1. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Overview
Performance Improvement
Performance Standards
What a Good Performance Standard System Can Do
Setting Up a Performance Standard System
Implementing a Performance Standard System
Essentials of Performance Evaluation
Making the Evaluation
The Appraisal Interview
Follow-Up
Legal Aspects of Performance Evaluation
Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved

2. Performance Improvement
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Performance Effectiveness
Performance Improvement
Performance improvement operates on the premise that to be effective, individuals and teams require the following:
Direction about what the organization wants to accomplish
Clear expectations
The equipment to do the job
Information and incentives to keep them on track
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3. Performance Standards
CHAPTER 7
Performance Effectiveness
Performance Standards
Each performance standard states 3 things about each unit of the job:
What the employee is to do.
How it is to be done.
To what extent it is to be done (how much, how well, how soon).
Job descriptions are often used in recruiting, evaluating applicants, & training.
They are also useful in assigning work, evaluating performance, & deciding on disciplinary action.
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4. Anatomy of a performance standard.
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Performance Effectiveness
Figure 7.1
Anatomy of a performance standard.
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5. What a Good Performance Standard System Can Do
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Performance Effectiveness
What a Good Performance Standard System Can Do
If you develop a full set of performance standards for each job classification you:
have the basis for a management system for your people & the work they do.
can use them to describe the jobs, to define the day’s work for each job, & to train employee’s.
can use them as a basis for rewarding achievement.
can use them as diagnostic tools to pinpoint ineffective performance.
can use them in disciplining workers.
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6. Performance Standards: In Recruiting & Hiring
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Performance Effectiveness
Performance Standards: In Recruiting & Hiring
Defines the job.
Aids in planning & forecasting.
Provides a method of testing skills.
Defines a day’s work.
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7. Performance Standards: In Training & Evaluating Performance
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Performance Effectiveness
Performance Standards: In Training & Evaluating Performance
Provides blueprints for a training program.
Sets a competency standard for job performance.
Provides an objective evaluation method.
Pinpoints needs for improvement.
Identifies superior workers.
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8. Performance Standards: In Your Job & Career
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Performance Effectiveness
Performance Standards: In Your Job & Career
Helps you to develop managerial skills.
Reduces crisis management.
Provides time for true management.
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9. Setting Up a Performance Standard System
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Performance Effectiveness
Setting Up a Performance Standard System
In setting up a performance standard system, there are three essentials for success:
Employee participation: better results, commitment, & morale.
Active supervisory leadership & assistance throughout: be in charge at all times but, work together.
Built in reward system: rewards linked to how well each worker meets the performance standards.
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10. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Defining the Purpose
The first step is to define the purpose for which standards will be used.
This should define a day’s work, set standards, develop training programs, & evaluate on the job performance.
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11. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Analyzing the Job
The next step is to analyze the job & break it down into units.
You & your employees identify units of work that are performed.
List in order of performance all the tasks or steps to be taken in completing that unit of work.
Sometimes it is appropriate to define the 3 levels of performance:
Optimistic
Realistic
Minimum
Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved

12. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Figure 7.3
Server unit ratings.
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13. Writing the Performance Standards
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Performance Effectiveness
Writing the Performance Standards
Be specific, clear, complete,& accurate.
Be measurable & observable.
Be attainable.
Conform to company policies, goals, legal & moral restraints.
Certain kinds of standards must have time limits set for achievement.
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14. Developing Standard Procedures
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Performance Effectiveness
Developing Standard Procedures
The next step is to develop standard procedures.
These state what a person must do to achieve the results, they give spelled out instructions for the action.
Functions:
To standardize procedures you want followed.
To provide a basis for training.
Areas of caution:
Do not get carried away on detail.
Do not make rigid rules when there is a choice on ho things can be done.
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15. Performance Effectiveness
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Performance Effectiveness
Training Standards
A training program should have a training objective for each standard.
Training objective: a trainers’ goal:
a statement, in performance terms, of the behavior that shows when training is complete.
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16. Evaluating On-the-Job Performance
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Performance Effectiveness
Evaluating On-the-Job Performance
The final step in developing a performance standard system is to evaluate worker performance on the job using the performance standards that apply to that job.
The first evaluation is a test of both the workers & the system.
If the workers meets all the standards- rewards are in order.
This also indicates that standards & procedures are suitable & workable.
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17. Implementing a Performance Standards System
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Performance Effectiveness
Implementing a Performance Standards System
Keys to making it work:
Workers’ cooperation in developmental stage.
Put the system to work slowly over a period of time.
An award or incentive system.
Recognition & use of workers potential.
Periodic review.
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18. How a Performance Standards System Can Fail
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Performance Effectiveness
How a Performance Standards System Can Fail
The standards are not clearly stated & communicated.
The supervisor changes standards without telling employees.
The supervisor neglects various follow up elements.
Employees find no challenges or rewards in the system.
The supervisor becomes to pre-occupied with maintaining the system.
The system is administered in a negative way.
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19. Essentials of Performance Evaluation
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Performance Effectiveness
Essentials of Performance Evaluation
Performance evaluation:
A periodic review & assessment of each employee’s performance during a given period.
Are not always used for hourly workers in the hospitality industry (lack of time, workers do not stay long enough, etc.).
Does not substitute in any way a informal evaluation.
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20. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Purpose and Benefits
Five good reasons or purposes of a performance review:
In your day-to-day evaluations you tend to concentrate on the people who need to improve.
Looking back over a period of time gives you a different perspective.
A performance review is for the record.
It lets people know how well they are doing.
A performance review not only looks backward, it looks ahead.
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21. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Purpose and Benefits
Performance reviews have many uses beyond their primary concern with evaluating and improving performance.
One is to act as the basis for an employee’s salary increase.
Another use is to identify workers with potential for advancement.
Other managers may use your performance reviews.
Your boss, to rate your own performance as a supervisor, may use your performance reviews.
Performance reviews can provide feedback on your hiring and training procedures.
Finally, performance reviews provide the occasion for supervisors to get feedback from employees about how they feel about their job, the company, and the way they are treated.
Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved

22. Steps in the Performance Review Process
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Performance Effectiveness
Steps in the Performance Review Process
Prepare for the evaluation.
Making the evaluation.
Sharing it with the worker.
Providing a follow up.
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23. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Making the Evaluation
Evaluations are typically formalized in an evaluation form.
This form lists performance dimensions or categories in measurable or observable terms.
Dimensions should be related to the job, & clearly defined in objective & observable terms.
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24. Performance Effectiveness
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Performance Effectiveness
Standards and Ratings
There should be measurable or observable standards, wherever possible to make evaluation more objective.
Many evaluation forms use a rating scale ranging from outstanding to unsatisfactory performance.
A common scale includes ratings of outstanding, above average, average, needs improvement, & poor.
The major problem with ratings such as outstanding or excellent is figuring out what they mean in performance terms.
The more precise these descriptions are, the fairer & more objective the ratings will be (i.e. point values).
No evaluation form solves all the problems of fairness & objectivity.
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25. Pitfalls in Rating Performance
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Performance Effectiveness
Pitfalls in Rating Performance
The Form itself
Halo effect
Letting feeling bias judgment
Comparing one person to another
Supervisors feelings about evaluation process affects ratings
Concern about consequences
Procrastination
Supervisor gives ratings for the effect they will have
Rating employees on most recent performance
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26. Defense Against Pitfalls
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Performance Effectiveness
Defense Against Pitfalls
Evaluate performance, not the employee.
Give specific examples.
Where there is substandard performance ask WHY?
Use the rule of finger.
Think fair & consistent.
Get others input.
Write down ideas & discuss with the employee how to improve performance.
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27. Employee Self-Appraisal
CHAPTER 7
Performance Effectiveness
Employee Self-Appraisal
Employees evaluate themselves.
May result in less employee defensiveness.
May result in a more constructive performance appraisal interview.
May improve motivation & job performance.
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28. The Appraisal Interview
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Performance Effectiveness
The Appraisal Interview
A private face to face session between you & your employee.
Plan:
Pick a place free of interruption at an appropriate time, review the evaluation, & keep in mind your goal of a positive climate of communication & problem solving.
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29. Planning the Interview
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Performance Effectiveness
Planning the Interview
Each interview should take place in a quiet area free of interruption.
It is important to review your written evaluation shortly before the interview and to plan how you will communicate it to the employee for best effect.
Your major goal for the interview is to establish and maintain a calm and positive climate of communication and problem solving rather than a negative climate of criticism or reprimand.
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30. Conducting the Interview
CHAPTER 7
Performance Effectiveness
Conducting the Interview
Start off with small talk.
Make sure the employee understands the evaluation process.
Ask the employee to rate their performance.
Encourage the employee to comment on your judgments.
Get the employee to do most of the talking.
Work with them on setting improvement objectives.
Summarize the interview, end on a positive note.
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31. Common Mistakes in Appraisal Interviews
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Performance Effectiveness
Common Mistakes in Appraisal Interviews
Authoritarian approach
Tell & sell approach
Criticizing & dwelling on past mistakes
Failing to listen-arguing- interrupting
Losing control- letting emotions take over
Reducing standards for one person
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32. Performance Effectiveness
CHAPTER 7
Performance Effectiveness
Follow-Up
1st see that people receive the rewards they have coming to them.
For people you have discovered need more training, arrange to provide it for them.
For people you feel will improve themselves, follow their progress discreetly.
There will be people who you are sure will make no attempt to improve, who will continue to get by with minimum performance, reassess them in your mind.
There are 2 important facets of follow-up.
Actually carrying it out.
Use all you have discovered about your people & yourself to improve your working relationship with each person you supervise.
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33. Legal Aspects of Performance Evaluations
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Performance Effectiveness
Legal Aspects of Performance Evaluations
EEO laws effecting performance evaluation include:
Title VII of the Civil Rights Act
Equal Pay Act
Age Discrimination in Employment Act
Americans with Disabilities Act
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34. Fair and Legal Evaluations
CHAPTER 7
Performance Effectiveness
Fair and Legal Evaluations
Evaluations should be based on standards obtained from job analysis.
Use objective, observable, & measurable performance standards.
Keep a positive rapport during the interview.
Do not discuss qualities of employee based on a membership of a group.
Document frequently.
Employees should be given a way to appeal.
Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved