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Performance Management 2MANA 3320
Dr. Jeanne [email protected]
Performance Management
Methods used for performance evaluation.
Conducting an effective performance appraisal interview.
Appraisal Forms
“Least important elements of the appraisal process” Appraisal forms most often contain multiple styles
Approaches to Appraisal Forms Trait Behavior Results / Outcomes Global / Essay
Trait-Based Appraisals
Characteristics that are enduring and general e.g. “Leadership” “Communication” “Decisiveness”
Competency models vs. Trait-based appraisal Are the characteristics really related to performance?
Potential Problems Focus on person rather than performance May be ambiguous or arbitrary Poor feedback and goal setting Poor reliability and validity
Behavior-Based Appraisal
Focus on specific behaviors with examples1. Behavioral Frequency / Observation Scale (BOS) 2. Behaviorally Anchored Rating Scales (BARS)
Positives More valid and reliable Acceptable to employees Better for development and improvement
Behavior-Based Appraisal
Potential Problems Difficult and expensive to develop Needs to match jobs closely to be effective Behaviors may be hard to develop and interpret Emphasizes behaviors (at the expense of others?) Focuses on behavior rather than results May be no more reliable and valid than simple scale
Process of developing the rating system is more important than the system itself.
Behavioral Methods
Behaviorally Anchored Rating Scale (BARS) Consists of a series of vertical scales, one for each
dimension of job performance; typically developed by a committee that includes both subordinates and managers.
Behavior Observation Scale (BOS) A performance appraisal that measures the frequency of
observed behavior (critical incidents).
BARS For Municipal Fire Companies
FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
Behavior Observation Scales (BOS)
Results Methods
Productivity Measures Appraisals based on quantitative measures (e.g., sales
volume) that directly link what employees accomplish to results beneficial to the organization.
Criterion contamination
Focus on short-term results
Management by Objectives (MBO) A philosophy of management that rates performance on the
basis of employee achievement of goals set by mutual agreement of employee and manager.
Results-Based Appraisal
Uses future results as performance targets
Challenge is setting goals and measures Can the goals be quantified? Unique goals for every individual
Appraisal forms tend to be very simple
Still need a rating scale
Performance Appraisal under an MBO Program
Results Methods
Advantages
Have less subjectivity bias Are acceptable to employees and superiors Link individual to organizational performance Encourage mutual goal setting Are good for reward and promotion decisions
Disadvantages
Are time-consuming to develop/use May encourage short-term perspective May use contaminated criteria May use deficient criteria
Comparison of Appraisal Forms
Ease of Use Employee Development
Legal Defensibility
Traits High Low Low
Behaviors Medium High High
Results Low Medium Medium
Performance Rating Approaches
Number of categories
Example - 5 levels
Consistently exceeds expectations, exceeds expectations, meets expectations, does not meet expectations, does not meet any expectations
Many supervisors believe they can differentiate however have a hard time explaining these distinctions in a way that employees in a way that employees can understand and accept.
Performance Rating Approaches
Number of categories Can be controversial- experts don’t agree on what number of
categories are correct Some believe more categories - more accurately performance may
be evaluated On other hand too many categories makes hard to objectively
differentiate performance at each of the levels. Choice of words important - “no one wants to be average” Do you have an even or odd number of categories Trend is too fewer rating categories
Performance Management Cycle
Planning Performance for the Upcoming Period Defining key results for each position (usually 5-8) that
support the organization’s business strategy Establishing performance standards against which key result
areas will be measured May assign a weight to each key result since all key results
are NOT equal – adds complexity
Performance Management Cycle
Coaching Performance and Giving Feedback Throughout the Period Structured feedback like mid-period, quarterly, or monthly
progress reviews Informal feedback throughout the process
Rating Performance for the Just Completed Period One of the most challenging aspects is the approach for
rating employee performance
The Performance Appraisal Discussion
Managing Ineffective Performance
Possible Courses of Action Provide training to increase skills and abilities Transfer employee to another job or department Attention of actions to motivate employee Take disciplinary action Discharge the employee
Cautions All actions taken must be objective and fair.
Diagnosing Performance Problems
What determines human performance in any situation?
Diagnosing Performance Problems
Performance = f (Ability, Motivation, Environment)
Ability
Technical Skills
Analytical Skills
Interpersonal Skills
Physical Limitations
Business Knowledge
Motivation
Goals / Expectations
Career Motivation
Employee Conflict
Employee Satisfaction
Boredom / Frustration
Environment
Job Design
Equipment / Materials
Rules and Policies
Economic Conditions
Management Support
Performance Diagnosis