Human resrouce management 12th mathis jacson chapter 0011

The Nature of Performance ManagementEffective Performance Management System Make clear what the organization expects Provide performance information to employees Document performance for

CHAPTER 11

Performance Management and Appraisal

Section 3 Developing Human Resources

Chapter Objectives

Chapter Objectives

performance appraisal and give examples of several rater errors.

make it more effective.

After you have read this chapter, you should be able to:

The Nature of Performance Management

Effective Performance Management System

Make clear what the organization expects

Provide performance information to employees

Document performance for personnel records

Identify areas of success and needed development

FIGURE 11-1

Performance

Management

Linkage

Performance Management versus

employees

FIGURE 11-2 Components of a Performance-Focused Culture

Identifying and Measuring Employee Performance

Common Performance Measures

Quantity of

Output

Quality of Output

Timeliness of Output

Presence at Work

Identifying and Measuring Employee

FIGURE 11-3 Types of Performance Information

Relevance of Performance Criteria

Factors Affecting Relevance

Deficient

Measures

Contaminated Measures

Overemphasized Measures

FIGURE 11-4 ACTFL Performance Standards for Speaking Proficiency

Source: Adapted from American Counsel on the Teaching of Foreign Languages (ACTFL)

Performance Metrics in Service Businesses

Common Sources

of Performance Differences

Regional

Labor Cost

Differences

Service Agreement Differences

Equipment/

Infrastructure Differences

Work Volume

Performance that is measured can be managed.

FIGURE 11-5 Conflicting Uses for Performance Appraisal

Decisions About the Performance Appraisal Process

Designing Appraisal Systems

Appraisal

Responsibilities

Informal vs

Systematic Processes

Timing of Appraisals

Legal Concerns and Performance Appraisals

Legally Defensible Performance Appraisal System:

• Appraisal criteria based on job analysis (i.e., job-related)

• Absence of disparate impact and evidence of validity

• Formal evaluation criterion that limit managerial discretion

• Formal rating instrument linked to job duties and responsibilities

• Personal knowledge of and contact with ratee

• Training of supervisors in conducting appraisals

• Review process to prevent undue control of careers

• Counseling to help poor performers improve

FIGURE 11-6 Typical Division of HR Responsibilities: Performance Appraisal

Who Conducts Appraisals?

Supervisors rating their employees

Employees rating their superiors

Employees rating themselves

Sources of Performance Appraisals

Employee Rating of Managers

Team/Peer Rating

Advantages Disadvantages

• Helps improve performance

of lower-rated individuals

• Peers have opportunity to

observe other peers

• Peer appraisals focus on

• Organizational use of

individual performance appraisals can hinder the development of teamwork

FIGURE 11-7

Performance

Management

Linkage

FIGURE 11-8 Multisource Appraisal

Category Scaling Methods

• Graphic Rating Scale

 A scale that allows the rater to indicate an employee’s performance on a continuum of job behaviors

Behavioral Dimensions

Category Scaling Methods

Graphic Rating Scale Drawbacks

Restrictions on the range and type of rater responses

Differences in rater interpretations of scale item meanings and scale ranges

Poorly designed scales that encourage

rater errors

Rating form deficiencies limit effectiveness of the

appraisal

Category Scaling Methods (cont’d)

• Behaviorally Anchored Rating Scale (BARS)

 A rating scale composed of job dimensions (specific descriptions of important job behaviors) that “anchor” performance levels on the scale

• Developing a BARS

 Identify important job dimensions

 Write short statements of job behaviors

 Assign statements (anchors) to job dimensions

 Set scales for anchors

FIGURE 11-10 Sample Terms for Defining Standards

FIGURE 11-11 Behaviorally-Anchored Rating Scale for Customer Service Skills

Comparative Methods (cont’d)

employees are distributed along a bell-shaped curve

Advantages

• Helps deal with “rater inflation.

• Makes manages identify high,

average, and low performers.

• Ensures that compensation

increases reflect performance

differences among individuals.

FIGURE 11-12 Forced Distribution on a Bell-Shaped Curve

Narrative Methods

• Critical Incident

 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”

Narrative Methods (cont’d)

Management by Objectives (MBO)

• Management by Objectives

 Specifying the performance goals that an individual and his or her manager agree the employee will to try

to attain within an appropriate length of time

• Key MBO Ideas

 Employee involvement creates higher levels of

commitment and performance

 Employees are encouraged to work effectively toward achieving desired results

 Performance measures should be measurable and

should define results

The MBO Process

4 Continuing performance

discussions

3 Setting of objectives

2 Development of performance standards

1 Job review and

agreement

Training Of Managers And Employees

in Performance Appraisal

Appraisal process and timing

Performance criteria and job standards

Training and development goals

Performance Appraisals Training Topics

FIGURE 11-13 Common Rater Errors

FIGURE 11-14 Appraisal Interview Hints for Supervisors and Managers

Action Based on Evaluation

Performance Management System (PMS)

Consistent with the strategic mission

Beneficial as a development tool

Is legal and job related

Effective Performance Management System