Performance Management 2MANA 3320

Dr. Jeanne Michalskimichalski@uta.edu

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