Performance Management 2 MANA 3320

1. Performance Management 2MANA 3320 Dr. Jeanne Michalski michalski@uta.edu

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 • 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 • 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

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