks with employee immediately after Checks with employee immediately after complaintcomplaint

Gathers facts regarding the situationGathers facts regarding the situation

Discusses complaint with employeeDiscusses complaint with employee

Plans each days activities ahead of timePlans each days activities ahead of time

Keeps employee’s information in Keeps employee’s information in confidenceconfidence

These behaviors are assessed & given a These behaviors are assessed & given a rating based on the employees rating based on the employees performanceperformance

Results MethodsResults Methods

360-degree feedback

Self-managed teams

Management by objectives

(MBO)

Common Results Appraisal Methods

Perspectives of Balanced Score Perspectives of Balanced Score CardCard

Performance PredictorsPerformance Predictors

Predictors Practicality Reliability RelevancyValidity

Trait Appraisal Methods

High High Moderate

Behavioral Appraisal Methods

　

Moderate　

Moderate Moderate

Results Appraisal Methods

　 Low　

Moderate 　 High

ConclusionConclusion

PrerequisitesPrerequisites Strategic relevanceStrategic relevance Clear definition of the purposeClear definition of the purpose Understanding of the culture, Understanding of the culture,

context & taskscontext & tasks Right application of methods & toolsRight application of methods & tools

TIME FOR A COFFEE!TIME FOR A COFFEE!