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7/23/2019 PMS Chap 1
1/33
PERFORMANCE
MANAGEMENT
Herman Aguinis
Herman Aguinis, University of Colorado at Denver
PERFORMANCE
MANAGEMENT
Herman Aguinis
Prentice Hall Inc. 2006
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Herman Aguinis, University of Colorado at DenverPrentice Hall Inc. 2006
Performance anagement in Conte!t"
#vervie$
Definition of Performance Management (PM) The Performance Management Contribution
Disadvantages/Dangers of Poorly-implemented PMsystemsDefinition of Reard !ystems"ims and role of PM !ystems
Characteristics of an #deal PM system #ntegration ith $ther %uman Resources and
Development "ctivities
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Herman Aguinis, University of Colorado at DenverPrentice Hall Inc. 2006
Performance anagement" Definition
Continuous Process of#dentifying performance of individuals and teams
Measuring performance of individuals and teams
Developing performance of individuals and teams
and
"ligning performance ith the strategic goals of the
organi&ation
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Herman Aguinis, University of Colorado at DenverPrentice Hall Inc. 2006
P is %#& 'erformance a''raisal
PM !trategic business
considerations
$ngoing feedbac'
!o employee can
improve performance
Driven by line manager
Performance
a''raisal "ssesses employee
!trengths
ea'nesses
$nce a year
*ac's ongoing feedbac'
Driven by %R
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Contri(utions of P
)or *m'loyees
The definitions of +ob and success are clarified
Motivation to perform is increased
!elf-esteem is increased
!elf-insight and development and enhanced
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Herman Aguinis, University of Colorado at DenverPrentice Hall Inc. 2006
Contri(utions of P
)or anagers
!upervisors, vies of performance are
communicated more clearly
Managers gain insight about subordinates
There is better and more timely differentiation
beteen good and poor performers
mployees become more competent
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Contri(utions of P
)or #rgani+ationH- )unction
$rgani&ational goals are made clear
$rgani&ational change is facilitated
"dministrative actions are more fair and
appropriate
There is better protection from lasuits
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DisadvantagesDangers ofPoorlyim'lemented P /ystems
for *m'loyees *oered self-esteem
mployee burnout and +ob dissatisfaction
Damaged relationships
.se of false or misleading information
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DisadvantagesDangers ofPoorlyim'lemented P /ystems
for anagers #ncreased turnover
Decreased motivation to perform
.n+ustified demands on managers, resources
arying and unfair standards and ratings
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asted time and money
.nclear ratings system
merging biases
#ncreased ris' of litigation
DisadvantagesDangers ofPoorlyim'lemented P /ystems
for #rgani+ation
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Pur'oses of P /ystems"
#vervie$
!trategic
"dministrative
#nformational
Developmental
$rgani&ational maintenance
Documentation
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/trategic Pur'ose
*in' employee behavior ith organi&ation,s
goals
Communicate most crucial business strategic
initiatives
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Administrative Pur'ose
Provide information for ma'ing decisions re0!alary ad+ustments
Promotions
Retention or termination
Recognition of individual performance
*ayoffs
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Informational Pur'ose
Communicate to mployees0
1pectations
hat is important
%o they are doing
%o to improve
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Develo'mental Pur'ose
Performance feedbac'/coaching
#dentification of individual strengths and
ea'nesses
Causes of performance deficiencies
Tailor development of individual career path
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#rgani+ational aintenance Pur'ose
Plan effective or'force
"ssess future training needs
valuate performance at organi&ational level
valuate effectiveness of %R interventions
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Documentational Pur'ose
alidate selection instruments
Document administrative decisions
%elp meet legal re2uirements
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Caracteristics of an Ideal P /ystem
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Congruent $it organi+ational strategy
Consistent ith organi&ation,s strategy
"ligned ith unit and organi&ational goals
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&oroug
"ll employees are evaluated
"ll ma+or +ob responsibilities are evaluated
valuations cover performance for entirerevie period
3eedbac' is given on both positive and
negative performance
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Practical
"vailable
asy to use
"cceptable to decision ma'ers
4enefits outeigh costs
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eaningful
!tandards are important and relevant
!ystem measures $5*6 hat employee cancontrol
Results have conse2uences valuationsoccur regularly and at appropriate times
!ystem provides for continuing s'ill
development of evaluators
ifi
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/'ecific
Concrete and detailed guidance to
employees
hat,s e1pected
ho to meet the e1pectations
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Identifies effective and ineffective 'erformance
Distinguish beteen effective and ineffective 4ehaviors
Results
Provide ability to identify employees ith
various levels of performance
- li (l
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-elia(le
Consistent
3ree of error
#nter-rater reliability
1 lid
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1alid
Relevant (measures hat is important)
5ot deficient (doesn,t measure unimportant
facets of +ob)
5ot contaminated (only measures hat the
employee can control)
A t (l d ) i
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Acce'ta(le and )air
Perception of Distributive 7ustice
or' performedevaluation receivedreard
Perception of Procedural 7ustice
3airness of procedures used to0 Determine ratings
*in' ratings to reards
I l i
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Inclusive
Represents concerns of all involved hen system is created8 employees should help
ith deciding
hat should be measured %o it should be measured
mployee should provide input on performance
prior to evaluation meeting
# % / t 3
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#'en %o /ecrets3
3re2uent8 ongoing evaluations and feedbac'
9-ay communications in appraisal meeting
Clear standards8 ongoing communication Communications are factual8 open8 honest
C t (l
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Correcta(le
Recogni&es that human +udgment is fallible
"ppeals process provided
/t d di d
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/tandardi+ed
$ngoing training of managers to provide
Consistent evaluations across
People
Time
i l
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*tical
!upervisor suppresses self-interest
!upervisor rates only here she has sufficient
information about the performance dimension
!upervisor respects employee privacy
Integration $it oter Human -esources
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Integration $it oter Human -esources
and Develo'ment activities
PM provides information for0
Development of training to meet organi&ational
needs
or'force planning
Recruitment and hiring decisions
Development of compensation systems