The Nature of Performance Management

1. The Nature of Performance Management • Performance Management • Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance • Provide information to employees about their performance. • Clarify organizational performance expectations. • Identify the development steps that are needed to enhance employee performance. • Document performance for personnel actions. • Provide rewards for achieving performance objectives.

2. Performance Management Processes used to identify, encourage, measure, evaluate, improve, and reward employee performance Performance Appraisal Process of evaluating how well employees perform their jobs, then communicating that information to employees Difference Between Performance Management and Performance Appraisals

3. Components of Effective Performance Management

4. Figure 6.1 Performance Management Linkage

5. Identifying and Measuring Employee Performance • Performance • What an employee does and does not do. • Quantity of output • Quality of output • Timeliness of output • Presence at work • Job Duties • Important elements in a given job that define what the organization pays employees to do • The performance of individuals on job criteria should be measured and compared against standards.

6. Types of Performance Information • Trait-based information • Identifies a character trait of the employee—such as attitude, initiative, or creativity—and may or may not be job related • Behavior-based information • Focuses on specific behaviors that lead to job success • Results-based information • Considers employee accomplishments • Performance Measures • Objective measures can be observed directly. • Subjective measures require judgment on the part of the evaluator.

7. Figure 6-2 Types of Performance Information

8. Identifying and Measuring Employee Performance • Performance Standards • Expected levels of performance • Benchmarks, goals, and targets • Characteristics of well-defined standards • Realistic • Measurable • Clearly understood

9. Behaviorally Anchored Rating Scale • Identify Critical Incidents using subject matter experts (SMEs) • Sort and analyze critical incidents into categories • Re-translate critical incidents into scale items • Develop numeric scale for critical incidents • From: Maiorca, J. (Aug., 1997). How to Construct Behaviorally Anchored Scales (BARS) for employee evaluations. Vol. 58, No. 8, pp15-18.

10. Creating BARS for Supervisor Competencies • From: www.dpa.ca.gov • Analytical thinking Customer focus • Change leadership Communication • Conflict Management Decision making • Developing others Ethics and Integrity • Fostering diversity Interpersonal Skills • Personal credibility Planning/organizing • Team Leadership Thoroughness • Vision/Strategic thinking Workforce Mgmt

11. Creating BARS for Supervisor Competencies • From: www.dpa.ca.gov • Analytical Thinking • The ability to approach a problem by using a logical, systematic, sequential approach. • Change Leadership • The ability to manage, lead, and enable the process of change and transition while helping others to deal with their effects. • Customer Focus • The ability to identify and respond to current and future customer's needs. The ability to provide excellent service to internal and external customers.

12. Figure 6-3 Conflicting Uses of Performance Appraisals

13. FIGURE 6.4 Traditional Performance Appraisal Process

14. Multisource Appraisal

15. Methods for Appraising Performance • Category Scaling Methods • Graphic rating scales • Focus should be on the job duties and responsibilities identified in job descriptions • Behavioral rating scales • Describe specific examples of employee job behaviors

16. Figure 6-5 Sample Terms for Defining Standards

17. Comparative Methods • Ranking • A listing of all employees from highest to lowest in performance. • Drawback: does not show size of differences in performance between employees. • Forced Distribution • Performance appraisal method in which ratings of employees are distributed along a bell-shaped curve. • Drawbacks: Resistance by managers to placing individuals in the lowest or highest groups. • Providing explanation for placement in a higher or lower grouping can be difficult.

18. Narrative Methods • Critical Incident and Essay Methods • Critical incident method: manager keeps a written record of highly favorable and unfavorable employee actions. • Drawbacks • Variations in how managers define a “critical incident” • Time involved in documenting employee actions • Most employee actions are not observed and may become different if observed • Employee concerns about manager’s “black books” • Depends on managers’ writing skills and their ability to express themselves • Essay method: manager writes a short essay describing each employee’s performance during rating period

19. Management by Objectives (MBO) • Management by Objectives • Specifying performance goals individuals and their managers agree employees will to try to attain within an appropriate length of time • Combination of Methods • Sensible in some circumstances

20. The MBO Four-Stage Process Job Review and Agreement Development of Performance Standards Objective Setting Continuing Performance Discussions

21. Common Rater Errors

22. Figure 6-6 Appraisal Interview Hints

23. Performance Appraisal Feedback Appraisal Interview Reactions of Managers Appraisal Process Reactions of Appraised Employees