Performance management 2009

Nâng cao hiệu quả hoạt động của đội ngũ nhân sự

Professional Practice

James W Smither Manuel London

EDITORS

Putting Research into Action

A Publication of the Society for Industrial and Organizational Psychology

Performance Management

Performance Management

Putting Research into Action

The typical performance appraisal process puts the emphasis on an annual evaluation of employee performance Performance management shifts the focus to an ongoing process that includes setting and aligning goals, coaching and developing employees, providing informal feedback, formally evaluating performance, and linking performance to recognition and rewards.

Performance Management—a volume in the SIOP

Professional Practice Series—offers a compendium

of the most current thinking, strategies, and best practices in performance management written by leading academics, practitioners, consultants, and researchers in the fi eld The book’s seventeen chapters include an introduction of the concepts and issues, a review of theory and research, evidence-based best practices, dozens of illustrative examples as well as information on future directions, opportunities, and challenges.

Written for human resource managers, consultants, and line managers, this important resource contains

a wealth of information for implementing an effective performance management system The book includes information on the:

• 14 features that help defi ne a successful performance management system

• 7 drivers of alignment including the relationship between alignment and fi nancial performance

• 5 factors that affect the impact of goal setting

• 11 steps to maximize the value of external coaches

• CEO and board performance management process

The Editors

James W Smither, Ph.D., is a consultant and scholar,

with years of corporate HR experience He is a

professor in the Management Department at LaSalle

University A prolifi c writer, he is also the editor of the

popular Performance Appraisal: State-of-the-Art in

Practice (from Jossey-Bass)

Manuel London, Ph.D., is associate dean and director

of the Center for Human Resource Management at the

College of Business at the State University of New York

at Stony Brook He also has 12 years of corporate HR

experience He is the co-author with Marilyn London

of First Time Leaders of Small Groups: How to Create

High-Performing Committees, Task Forces, Clubs, and

Boards from Jossey-Bass.

The Society for Industrial and Organizational

Psychology (SIOP) is a 3,000-member Division

within APA The Professional Practice Series provides

practitioners and students with guidance, insights,

and advice on how to apply the concepts, fi ndings,

methods, and tools from I/O psychology to solve

human-related organizational problems.

www.josseybass.com

Join Us at

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• 8 dimensions of national culture that shape

performance management processes

• Role of technology in developing and using a

performance management system

• 6 assessment points that can be embedded in a

comprehensive performance management system

• And much more

The contributors offer HR professionals a

comprehensive jargon-free understanding of the most

recent research, proven practices, and lessons learned

on performance management.

“In this comprehensive and timely volume, Smither and London assemble

an exceptional collection of chapters on topics spanning the entire performance management process Written by leading researchers and

practitioners in the fi eld, these chapters draw on years of research and offer a blueprint for implementing effective performance management

systems in organizations This volume is a ‘must-read’ for all those interested in performance management.”

—John W Fleenor, Ph.D., research director, Center for Creative

Leadership

“The quintessential tool for the scientist-practitioner working on improving the performance management system in their organization.”

—Sandy Lionetti, Ph.D., director, Talent Management, Leadership and

Organizational Development, GlaxoSmithKline Consumer Healthcare

“Finally, a book that brings together the latest research fi ndings on a very important process that needs to be executed with the greatest

effectiveness and effi ciency The information is presented in a way that

an HR practitioner, like myself, can readily apply.”

—Gale H Varma, executive vice president, Human Resources, Charming

Shoppes, Inc

A new volume in the SIOP Professional Practice Series, Performance

Management provides a comprehensive resource of the most current

thinking, strategies, and best practices in performance management

(Continued from front flap)

(Continued on back flap)

Performance Management

The Professional Practice Series is sponsored by The Society for

Industrial and Organizational Psychology, Inc (SIOP) The series was

launched in 1988 to provide industrial and organizational psychologists,

organizational scientists and practitioners, human resources professionals,

managers, executives and those interested in organizational behavior and

performance with volumes that are insightful, current, informative

and relevant to organizational practice The volumes in the Professional

Practice Series are guided by fi ve tenets designed to enhance future

organizational practice:

1 Focus on practice, but grounded in science

2 Translate organizational science into practice by generating

guide-lines, principles, and lessons learned that can shape and guide

practice

3 Showcase the application of industrial and organizational

psychol-ogy to solve problems

4 Document and demonstrate best industrial and

organizational-based practices

5 Stimulate research needed to guide future organizational practice

The volumes seek to inform those interested in practice with

guidance, insights, and advice on how to apply the concepts, fi ndings,

methods, and tools derived from industrial and organizational

psychology to solve human-related organizational problems

Published by Jossey-Bass

Customer Service Delivery

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Employment Discrimination Litigation

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The Brave New World of eHR

Hal G Gueutal, Dianna L Stone, Editors

Improving Learning Transfer in Organizations

Elwood F Holton III, Timothy T Baldwin, Editors

Resizing the Organization

Kenneth P De Meuse, Mitchell Lee Marks, Editors

Implementing Organizational Interventions

Jerry W Hedge, Elaine D Pulakos, Editors

Organization Development

Janine Waclawski, Allan H Church, Editors

Creating, Implementing, and Managing Effective Training and Development

Kurt Kraiger, Editor

The 21st Century Executive

Rob Silzer, Editor

Managing Selection in Changing Organizations

Jerard F Kehoe, Editor

Allen I Kraut, Abraham K Korman, Editors

Individual Psychological Assessment

Richard Jeanneret, Rob Silzer, Editors

Performance Appraisal

James W Smither, Editor

Organizational Surveys

Allen I Kraut, Editor

Employees, Careers, and Job Creating

Manuel London, Editor

Published by Guilford Press

Diagnosis for Organizational Change

Ann Howard and Associates

Human Dilemmas in Work Organizations

Abraham K Korman and Associates

Diversity in the Workplace

Susan E Jackson and Associates

Working with Organizations and Their People

Douglas W Bray and Associates

Performance Management

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Performance Management

Putting Research into Action

James W Smither and Manuel London, Editors

Published by Jossey-Bass

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Library of Congress Cataloging-in-Publication Data

Performance management : putting research into action / James W Smither and Manuel

SERIES EDITORSAllan H Church

PepsiCo Inc.

Janine Waclawski

Pepsi-Cola North America

EDITORIAL BOARDTimothy T Baldwin

Indiana University, Bloomington

To Marilyn, David, Jared

—ML

Foreword xiii

Introduction xv

Herman Aguinis

2 Aligning Performance Management with

William A Schiemann

3 Practical Applications of Goal-Setting Theory to

Peter A Heslin, Jay B Carson, and Don VandeWalle

David B Peterson

5 The Role of On-the-Job and Informal Development

Paul Squires

6 Managing Team Performance in Complex Settings:

Eduardo Salas, Sallie J Weaver, Michael A Rosen, and Kimberly A Smith-Jentsch

9 Managing Contextual Performance 297

Richard R Reilly and Zvi H Aronson

10 Using Performance Management As a Learning Tool 329

Valerie I Sessa, Christopher Pingor, and Jennifer Bragger

11 Diagnosing, Understanding, and Dealing with

Leanne Atwater and Teri Elkins

Peter G Dominick

What Role Does Technology Play in Performance Management? 445

Autumn D Krauss and Lori Anderson Snyder

14 Authentic Performance: The Valuation of Behavior

Thomas Diamante

Stanley B Silverman and Wendy M Muller

Nancy T Tippins and Susan H Coverdale

James W Smither and Manuel London

Performance management is one of the cornerstones of Human

Resource practice in organizations No matter where you work,

how big or small your organization or how simple or complex

the business model, effective performance management is a key

requirement if you have any number of employees It all begins

with performance management Specifi cally, what are the jobs

we need our employees to do, how do we measure their

perfor-mance in these jobs, and how do we design and implement

sys-tems to reinforce performance standards that have been set?

So, before an organization can even begin to think about the

more lofty practice areas like individual assessment, talent

man-agement, or succession planning it must be able to nail the basics

of measuring day-to-day performance Organizations who set

their sights on hiring the best and the brightest and building a

diverse work force must fi rst have a crystal clear understanding

of what they are hiring people to do and how the will be deemed

successful or not Companies desiring to offer the very best

train-ing and development or organization development programs

must fi rst be able to assess the requirements of the jobs for which

they are training and developing their leaders and managers

That is why this topic and this volume are so critical to HR,

I/O and OD practitioners alike It is also one of the reasons why

Janine and I reached out to Jim and Manny to commission this

edition for the SIOP Professional Practice series Both are

excel-lent researchers, professionals, authors, and editors Moreover,

Jim's prior SIOP Professional Practice edition on performance

appraisal from 1998 was very popular and we wanted them to

take the discussion to the next level With this volume we feel

that they certainly have accomplished this mission Whether it’s

very current issues such as the Sarbanes-Oxley Act (SOX), CEO

performance management and the role of the Board of Directors

in that process, to the potential benefi ts and costs of instituting a

forced ranking system, the content here should be of great

ben-efi t to practitioners and managers alike In addition, Jim and

Manny have approached this edition with a very balanced

scien-tist-practitioner perspective, so not only do the chapters cover the

current state of the art of performance management, but there is

also insight for academics into where future research might be

most benefi cially directed

Having evolved from performance appraisal to performance

management over the last 10 years the fi eld has indeed shifted in

its orientation This volume displays the very latest thinking from

an I/O psychology perspective regarding how you quantify,

mea-sure and track performance in organizations We hope that both

practitioners and academics alike fi nd it useful in their work

Our sincerest thanks to Jim and Manny for taking the fi eld to the

next level

May 2009Allan H Church Janine WaclawskiSeries Editors

Introduction

Over the past decade or so, the term “ performance

manage-ment ” has come to replace the phrase “ performance appraisal ” in

many organizations Whereas performance appraisal emphasized

the (usually annual) evaluation of an employee ’ s performance,

performance management refers to an ongoing process that

includes setting (and aligning) goals, coaching and developing

employees, providing informal feedback, formally evaluating

per-formance, and linking performance to recognition and rewards

The goal of this ongoing process is to enhance the employee ’ s

performance (as well as job satisfaction and commitment to the

organization) and the performance of the organization

This book contains seventeen chapters Each offers useful

guidelines for practitioners to enhance the quality of performance

management systems and processes The authors offer dozens of

real - world examples to illustrate how performance management

systems can be effectively designed and implemented Unlike

many “ pop ” management books, which are often fi lled merely

with personal opinion, the chapters in this book draw on years of

empirical research in industrial and organizational psychology

Doing so allows the authors to present evidence - based “ best

prac-tices ” in performance management

Some of the authors in this book are full - time practitioners who

work for leading consulting fi rms that have collectively provided

performance management support to hundreds of organizations

In addition to their strong hands - on experience, our “

practitio-ner ” authors are especially valued because they have all published

their work in leading peer - refereed journals Other authors in

this book are located at universities where they have spent years

conducting and publishing research related to performance

man-agement But nearly all of our “ academic ” authors bring years of

consulting or corporate experience to their writing

In sum, this is a book written by scientist - practitioners and we

hope it exemplifi es the scientist - practitioner model at its best

The central goal of this book is to distill lessons from research

that are of value to practitioners (including human resource

managers, consultants, and line managers who are at the heart of

the performance management process) The authors have tried

to provide the reader with a brief and non - technical

understand-ing of what research studies have learned about performance

management and the implications of this research for

practi-tioners The result includes what we believe are evidence - based

suggestions that can guide the reader ’ s efforts to design and

implement performance management systems and processes

Overview of Chapters

Herman Aguinis ( “ An Expanded View of Performance

Management ” ) provides a broad overview of performance

man-agement He describes the many purposes that can be served by

performance management systems, presents a six - stage

perfor-mance management process, and identifi es fourteen features

associated with effective performance management systems

William Schiemann ( “ Aligning Performance Management

with Organizational Strategy, Values, and Goals ” ) describes the

importance of alignment for large and small companies

(includ-ing the relationship between alignment and fi nancial

perfor-mance) He reviews seven drivers of alignment while emphasizing

the pivotal role played by a company ’ s culture He also provides

a detailed case study that illustrates the process of linking

orga-nizational vision, strategy, and goals to behaviors He concludes

by describing four core elements that distinguish organizations

with effective performance management systems from other

organizations

Peter Heslin, Jay Carson, and Don VandeWalle ( “ Practical

Applications of Goal - Setting Theory to Performance Management ” )

note that the results from goal setting depend on fi ve factors: goal

commitment, task complexity, goal framing, team goals, and

feed-back They describe recent research developments and present

straightforward guidelines to help practitioners manage each of

these fi ve factors to enhance performance management

David Peterson ( “ Coaching and Performance Management:

How Can Organizations Get the Greatest Value? ” ) begins by

pre-senting a continuum of organizational approaches to coaching

that evolves from completely unstructured and ad hoc to

rela-tively strategic and systemic He then describes the “ Development

Pipeline, ” a model of the fi ve necessary and suffi cient conditions

for any type of systematic development, and its application to

coaching He then illustrates the differences in conversations

when coaching is primarily forward - looking and

developmen-tal in nature from those in which the person being coached is

underperforming or not meeting important expectations He

also reviews the pros and cons of using internal versus external

coaches and offers an eleven - step approach to maximize the

value of external coaches

Paul Squires ( “ The Role of On - the - Job and Informal

Development in Performance Management ” ) begins by defi ning

informal learning (where on - the - job training is considered a

spe-cifi c instance of informal learning) He then describes

character-istics of the workplace and the worker that lead to more effective

informal learning He concludes with practical recommendations

(and two real - world examples) to facilitate informal learning

Eduardo Salas, Sallie Weaver, Michael Rosen, and Kimberly

Smith - Jentsch ( “ Managing Team Performance in Complex Settings:

Research - Based Best Practices ” ) describe four capacities ( adaptive

capacity, leadership capacity, management capacity, and technical capacity)

required for team effectiveness and use these capacities as a

framework that can guide the performance management process

in team settings They present a set of best practices drawn from

their practical experience as well as the team, performance

man-agement, project manman-agement, and human resources literature

Edward Mone ( “ CEO Performance Management ” ) reviews

events of the last ten to fi fteen years that have shaped the business

landscape, executive compensation, and the evaluation of CEOs

He uses a detailed, real - world example to describe the CEO

per-formance management process (including goal setting, feedback,

CEO appraisal, and compensation) and then compares this process

to best practices in this area He also offers guidelines to increase

the effectiveness of the board of directors (including the composition

of the board and compensation of its members)

David Day and Gary Greguras ( “ Performance Management

in Multi-National Companies ” ) address the challenge faced by

multi-national companies in dealing with national culture as they

design and implement performance management processes

Using Project GLOBE as a framework, they briefl y review and

describe the performance management implications of eight

dimensions (performance orientation, future orientation, gender

egalitarianism, assertiveness, individualism and collectivism, power

distance, humane orientation, and uncertainty avoidance) that

can be used to describe national culture They note the danger

of taking generalizations based on cultural dimensions too far

and discuss the role of organizational culture versus national

cul-ture in shaping performance management practices They

con-clude with eleven recommendations for practice

Richard Reilly and Zvi Aronson ( “ Managing Contextual

Performance ” ) begin by defi ning contextual performance

(distin-guishing it from task performance) and then review the

anteced-ents and outcomes of contextual performance Next, they describe

issues associated with managing contextual performance,

includ-ing appraisinclud-ing contextual performance, recognizinclud-ing and rewardinclud-ing

contextual performance, the effect of the feedback environment

on contextual performance, whether contextual performance does

(or should) infl uence career development and advancement, and

legal considerations

Valerie Sessa, Christopher Pingor, and Jennifer Bragger

( “ Using Performance Management As a learning Tool ”)

pres-ent a case that illustrates how performance managempres-ent can be

used to transform an organization ’ s culture to a performance

and learning culture in which adaptive, generative, and

transfor-mative employee learning occurs They describe how a self -

learn-ing component can be added to a performance management

system

Leanne Atwater and Teri Elkins ( “ Diagnosing, Understanding,

and Dealing with Counterproductive Work Behavior ” ) begin by

describing the nature, prevalence, and consequences of

counter-productive work behavior (CWB), including abuse against others

(such as incivility, workplace violence, and sexual harassment)

and production deviance (including poor performance, sabotage,

theft, and withdrawal behaviors) Next they address the issue of

diagnosing the causes of CWB (including a variety of individual

and job - context factors) They also review a variety of approaches

to dealing with CWB and offer recommendations for best practice

Peter Dominick ( “ Forced Rankings: Pros, Cons, and Practices ” )

describes in detail the potential advantages and risks associated

with forced ranking systems For organizations that elect to

imple-ment such a system, he presents important questions and issues

related to their design and implementation

Autumn Krauss and Lori Anderson Snyder ( “ Technology and

Performance Management: What Role Does Technology Play

in Performance Management? ” ) describe the role that technology

can play when developing and using a performance management

system They begin by reviewing electronic performance

monitor-ing and performance management of telecommutmonitor-ing workers

They then illustrate how technology can support various purposes

of performance management, including strategic, administrative,

informational, developmental, organizational maintenance, and

documentation Next they describe how technology can help

com-municate the organization ’ s mission and priorities and ensure

that priorities are in alignment across the organization, as well as

facilitate performance planning, execution, and assessment They

address issues and complications (such as information overload,

overexposure, time requirements, overreliance on automation,

miscommunication, technology literacy) that can accompany the

use of technology and conclude with recommendations for

imple-menting a technology - based performance management system

Thomas Diamante ( “ Authentic Performance: The Valuation

of Behavior as a Negotiated Business Outcome ” ) describes

per-formance negotiation as the ongoing process by which a

supervi-sor and employee arrive at an agreement about the value of an

employee ’ s contribution to business He fi rst presents a systemic

model of the components of performance negotiation Next, he

describes a fi ve - step approach to valuing employee performance

and concludes with a case study that illustrates the process

Stanley Silverman and Wendy Muller ( “ Assessing Performance

Management Programs and Policies ” ) present a model of six

assessment points that can be embedded in a comprehensive

performance management system, and they illustrate the

appli-cation of their assessment model using the case of a hypothetical

manufacturing company Throughout the chapter, they provide

detailed guidance for organizations that seek to assess the impact

of their performance management system

Nancy Tippins and Susan Coverdale ( “ Performance Management

of the Future ” ) review current worker and workplace trends that

are likely to have an effect on performance management programs

of the future and describe sixteen ways that performance

manage-ment programs will need to be adapted to remain effective

We ( Jim Smither and Manny London, “ Best Practices in

Performance Management ” ) conclude by drawing on the insights

and recommendations of the authors who contributed chapters

to this book, as well as other research, to develop a sketch of best

practices in performance management

Acknowledgments

This book refl ects the efforts and talents of many people We

thank Allan H Church and Janine Waclawski, editors of the

Professional Practice Series, for giving us the opportunity to edit

this volume We are also grateful to the Society for Industrial and

Organizational Psychology for sponsoring this series and volume

Most importantly, we are deeply indebted to the thirty - one authors

who contributed to this book Each contributed an enormous

amount of time, energy, and expertise This is really their book,

not ours Finally, we thank our families, friends, and colleagues for

their patience and support

Jim Smither and Manny London

The Authors

Herman Aguinis is a professor of organizational behavior and

human resources and dean ’ s research professor at Indiana

University ’ s Kelley School of Business His research is

interdisci-plinary and addresses organizational behavior, human resource

management, and research methods and analysis He is the

author of Performance Management (2nd ed.), Applied Psychology

in Human Resource Management (6th ed.) with W F Cascio, and

Regression Analysis for Categorical Moderators He has edited two

addi-tional books: Opening the Black Box of Editorship (with Y Baruch,

A M Konrad, and W H Starbuck) and Test - Score Banding in Human

Resource Selection In addition, he has written about seventy refereed

journal articles in JAP, PPsych, AMR, AMJ, OBHDP, and

else-where He is a Fellow of the American Psychological Association,

the Association for Psychological Science, and the Society for

Industrial and Organizational Psychology and is past editor in

chief of Organizational Research Methods

Zvi H Aronson is a senior lecturer at Stevens Institute of

Technology, where he teaches courses in applied psychology He

has two main research interests: the role of personality in project

leader and team performance and the role that culture plays in

project success His work has appeared in the International Journal

of Selection and Assessment, the Journal of Engineering and Technology

Management , and in several book chapters Zvi serves as a reviewer

for the Journal of Engineering and Technology Management Earlier

work experiences in applied psychology at Bakara Ltd., Israel,

included training and selection He also serves as the head of

the Institute Review Board at Stevens Institute of Technology

Dr Aronson earned his B.A in behavioral sciences from Ben - Gurion

University in Israel and his Ph.D in applied psychology from Stevens

Institute of Technology

Leanne Atwater is professor of management and chair of the

management department in the C.T Bauer College of Business

at the University of Houston She received her Ph.D from

Claremont Graduate School Her areas of research include

lead-ership, feedback processes, and employee discipline She has

published over fi fty scholarly articles in journals such as Journal

of Applied Psychology, Personnel Psychology, Journal of Management,

Leadership Quarterly, Journal of Organizational Behavior, Human

Occupational Psychology She has co - authored two scholarly books

entitled The Power of 360 Degree Feedback and Leadership, Feedback,

and the Open Communication Gap, as well as many book chapters

Dr Atwater serves on the editorial boards of Leadership Quarterly,

Military Psychology, and Group and Organization Management

Dr Atwater is a Fellow in the Society for Industrial and Organizational

Psychology and a member of the Academy of Management

Jennifer Bragger is an associate professor of industrial and

orga-nizational psychology at Montclair State University She received

her Ph.D in social and organizational psychology from Temple

University She has also taught at The College of New Jersey

and worked at the Institute for Survey Research at Temple

University Dr Bragger has done consulting in the areas of

sta-tistical analysis, personnel selection and validation, assessment

center rating, and organizational health and safety for Cigna,

Prudential, MetLife, and Schering Plough Her research

activi-ties include bias in selection and performance appraisal, the job

interview, stereotype threat in organizational settings,

work-fam-ily confl ict, and escalation of commitment Her recent

publica-tions have appeared in the Journal of Applied Psychology, Journal of

Applied Social Psychology, Journal of Organizational Behavior, Journal

of Business and Psychology, Public Personnel Management, and the

Academy of Management Review.

Jay B Carson (jcarson@cox.smu.edu) is an assistant professor

of management and organizations at the Edwin L Cox School

of Business, Southern Methodist University He received his Ph.D

in organizational behavior with a minor in human resource

man-agement and strategy from the Robert H Smith School of Business,

University of Maryland He teaches courses in organizational

behavior, management, and teams to undergraduates, MBAs,

and executives His research has been published in the Academy

of Management Journal and in book chapters His primary research

interests are in teams, leadership, and cross-cultural issues, with a

current focus on shared leadership, internal team leadership,

ethi-cal leadership, and team goal alignment

Susan H Coverdale is a principal in the Selection Practice

Group at Valtera Her primary responsibilities include

develop-ment and validation of employee selection systems as well as

man-agerial and executive level assessment Before joining Valtera,

she worked as an independent consultant providing human

resources consulting services in the areas of employee selection,

performance evaluation, training program development and

facilitation, employee surveys, executive assessment and

coach-ing, succession planncoach-ing, and management development Prior

to establishing her own consulting business, Dr Coverdale

pro-vided a wide range of consulting services through her

associa-tion with HReasy and Lopez and Associates, Inc She began her

career as the coordinator of career development for Conoco,

Inc Dr Coverdale received her Ph.D in industrial and

organiza-tional psychology from the University of Houston She is a

mem-ber of the American Psychological Association and the Society

for Industrial and Organizational Psychology

David V Day is the Woodside Professor of Leadership and

Management in the School of Business at the University of Western

Australia Since 1999 he has also held the position of adjunct

research scientist with the Center for Creative Leadership Dr Day

serves as an associate editor of the Journal of Applied Psychology ,

Leadership Quarterly, and Human Resource Management Review and

is a consulting editor for several other journals in the fi elds of

management and industrial - organizational psychology Dr Day

is a member of the Academy of Management, American

Psychological Society, International Leadership Association,

International Association of Applied Psychology, Society of

Organizational Behavior, and Fellow of the American Psychological

Association and the Society for Industrial and Organizational

Psychology He received his Ph.D in industrial - organizational

psy-chology in 1989 from the University of Akron

Thomas Diamante is senior vice president at Corporate Counseling

Associates, a human capital consulting fi rm His practice is focused

on executive development, talent management, selection and

advancement planning, performance management, and

organiza-tional change management He is formerly of Merrill Lynch, where

he was vice president, corporate strategy and development, in

Global Securities Research and Economics Prior to Merrill Lynch,

Dr Diamante was a senior manager and lead change consultant for

KPMG Consulting Earlier in his career he was national manager,

human resources and professional development, at Philip Morris

Companies (Altria) Dr Diamante holds a Ph.D in industrial

and organizational psychology from The Graduate Center, City

University of New York, as well as the M Phil from the same

insti-tution His B.A in psychology is from Stony Brook University He

is a New York State licensed psychologist and complemented his

industrial degree with post - doctoral training in clinical psychology

at the Institute for Behavior Therapy in New York He is a member

of the Associate ’ s Council, Children ’ s Aid Society, and serves on the

board of directors for ENACT, Inc., a non - profi t focused on social,

emotional, and intellectual development of at - risk New York City

schoolchildren

Peter G Dominick is a faculty member at Stevens Institute of

Technology, where he is coordinator of leadership development

education within the W.J Howe School ’ s Executive MBA, Project

Management, and Undergraduate Business and Technology

pro-grams His consulting work includes executive coaching, team

building, and process consultation He has also developed

selec-tion, assessment, and skill - building programs for a variety of civil,

corporate, and educational organizations Leadership and

behav-ioral skills development are major themes in his writing and

research Other research interests include project leadership

and virtual team effectiveness Dr Dominick received his Ph.D

in applied psychology from Stevens, earned his M.A in

organiza-tional psychology from Columbia University, and completed his

undergraduate studies in industrial and labor relations at Cornell

University In 2005, he received the Howe School ’ s Outstanding

Teacher Award and in 2007 was the recipient of the Harvey N Davis

Award for Distinguished Teaching

Teri Elkins is an associate professor of management and the

fac-ulty and staff ombudsperson at the University of Houston, where

she joined the faculty in 1997 Dr Elkins received her

undergrad-uate degree from Baylor University and a Ph.D and J.D from

the C.T Bauer College of Business, University of Houston She

teaches in the areas of business law, employment law, managerial

communication, human resource management, confl ict

manage-ment, and organizational behavior and coordinates an internship

program with the Equal Employment Opportunity Commission

Dr Elkins has published scholarly articles on the topics of

employment discrimination, sexual harassment, employee

selection practices, affi rmative action plans, leadership, and

academic internship programs Her articles have appeared in

the Journal of Applied Psychology, Journal of Applied Social Psychology ,

Leadership Quarterly, Sex Roles , SAM Advanced Management Journal ,

International Journal of Innovation and Technology Management ,

Journal of Managerial Issues , and the Journal of Occupational

Health Psychology Dr Elkins is a member of the Academy of

Management, International Ombudsman Association, and the

Association, for Confl ict Resolution

Gary J Greguras is an associate professor of organizational

behavior and human resources in the Lee Kong Chian School

of Business at Singapore Management University He received

his Ph.D in industrial-organizational psychology in 1998 from

Bowling Green State University His research interests include

performance measurement and development, personality, and

job attitudes He currently serves on the editorial boards of the

Journal of Applied Psychology, Journal of Management, and Human

Performance

Peter A Heslin is an assistant professor of management at the

Cox School of Business, Southern Methodist University, Dallas,

Texas He has two main research interests: the nature of career

success in different contexts and how managers’ implicit

assump-tions affect their performance appraisals, coaching, and justice

He teaches graduate courses in organization behavior,

lead-ing organizational change, and managlead-ing across cultures Dr

Heslin has consulted in these areas to corporations, including

Autumn D Krauss is a senior scientist at Kronos Talent

Management, responsible for the development of technology

enabled talent management solutions One of her research and

practice focuses is the identifi cation of relevant behavioral

compe-tencies that can support talent management practices (for example,

selection, performance appraisal) and how these competency

based processes can be supported through technology She has

served as the principal investigator and co - principal investigator

on grant projects funded by the Centers for Disease Control and

Prevention and the National Institute for Occupational Safety

and Health Dr Krauss earned her master ’ s and doctorate degrees

in industrial/organizational psychology from Colorado State

University, and a bachelor of arts degree in psychology and

busi-ness administration from La Salle University in Philadelphia

Edward M Mone has more than twenty - fi ve years of experience

in career, leadership, and organization change and development

He is currently vice president for organization development at

CA, Inc., where he is responsible for such functions as

manage-ment and leadership training and developmanage-ment, succession

plan-ning, the company - wide employee opinion survey and employee

research, and performance management and career

develop-ment systems He was previously vice president for organization

development at Cablevision and director of people processes and

systems at Booz Allen Hamilton, Inc He was HR division

man-ager for strategic planning and development at AT & T Before

that, he was a partner in an outplacement and career

manage-ment fi rm He is an adjunct faculty member at the College of

Business, State University of New York at Stony Brook He holds

an M.A in counseling psychology and has completed doctoral

Citibank, IBM, Zurich Insurance, KPMG, and Procter & Gamble

He has authored or co-authored over a dozen articles in journals

such as the Journal of Applied Psychology, Journal of Organizational

Behavior, and Personnel Psychology He serves on fi ve editorial

boards, including Applied Psychology: An International Review,

Journal of Occupational and Organizational Behavior, and the Journal

of Organizational Behavior Dr Heslin received his Ph.D in

orga-nizational behavior and human resource management from the

Rotman School of Management, University of Toronto

coursework at Teachers College, Columbia University He has

co - authored and co - edited books, book chapters, and articles in

the areas of human resources and organization development,

including HR to the Rescue: Case Studies of HR Solutions to Business

president of Edward M Mone & Associates, a fi rm specializing in

organization and leadership development

Wendy M Muller is currently a doctoral candidate in industrial/

organizational psychology at The University of Akron Her research

interests include performance management, emotional labor, and

motivation

David B Peterson, senior vice president and practice leader for

Personnel Decisions International ’ s worldwide coaching services,

is an internationally recognized expert on coaching and

execu-tive development His expertise is particularly helpful to

orga-nizations in creating strategic advantage through learning and

development He is the author of groundbreaking research

show-ing that coachshow-ing produces signifi cant and lastshow-ing changes — as

rated by the individuals themselves and their bosses — at a

mag-nitude three times greater than conventional training programs

Dr Peterson joined PDI in 1985 and became practice leader for

coaching services in 1990 With colleague Mary Dee Hicks, he

has authored two best - selling books: Development FIRST: Strategies

for Self - Development and Leader As Coach: Strategies for Coaching and

Developing Others In demand as a speaker, Dr Peterson has been

quoted in publications, including The Wall Street Journal, Fortune,

Time, Harvard Business School Newsletter, Investor ’ s Business Daily,

CFO, Training, The Washington Post, and USA Today He received

his Ph.D in industrial/organizational and counseling psychology

from the University of Minnesota

Christopher Pingor is a student at Montclair State University and

is currently working on his thesis in the area of readiness to learn

His current areas of interest include employee motivation and life

stages, organizational learning, job interviews, performance

man-agement, grounding and communication among couples, and the

psychology of magic He currently works as an account executive

at The Essex Companies in New York City He completed his B.A

in psychology from Montclair State University and is currently

completing a master ’ s degree in psychology with a concentration

in industrial and organizational psychology

Richard R Reilly is emeritus professor of technology

manage-ment at Stevens Institute of Technology, where he headed Ph.D

programs in applied psychology and technology management

He has been a research psychologist for Bell Laboratories, AT&T,

and Educational Testing Service, as well as a consultant to

gov-ernment and industry in areas such as assessment, innovation,

and organizational performance He has published over

sev-enty articles in journals and has authored several books,

includ-ing Blockbusters: The Five Keys to Developing Great New Products

with Gary Lynn and Uniting the Virtual Workforce: Transforming

Leadership and Innovation in the Globally Integrated Enterprise with

Karen Sobel Lojeski He is on the advisory board of the Institute

of Innovation and Information Productivity and is an advisor to

the National Board of Medical Examiners on physician behavior

Dr Reilly is certifi ed with the American Board of Professional

Psychology and is on the editorial board of Personnel Psychology

and the International Journal of E - Collaboration He is a Fellow

of the American Psychological Association and the American

Psychological Society Dr Reilly earned his bachelor of science

from Fordham University and his Ph.D in organizational

psy-chology from the University of Tennessee

Michael A Rosen is a doctoral candidate in the Applied

Experimental and Human Factors Psychology Program at the

University of Central Florida and has been a senior graduate

research associate at the Institute for Simulation and Training

since the fall of 2004, where he won the student researcher

of the year in 2006 He is currently a MURI - SUMMIT

gradu-ate research fellow and focuses on developing theory,

meth-ods, and tools for understanding and measuring cognitive and

social processes in team problem solving His research interests

include individual and team decision making and problem

solv-ing, human - computer interaction, performance measurement,

and simulation - based training in high - stress, high - stakes domains

such as healthcare and the military He has co - authored over

twenty peer - reviewed journal articles and book chapters related

to these interests, as well as numerous proceedings papers and

presentations at national and international conferences

Eduardo Salas is a trustee chair and Pegasus Professor of

Psychology at the University of Central Florida He has co - authored

more than three hundred journal articles and book chapters,

has edited eighteen books, has served or is on fi fteen

edito-rial boards, is past editor of Human Factors journal and current

associate editor of the Journal of Applied Psychology His expertise

includes assisting organizations in fostering teamwork, designing

and implementing team training strategies, facilitating training

effectiveness, managing decision making under stress, and

devel-oping performance measurement tools

William A Schiemann is founder and CEO of Metrus Group,

an organizational and research advisory fi rm headquartered in

Somerville, New Jersey Metrus Group specializes in strategy

devel-opment, performance measurement, and employee alignment

For the past twenty - fi ve years, Dr Schiemann and his colleagues

have consulted extensively on the development and

implementa-tion of business strategies and balanced scorecards, employee and

customer surveys, performance management and measurement,

productivity and quality improvement, and mergers and

acquisi-tions Dr Schiemann speaks internationally before a wide number

of public and private audiences and is author of Reinventing Talent

Management: How to Maximize Performance in the New Marketplace and

co author of Bullseye! Hitting Your Strategic Targets Through High

Impact Measurement He has also written extensively for many

man-agement and professional publications Dr Schiemann received

a Ph.D in organizational psychology from the University of Illinois

and is the recipient of the prestigious Distinguished Alumnus

Award from the University of Illinois

Valerie I Sessa is an associate professor of industrial and

organi-zational psychology at Montclair State University in New Jersey

Previously, she was a research scientist and director at the Center

for Creative Leadership in Greensboro, North Carolina Dr Sessa

has also worked as a consultant in a variety of areas, most recently

assessing middle and high - potential managers using instruments,

behavioral assessment centers, and feedback Consulting

activi-ties include Bellevue Medical Center, Ciba - Geigy Pharmaceuticals,

Citibank, New York Hospital System, and Xerox Her research

interests include continuous learning at the individual, group,

and organizational levels, managing team effectiveness, and

exec-utive assessment and selection Dr Sessa is the author of Execexec-utive

Selection: Strategies for Success (with Jodi Taylor), Continuous Learning

in Organizations: Individual, Group, and Organizational Perspectives ,

and Work Group Learning: Understanding, Improving, and Assessing

How Groups Learn in Organizations (both with Manny London) Her

research publications have appeared in Consulting Psychology Journal,

Industrial and Commercial Training, Human Resource Development

Review, Journal of Applied Behavioral Science, Journal of Applied

Psychology, Journal of Management Development, and The Psychologist

Manager Journal Her work has also appeared in such periodicals

as BusinessWeek, Fast Company , and The Harvard Business Review

Dr Sessa received her B.A in psychology from the University of

Pennsylvania and her master’s and doctoral degrees in industrial

and organizational psychology from New York University

Stanley B Silverman is currently dean of Summit College and

professor of social science at The University of Akron He has

advised some of the largest organizations in the world and is

co - author of the book, Working Scared: Achieving Success in Trying

Times His work has been published in major journals and he

has been a guest on the Today Show discussing workplace issues

In addition to performance management, his current research

focuses on arrogance in the workplace

Kimberly Smith - Jentsch is an assistant professor in the

Department of Psychology at the University of Central Florida and

the director of the Team and Workforce Development Laboratory

She has authored numerous articles in the Journal of Applied

Psychology, Personnel Psychology , and the Journal of Organizational

Behavior , as well as in ten book chapters and over fi fty conference

presentations Additionally, her research has produced a

num-ber of applied products and numerous performance and shared

cognition metrics that have been used by Navy, law enforcement,

and FAA air traffi c control personnel Dr Smith - Jentsch has been

honored as a NAVAIR Senior Scientist, awarded the Dr Arthur

E Bisson award for Naval Technology Achievement, and the M Scott

Meyers award for applied research in the workplace by the Society

for Industrial and Organizational Psychology

Lori Anderson Snyder is an assistant professor in the Department

of Psychology at the University of Oklahoma Dr Snyder received

her master ’ s and doctorate degrees in industrial/organizational

psychology from Colorado State University Her research interests

include occupational health, diversity and discrimination, and

developmental performance feedback She has recently

pub-lished research on these topics in Research in Personnel and

Human Resource Management, Journal of Applied Social Psychology,

and Research in Organizational Stress and Well - Being She is part of

a research team that was awarded the Douglas W Bray and Ann

Howard Award from the Society for Industrial and Organizational

Psychology in 2005 for assessment center research focused on

leadership development and is currently funded by the National

Science Foundation to promote recruitment, retention, and

leadership of women at the University of Oklahoma

Paul Squires is president of Applied Skills & Knowledge, Inc

He is an industrial psychologist with twenty - fi ve years of

expe-rience with organizational assessment and design, process

improvement, training development, performance management,

assessment development and validation, computer - based

train-ing, and project management Prior to starting AS & K in 1999, he

was vice president and practice manager for Assessment Solutions

Inc Training and Development Services Dr Squires ’ client list

includes PricewaterhouseCoopers, KPMG, Merrill Lynch, Bristol

Myers - Squibb, IRS, Siemens, the U.S Department of Labor,

Motorola, Hewlett - Packard, Avon, and Novartis, to name a few

Prior to his consulting career, Dr Squires held senior positions at

AT & T Corporate Human Resources, with primary responsibility

for selection, testing, employment and staffi ng, internal staffi ng

systems, and employee development He was director of Lucent

Technologies ’ Microelectronics International University,

respon-sible for developing a single world - wide training organization

providing support to eighteen thousand employees He holds a

Ph.D in educational psychology from Fordham University

Nancy T Tippins is a senior vice president and managing principal

of Valtera Corporation, where she is responsible for the

devel-opment and execution of fi rm strategies related to employee

selection and assessment She has extensive experience in the

development and validation of selection tests and other forms

of assessment, including performance appraisals for all levels of

management and hourly employees as well as in designing

per-formance management programs and leadership development

programs Prior to joining Valtera, Dr Tippins worked as an

internal consultant in large Fortune 100 companies (Exxon, Bell

Atlantic, GTE) developing and validating selection and

assess-ment tools Dr Tippins is active in professional affairs and is a past

president of SIOP She is a Fellow of the Society for Industrial and

Organizational Psychology (SIOP), the American Psychological

Association (APA), and the American Psychological Society (APS)

Dr Tippins received M.S and Ph.D degrees in industrial and

orga-nizational psychology from the Georgia Institute of Technology

Management and Organizations Department at the Cox School

of Business at Southern Methodist University His research

interests include goal orientation, feedback-seeking

behav-ior, self-regulation, and the infl uence of implicit theory beliefs

on leadership behavior Dr VandeWalle’s published research

includes articles in the Journal of Applied Psychology, the Journal of

Management, Personnel Psychology, and the Journal of Organizational

Behavior He currently serves on the editorial boards of the

Journal of Applied Psychology and Organizational Behavior and Human

Decision Processes Dr VandeWalle earned his Ph.D in

organi-zational behavior and strategic management from the Carlson

School of Management at the University of Minnesota

Sallie J Weaver is a doctoral student in the industrial/organizational

psychology program at the University of Central Florida (UCF)

She earned her B.S from Florida State University with a

concen-tration in performance management and her M.S from UCF

As a graduate research associate at the Institute for Simulation

and Training, she is a lead student on multiple applied

organiza-tional training and evaluation projects Her research interests include

individual and team training, simulation, organizational culture,

aging in the workforce, and metric development

AN EXPANDED VIEW

OF PERFORMANCE

Herman Aguinis

An Expanded View of Performance Management

The purpose of this chapter is to provide an expanded view of the

performance management process that subsumes the traditional

I/O psychology performance appraisal literature It is an expanded

view in relation to the traditional I/O psychology treatment of

the topic in fi ve different ways First, it goes beyond an almost

exclusive emphasis, some would say almost an obsession, on the

measurement of performance and includes a consideration of

what happens before and after performance is measured (that

is, the role of time and context) Second, although the I/O

*This research was conducted in part while Herman Aguinis held the Mehalchin

Term Professorship in Management at the University of Colorado Denver and

visiting appointments at the University of Salamanca (Spain) and University of

Puerto Rico I thank Charles A Pierce, Manuel London, and Jim W Smither for

comments on previous drafts This chapter includes material from and is based

on the following book: Aguinis, H (2009) Performance management (2nd ed.)

Upper Saddle River, NJ: Pearson Prentice Hall.

Address correspondence to Herman Aguinis, Professor of Organizational

Behavior and Human Resources and Dean’s Research Professor, Kelley School of

Business, Indiana University (email: haguinis@indiana.edu).

psychology literature treats the topic as being almost exclusively

in the industrial psychology domain, this chapter places

perfor-mance management equally in the industrial psychology and

orga-nizational psychology domains (cf Aguinis & Pierce, 2008 ) Third,

the chapter goes beyond an almost exclusive emphasis on the

individual level of analysis by considering unit and organizational

level strategic goals and team performance Fourth, it goes beyond

the traditional performance appraisal literature and considers the

explicit link between performance assessment and administrative

decisions (for example, allocation of rewards, promotions) Fifth,

it is an expanded view because it relies on research produced by

other fi elds such as communication, education, information

sys-tems, international business, marketing, organizational behavior,

public administration, social psychology, sociology, and business

strategy My hope is that this chapter ’ s expanded view of the

per-formance management process will make a contribution toward

the closing of the science - practice gap in the area of performance

management

The Science - Practice Divide and

Performance Management

There is a documented gap between research conducted by

human resource management (HRM) and industrial and

orga-nizational (I/O) psychology academics and the practice of HRM

and I/O psychology in organizations For the most part, academics

conduct research on topics only tangentially relevant to

practi-tioners and, on the other side of the divide, practipracti-tioners

imple-ment practices that do not seem to be based on rigorous research

(Cascio & Aguinis, 2008a; Rynes, Colbert, & Brown, 2002 ; Rynes,

Giluk, & Brown, 2007 ) Muchinsky ( 2004 ) noted that,

unfortu-nately, researchers, in general, are not necessarily concerned about

how their theories, principles, and methods are put into practice

outside of academic study In fact, Latham ( 2007 ) recently issued a

severe warning that “ We, as applied scientists, exist largely for the

purpose of communicating knowledge to one another One might

shudder if this were also true of another applied science,

medi-cine ” (p 1,031) On the other hand, Muchinsky ( 2004 ) noted that

practitioners, in general, are deeply concerned with matters of

implementation This increasing science - practice schism is

partic-ularly puzzling in the case of I/O psychology because the fi eld was

created and seems to be predicated fundamentally on the

prin-ciples of the scientist - practitioner model (Bass, 1974 ; Dunnette,

1990 ; McHenry, 2007 ; Murphy & Saal, 1990 ; Rupp & Beal, 2007 )

The general science - practice gap is particularly evident in the

area of performance management Practitioners are interested

in several issues directly related to performance management,

including talent management, leadership development,

inten-sifi cation of work as employers try to increase productivity with

fewer employees, and managing change (Fay, 2006 ; Schramm,

2006 ; Schwind, 2007 ) On the other hand, a review by Cascio

and Aguinis ( 2008a ) showed that the fi ve most popular topics

published in the Journal of Applied Psychology ( JAP) from 2003

to 2007 are (1) job

satisfaction/attitudes/involvement/commit-ment; (2) work groups/teams; (3) performance

appraisal/feed-back; (4) organizational cultures, climates, policies, citizenship;

and (5) behavior, prediction of processes, and outcomes That

same review found that the fi ve most popular topics published

in Personnel Psychology (PPsych) also between 2003 and 2007 are

(1) behavior, prediction of processes and outcomes; (2)

perfor-mance appraisal/feedback; (3) psychometrics/testing issues; (4)

test validity/validation issues; and (5) work groups/teams (Cascio

& Aguinis, 2008a)

Three conclusions can be drawn from this information First,

given that Cascio and Aguinis ( 2008a ) coded the articles

pub-lished in JAP and PPsych using fi fty different categories, the

con-gruence between the two lists of the top fi ve most popular topics

is remarkable and suggests that these publication trends are

sound indicators of common, underlying trends in the research

produced in the fi eld of I/O psychology Second, a comparison

of the topics in which practitioners are interested with those in

which academics are interested shows tangential overlap only

While the topic “ performance appraisal/feedback ” is included on

the lists for both journals, the majority of articles address topics

that are not suffi ciently broad to address practitioner concerns

about talent management and leadership development, to

men-tion just two The third conclusion is that practimen-tioners interested

in implementing sound research - based performance management

practices can rely on the research produced by HRM and I/O

psychology (for example, performance appraisal) However, given

the tangential overlap between practitioner interests and

publica-tion trends in I/O psychology, there is a need to go beyond HRM

and I/O psychology into additional fi elds of study

The organization of the chapter is as follows The fi rst section

defi nes performance management and describes six key

pur-poses served by performance management systems The second

section describes the performance management process The

third and fi nal section describes performance management best

practices For a more detailed discussion of each of the issues

dis-cussed in this chapter, see Aguinis ( 2009 )

What Is Performance Management?

Consider the following situation (Aguinis, 2009 , p 2):

Sally is a sales manager at a large pharmaceutical company The

fi scal 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 fi scal year ” Sally thinks,

“ Oh, those performance reviews What a waste of my time! ”

From Sally ’ s point of view, there is no value in fi lling out those

seemingly meaningless forms She does not see her subordinates

in action because they are in the fi eld visiting customers most of

the time All that she knows about their performance is based on

sales fi gures, 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 fi lls out the forms in less than twenty minutes and gets back to her “ real job ”

As is illustrated by this vignette, which describes a situation

that is painfully familiar to many readers, performance

manage-ment systems are often under - utilized and also misused In fact,

in many organizations, poorly implemented performance

manage-ment systems can do more harm than good, as was demonstrated

by a legal case in the construction industry (FMI Corporation,

2000 ) A female employee was promoted several times and

suc-ceeded until she started working under the supervision of a new

manager She stated in her lawsuit that, once she was promoted

and reported to the new manager, that boss ignored her and did

not give her the same support or opportunities for training that

her male colleagues received After eight months of receiving no

feedback from her manager, she was called into his offi ce, where

the manager told her that she was failing, resulting in a

demo-tion and a $ 20,000 reducdemo-tion in her annual salary When she won

her sex - discrimination lawsuit, a jury awarded her $ 1.2 million in

emotional distress and economic damages

In addition to an increased risk of litigation, there are several

other detrimental outcomes of poorly implemented systems,

includ-ing employee burnout and job dissatisfaction, damaged

relation-ships, and increased turnover (Brown & Benson, 2005 ; Gabris &

Ihrke, 2001 ) In addition, there is a large opportunity cost because

poorly implemented systems waste time and resources, including

time and money

Before designing a performance management system, there

needs to be a clear defi nition of performance management

Per-formance management is a “ continuous process of identifying,

measuring, and developing the performance of individuals and

teams and aligning performance with the strategic goals of the

organization ” (Aguinis, 2009 , p 3) Note that the key

compo-nents of this defi nition are that this is a continuous process and

that there is an alignment with strategic goals If a manager fi lls

out a form once a year because this is a requirement of the “ HR

cops, ” then this is certainly not a continuous process Also,

evalu-ating employee performance (that is, performance appraisal)

without clear considerations of the extent to which an individual

is contributing to unit and organizational performance and

about how performance will improve in the future is also not

consistent with this defi nition of performance management

Why Implement a Performance Management System?

Performance management systems can serve six important

pur-poses (cf Cleveland & Murphy, 1989 ) (see Exhibit 1.1 for a

summary)

Exhibit 1.1 Summary of Six Purposes of a Performance

Management System.

Strategic: It links the organization’s goals with individual goals,

thereby reinforcing behaviors consistent with the attainment

of organizational goals

Administrative: It is a source of valid and useful information for

making decisions about employees, including salary

adjust-ments, promotions, employee retention or termination,

recognition of superior performance, identifi cation of poor

performers, layoffs, and merit increases

Communication: It allows employees to be informed about how

well they are doing, to receive information on specifi c

areas that may need improvement, and to learn about the

organization’s and the supervisor’s expectations and what

aspects of work the supervisor believes are most important

Developmental: It includes feedback, which allows managers to

coach employees and help them improve performance on an

ongoing basis

Organizational maintenance: It yields information about skills,

abilities, promotional potential, and assignment histories of

current employees to be used in workforce planning as well

as assessing future training needs, evaluating performance

achievements at the organizational level, and evaluating the

effectiveness of human resource interventions (for example,

whether employees perform at higher levels after participating

in a training program)