8-1

P A R T P A R T Assessing Performance and Developing Employees Managing Employees’ Performance Developing Employees for Future Success Separating and Retaining Employees 3

8-3 The Process of Performance Management Purposes of Performance Management Criteria for Effective Performance Management Methods for Measuring Performance Sources of Performance Information Errors in Performance Measurement Giving Performance Feedback Finding Solutions to Performance Problems Legal and Ethical Issues in Performance Management Managing Employees’ Performance PA E TR HC 8

8-4 Ch. 8 Learning Objectives 1. Identify the activities involved in performance management. 2. Discuss the purposes of performance management systems. 3. Define five criteria for measuring the effectiveness of a performance management system. 4. Compare the major methods for measuring performance. 5. Describe major sources of performance information in terms of their advantages and disadvantages. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

8-5 Ch. 8 Learning Objectives 6. Define types of rating errors and explain how to minimize them. 7. Explain how to provide performance feedback effectively. 8. Summarize ways to produce improvement in unsatisfactory performance. 9. Discuss legal and ethical issues that affect performance management. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

8-6 Performance Management  The process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.  Do you look forward to performance evaluation meetings with your boss?  A=Yes, B=No  What would your ideal performance management session be like?

8-7 Test Your Knowledge  If the performance management system created competition among team members, I would a. Make collaboration a criterion to be evaluated. b. Nothing, competition is good. c. Increase the specificity of the feedback. d. Focus on personal traits rather than behaviors.

8-8 Performance Management Problems and Solutions Table 8.1

8-9 Performance Management Process

8-10 Purposes of Performance Management  Three purposes  Strategic  Administrative  Developmental

8-11 Criteria for Effective Performance Management

8-12 Validity of Job Performance Measure Figure 8.3

8-13 Test Your Knowledge  Martin is a computer programmer whose job mainly consists of independently coding software. If interpersonal and teamwork skills were weighted heavily on his job performance measure it would suffer from a. Criterion contamination b. Criterion deficiency c. Unreliability

8-14 Methods for Measuring Performance  Comparative  Ranking  Forced Distribution  Paired comparison  What is the comparison based on?

8-15 Methods for Measuring Performance  Rating individuals: Attributes  Graphic rating scale  Mixed-standard scales Figure 8.4

8-16 Methods for Measuring Performance  Rating individuals: Behaviors Figure 8.6

8-17 Methods for Measuring Performance  Rating individuals: Results Table 8.3

8-18 Methods for Measuring Performance Table 8.2

8-19 Test Your Knowledge  The performance management system at XYZ company currently is perceived as unfair and is time consuming for managers. Which of the following systems is the most likely and least likely used, respectively. a. Paired comparisons; Results b. Results; Forced distribution c. Behavioral; Attributes d. Attributes; Comparative

8-20 Sources of Performance Information

8-21 Errors in Performance Management  Similar-to-me  Errors in distribution  Leniency  Strictness  Central Tendency  Halo & Horn

8-22 Test Your Knowledge  Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively. a. Leniency; Horn b. Strictness; Halo c. Similar-to-me; Central Tendency d. Horn; Strictness

8-23 Giving Performance Feedback  To prepare for a feedback session managers should:  Be well prepared  Create the right context for the meeting  Select a neutral location  Enable the employee to be well prepared  Ask employees to complete a self- assessment ahead of time

8-24 Giving Performance Feedback  During the feedback session, managers can take any of three approaches:  Tell and sell  Problem-solving  Tell and listen  In what are the pros and cons of each of these approaches?

8-25 Improving Performance Figure 8.9

8-26 Legal and Ethical Issues in Performance Management  Legal  Performance management processes are often scrutinized in cases of discrimination or dismissal.  Ethical  Employee monitoring via electronic devices and computers may raise concerns over employee privacy.