CHAPTER 10 PERFORMANCE MANAGEMENT AND FEEDBACK

10–2 Performance Management and Feedback Organizations need broader performance measures to insure that:Organizations need broader performance measures to insure that: –Performance deficiencies are addressed in a timely manner through employee development programs. –Employee behaviors are being channeled in the appropriate direction toward performance of specific objectives. –Employees are provided with appropriate and specific feedback to assist with their career development. Organizations need broader performance measures to insure that:Organizations need broader performance measures to insure that: –Performance deficiencies are addressed in a timely manner through employee development programs. –Employee behaviors are being channeled in the appropriate direction toward performance of specific objectives. –Employees are provided with appropriate and specific feedback to assist with their career development.

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10–4 Training and Development

10–5 Who Evaluates? Problems with immediate supervisors conducting performance evaluations:Problems with immediate supervisors conducting performance evaluations: –Lacking appropriate information to provide informed feedback on employee performance. –Insufficient observation of the employees day-to-day work to validly assess performance. –Lack of knowledge about the technical dimensions of a subordinates work. –Lack of training or appreciation for the evaluation process. –Perceptual errors by supervisors that create bias or lack of subjectivity in evaluations. Problems with immediate supervisors conducting performance evaluations:Problems with immediate supervisors conducting performance evaluations: –Lacking appropriate information to provide informed feedback on employee performance. –Insufficient observation of the employees day-to-day work to validly assess performance. –Lack of knowledge about the technical dimensions of a subordinates work. –Lack of training or appreciation for the evaluation process. –Perceptual errors by supervisors that create bias or lack of subjectivity in evaluations.

10–6 Perceptual Errors of Raters Halo EffectHalo Effect –Rater allows a single trait, outcome or consideration to influence other measures of performance. StereotypingStereotyping –Rater makes performance judgments based on employees personal characteristics rather than the employees actual performance. Recency ErrorRecency Error –Recent events and behaviors of the employee bias the raters evaluation of the employees overall performance. Halo EffectHalo Effect –Rater allows a single trait, outcome or consideration to influence other measures of performance. StereotypingStereotyping –Rater makes performance judgments based on employees personal characteristics rather than the employees actual performance. Recency ErrorRecency Error –Recent events and behaviors of the employee bias the raters evaluation of the employees overall performance.

10–7 Perceptual Errors of Raters (contd) Central Tendency ErrorCentral Tendency Error –Evaluator avoids higher and lower ends of performance assessment rating in favor of placing all employees at or near the middle of the scales. Leniency or Strictness ErrorsLeniency or Strictness Errors –Evaluators tendency is to rate all employees either above (leniency) or below (strictness) their actual performance level. Personal Biases and Organizational PoliticsPersonal Biases and Organizational Politics –Have a significant impact on the ratings employees receive from their supervisors. Central Tendency ErrorCentral Tendency Error –Evaluator avoids higher and lower ends of performance assessment rating in favor of placing all employees at or near the middle of the scales. Leniency or Strictness ErrorsLeniency or Strictness Errors –Evaluators tendency is to rate all employees either above (leniency) or below (strictness) their actual performance level. Personal Biases and Organizational PoliticsPersonal Biases and Organizational Politics –Have a significant impact on the ratings employees receive from their supervisors.

10–8 What to Evaluate? Traits MeasuresTraits Measures –Are an assessment of how the employee fits with the organizations culture, not what the employee actually does. Behavior-based measuresBehavior-based measures –Focus on what an employee does correctly and what the employee should do differently. Results-based measuresResults-based measures –Focus is on accomplishments or outcomes that can be measured objectively. Problems occur when results measures are difficult to obtain, outside employee control, or ignore the means by which the results were obtained. Traits MeasuresTraits Measures –Are an assessment of how the employee fits with the organizations culture, not what the employee actually does. Behavior-based measuresBehavior-based measures –Focus on what an employee does correctly and what the employee should do differently. Results-based measuresResults-based measures –Focus is on accomplishments or outcomes that can be measured objectively. Problems occur when results measures are difficult to obtain, outside employee control, or ignore the means by which the results were obtained.

10–9 How to Evaluate? Absolute MeasurementAbsolute Measurement –Employees are all measured strictly by absolute performance requirements or standards of their jobs. Relative AssessmentRelative Assessment –Employees are measured against other employees and ranked on their distance from the next higher to the next lower performing employee. –Ranking allows for comparison of employees but does not shed light on the distribution of employee performance. Absolute MeasurementAbsolute Measurement –Employees are all measured strictly by absolute performance requirements or standards of their jobs. Relative AssessmentRelative Assessment –Employees are measured against other employees and ranked on their distance from the next higher to the next lower performing employee. –Ranking allows for comparison of employees but does not shed light on the distribution of employee performance.

10–10 Measures of Evaluation Graphic Rating ScalesGraphic Rating Scales Weighted ChecklistsWeighted Checklists Behaviorally Anchored Rating Scales (BARS)Behaviorally Anchored Rating Scales (BARS) Behavioral Observation Scales (BOS)Behavioral Observation Scales (BOS) Critical Incident MethodCritical Incident Method Management By Objectives (MBO)Management By Objectives (MBO) Graphic Rating ScalesGraphic Rating Scales Weighted ChecklistsWeighted Checklists Behaviorally Anchored Rating Scales (BARS)Behaviorally Anchored Rating Scales (BARS) Behavioral Observation Scales (BOS)Behavioral Observation Scales (BOS) Critical Incident MethodCritical Incident Method Management By Objectives (MBO)Management By Objectives (MBO)

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10–14 Behavioral Observation Scale (BOS)

10–15 Performance Management Systems Guidelines Feedback to employees must be specific rather than general.Feedback to employees must be specific rather than general. Feedback should come only from credible, trustworthy sources.Feedback should come only from credible, trustworthy sources. Feedback should be provided as soon as possible for maximum benefit.Feedback should be provided as soon as possible for maximum benefit. Performance measures must be based on clear, measurable goals.Performance measures must be based on clear, measurable goals. The performance system must involve a dialogue between the employee and the manager.The performance system must involve a dialogue between the employee and the manager. Feedback to employees must be specific rather than general.Feedback to employees must be specific rather than general. Feedback should come only from credible, trustworthy sources.Feedback should come only from credible, trustworthy sources. Feedback should be provided as soon as possible for maximum benefit.Feedback should be provided as soon as possible for maximum benefit. Performance measures must be based on clear, measurable goals.Performance measures must be based on clear, measurable goals. The performance system must involve a dialogue between the employee and the manager.The performance system must involve a dialogue between the employee and the manager.

10–16 Reading 10.1: Has 360 Degree Feedback Gone Amok? Purposes of 360 Degree feedback systems:Purposes of 360 Degree feedback systems: –Furthering management and leadership development. –Facilitating organizational change and improvement initiatives that allow the organization to become more open and participative. –Expand the formal appraisal system by making feedback evaluative and linking it more with a managers or employees formal performance appraisal. Purposes of 360 Degree feedback systems:Purposes of 360 Degree feedback systems: –Furthering management and leadership development. –Facilitating organizational change and improvement initiatives that allow the organization to become more open and participative. –Expand the formal appraisal system by making feedback evaluative and linking it more with a managers or employees formal performance appraisal.

10–17 Reading 10.1: Has 360 Degree Feedback Gone Amok? Recommendations for increasing the likelihood that 360 feedback will benefit the organization:Recommendations for increasing the likelihood that 360 feedback will benefit the organization: –Assign an internal consultant or champion to oversee the process and hold that individual accountable for results. –Initial implementation should be on a limited basis to allow for an evaluation of the process using a pre-post test control group test design. –Create a focus group to clearly identify effectiveness criteria measures that the organization values most highly and that will be used in the measurement process. –Train all raters to avoid systematic rater errors. Recommendations for increasing the likelihood that 360 feedback will benefit the organization:Recommendations for increasing the likelihood that 360 feedback will benefit the organization: –Assign an internal consultant or champion to oversee the process and hold that individual accountable for results. –Initial implementation should be on a limited basis to allow for an evaluation of the process using a pre-post test control group test design. –Create a focus group to clearly identify effectiveness criteria measures that the organization values most highly and that will be used in the measurement process. –Train all raters to avoid systematic rater errors.