1. Performance Management 2 MANA 3320
Dr. Jeanne Michalski

2. Performance Management
Methods used for performance evaluation.
Conducting an effective performance appraisal interview.

3. Appraisal Forms “Least important elements of the appraisal process”
Appraisal forms most often contain multiple styles
Approaches to Appraisal Forms
Trait
Behavior
Results / Outcomes
Global / Essay

4. Trait-Based Appraisals
Characteristics that are enduring and general
e.g. “Leadership” “Communication” “Decisiveness”
Competency models vs. Trait-based appraisal
Are the characteristics really related to performance?
Potential Problems
Focus on person rather than performance
May be ambiguous or arbitrary
Poor feedback and goal setting
Poor reliability and validity

5. Behavior-Based Appraisal
Focus on specific behaviors with examples
Behavioral Frequency / Observation Scale (BOS)
Behaviorally Anchored Rating Scales (BARS)
Positives
More valid and reliable
Acceptable to employees
Better for development and improvement

6. Behavior-Based Appraisal
Potential Problems
Difficult and expensive to develop
Needs to match jobs closely to be effective
Behaviors may be hard to develop and interpret
Emphasizes behaviors (at the expense of others?)
Focuses on behavior rather than results
May be no more reliable and valid than simple scale
Process of developing the rating system is more important than the system itself.

7. Behavioral Methods Behaviorally Anchored Rating Scale (BARS)
Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.
Behavior Observation Scale (BOS)
A performance appraisal that measures the frequency of observed behavior (critical incidents).

8. BARS For Municipal Fire Companies
FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.

9. Behavior Observation Scales (BOS)

10. Results Methods Productivity Measures Criterion contamination
Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.
Criterion contamination
Focus on short-term results
Management by Objectives (MBO)
A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.

11. Results-Based Appraisal
Uses future results as performance targets
Challenge is setting goals and measures
Can the goals be quantified?
Unique goals for every individual
Appraisal forms tend to be very simple
Still need a rating scale

12. Performance Appraisal under an MBO Program

13. Results Methods Have less subjectivity bias
Advantages
Have less subjectivity bias
Are acceptable to employees and superiors
Link individual to organizational performance
Encourage mutual goal setting
Are good for reward and promotion decisions
Disadvantages
Are time-consuming to develop/use
May encourage short-term perspective
May use contaminated criteria
May use deficient criteria

14. Comparison of Appraisal Forms
Ease of Use
Employee Development
Legal Defensibility
Traits
High
Low
Behaviors
Medium
Results

15. Performance Rating Approaches
Number of categories
Example - 5 levels
Consistently exceeds expectations, exceeds expectations, meets expectations, does not meet expectations, does not meet any expectations
Many supervisors believe they can differentiate however have a hard time explaining these distinctions in a way that employees in a way that employees can understand and accept.

16. Performance Rating Approaches
Number of categories
Can be controversial- experts don’t agree on what number of categories are correct
Some believe more categories - more accurately performance may be evaluated
On other hand too many categories makes hard to objectively differentiate performance at each of the levels.
Choice of words important - “no one wants to be average”
Do you have an even or odd number of categories
Trend is too fewer rating categories

17. Performance Management Cycle
Planning Performance for the Upcoming Period
Defining key results for each position (usually 5-8) that support the organization’s business strategy
Establishing performance standards against which key result areas will be measured
May assign a weight to each key result since all key results are NOT equal – adds complexity

18. Performance Management Cycle
Coaching Performance and Giving Feedback Throughout the Period
Structured feedback like mid-period, quarterly, or monthly progress reviews
Informal feedback throughout the process
Rating Performance for the Just Completed Period
One of the most challenging aspects is the approach for rating employee performance

19. The Performance Appraisal Discussion

20. Managing Ineffective Performance
Possible Courses of Action
Provide training to increase skills and abilities
Transfer employee to another job or department
Attention of actions to motivate employee
Take disciplinary action
Discharge the employee
Cautions
All actions taken must be objective and fair.

21. Diagnosing Performance Problems
What determines human performance in any situation?

22. Diagnosing Performance Problems
Performance = f (Ability, Motivation, Environment)
Ability
Technical Skills
Analytical Skills
Interpersonal Skills
Physical Limitations
Business Knowledge
Motivation
Goals / Expectations
Career Motivation
Employee Conflict
Employee Satisfaction
Boredom / Frustration
Environment
Job Design
Equipment / Materials
Rules and Policies
Economic Conditions
Management Support

23. Performance Diagnosis