Chapter 8 Managing Employee Performance Comparative performance appraisals The performance appraisal method may require the rater to compare one individual s performance with that of others This method involves some sort of ranking in which some employees are best some are average and others are worst The usual techniques for making comparisons are Simple ranking Forced distribution Paired comparison know the types 1 question Forced distribution Assigns a certain percentage of employees to each category in a set of categories Graphic rating scales Attributive Method Lists traits and provides a rating scale for each trait The employer uses the scale to indicate the extent to which an employee displays each trait the employer uses the scale to indicate the extent to which an employee displays each trait drawback is that is leaves to the particular manager the decisions about what is excellent knowledge or commendable judgment or poor interpersonal skills The result is low reliability because managers are likely to arrive at different judgments Mixed standards scale Attributive Method Uses several statements describing each trait to produce a final score for that trait To get around the reliability problem of the graphic rating skill some organizations use these which use several statements describing each trait to produce a final score for that trait The manager scores the employee in terms of how the employee compares to each statement One way to overcome the drawbacks of rating attributes is to measure employees behavior To rate behaviors the organization begins by defining which behaviors are associated with success on the job Which kinds of behavior help the organization achieve its goals The appraisal for asks the manager to rate an employee in terms of each of the identified behaviors Techniques used include o Critical incident method o Behaviorally anchored rating scale BARS o Behavioral observation scale BOS o Organizational Behavior modification OBM Critical incidents technique Behavioral Method Based on managers records of specific examples of the employee acting in ways that are either effective or ineffective Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals Behavioral observation scale A variation of a Behaviorally Anchored Rating Scale BARS which uses all behaviors necessary for effective performance to rate performance at a task Also asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period Results based measures Use some form of management by objectives Management by Objectives people at each level of the organization set goals in a process that flows from top to bottom so that all levels are contributing to the organization s overall goals These goals become the standards for evaluating each employee s performance Advantage easy to link to business objectives less subjective highly acceptable to managers employees 360 degree performance appraisals performance measurement that combines information from the employees Managers Peers Subordinates Self Customers performance rating based on info from all 4 sources Unjust dismissal wrongful termination Legal Issue the usual claim is that the person was dismissed for reasons besides the ones that the employer states or for no reason ex employee blows whistle and gets fired Managers must make sure that performance management systems and decision treat employees equally without regard to their race sex or other protected status Organizations can do this by establishing and using valid performance measures and by training raters to evaluate performance accurately Organizations can defend themselves by having a legally defensible performance management system Based on valid job analyses with requirements for job success clearly communicated to employees Performance measurement should evaluate behaviors or results rather than traits Multiple raters including self appraisals should be used All performance ratings should be reviewed by upper level managers There should be an appeals mechanism for employees Performance appraisal legal and ethical issues Legal issues Performance management processes are often scrutinized in cases of discrimination or dismissal because performance measures play a central role in decisions about pay promotions and discipline Employment related lawsuits often challenge on organization s performance management system Lawsuits related to performance management usually involve the charges of discrimination or unjust dismissal To protect against both kinds of lawsuits it is important to have a legally defensible performance management system Ethical issues Employee monitoring via electronic devices and computers may raise concerns over employee privacy Computer technology now supports many performance management systems Congress has considered laws to regulate computer monitoring Electronic monitoring provides detailed accurate information but employees may find it demoralizing degrading and stressful It is essential that organizations protect the privacy of performance measurements as they must do with other employee records 1 Describe the purpose of performance management systems Performance management the process through which managers ensure that employees activities and outputs contribute to the organization s goals This process requires Knowing what activities and outputs are desired Observing whether they occur Providing feedback to help employees meet expectations The purposes of Performance Management know 3 purposes Strategic Purpose means effective performance management helps the organization achieve its business objectives Administrative Purpose refers to the ways in which organizations use the system to provide information for day to day decisions about salary benefits and recognition programs Developmental Purpose means that it serves as a basis for developing employees knowledge and skills For performance management to achieve its goals its methods for measuring performance must be good Selecting these measures is a critical part of planning a performance management system Several criteria determine the effectiveness of performance measures Fit with strategy Validity Reliability Acceptability Specific feedback Test Question Effective feedback should be very specific objective not subjective link to business objectives and results 2 Describe the