1. Performance Management
Chapter 8
Performance Management

2. Performance Management Performance Appraisal
Introduction
Performance Management
The means through which managers ensure that employees’ activities and outputs are congruent with the organization's goals.
Performance Appraisal
The process through which an organization gets information on how well an employee is doing his or her job.
Performance Feedback
The process of providing employees information regarding their performance effectiveness.

3. The Practice of Performance Management
How different organizations deal with performance management systems?

4. An Organization Model of Performance Management
Organizational
Strategy
Long and short
term goals
and values
Individual
Attributes
(skills, abilities)
Objective
Results
Individual
Behaviors
Situational
Constraints
Culture and
economic
conditions

5. Purposes of Performance Management
Strategic Purpose
Administrative Purpose
Developmental Purpose

6. Performance Measure Criteria
Strategic Congruence
The extent to which the performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture.
Validity
The extent to which the performance measure assesses all the relevant—and only the relevant—aspects of job performance.
Reliability
The consistency of the performance measure “The degree to which performance measure is free from random error”.
Acceptability
The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it. “Whether the people who use the performance measure accept it”.
Specificity
The extent to which a performance measure gives specific guidance to employees about what is expected of them and how they can meet these expectations.

7. Approaches to Measure Performance
The Comparative Approach
Ranking / Alternation Ranking
Forced Distribution
Paired Comparison
The Attribute Approach
Graphic Rating Scale
Mixed Standards Scale

8. Approaches to Measure Performance
The Behavioral Approach
Critical Incidents
Behaviorally Anchored Rating Scales (BARS)
Behavioral Observation Scales (BOS)
Organizational Behavior Modification
Assessment Centers

9. Approaches to Measure Performance
The Results Approach
Management by Objectives
Productivity Management and Evaluation System
Evidence Based HR
The Quality Approach
Statistical process quality control techniques used:
Process-flow analysis - Cause-and-effect diagrams - Pareto chart - Control chart – Histogram - Scattergram
Survey Feedback Interventions

10. Choosing A Source for Performance Information
Data Collection Sources
1- Managers
2- Peers
3- Subordinates (Up word feedback)
4- Self
5- Customers
Degree Appraisal

11. Raters Errors in Performance Measurement
1- Similar to Me
3- Distributional Errors
2- Contrast
4- Halo and Horns
Reducing Rater Errors
Rater error training - Rater accuracy training
Appraisal Politics
a situation in which evaluators purposefully distort ratings to achieve personal or company goals

12. The Manager’s Role in an Effective Performance Feedback Process
1- Feedback should be given frequently, not once a year.
6- Focus on solving problems.
2- Create the right context for the discussion.
7- Focus feedback on behavior or results, not on the person.
3- Ask employee to rate his or her performance before the session.
8- Minimize criticism.
4- Encourage the subordinate to participate in the session.
9- Agree to specific goals and set a date to review progress.
5- Recognize effective performance through praise.

13. Diagnosing the Causes of Poor Performance
What Managers Can Do to Diagnose Performance Problems and Manage Employee Performance
Diagnosing the Causes of Poor Performance
1- Input
2- Employee characteristics
3- Feedback
4- Performance standards/Goals
5- Consequences

14. Actions for Managing Employees’ Performance
What Managers Can Do to Diagnose Performance Problems and Manage Employee Performance
Actions for Managing Employees’ Performance
Marginal Employees
An employee performing at a barely acceptable level because of lack of ability and / or motivation to perform well, not poor work conditions
Solid Performers
High ability and motivation; managers should provide development opportunities
Misdirected Effort
Lack of ability but high motivation; managers should focus on training
Underutilizers
High ability but lack motivation; managers should focus on interpersonal abilities
Deadwood
Low ability and motivation; managerial action, outplacement, demotion, firing.