Submitted by: Maimoona Ali Roll # 07-14 BS(IT) #3rd sem

Performance Management Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Provide information to employees about their performance. Clarify organizational performance expectations. Identify the development steps that are needed to enhance employee performance. Document performance for personnel actions. Provide rewards for achieving performance objectives.

The Nature of Performance Management Effective Performance Management System Make clear what the organization expects Provide performance information to employees Document performance for personnel records Identify areas of success and needed development

FIGURE 11-1 Performance Management Linkage

Performance Management versus Performance Appraisal Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Performance Appraisal The process of evaluating how well employees perform their jobs and then communicating that information to the employees

FIGURE 11-2 Components of a Performance-Focused Culture

Identifying and Measuring Employee Performance Common Performance Measures Quantity of Output Quality of Output Timeliness of Output Presence at Work

Identifying and Measuring Employee Performance (cont’d) Job Duties Important elements in a given job as identified from job descriptions. What an organization pays an employee to do.

FIGURE 11-3 Types of Performance Information Subjective Objective

FIGURE 11-4 ACTFL Performance Standards for Speaking Proficiency Source: Adapted from American Counsel on the Teaching of Foreign Languages (ACTFL) Oral Proficiency Interview Tester Training Manual (Stamford, CT: ACTFL Inc., 2006), 81–109.

Performance Metrics in Service Businesses Common Sources of Performance Differences Regional Labor Cost Differences Service Agreement Differences Equipment/ Infrastructure Differences Work Volume Performance that is measured can be managed.

FIGURE 11-5 Conflicting Uses for Performance Appraisal

Decisions About the Performance Appraisal Process Designing Appraisal Systems Appraisal Responsibilities Informal vs. Systematic Processes Timing of Appraisals

Legal Concerns and Performance Appraisals Legally Defensible Performance Appraisal System: Appraisal criteria based on job analysis (i.e., job-related) Absence of disparate impact and evidence of validity Formal evaluation criterion that limit managerial discretion Formal rating instrument linked to job duties and responsibilities Personal knowledge of and contact with ratee Training of supervisors in conducting appraisals Review process to prevent undue control of careers Counseling to help poor performers improve

FIGURE 11-6 Typical Division of HR Responsibilities: Performance Appraisal

Who Conducts Appraisals? Supervisors rating their employees Employees rating their superiors Multisource, or 360°, feedback Outside sources rating employees Team members rating each other Employees rating themselves Sources of Performance Appraisals

Employee Rating of Managers Advantages Disadvantages Helps in identifying competent managers Serves to make managers more responsive to employees Contributes to the career development of managers Negative reactions by managers to ratings Subordinates’ fear of reprisals may inhibit them from giving realistic (negative) ratings Ratings are useful only for self-improvement purposes

Team/Peer Rating Advantages Disadvantages Helps improve performance of lower-rated individuals Peers have opportunity to observe other peers Peer appraisals focus on individual contributions to teamwork and team performance Can negatively affect working relationships Can create difficulties for managers in determining individual performance Organizational use of individual performance appraisals can hinder the development of teamwork

FIGURE 11-7 Performance Management Linkage

FIGURE 11-8 Multisource Appraisal