PowerPoint PresentationSlide 2Slide 3Purposes of Performance ManagementPerformance Measures CriteriaMeasuring PerformanceSlide 7Example of a Graphic Rating ScaleSlide 9BARS ExampleCompetency ModelResults ApproachQuality Approach5 Performance Information SourcesTypical Rater ErrorsReducing Rater Errors and PoliticsImprove Performance FeedbackWays to Manage PerformanceWithstand Legal ScrutinyHow Companies Manage People’s Performance:Performance ManagementCopyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.8-2Purposes of Performance Management8-4Performance Measures Criteria 8-5Measuring PerformanceComparative approach compares performance with others.oRanking rates employees from highest to lowest performer.oForced distribution ranks employees in groups.oPaired comparison managers compare every employee with every other employee in work group.8-6Measuring PerformanceAttribute Approach focuses on the extent to which individuals have certain attributesoGraphic Rating Scale: list of traits evaluated by 5-point rating scaleoMixed-standard scales: defines relevant performance dimensions and develops statements representing good, average, and poor performance along each dimension8-7Example of a Graphic Rating Scale Performance Rating Dimensions Distinguished Excellent Commendable Adequate PoorKnowledge 5 4 3 2 1Communication 5 4 3 2 1Judgment 5 4 3 2 1Managerial skill 5 4 3 2 1Quality performance 5 4 3 2 1Teamwork 5 4 3 2 1Interpersonal skills 5 4 3 2 1Initiative 5 4 3 2 1Creativity 5 4 3 2 1Problem solving 5 4 3 2 18-8Measuring PerformanceBehavioral Approach attempts to define behaviors an employee must exhibit to be effective on the job.oCritical incidents approach requires managers to keep record of specific examples of effective and ineffective performance.oBehaviorally anchored rating scales (BARS)specifically define performance dimensions by developing behavioral anchors associated with different levels of performance.oAssessment centers are multiple raters who evaluate employees’ performance on a number of exercises.8-9BARS ExampleAlways early for work, gathers all necessary equipment, uses time before roll call to review previous shift’s activities54Early for work, has all necessary equipment.On time for work, has all necessary equipment32Not fully dressed for roll call. Does not have all of the necessary equipment1Late for work most of the time and does not have the necessary equipmentCompetency 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Competencies are sets of skills, knowledge, abilities and other characteristics that enable employees to successfully perform their jobs8-11Results ApproachManagement by Objectives top management passes down company’s strategic goals to managers to define goals.GoalsHierarchy8-12Quality ApproachPerformance Management System designed with a strong quality orientationPrimary goal is improving customer satisfaction byoFocusing on customer orientationoPreventing errorsEmphasizes assessment of both people and systemEmphasizes managers and employees working together to solve performance problemsInvolves internal and external customers in setting standards and measuring performanceUses multiple sources to evaluate people and system5 Performance Information Sources3608-14Typical Rater ErrorsSimilar to MeContrastLeniencyStrictnessCentral TendencyHaloHorns8-15Reducing Rater Errors and PoliticsAppraisal politics - evaluators purposefully distorting a rating to achieve goals.Reducing Rater Error:rater error trainingframe-of-reference or rater accuracy trainingcalibration meetings8-16Improve Performance FeedbackGive feedback frequently, not once a year.Give leaders training on giving feedback and on the performance management process.Ask employees to rate performance before the session.Recognize effective performance through praise.Focus on solving problems.Focus feedback on behavior or results, not on the person.Minimize criticism.Agree to specific goals and set progress review date.8-17Ways to Manage Performance Solid performersoHigh ability and motivation; provide developmentMisdirected effortoLack of ability but high motivation; focus on trainingUnderutilizersoHigh ability but lack motivation; focus on interpersonal abilitiesDeadwoodoLow ability and motivation; managerial action, outplacement, demotion, firing8-18Withstand Legal ScrutinyConduct a valid job analysis related to performance.Base system on specific behaviors or results.Train raters to use system correctly.Review performance ratings and allow for employee appeal.Provide guidance/support for poor performers.Use multiple raters.Document performance