Transcript Chapter 8 Powerpoints
McGraw-Hill/Irwin
Human Resource Management: Gaining a Competitive Advantage
Chapter 08 Performance Management
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
Identify major determinants of individual performance.
Discuss three purposes of performance management.
Identify five criteria for effective performance management systems (PMS) .
Discuss four approaches to performance management, specific techniques used in each approach and ways these approaches compare with criteria for effective PMS.
8-2
Learning Objectives, cont.
Choose the most effective approach to performance measurement for a given situation.
Discuss advantages and disadvantages of different sources of performance information.
Choose the most effective sources for performance information.
Distinguish types of rating errors and explain how to minimize each in a performance evaluation.
Conduct an effective performance feedback session.
Identify the cause of a performance problem.
8-3
Introduction
Performance Management
is the process through which managers ensure that employees ’ activities and outputs are congruent with organizational goals.
Performance Appraisal
is the process through which an organization gets information on how well an employee is doing his or her job.
Performance Feedback
provides employees information regarding their performance effectiveness.
8-4
Process of Performance Management
8-5
3 Purposes of Performance Management
8-6
5 Criteria of Performance Measures
Specificity
8-7
Reliability
Defined as the consistency of a performance measure
Interrater reliability – consistency among the individuals who evaluate an employee’s performanc
Internal consistency reliability – whether questions designed to measure the same facet of performance deliver the same results
Test-retest reliability – the ability to deliver the same results when a performance measure is administered at different times
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Acceptability
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Measuring Performance
Comparative approach
compares performance with that of others.
Ranking
Simple ranking
ranks employees from highest to lowest performer.
Alternation ranking
is crossing off the best and worst employees.
Forced distribution
is employees ranked in groups.
Paired comparison
Managers compare every employee with every other employee in work group.
8-11
Forced Distribution & Ranking
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Attribute Approach
Graphic rating scales
list of traits evaluated by 5-point rating scale.
legally questionable.
Mixed-standard scales
define relevant performance dimensions develop statements representing good, average, and poor performance along each dimension.
8-13
Graphic Rating Scale
The Graphic Rating Scale is the most common form of the attribute approach used in performance management – however, graphic rating scores have been criticized as subjective McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Mixed Standard Scale
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Behavioral Approach
Critical incidents approach
requires managers to keep record of specific examples of effective and ineffective performance.
Behaviorally anchored rating scales (BARS)
Behavioral observation scales (BOS)
Organizational behavior modification
is a formal system of behavioral feedback and reinforcement.
Assessment centers
are multiple raters who evaluate employees ’ performance on a number of exercises.
8-16
BARS for a Patrol Officer
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Sample BOS
It is generally agreed that a BOS provides the best means for differentiating employee performance
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.
Also useful for recruiting, selection, training and development.
8-19
Competency Assessment for a Managerial Position
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Strengths and Weaknesses of the Behavioral Approach
Strengths include effectiveness, the ability to link business strategy with employee behaviors, can have high validity when linked to job analysis, are generally highly accepted, and can be very reliable when used properly
Weaknesses include difficulty in insuring that behaviors are linked with the organization’s strategy, assumes that favored behaviors are the best way to perform the job, and can be less suited to complex jobs
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Results Approach
Management by Objectives
top management passes down company ’ s strategic goals to managers to define goals.
Goals
Productivity Measurement and Evaluation System (ProMES )
goal is to
motivate
employees to higher levels of productivity.
Hierarchy
8-22
Balanced Scorecard Approach
8-23
Strengths and Weaknesses of the Results Approach
The results approach relies upon objective, quantifiable measures of performance
Results measured can be contaminated (affected by matters not under the employee’s control) and deficient (not all important aspects of the job can be measured), can also lead to inter-employee competition instead of cooperation
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
Quality Approach
A performance management system (PMS) designed with a strong quality orientation can:
Assess both person and system factors in the measurement system.
Emphasize managers and employees working together to solve performance problems.
Involve both internal and external customers in setting standards and measuring performance.
Use multiple sources to evaluate person and system factors.
Sustainability
is key element of quality approach.
8-25
Quality Approach
The quality approach assumes that the best measurement of an individual’s performance is the employee’s contribution to improving quality outcomes for the organization
Kaizen – focuses on continuous improvements in business processes and results
8-26
6 Statistical Process
Quality Control Techniques 1.
Process-flow analysis 2.
Cause-and-effect diagrams 3.
Pareto chart 4.
Control chart 5.
Histogram 6.
Scattergram
8-27
5 Performance Information Sources
8-28
Reducing Rater Errors and Politics
Appraisal Politics – where evaluators purposefully distort a rating to acheive personal or organizational goals
Approaches to Reducing Rater Error:
Rater error training – increase awareness of rater errors Rater accuracy training (frame of reference training) – provides raters with idea of what is high, medium, and low performance
Calibration Meetings-
attended by managers to discuss employee performance ratings.
8-29
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
3 Ways Technology Influences PMS
Web-based Online paperless PMS Technology -Social networking, etc.
8-31
Technology - Electronic Monitoring
Electronic tracking systems include:
Hand and fingerprint recognition systems Global positioning systems
(GPS)
Systems that track employees using handheld computers and cell phones
Potential increased efficiency and productivity benefits
Systems present privacy concerns.
8-32
Typical Rater Errors
1.
Similar to Me 2.
Contrast – compare with others 3.
Leniency – rate too highly 4.
Strictness – rate too harshly 5.
Central Tendency – rate all as mediocre 6.
Halo – personal endorsement 7.
Horns – personal animosity Appraisal Politics-
evaluations distort ratings to achieve goals.
8-33
McGraw Hill/Irwin ©2012 The McGraw-Hill Companies, All Rights Reserved
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.
8-35
8-36
Ways to Manage Performance
Solid performers
High ability and motivation; provide development
Misdirected effort
Lack of ability but high motivation; focus on training
Underutilizers
High ability but lack motivation; focus on interpersonal abilities
Deadwood
Low ability and motivation; managerial action, outplacement, demotion, firing 8-37
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.
8-38
Summary
Measuring and managing performance are key to gaining 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.
feed performance information back to employees take action based on causes for poor performance: ability, motivation or both be sure that PMS can meet legal scrutiny 8-39