Healthcare Human Resource Management Flynn Mathis Jackson Langan

1. Healthcare Human Resource ManagementFlynn Mathis Jackson Langan Performance Management in Healthcare Organizations Chapter 9 PowerPoint Presentation by Tonya L. Elliott, PHR

2. Learning Objectives After you have read this chapter, you should be able to: • Discuss the importance of the performance appraisal process • Compare and contrast the administrative and development uses of performance appraisals • Review the informal versus systematic appraisal processes • Identify who should conduct appraisals • Describe the various methods of appraising performance • Identify the various rater errors that occur during the appraisal process

3. Job Criteria Job Criteria Factors employees must meet for satisfactory job performance

4. Job Criteria Relevance Ensure job description is accurate and appropriately tied to performance standards before conducting an evaluation Potential Problems • Deficient – omitting significant criteria • Contaminated – including irrelevant criteria

5. Performance Appraisals Performance Appraisal The process of evaluating an employee’s performance Legal Issues Avoiding discrimination – appraisals must be: Job Related Objective

6. JCAHO and Performance Appraisals Joint Commission on Accreditation of Healthcare Organizations Standards affecting performance appraisals: • Management of human resources • Leadership • Improving organization performance Components of JCAHO-acceptable performance appraisal systems include: • Job descriptions identifying duties and required competencies • A performance evaluation process and supporting documents • Competency assessment checklists

7. Conflicting Roles for Performance Appraisal Figure 9-1

8. Informal vs. Systematic Appraisal Informal appraisal process • Conducted at manager’s discretion • Used to praise good work • Used to motivate to improve behavior Formal appraisal process • Systematically defines an organization’s policies & procedures • Official form used to document important aspects of job and employee’s performance

9. Who Conducts Appraisals Supervisor Subordinate Employee Manager Team/Peer Team/Peer Supervisor typically conducts review in face-to-face meeting Some organizations have employees rate their managers • Teams or peers generally have first-hand knowledge of one another’s performance, while managers may not • Team members must feel comfortable in offering honest feedback • Downside includes potential disagreements in peer group

10. Who Conducts Appraisals (cont’d) Self-Rating • Employees rate themselves • Requires they examine their own strengths & weaknesses Outside Raters • Organization may employ an outside expert to evaluate an employee’s performance Multi-source Ratings • “360-degree appraisal” • Feedback on performance provided from many individuals (peers, subordinates, self, and manager)

11. Performance Appraisal Methods Category Methods • Graphic-rating scale • A continuum Comparative Methods Ranking • Compares employees against each other Forced distribution • Use of statistics to sort rated employees along a bell curve X ------------------- Y • Checklist method • Check items that describe employee’s performance Employee order: #1, 2, 3, 4, 5, 6, 7, 8, 9, 10…

12. Performance Appraisal Methods (cont’d) Narrative Methods Essays • Describes employee performance Critical incident • Documenting incidents that are highly favorable and unfavorable representations of employee’s performance Field-review • Outside party reviews manager’s comments about each employee and then rates each employee

13. Performance Appraisal Methods (cont’d) Behavioral/Objective Methods Behaviorally anchored rating scales (BARS) • Employee behavior is measured against a scale of performance levels Management by objectives (MBO) • Specifies performance goals that the employee & manager agree to complete within a defined period • Usually tied to organizational objectives

14. Rater Errors Recency Using only recent events to judge employees’ performance Central-Tendency Rating all employees with a narrow range Leniency Giving all employees high ratings Strictness Giving all employee low ratings Rater Bias When manager has a bias against a certain employee or employee group based on manager’s own values or prejudices

15. Other Rater Errors Halo effect • When a manager rates an employee high or low on all job standards based on one characteristic Contrast errors • When a manager compares employees to each other rather than to job performance standards

16. Feedback Systems The Feedback Process Figure 9-6

17. The Appraisal Interview Key Factors Preparation Effective communication Reactions of managers • Significant time commitment • Balance judging performance with supporting development and mentoring Reactions of employees • Variety of reactions to their appraisals • Need manager’s support on self-development & improvement

18. Dealing with Performance Problems Figure 9-7

19. Performance Improvement Plans Performance Improvement Plans • Based on information managers receive about an employee’s performance • Implemented when manager & employee meet to discuss expectations and construct the improvement plan

20. Performance Improvement Plans (cont’d) Key Components: • Description of the problem • Clear job expectations • Plan that improves performance • Resources available to the employee • Process to evaluate performance • Timeline for improvement • Consequences if performance does not improve