343 pa notes

							Performance
Management
  Performance Management
          Defined
• The means through which
  managers ensure that employees’
  activities and outputs are
  congruent with the organization's
  goals.
The Performance Management Process
  Identify specific performance
  goals (organization’s strategy)

         Establish job expectations
  (job analysis ==> performance measures)


              Examine work performed


                     Evaluate performance


                  Give feedback to employee (interview)
Issues to be Considered in Developing a
   Performance Management System
 • Purposes of performance management
 • Criteria for evaluating performance
   measures
 • What to measure
 • Methods for measurement
 • Who should provide information
 • Controlling rating errors
 • Giving feedback
• What was the purpose of the
  meeting?
  – Administrative (Evaluative)
  – Developmental
  – Strategic
  – Planning
     Criteria for Evaluating
     Performance Measures
•   Strategic congruence
•   Validity
•   Reliability
•   Acceptability
•   Specificity
•   COST!!!
          What to Measure
• Question = Intended Use
• if PAY is the issue, focus on JOB RESULTS
   – how WELL is the job being done
• if TRAINING is the issue, focus on
  BEHAVIOR
   – HOW the job is done (e.g. effort)
• Tailor criteria based on
   – objectives
   – the job
   – employee needs
      Methods for Measurement
• Comparative                 • Behavioral
  –   straight ranking          – critical incidents
  –   alternation rankings      – Behavioral
  –   paired comparisons          Checklist
  –   forced distribution       – BARS
                                – BOS
• Attribute
                                – assessment centers
  –   graphic rating scale
  –   mixed standard scales   • Results
  –   forced choice             – Productivity
  –   essay                     – MBO
                                – TQM
      Methods for Measurement
• Comparative                 • Behavioral
  –   straight ranking          – critical incidents
  –   alternation rankings      – Behavioral
  –   paired comparisons          Checklist
  –   forced distribution       – BARS
                                – BOS
• Attribute
                                – assessment centers
  –   graphic rating scale
  –   mixed standard scales   • Results
  –   forced choice             – Productivity
  –   essay                     – MBO
                                – TQM
       The Biggest Hazard
• Employees’ Reactions
• Key to reactions =
  – understanding
  – fairness
  – care about results
• Key = Participation
Who Should Provide
  Information?
Controlling Rating Errors
      Perceptual Problems in
      Performance Appraisal
•   Halo error
•   Horns error
•   Recency error
•   Time delay error
•   Leniency error
•   Strictness error
•   Central tendency error
        Perceptual Problems,
             Continued
•   Similar-to-me error
•   Contrast error -- other employees
•   Contrast error -- personal
•   Attribution error
•   Expectations
•   Proximity error
  The Biggest Challenge --
     Giving Feedback
• Conveying the information,
  whether evaluative and/or
  development, via an interview!
            Textbook suggestions
• Feedback should be given frequently
• Create the right context for the discussion
• Ask the employee to rate his/her performance before
  the session
• Encourage the subordinate to participate in the
  session
• Recognize effective performance through praise
• Focus on problem solving
• Focus feedback on behavior or results
• Minimize criticism
• Agree on specific goals and set a date to review
  progress
               Suggestions
•   Ask for a self-assessment
•   Invite participation
•   Express appreciation
•   Minimize criticism
•   Change the behavior not the person
•   Focus on solving problems
•   Be supportive
•   Establish goals
•   Follow up day to day