5 Criteria of Performance Measures

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Measuring Performance

Comparative approach compares performance with that of others.

RankingSimple ranking ranks employees from highest to

lowest performer.Alternation ranking is crossing off the best and

worst employees.

Forced distribution is employees ranked in groups.

Paired comparisonManagers compare every employee with every

other employee in work group.

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Attribute Approach

Graphic rating scaleslist of traits evaluated by 5-point rating

scale.legally questionable.

Mixed-standard scalesdefine relevant performance dimensions develop statements representing good,

average, and poor performance along each dimension.

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Behavioral Approach

Critical incidents approach requires managers to keep record of specific examples of effective and ineffective performance.

Behaviorally anchored rating scales (BARS)

Behavioral observation scales (BOS)

Organizational behavior modification is a formal system of behavioral feedback and reinforcement.

Assessment centers are multiple raters who evaluate employees’ performance on a number of exercises.

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Results Approach

Management by Objectives top management passes down company’s

strategic goals to managers to define goals.

Productivity Measurement and Evaluation System (ProMES) goal is to motivate employees to

higher levels of productivity.

Goals

Hierarchy

8-5

5 Performance Information Sources

8-6

Reducing Rater Errors and Politics

Approaches to Reducing Rater Error: Rater error training Rater accuracy training

Calibration Meetings- attended by managers to discuss employee performance ratings.

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Typical Rater Errors

1. Similar to Me

2. Contrast

3. Leniency

4. Strictness

5. Central Tendency

6. Halo

7. HornsAppraisal Politics- evaluations distort ratings to achieve goals.

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Improve Performance Feedback

1. Give feedback frequently, not once a year.

2. Create right context for discussion.

3. Ask employees to rate performance before the session.

4. Encourage employee to participate.

5. Recognize effective performance through praise.

6. Focus on solving problems.

7. Focus feedback on behavior or results, not on the person.

8. Minimize criticism.

9. Agree to specific goals and set progress review date.

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Ways to Manage Performance

Solid performers High ability and motivation; provide development

Misdirected effort Lack of ability but high motivation; focus on

training

Underutilizers High ability but lack motivation; focus on

interpersonal abilities

Deadwood Low ability and motivation; managerial action,

outplacement, demotion, firing

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Withstand Legal Scrutiny

1. Conduct a valid job analysis related to performance.

2. Base system on specific behaviors or results.

3. Train raters to use system correctly.

4. Review performance ratings and allow for employee appeal.

5. Provide guidance/support for poor performers.

6. Use multiple raters.

7. Document performance evaluations.

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Summary

Measuring and managing performance are key to gaining competitive edge.

Performance management systems (PMS) serve strategic, administrative and developmental purposes.

PMS should be evaluated against criteria of strategic congruence, validity, reliability, acceptability and specificity.

Effective managers need to be aware of the issues involved in determining best methods. feed performance information back to employees take action based on causes for poor performance: ability,

motivation or both be sure that PMS can meet legal scrutiny

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