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5561 - Performance Management

5561 - Performance Management. A common situation.

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5561 - Performance Management

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  1. 5561 - Performance Management

  2. A common situation Sally is a sales manager at a large pharmaceutical company. The fiscal year will end in one week. She is overwhelmed with end -of-the-year tasks, including reviewing the budget she is likely to be allocated for the following year, responding to customers ’ phone calls, and supervising a group of ten salespeople. It ’s a very hectic time, probably the most hectic time of the year. She receives a phone call from the human resources (HR) department: “ Sally, we have not received your performance reviews for your ten employees; they are due by the end of the fiscal year. ” Sally thinks, “ Oh, those performance reviews. . . . What a waste of my time. ” From Sally ’s point of view, there is no value in filling out those seemingly meaningless forms. She does not see her subordinates in action because they are in the field visiting customers most of the time. All that she knows about their performance is based on sales figures, which depend more on the products offered and geographic territory covered than the individual effort and motivation of each salesperson. And nothing happens in terms of rewards, regardless of her ratings. These are lean times in her organization, and salary adjustments are based on seniority rather than on merit. She has less than three days to turn in her forms. What will she do? She decides to follow the path of least resistance: to please her employees and give everyone the maximum possible rating. In this way, Sally believes the employees will be happy with their ratings and she will not have to deal with complaints or follow - up meetings. Sally fills out the forms in less than twenty minutes and gets back to her “real job”.

  3. So what? Bad Things • Litigation • Employee Burnout • Damaged Relationships • Turnover • Opportunity Costs Good Things • Motivation • The definitions of job and criteria are clarified • Personnel actions are more fair/appropriate • Employees become more competent • Better differentiation between good and poor performers • Organizational change is facilitated

  4. What is Performance Management? It’s a continuous process of identifying, measuring, and developing the performance of individuals and aligning performance with the strategic goals of the organization. Imp components: • Goal setting • Continuous Feedback • Performance Appraisal • Developmental planning

  5. Purposes of PM • Strategic - links the organization’s goals with individual goals • Administrative – useful info for lots of employee-related decisions • Communication – employees are informed about their performance with regard to org/supervisor expectations • Developmental – coaching for performance improvement • Org Maintenance – Helps evaluate the effectiveness of HR interventions (e.g., training outcomes, new selection system) • Documentation – this info is critical in the event of litigation

  6. Areas of Concern for PM • Can we go overboard with goal setting in the PM context? • How do we deal with issues involved in linking incentives to PM? • How do we keep our best & brightest motivated? • How do we motivate not-so-good emps? • How do we accurately rate another’s performance? • What’s the best format to use? • How do we deal with common errors made by raters? • Should we even use ratings anymore? • What issues can we expect using a 360 appraisal format? • How do we deal with employee reactions? • How does the broader org culture influence the PM process?

  7. London & Smither (2002) • Main point 1: PM should not be a once-a-year thing, feedback should be provided in-the-moment and informally • Main point 2: We should be aware of both the individual (FO) and environmental factors (FC) that influence receptivity to feedback and engagement in the PM process over time

  8. London & Smither (2002), cont.

  9. London & Smither (2002), cont. Q1 – The L&S model seems like it would best be leveraged by orgs where the jobs are fairly dynamic. Would this model hold in orgs where the jobs are relatively stable? Q2 – Related to the above, L&S argue that “critical events” trigger the longitudinal feedback process. Does it have to be triggered by critical events? Q3 – All the factors identified by L&S are internal to the org. Are there any factors external to the org that might enhance or disrupt their outlined process model? Q4 – Beyond personality factors, what other individual-level variables might influence one’s FO?

  10. Stats Basics/Psychometrics Stats: • Mean, Standard Deviation • Normal Curve • Correlation/Regression • Predictor & Criterion • T-test/ANOVA • Path Analysis/SEM Psychometrics: • Reliability – the degree of dependability or consistency of scores on a measure • Internal consistency, Test-retest, Alternate Forms • Validity - Are you measuring what you think you’re measuring? Does it predict a criterion? • Criterion-related , content, face, construct (convergent & discriminant)

  11. Questions?

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