Chapter 8 Powerpoints

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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.

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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.

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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.

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Process of Performance Management

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3 Purposes of Performance Management

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5 Criteria of Performance Measures

Specificity

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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

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Acceptability

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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.

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Forced Distribution & Ranking

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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.

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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

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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.

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BARS for a Patrol Officer

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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.

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Competency Assessment for a Managerial Position

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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

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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

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Balanced Scorecard Approach

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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

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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.

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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

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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

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5 Performance Information Sources

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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.

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3 Ways Technology Influences PMS

Web-based Online paperless PMS Technology -Social networking, etc.

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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.

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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.

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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.

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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.

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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