Performance Management

Designing and Maintaining Effective Organizations

For and With People

What Is “Good Performance”?

• More than just activities, effort, good intentions, or results• Working hard and staying busy are not necessarily

high performance

• Attending training sessions and studying hard does not necessarily lead to good performance

• Strong commitment may not lead to good performance

• Even accomplishing some goals may not be high performance

Performance Management –

Broader Than Performance Appraisal

Begins with a look at goals & strategies of the organization

Organizational Alignment

All efforts must be aligned with overall goals and strategies of the organization.

…a key to Performance Management

Performance Management a Cascading Process

• Mission, goals, and strategies should be defined, and clearly understood by everyone

• How do all tasks contribute to overall plans for the organization?

Annual Plans Should Create Performance Standards for

Each Department

These should translate into performance goals for each worker• Quantity• Quality• Time• Cost

What Are the Three Steps in Performance Management?

Defining PerformanceFacilitating Performance

Encouraging Performance

Performance Appraisal

Developmental and Administrative Decision Processes

Performance Appraisal continues to be one of the most criticized HR functions in organizations

Performance Appraisal

• We all measure our subordinates’ performance whether we do it formally or informally

• Very important to document what we evaluate

• Also necessary to show a clear link between what we evaluate and job requirements

What Purposes Can P.A. Serve in an Organization?

Any potential conflicts here? Explain.

Discuss the Five Requirements of Performance Appraisal as Cited in the Text

Any additions or modifications to these?

Remember...

Appraisals are “tests” as defined by EEOC

Validity must be demonstrated if they result in adverse impact

What kind of validity?

What Guidelines Can be Used to Help Insure Legal Compliance for

Appraisal Systems?

Why is Appraisal Validity Important to Selection Instrument Validation?

Look at Albemarle Paper Co. v. Moody 422 U.S. 405(available at findlaw.com)

How Frequently Should Performance Appraisal Be Done?

Why?

Performance Appraisal - a Continuing Process

Is not a once-a-year or once-a-quarter experience

Effective appraisal occurs frequentlyThere should be no surprises when an

employee is given his or her formal appraisal interview

Essential for coaching & positive motivation

The Main Point

Be sure that what is measured is documented & can be shown to match job expectations

A Key to All of This:

Supervisors must have the support & encouragement of

higher management to make all this

work

Our Author Groups Measurement Systems into Behavioral and Results Oriented Systems

Some of the first group could fall into either trait or behavior - oriented systems

Behavior - Oriented Systems• Ranking Methods

• Strait Ranking• High-Low (Alternate Ranking)• Paired Comparison

• Forced Distribution (similar to ranking)

• Graphic Rating Scales

Ranking Method

• Straight ranking

• Alternation ranking

• Paired comparison

Explain Each of the Ranking Methods

Preference Among Them?

Attractions? Limitations?

Forced Distribution

• Design?

• Purpose?

• Do you recommend or not recommend? • Why or why not?

Graphic Rating Scale

Single Most Popular Method of Appraisal

Graphic Rating Scale

• Explain how it works• Give an example

• Potential strengths?

• Potential weaknesses?

Critical Incidents

• Based on Observation of Behaviors• Positive• Negative

• Written Notation of Behaviors is Made & Placed in Each Employee’s File

Critical Incidents

• Each Observation is Discussed With the Employee at the Time of Occurrence

• A Portfolio of Observed Events is Collected Over Time

Any Problems With Critical Incident Method for Appraisal?

Behaviorally Anchored Rating Scales (BARS)

• A form of graphic rating scale

• How is different from traditional rating scale?

Behaviorally Anchored Rating Scales (BARS)

Attractions?Limitations?

Results (Outcome) Based Appraisal

• Management by Objectives (MBO) in Some Form is Commonly Used

• Focuses on Measurable Results of Mutually Agreed-Upon Goals for a Work Cycle

MBO

• Steps in development and usage?

• Potential strengths and weaknesses?

Factors to Consider in Choice of a P. A. System

• Cost

• Usefulness in employee development

• Usefulness in administrative decisions

• Validity

One-Page Article to Look At

“Performance Appraisal Reappraised,” Harvard Business Review, Jan/Feb,2000, p. 21

What Do You Think?

What Form of Performance Appraisal Would You Recommend?

What Criteria Have You Used in Making Your Recommendation?

What Limitations (As Well As Strengths) Does Your Recommended Method Have?

Post your response to the Lesson 8 Discussion area no later than the date shown on the syllabus.

Who Appraises?

• Supervisor• Peers• Subordinates• Self Appraisal• Customers

Usefulness of Each?

Explain

360 Degree Appraisal

Best Known Book on the Subject: Edwards & Ewen,360 (degree) Feedback, Amacom, 1996.

Check This Article

“Getting 360 degree Feedback Right,” Harvard Business Review, Jan., 2001, pp. 142-147.

Three Types of Appraisal Interviews

Tell & Sell

Tell & Listen

Problem Solving