Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 8: Performance management

Chapter 8 - Performance management. After reading this chapter, you should be able to: Identify the major determinants of effective performance management, discuss the three general purposes of performance management, identify the five criteria for effective performance management systems,...

Chapter 8

Performance Management

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Performance Management Process

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5 Criteria of Performance Measures

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Competency Model

Competencies are sets of skills, knowledge,

abilities and personal characteristics that enable employees to successfully perform their jobs.

A competency model identifies competencies

necessary for each model and provides

descriptions common for an entire occupation, organization, job family or specific job, useful for recruiting, selection, training and development.

Balanced Scorecard Approach

Typical Rater Errors

6 Halo

Improve Performance Feedback

1. Give feedback frequently, not once a year

2. Create right context for discussion

3. Ask employees to rate performance before the

session

4. Encourage employee to participate

5. Recognize effective performance through praise

6. Focus on solving problems

7. Focus feedback on behavior or results, not on the

person

8. Minimize criticism

9. Agree to specific goals and set progress review date.8­8

Characteristics

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Withstand Legal Scrutiny

1 Conduct a valid job analysis related to

performance.

2 Base system on specific behaviors or results.

3 Train raters to use system correctly.

4 Review performance ratings and allow for

employee appeal.

5 Provide guidance/support for poor performers.

6 Use multiple raters.

7 Document performance evaluations.

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 Measuring and managing performance are key to gain

competitive edge

 Performance management systems (PMS) serve strategic, administrative and developmental purposes

 PMS should be evaluated against criteria of strategic

congruence, validity, reliability, acceptability and

specificity.

 Effective managers need to

 be aware of the issues involved in determining best

methods and legal scrutiny

 feed performance information back to employees

 take action based on causes for poor performance: ability,

motivation or both

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