Description
DB- Module 02: The Performance Management Process
In your textbook, in Chapter 2, Figure 2-1, page 42, provides an overview of the performance management process and its associated components. There are many critical factors that contribute to the successful implementation of a performance management system. Failure to understand these factors can result in issues for organizations, leaders, and employees.
Consider the scenario below and explain how each aspect of the performance management process, as noted in figure 2-1, can be altered/addressed to ensure employees success.
Scenario
When Amal was hired on for her role as an Administrative Assistant to the Chief Executive Officer, she was thrilled about the opportunity to work for Organization ABC. Unfortunately, the information provided in her job description was limited. After a month on the job, despite receiving two days of training from the person Amal replaced, Amal’s supervisor noticed that her performance was inadequate. Amal’s current supervisor knows that she is a phenomenal worker, based upon past employer references.
Response Items to Address
To ensure Amal’s success, and the success of future employees, what aspects of the performance management process need revision? Also, how can future performance management aspects be successfully addressed?
Hint
When thinking of future performance management components, focus on performance execution, performance assessment, and performance review. When thinking about Amal’s experience in the scenario, think about prerequisites and performance planning.
Directions:
- Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
- Your initial post should address all components of the question with a 500 word limit.
Module 02: The Performance Management Process
Attached Files:
- Chapter 2 PowerPoint Presentation Chapter 2 PowerPoint Presentation – Alternative Formats (481.444 KB)
In this module, we will explore the links between leaders and employees. We will also examine the role of job analysis, gain insights into the performance management process, and discuss what is involved in leading such an undertaking on behalf of an entire organization. Mission and vision statements that inform individual goal development support a broader view of how job analysis results are used and will therefore be explored throughout the course.
Learning Outcomes
- Analyze the elements of the first three steps of the performance management process and the relationships between the factors.
- Evaluate how an organization’s mission and goals impact its performance management system.
Readings
Required:
- Chapter 2 in Performance Management: Performance Management Process
- Nikolic, T. M., Peric, N., & Bovan, A. (2020). The role of feedback as a management tool in performance management program. Quality – Access to Success, 21(177), 3-8.
- Hancock, B., Hioe, E., & Schaninger, B. (2018). The fairness factor in performance management. McKinsey Quarterly. Retrieved from &site=ehost-live
Recommended:
- Chapter 2 PowerPoint Presentation from Performance Management
1
Chapter 2
Performance Management
Process
Copyright © 2023 Chicago Business Press
2-2
Overview
Prerequisites
⮚ Performance Planning
⮚ Performance Execution
⮚ Performance Assessment
⮚ Performance Review
⮚
Copyright © 2023 Chicago Business Press
2-3
Overview of Performance Management
Process
Copyright © 2023 Chicago Business Press
2-4
Prerequisites
A.
B.
Knowledge of the organization’s mission
and strategic goals
Knowledge of the job in question
Copyright © 2023 Chicago Business Press
2-5
Knowledge of Mission and Strategic
Goals
■
Strategic planning
• Purpose or reason for the organization’s
existence
• Where the organization is going
• Organizational goals
• Strategies for attaining goals
Copyright © 2023 Chicago Business Press
2-6
Mission and Goals
▪
Cascade effect throughout organization
• Organization 🡪
Unit 🡪
Employee
Copyright © 2023 Chicago Business Press
2-7
Knowledge of the Job(1 of 2)
■
Job analysis of key components
• Activities
• Tasks
• Products
• Services
• Processes
Copyright © 2023 Chicago Business Press
2-8
Knowledge of the Job(2 of 2)
■
KSAs required to do the job
• Knowledge
• Skills
• Abilities
Copyright © 2023 Chicago Business Press
2-9
Work Analysis
■
■
Use a variety of tools
• Interviews
• Observation
• Questionnaires (available on the Internet)
Data collected from
• Job incumbents
• Supervisors
• Individuals responsible for creating a new
job
Copyright © 2023 Chicago Business Press
2-10
Work Analysis Follow-Up
■
All incumbents should
• Review information
• Provide feedback
• Rate tasks and KSAs in terms of
■ Frequency
■ Criticality
Copyright © 2023 Chicago Business Press
2-11
Rater Biases
■
Rating of frequency and criticality of tasks
and KSAs is susceptible to:
• Self-serving bias
• Social projection and false consensus bias
• Carelessness consensus bias
🡪 These biases exaggerate the
importance of certain tasks & KSAs based
on the KSAs that incumbents have
2-12
Copyright © 2023 Chicago Business Press
Rater Training(1 of 2)
■
Web-based training: Structure
• Takes only about 15 minutes
• Establishes common point of reference via
largely 5 steps
■ In the 5 steps, participants basically
practice their rating skills
• As a result, reduces exaggeration of the
importance of certain task and KSAs
Copyright © 2023 Chicago Business Press
2-13
Rater Training(2 of 2)
Web-based training: 5 steps
1. Defines the rating dimensions
2. Defines the scale anchors
3. Describes behaviors indicative of each
rating dimension
4. Allows raters to practice their rating skills,
and
5. Provides feedback on the practice
■
Copyright © 2023 Chicago Business Press
2-14
Job Description
■
■
■
Job duties
KSAs
Working conditions
Copyright © 2023 Chicago Business Press
2-15
Generic Job Descriptions
Occupational Informational Network (O*Net)
Copyright © 2023 Chicago Business Press
2-16
Description
•
Drive a tractor trailer combination or a truck with a capacity of at least 26,000 pounds gross vehicle weight(GVW) May be required to unload truck. Requires commercial drivers license
•
TASKS
•
Check vehicles to ensure that mechanical safety and emergency equipment is in good working order
•
Follow appropriate safety procedures for transporting dangerous goods.
•
Inspect loads to ensure that cargo is secure.
•
Maintain logs of working hours or of vehicle service or repairs status following applicable
TECHNOLOGY SKILLS
•
Database user interface and query software-ddisoftware.com drivers daily log program DDL Easy Trucking Software Fog line Software Truckn2004; Truckers Helper
•
Office suite software – Microsoft Office.
•
Operating system software- micro windows.
•
Route navigation software-ALK Technologies PC-miler; Microsoft Quo Vadis
•
Spreadsheet software- Microsoft Excel Hot technology.
KNOWLEDGE
•
Transportation – knowledge of principles and methods for moving people or goods by air, rail, sea, or road, including the relative costs and benefits.
•
Public Safety and Security- Knowledge or relevant equipment, policies, procedures , and strategics to promote effective local, state or national security operations for the protection of people, data, property, and
institutions.
•
Customer and personal service – knowledge of principle and processes for providing customer and personal services. This includes customer satisfaction
•
English language – knowledge of structure and content of English language, including the meaning and spelling of the word rule of composition and grammar.
•
Mechanical – knowledge of machines and tools including their design, uses, repair and maintenance.
Skills
•
Operation and control – controlling operations of equipment or systems
•
Operation monitoring – watching gauges dials, of other indicators to make sure a machine is working properly
•
Critical thinking – using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions; or approaches to problems.
•
Monitoring – monitoring/assessing performance of yourself, other individuals, or organizations to make improvements or take corrective action
ABILITIES
•
Control precision – The ability to quickly and repeatedly adjust the controls of a machine or a vehicle to exact positions.
•
For Vision – the ability to coordinate two or more lims(for example , two arms , two legs , or one leg and one arm) while sitting , standing, or lying down. It does not involve performing the activities while the whole
body is in motion.
•
Near vision – The ability to see details at close range (within a few feet of the observer)
•
Reaction Time – the ability to quickly respond ( with the hand, finger, or foot ) to a signal (sound, light, picture) when it appears.
Blank
Blank
Blank
Copyright © 2023 Chicago Business Press
17
Performance Planning
■
■
■
Results
Behaviors
Development Plan
Copyright © 2023 Chicago Business Press
2-18
Performance Planning:
Results
✔Key accountabilities
✔Specific objectives
✔Performance standards
Copyright © 2023 Chicago Business Press
2-19
Company Spotlight(1 of 2)
■
■
Accenture implemented a new, more fluid
performance management process.
Including:
• Ongoing feedback.
• Immediate performance development
• Uses an internal application to help transmit
comments.
20
Copyright © 2023 Chicago Business Press
Key Accountabilities
■
Broad areas of a job for which the employee
is responsible for producing results
Copyright © 2023 Chicago Business Press
2-21
Specific Objectives
■
Statements of outcomes
• Important
• Measurable
Copyright © 2023 Chicago Business Press
2-22
Performance Standards
■
■
“Yardstick” to evaluate how well employees
have achieved each objective
Information on acceptable and unacceptable
performance, such as
• Quality
• Quantity
• Cost
• Time
Copyright © 2023 Chicago Business Press
2-23
Performance Planning:
Behaviors
How a job is done
✔ Includes a discussion of competencies
✔
Copyright © 2023 Chicago Business Press
2-24
Competencies
■
■
Measurable clusters of KSAs
Critical in determining how results will be
achieved
Copyright © 2023 Chicago Business Press
2-25
Performance Planning:
Development Plan
Areas for improvement
✔ Goals to be achieved in each area of
improvement
✔
Copyright © 2023 Chicago Business Press
2-26
Performance Execution:
Employee’s Responsibilities
▪
▪
▪
▪
▪
Commitment to goal achievement
Ongoing requests for feedback and coaching
Communication with supervisor
Collecting and sharing performance data
Preparing for performance reviews
Copyright © 2023 Chicago Business Press
2-27
Performance Execution:
Manager’s Responsibilities
■
■
■
■
■
Observation and documentation
Updates
Feedback
Resources
Reinforcement
Copyright © 2023 Chicago Business Press
2-28
Performance Assessment
■
■
■
Manager assessment
Self-assessment
Other sources (e.g., peers, customers)
Copyright © 2023 Chicago Business Press
2-29
Multiple Assessments Are Necessary
To…
Increase employee ownership
⮚ Increase commitment
⮚ Provide information
⮚ Ensure mutual understanding
⮚
Copyright © 2023 Chicago Business Press
2-30
Company Spotlight(2 of 2)
■
■
Google’s performance management uses a 360degree review process, conducted semi-annually
Features include:
• Focused on behaviors and results
• Based on a 5 point scale (1= needs improvement,
5 = superb)
• Based on 6 criteria (adherence to Google values,
problem solving, execution, thought leadership,
leadership, presence)
• Managers meet and review ratings together to
reduce biases
31
Copyright © 2023 Chicago Business Press
Performance Review
Overview of Appraisal Meeting
■
■
■
Past
• Behaviors and results
Present
• Compensation to be received
Future
• New goals and development plans
Copyright © 2023 Chicago Business Press
2-32
Six Steps for Conducting
Productive Performance Reviews(1 of 2)
1.
2.
3.
Identify what the employee has done well and
poorly
Solicit feedback
Discuss the implications of changing behavior
Copyright © 2023 Chicago Business Press
2-33
Six Steps for Conducting
Productive Performance Reviews(2 of 2)
4.
5.
6.
Explain how skills used in past
achievements can help overcome any
performance problems
Agree on an action plan
Set a follow-up meeting and agree on
behaviors, actions, and attitudes to be
evaluated
Copyright © 2023 Chicago Business Press
2-34
Performance Management Process
Summary: Key Points
Ongoing process
✔ Each component is important
❖If one is implemented poorly, the whole
system suffers
✔ Links between components must be clear
✔
Copyright © 2023 Chicago Business Press
2-35
Quick Review
Prerequisites
⮚ Performance Planning
⮚ Performance Execution
⮚ Performance Assessment
⮚ Performance Review
⮚
Copyright © 2023 Chicago Business Press
2-36
Copyright
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Copyright © 2023 Chicago Business Press
Copyright © 2023 Chicago Business Press
37
DB- Module 02: The Performance Management Process
In your textbook, in Chapter 2, Figure 2-1, page 42, provides an overview of the
performance management process and its associated components. There are many
critical factors that contribute to the successful implementation of a performance
management system. Failure to understand these factors can result in issues for
organizations, leaders, and employees.
Consider the scenario below and explain how each aspect of the performance
management process, as noted in figure 2-1, can be altered/addressed to ensure
employees success.
Scenario
When Amal was hired on for her role as an Administrative Assistant to the Chief Executive
Officer, she was thrilled about the opportunity to work for Organization ABC. Unfortunately,
the information provided in her job description was limited. After a month on the job,
despite receiving two days of training from the person Amal replaced, Amal’s supervisor
noticed that her performance was inadequate. Amal’s current supervisor knows that she is
a phenomenal worker, based upon past employer references.
Response Items to Address
To ensure Amal’s success, and the success of future employees, what aspects of the
performance management process need revision? Also, how can future performance
management aspects be successfully addressed?
Hint
When thinking of future performance management components, focus on performance
execution, performance assessment, and performance review. When thinking about
Amal’s experience in the scenario, think about prerequisites and performance planning.
Directions:
• Discuss the concepts, principles, and theories from your textbook. Cite your
textbooks and cite any other sources if appropriate.
• Your initial post should address all components of the question with a 500 word
limit.
Module 02: The Performance Management Process
Attached Files:
Chapter 2 PowerPoint Presentation Chapter 2 PowerPoint Presentation Alternative Formats (481.444 KB)
In this module, we will explore the links between leaders and employees. We will also
examine the role of job analysis, gain insights into the performance management process,
and discuss what is involved in leading such an undertaking on behalf of an entire
organization. Mission and vision statements that inform individual goal development
support a broader view of how job analysis results are used and will therefore be explored
throughout the course.
Learning Outcomes
•
1. Analyze the elements of the first three steps of the performance management
process and the relationships between the factors.
2. Evaluate how an organization’s mission and goals impact its performance
management system.
Readings
Required:
• Chapter 2 in Performance Management: Performance Management Process
• Nikolic, T. M., Peric, N., & Bovan, A. (2020). The role of feedback as a management
tool in performance management program. Quality – Access to Success, 21(177), 38.
• Hancock, B., Hioe, E., & Schaninger, B. (2018). The fairness factor in performance
management. McKinsey Quarterly. Retrieved
from
&site=ehost-live
Recommended:
• Chapter 2 PowerPoint Presentation from Performance Management
Part One
Strategic
and General
Considerations
Copyright © 2023 Chicago Business Press
2
Part I: Strategic And General
Considerations
■
■
■
Chapter 1: Performance Management in Context
Chapter 2: Performance Management Process
Chapter 3: Performance Management and
Strategic Planning
Copyright © 2023 Chicago Business Press
4-3
Chapter 1
Performance Management
in Context
Copyright © 2023 Chicago Business Press
1-4
Overview(1 of 2)
■
Definition of Performance Management (PM)
■
Purposes of PM
■
Contributions of PM
■
Disadvantages/Dangers of Poorly Implemented
PM Systems
Copyright © 2023 Chicago Business Press
1-5
Overview(2of 2)
■
■
■
Characteristics of an Ideal PM System
Integration with Other Human Resources and
Development Activities
The Changing Nature of PM
Copyright © 2023 Chicago Business Press
1-6
Definition of PM(1 of 3)
1. Continuous process of …
■
■
•
Identifying
•
Measuring
•
Developing
•
… the performance of individuals and teams
2. Aligning performance with the strategic goals
of the organization
Copyright © 2023 Chicago Business Press
1-7
Definition of PM(2 of 3)
■
Performance management (PM)
is NOT
performance appraisal (PA)
Copyright © 2023 Chicago Business Press
1-8
Definition of PM (3 of 3)
PM
PA
❑ Strategic business
consideration
❑ Driven by HR
❑ Driven by line manager
❑ Assesses employee
•
Strengths
•
Weaknesses
❑ Ongoing feedback
❑ Once a year
❑ So employee can improve
performance
❑ Lacks ongoing feedback
Copyright © 2023 Chicago Business Press
1-9
Purposes of PM Systems
1. Strategic: To help top management achieve strategic business
objectives.
2. Administrative: To furnish valid and useful
making administrative decisions about employees
information for
3. Informational: To inform employees about how they are doing and
about the organization’s, customers, and supervisors’ expectations
4. Developmental: To allow managers and peers to provide coaching
to their employees
5. Organization maintenance: To create a talent inventory and provide
information to be used in workplace planning and allocation of human
resources
6. Documentation: To collect useful information that can be used for
various purposes(e.g., test development administrative decisions)
Copyright © 2023 Chicago Business Press
1-10
Purposes of PM Systems
Strategic Purpose
■
■
Link individual goals with organization’s goals
Communicate most crucial business strategic
initiatives
Copyright © 2023 Chicago Business Press
1-11
Company Spotlight
■
■
Sears, one of the largest U.S. retailers, is using PM
to reinvigorate the company’s culture
Steps include:
• Revising duties and objectives
• More frequent communication between
supervisors and employees
• Using PM to identify future leaders
Copyright © 2023 Chicago Business Press
1-12
Purposes of PM Systems
Administrative Purpose
■
Provide information for making decisions
regarding:
• Salary adjustments
• Promotions
• Retention or termination
• Recognition of individual performance
• Layoffs
Copyright © 2023 Chicago Business Press
1-13
Purposes of PM Systems
Informational Purpose
■
Communicate to employees:
• Expectations
• What is important
• How they are doing
• How to improve
Copyright © 2023 Chicago Business Press
1-14
Purposes of PM Systems
Developmental Purpose
■
■
■
■
Performance feedback/coaching
Identification of individual strengths and
weaknesses
Identification of causes of performance
deficiencies
Tailor development of individual career path
Copyright © 2023 Chicago Business Press
1-15
Purposes of PM Systems
Organizational Maintenance Purpose
■
Plan effective workforce
■
Assess future training needs
■
Evaluate performance at organizational level
■
Evaluate effectiveness of HR interventions
Copyright © 2023 Chicago Business Press
1-16
Purposes of PM Systems
Documentation Purpose
■
Validate selection instruments
■
Document administrative decisions
■
Help meet legal requirements
Copyright © 2023 Chicago Business Press
1-17
Contributions of
Performance Management (1 of 2)
Self-insight and development are enhanced
Self-esteem is increased.
Motivation to perform is increase.
Employee engagement is enhanced.
Employees become more competent.
Voice behaviour is encouraged.
The definitions of job and criteria are clarified.
Employee misconduct is minimized.
Declines in performance can be addressed early on.
Motivation, commitment, and intentions to stay in the organization are enhanced.
Managers gain insight about direct reports.
There is better and more timely differentiation between good and poor performers.
Supervisors views of performance are communicated more clearly.
Administrative actions are more fair and appropriate.
Organizational goals are made clear.
There is better protection from lawsuits.
Organization change is facilitated.
Copyright © 2023 Chicago Business Press
1-18
Contributions of
Performance Management(2 of 2)
■
For Employees
■
For Managers
■
For Organization/HR Function
Copyright © 2023 Chicago Business Press
1-19
Contributions of Performance Management
for Employees
■
Enhance self-insight and development
■
Increase self-esteem
■
Increase motivation to perform
■
Increase employee competence
■
Clarify definitions of
• Job
• Success criteria
Copyright © 2023 Chicago Business Press
1-20
Contributions of Performance Management
for Managers(1 of 2)
■
Increase employee engagement
■
Encourage voice behavior
■
Minimize employee misconduct
■
Address declines in performance early
■
Increase employee motivation, commitment, and
intentions to stay in organization
Copyright © 2023 Chicago Business Press
1-21
Contributions of Performance
Management for Employees(2 of 2)
■
■
■
■
Communicate supervisors’ views of performance
more clearly
Managers gain insight about subordinates
Better and more timely differentiation between
good and poor performers
Employees become more competent
Copyright © 2023 Chicago Business Press
1-22
Contributions of Performance Management
for Organization/HR Function
■
Clarify organizational goals
■
Facilitate organizational change
■
Fairer, more appropriate administrative actions
■
Better protection from lawsuits
Copyright © 2023 Chicago Business Press
1-23
Disadvantage/Dangers of Poorly
Implemented PM System
For Employees
■ For Managers
■ For organization/HR function
■
Copyright © 2023 Chicago Business Press
1-24
Disadvantages/Dangers of
Poorly Implemented PM Systems
Lower self-esteem
Increased turnover
Damaged relationships
Decreased motivation to perform
Employee job burnout and job dissatisfaction
Use of false or misleading information
Wasted time and money
Emerging biases
Unclear rating system
Varying and unfair standards and rating
Unjustified demands on managers’ and employees’ resources
Increased risk of litigation
Copyright © 2023 Chicago Business Press
1-25
Disadvantages/Dangers of Poorly
Implemented PM Systems for Employees
■
Lowered self-esteem
■
Employee burnout and job dissatisfaction
■
Damaged relationships
■
Use of false or misleading information
Copyright © 2023 Chicago Business Press
1-26
Disadvantages/Dangers of Poorly
Implemented PM Systems for Managers
■
Increased turnover
■
Decreased motivation to perform
■
Unjustified demands on managers’ resources
■
Varying and unfair standards and ratings
Copyright © 2023 Chicago Business Press
1-27
Disadvantages/Dangers of Poorly
Implemented PM Systems for
Organization/HR Function
■
Wasted time and money
■
Unclear ratings system
■
Emerging biases
■
Increased risk of litigation
Copyright © 2023 Chicago Business Press
1-28
Company Spotlight(1 of 2)
■
■
Nike was subject to a lawsuit for gender pay
discrimination and tolerating chronic sexual
harassment.
Nike was requested to “develop and institute
reliable, validated, and job-related standards for
evaluating performance, determining pay, and
making promotion decisions.”
Copyright © 2023 Chicago Business Press
1-29
Performance Ratings: The Canary in the
Coal Mine(1of 2)
■
Unfair or biased ratings are a sign of a poorly
implemented performance management system
Copyright © 2023 Chicago Business Press
1-30
Performance Ratings: The Canary in the
Coal Mine(2 of 2)
■
Possible unseen reasons why performance ratings
are biased, impractical, and cause more harm than
good
• Ratings may be not be directly related to an
organization’s strategic goals
• May not refer to performance dimensions under
the control of the employee
• May take too long for supervisors to fill out
complicated and convoluted evaluation forms
Copyright © 2023 Chicago Business Press
1-31
Company Spotlight(2 of 2)
■
■
Adobe implemented a state-of-the-science
performance management system
Benefits included:
• Time savings (80,000 hours)
• Increased morale
• Decreased turnover
Copyright © 2023 Chicago Business Press
1-32
Characteristics of an ideal PM System
Strategic congruence
Context congruence
Thoroughness
Practically
Meaningfulness
Specificity
Identification of effective and ineffective performance
Reliability
Validity
Acceptability and fairness
Inclusiveness
Openness
Correctability
Standardization
Ethically
Copyright © 2023 Chicago Business Press
1-33
An Ideal PM System: 15 Characteristics
Strategically Congruent
■
Consistent with organization’s strategy
■
Aligned with unit and organizational goals
Copyright © 2023 Chicago Business Press
1-34
An Ideal PM System: 15
Characteristics Contextually Congruent
■
Congruent with the organization’s culture as
well as the broader cultural context of the
region or country
• Example: A 360-degree feedback is not
effective where communication is not fluid
and hierarchies are rigid
Copyright © 2023 Chicago Business Press
1-35
An Ideal PM System: 15 Characteristics
Thorough
■
All employees are evaluated
■
All major job responsibilities are evaluated
■
■
Evaluations cover performance for entire
review period
Feedback is given on both positive and
negative performance
Copyright © 2023 Chicago Business Press
1-36
An Ideal PM System: 15 Characteristics
Practical
■
Available
■
Easy to use
■
Acceptable to decision makers
■
Benefits outweigh costs
Copyright © 2023 Chicago Business Press
1-37
An Ideal PM System:15 Characteristics
Meaningful
■
■
■
■
■
Standards are important and relevant
System measures ONLY what employee can
control
Results have consequences
Evaluations occur regularly and at appropriate
times
System provides for continuing skill
development of evaluators
Copyright © 2023 Chicago Business Press
1-38
An Ideal P M System:15 Characteristics
Specific
▪ Concrete and detailed guidance to
employees
•
What’s expected
•
How to meet the expectations
Copyright © 2023 Chicago Business Press
1-39
An Ideal PM System: 15 Characteristics
Identifies effective and ineffective
performance
■
Distinguish between effective and ineffective:
• Behaviors
• Results
■
Provide ability to identify employees with various
levels of performance.
Copyright © 2023 Chicago Business Press
1-40
An Ideal PM System:15 Characteristics
Reliable
■
Consistent
■
Free of error
■
Inter-rater reliability
Copyright © 2023 Chicago Business Press
1-41
An Ideal P M System:15 Characteristics
Valid
■
■
■
Relevant (i.e., measures what is important)
Not deficient (i.e., doesn’t measure
unimportant facets of job)
Not contaminated (i.e., only measures what
the employee can control)
Copyright © 2023 Chicago Business Press
1-42
An Ideal PM System:15 Characteristics
Acceptable and Fair(1 of 2)
■
■
Perception of Distributive Justice
• Work performed 🡪🡪 Evaluation received 🡪🡪
Reward
Perception of Procedural Justice
• Fairness of procedures used to:
■ Determine ratings
■ Link ratings to rewards
Copyright © 2023 Chicago Business Press
1-43
An Ideal PM System:15 Characteristics
Acceptable and Fair( 2 of 2)
■
■
Perception of Interpersonal Justice
• Perceptions of quality of the design and
implementation of the PM system
Perception of Informational Justice
• Performance expectations and goals
• Feedback received
• Information given to justify administrative
decisions
Copyright © 2023 Chicago Business Press
1-44
An Ideal PM System:15 Characteristics
Inclusive
■
Represents concerns of all involved
• When system is created, employees should help
with deciding:
■
What should be measured
■
How it should be measured
• Employee should provide input on performance
prior to evaluation meeting.
Copyright © 2023 Chicago Business Press
1-45
An Ideal PM System:15 Characteristics
Open (No Secrets)
■
Frequent, ongoing evaluations and feedback
■
Two-way communications in appraisal meeting
■
Clear standards and ongoing communication
■
Communications are factual, open, and honest
Copyright © 2023 Chicago Business Press
1-46
An Ideal PM System:15 Characteristics
Correctable
■
Recognizes that human judgment is fallible
■
Appeals process provided
Copyright © 2023 Chicago Business Press
1-47
An Ideal PM System:15 Characteristics
Standardized
■
Ongoing training of managers to provide
consistent evaluations across:
• People
• Time
Copyright © 2023 Chicago Business Press
1-48
An Ideal PM System:15 Characteristics
Ethical
■
■
■
Supervisor suppresses self-interest
Supervisor rates only where (s)he has sufficient
information about the performance dimension
Supervisor respects employee privacy
Copyright © 2023 Chicago Business Press
1-49
Integration with other Human
Resources and Development Activities
■
PM provides information for:
• Development of training to meet organizational
needs
• Workforce planning
• Recruitment and hiring decisions
• Development of compensation systems
Copyright © 2023 Chicago Business Press
1-50
Changing Nature of PM
■
PM is changing rapidly due to:
■
Technological Advancements
■
Globalization
■
Demographic Changes
Copyright © 2023 Chicago Business Press
1-51
Changing Nature of PM
Technological Advancements
■
Use of cloud computing for real-time and
constant feedback
■
Availability of Big Data and use of Electronic
Performance Monitoring (EPM)
Copyright © 2023 Chicago Business Press
1-52
Changing Nature of PM
Globalization
■
Increasing prevalence of virtual teams located
across the world
■
Need to consider local norms—including societal
and organizational cultural issues
Copyright © 2023 Chicago Business Press
1-53
Changing Nature of PM
Demographic Changes
■
Retirement of baby boomers and influx of Gen X
and Gen Y (Millennials)
Copyright © 2023 Chicago Business Press
1-54
Quick Review
■
■
■
■
■
■
■
Definition of Performance Management (PM)
Purposes of PM Systems
Contributions of PM
Disadvantages/Dangers of Poorly Implemented PM
Systems
Characteristics of an Ideal PM System
Integration with Other Human Resources and
Development Activities
Changing Nature of PM
Copyright © 2023 Chicago Business Press
1-55
Chapter 2
Performance Management
Process
Copyright © 2023 Chicago Business Press
2-2
Overview
Prerequisites
⮚ Performance Planning
⮚ Performance Execution
⮚ Performance Assessment
⮚ Performance Review
⮚
Copyright © 2023 Chicago Business Press
2-3
Overview of Performance Management
Process
Copyright © 2023 Chicago Business Press
2-4
Prerequisites
A.
B.
Knowledge of the organization’s mission
and strategic goals
Knowledge of the job in question
Copyright © 2023 Chicago Business Press
2-5
Knowledge of Mission and Strategic
Goals
■
Strategic planning
• Purpose or reason for the organization’s
existence
• Where the organization is going
• Organizational goals
• Strategies for attaining goals
Copyright © 2023 Chicago Business Press
2-6
Mission and Goals
▪
Cascade effect throughout organization
• Organization 🡪🡪
Unit 🡪🡪
Employee
Copyright © 2023 Chicago Business Press
2-7
Knowledge of the Job(1 of 2)
■
Job analysis of key components
• Activities
• Tasks
• Products
• Services
• Processes
Copyright © 2023 Chicago Business Press
2-8
Knowledge of the Job(2 of 2)
■
KSAs required to do the job
• Knowledge
• Skills
• Abilities
Copyright © 2023 Chicago Business Press
2-9
Work Analysis
■
■
Use a variety of tools
• Interviews
• Observation
• Questionnaires (available on the Internet)
Data collected from
• Job incumbents
• Supervisors
• Individuals responsible for creating a new
job
Copyright © 2023 Chicago Business Press
2-10
Work Analysis Follow-Up
■
All incumbents should
• Review information
• Provide feedback
• Rate tasks and KSAs in terms of
■ Frequency
■ Criticality
Copyright © 2023 Chicago Business Press
2-11
Rater Biases
■
Rating of frequency and criticality of tasks
and KSAs is susceptible to:
• Self-serving bias
• Social projection and false consensus bias
• Carelessness consensus bias
🡪🡪 These biases exaggerate the
importance of certain tasks & KSAs based
on the KSAs that incumbents have
2-12
Copyright © 2023 Chicago Business Press
Rater Training(1 of 2)
■
Web-based training: Structure
• Takes only about 15 minutes
• Establishes common point of reference via
largely 5 steps
■ In the 5 steps, participants basically
practice their rating skills
• As a result, reduces exaggeration of the
importance of certain task and KSAs
Copyright © 2023 Chicago Business Press
2-13
Rater Training(2 of 2)
Web-based training: 5 steps
1. Defines the rating dimensions
2. Defines the scale anchors
3. Describes behaviors indicative of each
rating dimension
4. Allows raters to practice their rating skills,
and
5. Provides feedback on the practice
■
Copyright © 2023 Chicago Business Press
2-14
Job Description
■
■
■
Job duties
KSAs
Working conditions
Copyright © 2023 Chicago Business Press
2-15
Generic Job Descriptions
Occupational Informational Network (O*Net)
Copyright © 2023 Chicago Business Press
2-16
Description
•
Drive a tractor trailer combination or a truck with a capacity of at least 26,000 pounds gross vehicle weight(GVW) May be required to unload truck. Requires commercial drivers license
•
TASKS
•
Check vehicles to ensure that mechanical safety and emergency equipment is in good working order
•
Follow appropriate safety procedures for transporting dangerous goods.
•
Inspect loads to ensure that cargo is secure.
•
Maintain logs of working hours or of vehicle service or repairs status following applicable
TECHNOLOGY SKILLS
•
Database user interface and query software-ddisoftware.com drivers daily log program DDL Easy Trucking Software Fog line Software Truckn2004; Truckers Helper
•
Office suite software – Microsoft Office.
•
Operating system software- micro windows.
•
Route navigation software-ALK Technologies PC-miler; Microsoft Quo Vadis
•
Spreadsheet software- Microsoft Excel Hot technology.
KNOWLEDGE
•
Transportation – knowledge of principles and methods for moving people or goods by air, rail, sea, or road, including the relative costs and benefits.
•
Public Safety and Security- Knowledge or relevant equipment, policies, procedures , and strategics to promote effective local, state or national security operations for the protection of people, data, property, and
institutions.
•
Customer and personal service – knowledge of principle and processes for providing customer and personal services. This includes customer satisfaction
•
English language – knowledge of structure and content of English language, including the meaning and spelling of the word rule of composition and grammar.
•
Mechanical – knowledge of machines and tools including their design, uses, repair and maintenance.
Skills
•
Operation and control – controlling operations of equipment or systems
•
Operation monitoring – watching gauges dials, of other indicators to make sure a machine is working properly
•
Critical thinking – using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions; or approaches to problems.
•
Monitoring – monitoring/assessing performance of yourself, other individuals, or organizations to make improvements or take corrective action
ABILITIES
•
Control precision – The ability to quickly and repeatedly adjust the controls of a machine or a vehicle to exact positions.
•
For Vision – the ability to coordinate two or more lims(for example , two arms , two legs , or one leg and one arm) while sitting , standing, or lying down. It does not involve performing the activities while the whole
body is in motion.
•
Near vision – The ability to see details at close range (within a few feet of the observer)
•
Reaction Time – the ability to quickly respond ( with the hand, finger, or foot ) to a signal (sound, light, picture) when it appears.
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Copyright © 2023 Chicago Business Press
17
Performance Planning
■
■
■
Results
Behaviors
Development Plan
Copyright © 2023 Chicago Business Press
2-18
Performance Planning:
Results
✔ Key accountabilities
✔ Specific objectives
✔ Performance standards
Copyright © 2023 Chicago Business Press
2-19
Company Spotlight(1 of 2)
■
■
Accenture implemented a new, more fluid
performance management process.
Including:
• Ongoing feedback.
• Immediate performance development
• Uses an internal application to help transmit
comments.
20
Copyright © 2023 Chicago Business Press
Key Accountabilities
■
Broad areas of a job for which the employee
is responsible for producing results
Copyright © 2023 Chicago Business Press
2-21
Specific Objectives
■
Statements of outcomes
• Important
• Measurable
Copyright © 2023 Chicago Business Press
2-22
Performance Standards
■
■
“Yardstick” to evaluate how well employees
have achieved each objective
Information on acceptable and unacceptable
performance, such as
• Quality
• Quantity
• Cost
• Time
Copyright © 2023 Chicago Business Press
2-23
Performance Planning:
Behaviors
How a job is done
✔ Includes a discussion of competencies
✔
Copyright © 2023 Chicago Business Press
2-24
Competencies
■
■
Measurable clusters of KSAs
Critical in determining how results will be
achieved
Copyright © 2023 Chicago Business Press
2-25
Performance Planning:
Development Plan
Areas for improvement
✔ Goals to be achieved in each area of
improvement
✔
Copyright © 2023 Chicago Business Press
2-26
Performance Execution:
Employee’s Responsibilities
▪
▪
▪
▪
▪
Commitment to goal achievement
Ongoing requests for feedback and coaching
Communication with supervisor
Collecting and sharing performance data
Preparing for performance reviews
Copyright © 2023 Chicago Business Press
2-27
Performance Execution:
Manager’s Responsibilities
■
■
■
■
■
Observation and documentation
Updates
Feedback
Resources
Reinforcement
Copyright © 2023 Chicago Business Press
2-28
Performance Assessment
■
■
■
Manager assessment
Self-assessment
Other sources (e.g., peers, customers)
Copyright © 2023 Chicago Business Press
2-29
Multiple Assessments Are Necessary
To…
Increase employee ownership
⮚ Increase commitment
⮚ Provide information
⮚ Ensure mutual understanding
⮚
Copyright © 2023 Chicago Business Press
2-30
Company Spotlight(2 of 2)
■
■
Google’s performance management uses a 360degree review process, conducted semi-annually
Features include:
• Focused on behaviors and results
• Based on a 5 point scale (1= needs improvement,
5 = superb)
• Based on 6 criteria (adherence to Google values,
problem solving, execution, thought leadership,
leadership, presence)
• Managers meet and review ratings together to
reduce biases
31
Copyright © 2023 Chicago Business Press
Performance Review
Overview of Appraisal Meeting
■
■
■
Past
• Behaviors and results
Present
• Compensation to be received
Future
• New goals and development plans
Copyright © 2023 Chicago Business Press
2-32
Six Steps for Conducting
Productive Performance Reviews(1 of 2)
1.
2.
3.
Identify what the employee has done well and
poorly
Solicit feedback
Discuss the implications of changing behavior
Copyright © 2023 Chicago Business Press
2-33
Six Steps for Conducting
Productive Performance Reviews(2 of 2)
4.
5.
6.
Explain how skills used in past
achievements can help overcome any
performance problems
Agree on an action plan
Set a follow-up meeting and agree on
behaviors, actions, and attitudes to be
evaluated
Copyright © 2023 Chicago Business Press
2-34
Performance Management Process
Summary: Key Points
Ongoing process
✔ Each component is important
❖If one is implemented poorly, the whole
system suffers
✔ Links between components must be clear
✔
Copyright © 2023 Chicago Business Press
2-35
Quick Review
Prerequisites
⮚ Performance Planning
⮚ Performance Execution
⮚ Performance Assessment
⮚ Performance Review
⮚
Copyright © 2023 Chicago Business Press
2-36
Chapter 3
Performance Management and Strategic
Planning
Copyright © 2023 Chicago Business Press
3-2
Overview
■
■
■
■
Definition and Purposes of Strategic Planning
Linking Performance Management to the Strategic
Plan
Strategic Planning Process
• Critical Role of HR in Strategic Planning
• Devising an environmental (i.e., SWOT) analysis
• Produce state-of-the-science mission and vision
statements, objectives, and strategies
• Devise effective job descriptions
Building Support
Copyright © 2023 Chicago Business Press
3-3
Strategic Planning: Definition
■
Process
• Describe the organization’s destination
• Assess barriers
• Select approaches for moving forward
Copyright © 2023 Chicago Business Press
3-4
Strategic Planning: Goal
■
■
Allocate resources to provide the organization
with competitive advantage
Blueprint that defines how the organization will
allocate its resources in pursuit of its most critical
and important objectives
Copyright © 2023 Chicago Business Press
3-5
Strategic Planning: Purposes
Helps define the organization’s identity
Helps organizations prepare for the future
Enhances ability to adapt to environmental changes
Provides focus and allows for better allocation of resources
Provides focus and allows for better allocation of resources
Produces an organization of new options and opportunities
Provides employees with information to direct daily activities
Copyright © 2023 Chicago Business Press
3-6
Aligning Strategic Plan & Performance
3-7
Copyright © 2023 Chicago Business Press
Strategic Planning : Overview
■
Organizational Strategic Plan
• Mission; Vision; Objectives; Strategies
■
Unit Strategic Plan
• Mission; Vision; Objectives; Strategies
■
Job Descriptions
• Tasks; Knowledge; Skills; Abilities
Copyright © 2023 Chicago Business Press
3-8
Strategic Planning Process
■
■
■
■
■
■
■
Critical Role of the HR Function
Environmental (SWOT) Analysis
Mission
Vision
Objectives
Strategies
Job Descriptions
Copyright © 2023 Chicago Business Press
3-9
Strategic Planning Process
Critical Role of the HR Function
■
■
■
Communicate knowledge of strategic plan
Outline knowledge, skills, and abilities (KSAs)
needed for strategy implementation
Propose compensation systems
Copyright © 2023 Chicago Business Press
3-10
Strategic Planning Process
Environmental Analysis
Identifies external and internal trends
■ To understand broad industry issues
■ Used to make decisions using “big picture” context
Copyright © 2023 Chicago Business Press
3-11
Strategic Planning Process
Environmental Analysis Internal Trends
■
■
Strengths:
• Internal characteristics that organization uses
to its advantage
Weaknesses:
• Internal characteristics that can hinder success
of the organization
Copyright © 2023 Chicago Business Press
3-12
Strategic Planning Process
Environmental Analysis External
Trends
■
■
Opportunities:
• Environmental characteristics that can help the
organization succeed
Threats:
• Environmental characteristics that can prevent
the organization from being successful
Copyright © 2023 Chicago Business Press
3-13
Strategic Planning Process
Environmental Analysis
Trends to Consider
External
Internal
Economic
Organization structure
Political/Legal
Organization culture
Social
Politics
Technological
Processes
Competitors
Customers
Suppliers
Size
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Blank
3-14
Copyright © 2023 Chicago Business Press
Strategic Planning Process
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)
Copyright © 2023 Chicago Business Press
3-15
Strategic Planning Process
Gap Analysis Determines
Copyright © 2023 Chicago Business Press
3-16
Strategic Planning for the Organization
Environmental and Gap Analyses provide
information for organizations to decide:
■
Who they are
■
What they do
Copyright © 2023 Chicago Business Press
3-17
Company Spotlight(1 of 2)
SWOT
Strengths
Weakness
• First to market
• Host incentive(hosts can
make money)
• Ease of use (search by
price, location, dates)
• Website design
• Profiles (browse hosts
and review them)
• No daily updates required
for listings
• Lack of brand awareness
in new markets
• Company quality
dependent on hosts and
customer
• Ease of competitor entry
• Legal cost to deal with
zoning laws(e.g.,
prohibiting people from
running a business)
• Insurance costs to protect
hosts and customers
Copyright © 2023 Chicago Business Press
3-18
Company Spotlight(2 of 2)
SWOT
Opportunities
Threats
• Lower prices than hotels
• More connected to city and
its culture
• Easy to become a host and
connect with local residents
• Large market for temporary
housing
• Growing use of online
booking
• Established lodging
providers(e.g., hotels)
• Online rooms(e.g.,
craigslist, couch surfing
com)
• Competitors copying
business model
• Bad press surrounding poor
room, poor customers, or
poor hosts
Copyright © 2023 Chicago Business Press
3-19
Company Spotlight
Gap Analysis
■
■
Provide alternative to hotels by providing
temporary housing that allows hosts to make
money and users to save money and experience
local culture.
Provide easy-to-use web platform that allow hosts
to easily list temporary housing by posting their
listing once, and users to easily search and filter.
Copyright © 2023 Chicago Business Press
3-20
Mission
A good mission statement answers:
✔ Why does the organization exist?
✔ What is the scope of the organization’s activities?
✔ Who are the customers served?
✔ What are the products or services offered?
Copyright © 2023 Chicago Business Press
3-21
Mission Statement Should Contain:
Basic product/service to be offered(does what)
Primary markets or customer groups to be served (to whom)
Unique benefits, feature, and advantages of products/services(with
what benefits)
Technology to be used in production or delivery
Fundamental concern for survival through growth and profitability
Managerial philosophy of the organization
Public image sought by organization
Self-concept of business adopted by employees, shareholders and
other stakeholders
Copyright © 2023 Chicago Business Press
3-22
Vision
■
■
■
Statement of future aspirations
Focuses attention on what is important
Provides context for evaluating
• Opportunities
• Threats
Copyright © 2023 Chicago Business Press
3-23
A Good Vision Statement: Eight
Characteristics
Brief
Verifiable
Bound by a timeline
Current
Focused
Understandable
Inspiring
A stretch
Copyright © 2023 Chicago Business Press
3-24
Objectives(1 of 2)
■
What organization hopes to achieve in
the medium- to long-range period
• Next three to five years
Copyright © 2023 Chicago Business Press
3-25
Objectives(2 of 2)
■
■
■
■
■
More specific information regarding how mission
will be implemented
Basis for making decisions by keeping outcomes in
mind
Allows for comparison of what needs to be achieved
versus what each unit, group, and individual is
achieving
A source of motivation
Provides employees with a more tangible target for
which to strive
Copyright © 2023 Chicago Business Press
3-26
Strategies
■
■
Descriptions of game plans or how-to procedures
to reach the stated objectives
Address issues of:
• Growth
• Survival
• Turnaround
• Stability
• Innovation
• Talent Acquisition
• Leadership
Copyright © 2023 Chicago Business Press
3-27
Strategic Plans at Unit Level
■
■
Every Unit mission statement, vision statement,
goals, and strategies
Must clearly align with and be congruent with
Organization’s mission statement, vision
statement, goals, and strategies
Copyright © 2023 Chicago Business Press
3-28
Job Descriptions
■
■
Need to be congruent with and support the
organization and unit mission, vision, objectives,
and strategies
Provides information about the various tasks
performed, together with a description of some of
the KSAs required for the position
Copyright © 2023 Chicago Business Press
3-29
Building Support—
Answering “What’s in It for Me?”
■
■
For top management support:
• Emphasize that PM helps carry out an
organization’s vision
For support from all levels:
• Clearly communicate nature and consequences
of PM
• Involve employees in the process of PM design
and implementation
Copyright © 2023 Chicago Business Press
3-30
Individual and Team Performance
■
■
Organization and Unit mission, vision, goals lead
to 🡪🡪
Performance management system, which:
• Motivates employees
• Aligns development plans with organization
priorities
Copyright © 2023 Chicago Business Press
3-31
What’s In It for Me (WIIFM)?
■
■
How does answering this question build support
for the performance management system?
What role does context play in crafting the
message about performance management?
Copyright © 2023 Chicago Business Press
3-32
Quick Review
■
■
■
Definition and Purposes of Strategic Planning
Linking Performance Management to the
Strategic Plan
• Critical Role of HR in Strategic Planning
• Devising an environmental (i.e., SWOT)
analysis
• Produce state-of-the-science mission and
vision statements, objectives, and strategies
• Devise effective job descriptions
Building Support
Copyright © 2023 Chicago Business Press
3-33
Part II: System Implementation
■
■
■
■
Chapter 4: Defining Performance and Choosing a
Measurement Approach
Chapter 5: Measuring Results and Behaviors
Chapter 6: Performance Analytics
Chapter 7: Rolling Out the Performance
Management System
Copyright © 2023 Chicago Business Press
4-2
Chapter 4
Defining Performance
and
Choosing a Measurement Approach
Copyright © 2023 Chicago Business Press
4-3
Overview
⮚
Defining Performance
⮚
Determinants of Performance
⮚
Performance Dimensions
⮚
Approaches to Measuring Performance
Copyright © 2023 Chicago Business Press
4-4
Defining Performance(1 of 3)
Performance is:
■
Behaviors and actions
• What employees do
Copyright © 2023 Chicago Business Press
4-5
Defining Performance(2 of 3)
Performance is:
■
Results and Products
• The outcome of employee behaviors
Copyright © 2023 Chicago Business Press
4-6
Defining Performance(3 of 3)
Copyright © 2023 Chicago Business Press
4-7
Behaviors Labeled as Performance
Are…
Evaluative
■
Negative
■
Neutral
■
Positive
Multidimensional
■
Many different kinds of behaviors
■
Advance or hinder organizational goals
Copyright © 2023 Chicago Business Press
4-8
Behaviors Are NOT Always…
• Observable
• Measurable
Copyright © 2023 Chicago Business Press
4-9
Results or Products May Be Used…
■
■
To infer behavior
As proxy for behavioral measure
Copyright © 2023 Chicago Business Press
4-10
Determinants of Performance(1 of 2)
■
■
Performance =
Abilities and other traits
■
■
X
Knowledge and skills
■
■
X
Context
Copyright © 2023 Chicago Business Press
4-11
Determinants of Performance(2 of 2)
Copyright © 2023 Chicago Business Press
4-12
Abilities and Other Traits
■
■
■
■
Cognitive Abilities
Personality
Stable Motivational Dispositions
Physical Characteristics and Abilities
Copyright © 2023 Chicago Business Press
4-13
Knowledge and Skills
■
■
Job-Related Knowledge
Skills, Attitudes and Malleable Motivational States
Copyright © 2023 Chicago Business Press
4-14
Declarative Knowledge
■
■
Information about
• Facts
• Labels
• Principles
• Goals
Understanding of task requirements
Copyright © 2023 Chicago Business Press
4-15
Procedural Knowledge
■
■
Knowing
• What to do
• How to do it
Skills
• Cognitive
• Physical
• Perceptual
• Motor
• Interpersonal
Copyright © 2023 Chicago Business Press
4-16
Motivation
■
■
Choices
• Expenditure of effort (”state” motivation)
• Level of effort (“state” motivation)
• Persistence of effort (stable trait)
Deliberate practice leads to excellence
Copyright © 2023 Chicago Business Press
4-17
Abilities and Other Traits, and
Knowledge and Skills
■
■
■
Knowledge and skills are more malleable than
abilities and other traits.
Individual differences that are less malleable are
called “traits”
Individual differences that are more malleable are
called “states”
Copyright © 2023 Chicago Business Press
4-18
Deliberate Practice
1.
2.
3.
4.
5.
Approach performance with goal of getting
better and better
Focus on performance
• What is happening?
• Why?
Seek feedback from expert sources
Build mental models of job, situation, and
organization
Repeat first four steps on an ongoing basis
Copyright © 2023 Chicago Business Press
4-19
Context
■
HR policies and procedures
Managerial and peer leadership
■
Organizational and national culture
■
Time and timing of performance
■
Resources given to employees
■
Copyright © 2023 Chicago Business Press
4-20
Implications for Addressing Performance
Problems
■
■
Managers need information to accurately identify
source(s) of performance problems
Performance management systems must…
• Measure performance
AND
• Provide information on source(s) of problems
Copyright © 2023 Chicago Business Press
4-21
Performance Dimensions:
Types of Multidimensional Behaviors
■
Task performance
■
Contextual performance
• Pro social behaviors
• Organizational citizenship
■
Counterproductive performance
■
Adaptive Performance
Copyright © 2023 Chicago Business Press
4-22
Task Performance
Activities that
■
Transform raw materials
■
Help with the transformation process
• Replenishing
• Distributing
• Supporting
Copyright © 2023 Chicago Business Press
4-23
Contextual Performance
Behaviors that
■
Contribute to the organization’s effectiveness
AND
■
Provide a good environment in which task
performance can occur
Copyright © 2023 Chicago Business Press
4-24
Company Spotlight(1 of 3)
■
■
■
Goldman Sachs increased accountability in the
company’s performance appraisals
Put a new metric-based system to test
Examples:
• Linking performance standards, measurement,
and rewards
• Addressing Goldman Sachs’ gender gap
• Put more employee compensation under
employee’s control
25
Copyright © 2023 Chicago Business Press
Differences Between
Task and Contextual Performance
Task Performance
Contextual Performance
• Varies across
jobs
• Fairly similar
across jobs
• Likely to be
role
prescribed
• Not likely to
be role
prescribed
• Influenced by
• Influenced by
• Abilities
• Personality
• Skills
Copyright © 2023 Chicago Business Press
4-26
Why Include Task and Contextual
Performance Dimensions in PM System?
1.
2.
3.
4.
5.
6.
Global competition
Customer service
Teamwork
Employee perceptions of PM
Supervisor views
Cultural differences
Copyright © 2023 Chicago Business Press
4-27
Voice Behavior
❑
Behavior that emphasizes expression of
constructive challenge with the goal to improve
rather than merely criticize
■
Challenges the status quo in a positive way
■
Makes innovative suggestions for change
■
Recommends modifications to standard
procedures
Copyright © 2023 Chicago Business Press
4-28
Counterproductive Performance
❑
Behaviors and results that are voluntary
❑
and violate organizational norms
■
Threaten well-being of the organization, its
members, or both
Copyright © 2023 Chicago Business Press
4-29
Examples of counterproductive
performance
■
Exaggerating hours worked
❑
Gossiping about coworkers and one’s supervisor
❑
Cyber loafing
■
Intentionally working slowly and carelessly
■
Staying out of sight to avoid work
Copyright © 2023 Chicago Business Press
4-30
Adaptive Performance
❑
❑
Related to an individual’s adaptability to
changes
❑
Be it in the organization and it’s goals,
❑
in the requirements of the job,
❑
or the overall work context
Becoming increasingly important due to rapid
changes
Copyright © 2023 Chicago Business Press
4-31
Examples of adaptive performance
❑
Handling emergencies
❑
Solving problems creatively
❑
Dealing with uncertain and unpredictable work
situations
❑
Demonstrating interpersonal adaptability
❑
Demonstrating cultural adaptability
Copyright © 2023 Chicago Business Press
4-32
Competency Architecture(1 of 3)
❑
Four types of competencies
❑
Core competencies
❑
Job Family Competencies
❑
Technical or Professional Competencies
❑
Leadership Competencies
Copyright © 2023 Chicago Business Press
4-33
Competency Architecture(2 of 3)
❑
Benefit of implementing a competency
architecture
❑
Alignment
❑
Fairness
❑
Continuity
Copyright © 2023 Chicago Business Press
4-34
Competency Architecture(3 of 3)
❑
A competency-based job profile can help
❑
The organization by giving employees a clear
learning path
❑
Leaders and HR professionals by providing solid
foundation for an organization’s development
programs
❑
Job seekers by giving them a high-level
overview of the prospective job.
Copyright © 2023 Chicago Business Press
4-35
Approaches to Measuring Performance
Behavior Approach
■
Emphasizes how employees do the job
Results Approach
■
Emphasizes what employees produce
Copyright © 2023 Chicago Business Press
4-36
Behavior Approach
Appropriate if…
■
Link between behaviors and results is not obvious
■
Outcomes occur in the distant future
■
Poor results are due to causes beyond the
performer’s control
Not appropriate if…
■
Above conditions are not present
Copyright © 2023 Chicago Business Press
4-37
Company Spotlight(2 of 3)
■
■
■
■
Dollar General uses a behavioral approach to
measure performance
Identified behaviors that serve as indicators of
underlying competencies
Behaviors are reviewed and utilized to encourage
certain outcomes and provide
feedback and rewards to staff members
38
Copyright © 2023 Chicago Business Press
Results Approach
Advantages:
• Less time
• Lower cost
• Data appear objective
Most appropriate when:
• Workers skilled in necessary behaviors
• Behaviors and results obviously related
• Consistent improvement in results over time
• Many ways to do the job right
Copyright © 2023 Chicago Business Press
4-39
Company Spotlight (3 of 3)
■
■
■
■
Basecamp divides its employees workload into sixweek work cycles containing 1-2 “big batch
projects” and 4-8 “small batch projects”
Uses a results-approach to performance planning
Company focuses exclusively on getting the
project done within 6 weeks and does not measure
efficiency or compare actual to estimated costs
Team decides how to get the project done
Copyright © 2023 Chicago Business Press
4-40
Quick Review
⮚
Defining Performance
⮚
Determinants of Performance
⮚
Performance Dimensions
⮚
Approaches to Measuring Performance
Copyright © 2023 Chicago Business Press
4-41
Chapter 5
Measuring Results
and
Behaviors
Copyright © 2023 Chicago Business Press
5-2
Measuring Results: Overview
■
Accountabilities
■
Objectives
■
Performance Standards
Copyright © 2023 Chicago Business Press
5-3
Key Questions
■
Where should each individual focus their efforts?
■
What are the expected objectives?
■
How do we know how well the results were achieved?
Copyright © 2023 Chicago Business Press
5-4
Accountabilities(1 of 2)
■
Broad areas of a job for which an employee is responsible
for producing results
Copyright © 2023 Chicago Business Press
5-5
Determining Accountabilities(2 of 2)
■
Collect information about the job (Job Description)
■
Determine importance of task or cluster of tasks
• Percentage of employee’s time spent performing tasks
• Impact on the unit’s mission if performed inadequately
• Consequences of error
Copyright © 2023 Chicago Business Press
5-6
Objectives(1 of 4)
■
Statements of important and measurable outcomes, that,
when accomplished, will help ensure success for the
accountability
Copyright © 2023 Chicago Business Press
5-7
Determining Objectives(2 of 4)
■
Purpose is to identify outcomes:
• Limited in number
• Highly important
• Achieving them will have a dramatic impact on overall
organization success
Copyright © 2023 Chicago Business Press
5-8
Characteristics of Good Objectives
(3 of 4)
Specific and Clear
Challenging
Agreed upon
Significant
Prioritized
Bound by time
Achievable
Fully Communicated
Flexible
Limited in number
5-9
SMART Objectives( 4 of 4)
■
Setting SMART Objectives
■
What are the benefits of using SMART objectives?
■
Choose a short-term personal or professional goal and
frame the objective using the SMART technique
Copyright © 2023 Chicago Business Press
5-10
Performance Standards(1 of 2)
■
■
Yardstick used to evaluate how well employees have
achieved objectives
Information about what to look for to determine the level
of performance that has been achieved
Copyright © 2023 Chicago Business Press
5-11
Performance Standards(2 of 2)
Aspects of performance objectives:
■
■
■
Quality
• How well the objective is achieved
Quantity
• How much, how many, how often, and at what cost?
Time
• Due dates, schedule, cycle times, and how quickly?
Copyright © 2023 Chicago Business Press
5-12
Standards Must Include
■
An Action
■
The Desired Result
■
A Due Date
■
A Quality or Quantity Indicator
Copyright © 2023 Chicago Business Press
5-13
Good Performance Standards
Related to the position
Concrete,specific and measurable
Practical to measure
Meaningful
Realistic and achievable
Reviewed regularly
5-14
Measuring Behaviors: Overview
■
Identify Competencies
■
Identify Indicators
■
Choose Measurement System
Copyright © 2023 Chicago Business Press
5-15
Identify Competencies (1 of 2)
■
Measurable clusters of KSAs
• Knowledge
• Skills
• Abilities
■
Critical in determining how results will be achieved
Copyright © 2023 Chicago Business Press
5-16
Company Spotlight
■
■
Identifying leadership competencies is a key part of
fostering leadership at Google
“Project Oxygen” identified a list of 10 behaviors that are
common to high-performing managers and therefor were
incorporated into the company’s manager development
program.
Copyright © 2023 Chicago Business Press
5-17
Types of Competencies(2 of 2)
■
Differentiating
• Distinguish between superior and average
performance
■
Threshold
• Needed to perform to minimum standard
Copyright © 2023 Chicago Business Press
5-18
Identify Indicators
■
■
Observable behaviors
Used to measure the extent to which competencies are
present or not
Copyright © 2023 Chicago Business Press
5-19
Necessary Components for
Describing Competencies
■
Definition of competency
■
Description of specific behaviors
• When competency is demonstrated
• When competency is not demonstrated
■
Suggestions for developing the competency
Copyright © 2023 Chicago Business Press
5-20
Choose a Measurement System(1of 2)
■
Comparative system
• Compares employees with one another
■
Absolute system
• Compares employees with pre-specified performance
standards
Copyright © 2023 Chicago Business Press
5-21
Choose a Measurement System (2 of 2)
Comparative
Simple rank order
Alternation rank order
Paired comparisons
Relative percentile
Forced distribution
Absolute
Essays
Behavior checklist
Critical incidents
Graphic rating scales
blank
5-22
Types of Comparative Systems
■
Simple rank order
■
Alternation rank order
■
Paired comparisons
■
Relative percentile
■
Forced distribution
Copyright © 2023 Chicago Business Press
5-23
Simple Rank Order
■
Advantages:
• Simple and easy to do
• Results are clear
■
Disadvantages:
• Judges performance based on one dimension only
• May be difficult to rank similar performance levels
Copyright © 2023 Chicago Business Press
5-24
Alternation Rank Order
■
Advantages:
• Simple and easy to do
• Results are clear
• Uses two anchors (best and worst)
■
Disadvantages:
• Judges performance based on one dimension only
• May be difficult to rank similar performance levels
• Does not specify threshold for acceptable
performance
Copyright © 2023 Chicago Business Press
5-25
Paired Comparisons
■
Advantages:
• Thorough
• Final rankings are more accurate
■
Disadvantages:
• Very time consuming
• May encounter problem of comparing “apples and
oranges”
Copyright © 2023 Chicago Business Press
5-26
Relative Percentile(1 of 2)
■
Advantages:
• Simple and easy to use
• Evaluates specific competencies or overall
performance
■
Disadvantages:
• May be difficult to consider all ratees at the same time
• Time consuming if using several scales for different
competencies
Copyright © 2023 Chicago Business Press
5-27
Relative Percentile(2 of 2)
■
Example of Relative Percentile Method Scale
Don
Desiree
Copyright © 2023 Chicago Business Press
Heather
5-28
Forced Distribution
■
Advantages:
• Categorizes employees into specific performance
groups
• Facilitates reward assessment
• Competition may be good for organizational
performance
■
Disadvantages:
• Assumes performance scores are normally distributed
• May discourage contextual performance and
teamwork
Copyright © 2023 Chicago Business Press
5-29
Company Spotlight (1 of 2)
■
■
General Electric (GE) has moved from forced distribution
ratings to a more performance management approach
Changes include:
• An app-based system to provide ongoing coaching
• Evaluating employees relative to desired traits
Copyright © 2023 Chicago Business Press
5-30
Advantages of Comparative Systems
■
■
■
Easy to explain
Straightforward: Identifies top as well as
underperformers
Better control for biases and errors found in absolute
systems: Leniency, Severity, and Central tendency
■
Beneficial for jobs that are very autonomous
■
Attracts individuals high in cognitive abilities
Copyright © 2023 Chicago Business Press
5-31
Disadvantages of Comparative Systems
■
Rankings may not be specific enough for:
• Useful feedback
• Protection from legal challenge
■
No information on relative distance between employees
■
Specific issues with forced distribution method
Copyright © 2023 Chicago Business Press
5-32
Company Spotlight (2 of 2)
■
■
Deloitte abandoned forced distribution ratings in favor of
a system that provides feedback on a project or quarterly
basis
Changes include:
• Documented, weekly “check-ins” with employees
• Supervisor training on how to evaluate performance
Copyright © 2023 Chicago Business Press
5-33
Nature of Performance Distribution(1 of 2)
■
■
■
Forced distribution implies that performance is normally
distributed
Recent research shows that, instead, performance is
distributed following a heavy-tail
That is,
• There are more star performers
• Differences between top and average performers are
much greater
Copyright © 2023 Chicago Business Press
5-34
Nature of Performance Distribution(2 of 2)
5-35
Copyright © 2023 Chicago Business Press
Producing Star Performers
■
■
■
■
■
■
■
Identify and eliminate situational constraints
Allow star performers to rotate across teams
Invest sufficient resources in star performers
Attend to stars developmental network
Shield from financial challenges
Give them preferential treatment, but explain why to all
workers
Invest disproportionate amount of resources in stars
5-36
Copyright © 2023 Chicago Business Press
Absolute Systems
■
Essays
■
Behavior checklists
■
Critical incidents
■
Graphic rating scales
5-37
Copyright © 2023 Chicago Business Press
Behavior Checklists(1 of 2)
■
Advantages:
• Easy to use and understand
• Provides quantitative information
• Widespread use
• More objective than other systems
■
Disadvantages:
• May feel impersonal and disconnected
• Scale points used are often arbitrary
• Difficult to get detailed and useful feedback
5-38
Copyright © 2023 Chicago Business Press
Behavior Checklists(2 of 2)
■
Example of Behavior Checklist Item
Copyright © 2023 Chicago Business Press
5-39
Essays
■
Advantages:
• Simplest absolute method
• Individualized for each employee
• Can be done anytime
• Potential for detailed feedback
■
Disadvantages:
• Unstructured and may lack detail
• Depends on supervisor’s writing skill
• Comparisons virtually impossible
• Lack of quantitative information; difficult to use in
personnel decisions
Copyright © 2023 Chicago Business Press
5-40
Critical Incidents(1 of 2)
■
Advantages:
• Focus on actual job behavior
• Provides specific examples
• Employees identify with rating
■
Disadvantages:
• Collecting critical incidents can be very time
consuming
• Quantification is difficult
5-41
Copyright © 2023 Chicago Business Press
Critical Incidents(2 of 2)
■
Example of Critical Incidents for Adaptability/Flexibility
Completely
Ineffective
Somewhat
Ineffective
Effective
Highly Effective
Exceptional
Able to focus on
only one task at a
time
Easily distracted
from work
assignments/
activities
Handles a variety
of work
assignments/
activities with few
difficulties
Handles a variety
of work
assignments/
activities
concurrently
Easily juggles a
large number of
assignments and
activities
Avoids or
attempts to
undermine
changes
Complains about
necessary
changes
Accepts reasons
for change
Understands and
responds to
reasons for
change
Encourages and
instructs others
about the benefits
of change
Refuses to adopt
changed policies
Makes only those
changes with
which they agree
Adapts to
changing
circumstances
and attitudes of
others
Adapts to changes
and develops job
aids to assist
others
Welcomes change
and looks for new
opportunities it
provides
Considers only
own opinion when
seeking solution
Occasionally
listens to others
but supports own
solution
Listen to others
and seeks
solutions
acceptable to all
Ensures that
everyone’s
thoughts and
opinions are
considered in
reaching a solution
Actively seeks
input in addition to
recognized sources
and facilitates
implementation of
solution
5-42
Graphic Rating Scales(1 of 2)
■
Advantages:
• Meanings, interpretations, and dimensions being
rated are clear
• Useful and accurate
• Most popular tool
■
Disadvantages:
• Time consuming and resource-laden to develop
• Lacks individualized feedback and recommendations
5-43
Copyright © 2023 Chicago Business Press
Graphic Rating Scales:
BARS Improvement(2 of 2)
■
Behaviorally Anchored Rating Scales (BARS)
Uses critical incidents as anchors
■
Involves multiple groups of employees in development
■
• Identify important job elements
• Describe critical incidents at various levels of
performance
• Check for inter-rater reliability
5-44
Copyright © 2023 Chicago Business Press
BARS Improvement
■
Example of BARS Improvement scale
5
Exceptional Employee consistently displays high level of job knowledge in all
areas of his or her job. Other employees go to this person for training.
4
Advanced Shows high levels of job knowledge in most areas of his or her
job Consistently completes all normal tasks.Employee continues searching for more job
knowledge and may seek guidance in some areas.
3
Competent Employee shows an average level of job knowledge in all areas of the
job.May need assistance completing difficult tasks
2
Improvement Needed Does not consistently meet deadlines or complete tasks
required for this job.Does not attempt to acquire new skills or knowledge to improve
performance.
1
Major Improvement Needed Typically performs tasks incorrectly or not at all Employee
has no appreciation for improving his or her performance.
5-45
Advantages and Disadvantages of
Absolute Systems
■
Advantages:
• Can be used in large and small organizations
• Evaluations more widely accepted by employees
■
Disadvantages:
• Higher risk of leniency, severity, and central tendency
biases
• Generally more time consuming than comparative
systems
5-46
Copyright © 2023 Chicago Business Press
Role of Context
■
■
Plays important role in determining how performance is
measured
Examples
• Competitive versus Collaborative
• Value of long-term relationships with customers
• Industry Trends
• Leadership
5-47
Copyright © 2023 Chicago Business Press
Measuring Performance
■
Several types of methods
■
Differ in terms of:
• Practicality (time and effort)
• Usefulness (quantifiable)
5-48
Copyright © 2023 Chicago Business Press
AI and Performance
■
Some of the performance management activities that
can be enhanced by AI:
• Identification of high performers
• Identification of low performers
• Identify workers’ strengths
• Hiring
• Measurement of employee-engagement
• Retention
© 2023 Chicago Business Press
5-49
Potential Problems with AI
■
■
AI technology tends to be unregulated and opaque.
AI technology may replicate and even reinforce existing
biases.
© 2023 Chicago Business Press
5-50
Quick Review
■
■
■
■
Measuring Results
• Determine Accountabilities
• Determine Objectives
• Determine Performance Standards
Measuring Behaviors
• Comparative Systems
■ Nature of the Performance Distribution
• Absolute Systems
Role of Context
How Organizations are Using AI to Measure
Performance and Identify Talent
5-51
Copyright © 2023 Chicago Business Press
Chapter 6
Performance Analytics
Copyright © 2023 Chicago Business Press
6-2
Overview(1 of 2)
■
Components of Appraisal Forms
■
Features of Appraisal Forms
■
Determining Overall Rating
■
Appraisal Period and Number of Meetings
Copyright © 2023 Chicago Business Press
6-3
Overview (2 of 2)
■
Who Should Provide Performance Information?
■
Understanding Intentional Rating Distortion: A Model of
Rater Motivation
Copyright © 2023 Chicago Business Press
6-4
Company Spotlight
■
■
The Gap uses a system called GPS (Grow, Perform,
Succeed) which replaced its traditional performance
ratings approach
Involves
• Monthly “touch base” sessions between supervisors
and direct reports
• Employees have a limited number of goals which
involve behaviors and competencies
• Goals are updated throughout the year and closely
linked to company goals
• However, managers still rank employees
5
Copyright © 2023 Chicago Business Press
Comprehensive Appraisal Forms:
Nine Major Components(1 of 2)
Basic employee information
Accountabilities, objectives and standards
Competencies and behavioral indicators
Major achievements and contributions
Developmental achievements(could be included in a
separate form)
Developmental needs, plans and goals(could be included
in a separate form)
Performance touchpoints
Employee comments
Signatures
6-6
Comprehensive Appraisal Forms:
Nine Major Components(2 of 2)
Simplicity
Relevancy
Descriptiveness
Adaptability
Comprehensiveness
Definitional clarity
Communication
Time orientation
6-7
Determining Overall Rating
■
Judgmental strategy
• Consider every aspect of performance
• Arrive at defensible summary
■
Mechanical strategy
• Consider scores assigned to each section
• Add weighted scores to obtain overall scores
Copyright © 2023 Chicago Business Press
6-8
Open-Ended (Comments) Sections
■
Challenges
• Difficult to systematically categorize and analyze
• Quality, length, and content vary
■
Tools to overcome challenges
• Computer-aided text analysis (CATA) software
• Establish goals of information provided
• Training in systematic and standardized rating skills
Copyright © 2023 Chicago Business Press
6-9
Appraisal Period
Number of Meetings
■
Annual
• May not provide sufficient opportunity for
supervisor/employee discussion
■
Semi-annual
■
Quarterly
Copyright © 2023 Chicago Business Press
6-10
When Review Is Completed
■
Anniversary date
• Supervisor doesn’t have to fill out forms for all
employees at the same time
• Can’t tie rewards to fiscal year
■
Fiscal year
• Rewards tied to fiscal year
• Goals tied to corporate goals
• May be burden to supervisor, depending on
implementation
Copyright © 2023 Chicago Business Press
6-11
Six Types of Formal Meetings
(Can Be Combined)
1.
System Inauguration
2.
Self-Appraisal
3.
Classical Performance Review
4.
Merit/Salary Review
5.
Development Plan
6.
Objective Setting
Copyright © 2023 Chicago Business Press
6-12
Company Spotlight (1 of 2)
■
■
■
■
Facebook uses internal software to give employees a
constant flow of feedback.
Employees should never be surprised.
Mitigate drawbacks such as biases, awkwardness, and
waiting too long.
Despite costs and limits, performance reviews help ensure
fairness, transparency, and talent development
13
Copyright © 2023 Chicago Business Press
Who Should Provide Performance
Information? (1 of 2)
■
Employees should be involved in selecting
• Which sources evaluate
• Which performance dimensions
■
When employees are actively involved
• Higher acceptance of results
• Perception that system is fair
Copyright © 2023 Chicago Business Press
6-14
Who Should Provide Performance
Information? (2 of 2)
Direct knowledge of employee performance
■
Supervisors
■
Peers
■
Direct reports
■
Self
■
Customers
■
Employee Performance Monitoring and Big Data
Copyright © 2023 Chicago Business Press
6-15
Supervisors
■
Advantages
• Can evaluate performance vs. strategic goals
• Make decisions about rewards
• Able to differentiate among performance dimensions
• Viewed as exclusive source in some cultural contexts
■
Disadvantages
• Supervisor may not be able to directly observe
performance
• Evaluations may be biased
Copyright © 2023 Chicago Business Press
6-16
Peers
■
Advantages
• Assess teamwork
■
Disadvantages
• Possible friendship bias
• May be less discriminating
• Context effects
Copyright © 2023 Chicago Business Press
6-17
Direct Reports
■
Advantages
• Accurate when used for developmental purposes
• Good position to assess some competencies
■
Disadvantages
• Inflated when used for administrative purposes
• May fear retaliation (confidentiality is key)
Copyright © 2023 Chicago Business Press
6-18
Self (1 of 2)
■
Advantages
• Increased acceptance of decisions
• Decreased defensiveness during appraisal interview
• Good position to track activities during review period
■
Disadvantages
• May be more lenient and biased
Copyright © 2023 Chicago Business Press
6-19
Self (2 of 2)
Suggestions to improve quality of self-appraisals
■
Use comparative instead of absolute measurement
systems
■
Allow employees to practice their self-appraisals
■
Ensure confidentiality
■
Emphasize the future
Copyright © 2023 Chicago Business Press
6-20
Customers (External and Internal)
■
Advantages
• Employees become more focused on meeting
customer expectations.
■
Disadvantages
• Time
• Money
Copyright © 2023 Chicago Business Press
6-21
Employee Performance Monitoring and
Big Data
■
Advantages
• Can be used to collect information on various
dimensions of performance
■
Disadvantages
• Can result in negative consequences if implemented
incorrectly
Copyright © 2023 Chicago Business Press
6-22
Company Spotlight (2 of 2)
■
■
■
■
■
Intermex required employees to download a mobile
application to track client-related employee communication
and travel
The app had to be active 24 hours a day, 7 days a week to
function effectively
When an employee deactivated the app, she fired for
noncompliance
Employee sued Intermex for $500,000
Lesson:
• Critical to consider employee reactions before
implementing employee performance monitoring
systems
Copyright © 2023 Chicago Business Press
6-23
Recommendations to increase chances of
effective employee performance monitoring
■
Be Transparent
■
Be aware of all potential employee reactions
■
Use it for learning and development
■
Restrict use to job-related behaviors and results
Copyright © 2023 Chicago Business Press
6-24
Disagreement Across Sources of
Performance Data
■
Expect disagreements
■
Ensure employee receives feedback by source
■
Assign differential weights to scores by source, depending
on importance
■
Ensure employees take active role in selecting which
sources will rate which dimensions
Copyright © 2023 Chicago Business Press
6-25
Understanding Intentional Rating
Distortions: A Model of Rater Motivation
Types of Rating Errors
■
Intentional errors
• Rating inflation
• Rating deflation
■
Unintentional errors
• Due to complexity of task
Copyright © 2023 Chicago Business Press
6-26
Intentional Rating Errors
Influenced by
■
Motivation to provide accurate ratings
■
Motivation to distort ratings
Motivation is determined by
■
Whether rater expects consequences of accurate ratings
Whether probability of receiving rewards or punishments
will be high if accurate ratings are provided
■
Copyright © 2023 Chicago Business Press
6-27
Rating Inflation and Deflation
■
■
Rating Inflation (also called leniency error)
• When raters assign high lenient ratings to most or all
employees
Rating Deflations (also called severity error)
• When raters assign low ratings to most or all
employees
Copyright © 2023 Chicago Business Press
6-28
Motivation for Rating Distortion
Rating Inflation
Rating Deflation
Maximize the merit raise and rewards
Shock employees
Encourage employees
Teach a rebellious employee a lesson
Avoid creating a written record
Send a message that employee should
Avoid a confrontation with employees
Promote undesired employees out of unit
Make manager look good to his or her supervisor
consider leaving
Build a record of poor performance
blank
6-29
Reducing Intentional Rating Distortion
Recommendations:
■
Provide incentives for providing accurate ratings
■
Increase accountabilities
• Have raters justify their ratings
• Have raters justify their ratings in a face-to-face
meeting
Copyright © 2023 Chicago Business Press
6-30
Motivation—What’s in It for Me?
■
Benefits of providing accurate ratings need to outweigh
costs
• Assessing the performance of the supervisor in
implementing and communicating performance
management
• Tools for providing accurate ratings (e.g., training on
how to conduct appraisal interview)
Copyright © 2023 Chicago Business Press
6-31
Quick Review
■
Appraisal Forms
■
Characteristics of Appraisal Forms
■
Determining Overall Rating
■
Appraisal Period and Number of Meetings
■
Who Should Provide Performance Information?
■
Understanding Intentional Rating Distortion: A Model of
Rater Motivation
Copyright © 2023 Chicago Business Press
6-32
Chapter 7
Rolling Out the Performance Management
System
Copyright © 2023 Chicago Business Press
7-2
Overview
■
■
■
■
■
Communication Plan
Appeals Process
Rater Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Copyright © 2023 Chicago Business Press
7-3
Implementation
■
“Implementation” refers not only to launching a new
system from scratch, but also, to revising and improving
an existing one
Copyright © 2023 Chicago Business Press
7-4
Communication Plan Components
7-5
Copyright © 2023 Chicago Business Press
Communication Plan
Answers the Questions:
■
What is Performance Management (PM)?
■
How does PM fit into our strategy?
■
What’s in it for me?
■
How does it work?
■
What are my responsibilities?
■
How does PM relate to other initiatives?
Copyright © 2023 Chicago Business Press
7-6
Cognitive Biases That Affect
Communications Effectiveness(1of 4)
■
Selective Exposure
■
Selective Perception
■
Selective Retention
Copyright © 2023 Chicago Business Press
7-7
Cognitive Biases That Affect
Communications Effectiveness(2 of 4)
■
Selective Exposure
• Tendency to expose our minds only to ideas with
which we already agree
• E.g., only communicating with employees who agree
that PM is a good idea
Copyright © 2023 Chicago Business Press
7-8
Cognitive Biases That Affect
Communications Effectiveness(3 of 4)
■
Selective Perception
• Tendency to perceive a piece of information as
meaning what we would like it to mean even though
the information, as intended by the communicator, may
mean the exact opposite
Copyright © 2023 Chicago Business Press
7-9
Cognitive Biases That Affect
Communications Effectiveness(4of 4)
■
Selective Retention
• Tendency to remember only those pieces of
information with which we already agree
Copyright © 2023 Chicago Business Press
7-10
Minimizing Effects of Cognitive
Biases
Involve employees
Understand employee needs
Strike first
Provide facts and consequences
Put it in writing
Use multiple channels of communication
Use credible communicators
Say It and then say It again
7-11
Minimizing Effects of Cognitive Biases
(1 of 8)
■
Involve Employees
• People support what they help create
• Higher the level of participation is in designing the
system, the greater the support for the system will be
Copyright © 2023 Chicago Business Press
7-12
Minimizing Effects of Cognitive Biases
(2 of 8)
■
Understand Employee Needs
• Identify how to meet needs through PM
• E.g., Are they interested in development activities
that would eventually lead to a promotion or a
different job within the organization?
Copyright © 2023 Chicago Business Press
7-13
Minimizing Effects of Cognitive Biases
(3 of 8)
■
Strike First
• Create positive attitude toward PM
• Do not set up expectations you cannot deliver
• Provide evidence to counter some of the arguments
that might be used against the system
Copyright © 2023 Chicago Business Press
7-14
Minimizing Effects of Cognitive Biases
(4 of 8)
■
Provide Facts and Consequences
• Clearly explain facts and what they mean or what the
consequences are
• Do not let employees draw their own conclusions
Copyright © 2023 Chicago Business Press
7-15
Minimizing Effects of Cognitive Biases
(5 of 8)
■
Put it in Writing
• Create documentation describing the system and post
it where it is accessible to everyone
Copyright © 2023 Chicago Business Press
7-16
Minimizing Effects of Cognitive Biases
(6 of 8)
■
Use Multiple Communication Channels
• Face-to-face meetings; Virtual meetings; Email; TED
talks; Short video clips
• Expose employees repeatedly to the same message
Copyright © 2023 Chicago Business Press
7-17
Minimizing Effects of Cognitive Biases
(7 of 8)
■
Use Credible Communicators
• Communication should be delivered by people who are
trusted and admired within the organization
• People regarded as key and powerful organizational
players
Copyright © 2023 Chicago Business Press
7-18
Minimizing Effects of Cognitive Biases
(8 of 8)
■
Say It, and then, Say It Again
• Repeat the information frequently
• People can absorb only a small amount of information at
a time, and may be resistant to change
Copyright © 2023 Chicago Business Press
7-19
Appeals Process(1 of 2)
■
Promote employee buy-in to PM system
• Amicable/Non-retaliatory
• Resolution of disagreements
■
Increases perception of the system’s fairness
Copyright © 2023 Chicago Business Press
7-20
Appeals Process
(2 of 2)
■
Employees can question two types of issues:
• Judgmental
■
Validity of evaluation
• Administrative
■
Whether policies and procedures were followed
Copyright © 2023 Chicago Business Press
7-21
Recommended Appeals Process (1 of 2)
7-22
Copyright © 2023 Chicago Business Press
Recommended Appeals Process (2 of 2)
■
Level 1
• HR reviews facts, policies, and procedures
• HR reports to supervisor/employee
• HR attempts to negotiate a settlement
■
Level 2
• Arbitrator (panel of peers and managers)
■
Level 3
• High-level manager—final decision
Copyright © 2023 Chicago Business Press
7-23
Company Spotlight (1 of 2)
■
University of Lethbridge implemented a three-level appeals
process in their performance management system to
increase buy-in from employees and perceived fairness
■
Levels include:
• 1: Human Resource investigation
• 2: Performance Evaluation Committee investigation
• 3: Formal Grievance under collective bargaining
guidelines
Copyright © 2023 Chicago Business Press
7-24
Minimizing Unintentional Rating Errors
■
Rater Error Training (RET):
• Make raters aware of types of rating errors they are
likely to make
• Help raters minimize errors
• Increase rating accuracy
Copyright © 2023 Chicago Business Press
7-25
Rater Error Training (RET)
Similar to me
Contrast
Halo
Primacy
Recency
Negativity
First impression
Spillover
Stereotype
Attribution
7-26
Frame of Reference Training (FOR)
■
Goal of FOR*
• Raters develop common frame of reference
■
■
Observing performance
■
Evaluating performance
Expected results of FOR
• Raters provide consistent, more accurate ratings
• Raters help employees design effective development
plans
*Most appropriate when PM appraisal system focuses on
behaviors
Copyright © 2023 Chicago Business Press
7-27
Behavioral Observation Training (BO)
■
Goals of BO
• Minimize unintentional rating errors
• Improve rater skills by focusing on how raters:
■
Observe performance
■
Store information about performance
■
Recall information about performance
■
Use information about performance
Copyright © 2023 Chicago Business Press
7-28
Pilot Testing(1 of 3)
■
Pilot testing is done before the system is implemented.
• Provides ability to:
■
Discover potential problems
■
Fix them
Copyright © 2023 Chicago Business Press
7-29
Pilot Testing—Benefits(2 of 3)
■
Gain information from potential participants
■
Learn about difficulties/obstacles
■
Collect recommendations on how to improve system
■
Understand personal reactions
■
Get early buy-in from some participants
■
Get higher rate of acceptance
Copyright © 2023 Chicago Business Press
7-30
Implementing a Pilot Test(3 of 3)
■
Roll out test version with sample group
• Staff and jobs generalizable to the organization
■
Fully implement planned system
• All participants keep records of issues encountered
• Do not record appraisal scores
• Collect input from all participants
Copyright © 2023 Chicago Business Press
7-31
Ongoing Monitoring and Evaluation
■
When system is implemented, decide:
• How to evaluate system effectiveness
• How to measure implementation
• How to measure results
■
Evaluation data to collect:
• Reactions to the system
• Assessments of operational and technical
requirements
• Effectiveness of performance ratings
Copyright © 2023 Chicago Business Press
7-32
Company Spotlight (2 of 2)
■
BT Global Services used a three-step approach to rolling
out a new PM system
Workshops that helped executives articulate why a new
system was needed, what roles employees would play,
and how those roles would contribute to the success of
the company
b. Training line managers
c. Ongoing monitoring of the program using data from
employee surveys, face-to-face meetings with line
managers, and team meetings
a.
Copyright © 2023 Chicago Business Press
7-33
Indicators to Consider
■
Number of individuals evaluated
■
Quality of qualitative performance data
■
Quality of follow-up actions
■
Quality of performance discussion meetings
■
System satisfaction
■
Cost-benefit ratio or return on investment (ROI)
■
Unit-level and organization-level performance
Copyright © 2023 Chicago Business Press
7-34
Quick Review
Communication Plan
■ Appeals Process
■ Rater Training Programs
■ Pilot Testing
■ Ongoing Monitoring and Evaluation
■
Copyright © 2023 Chicago Business Press
7-35
Part III: Employee and Leadership
Development
■
■
Chapter 8: Performance Management and
Employee Development
Chapter 9: Performance Management Leadership
Copyright © 2023 Chicago Business Press
8-2
Chapter 8
Performance Management and Employee
Development
Copyright © 2023 Chicago Business Press
8-3
Overview
■
■
■
Personal Developmental Plans
Direct Supervisor’s Role
Multisource Feedback Systems
Copyright © 2023 Chicago Business Press
8-4
Stakeholders in the Development
Process
■
■
Employees
• Help plan their own development
• Improve their own performance
Managers
• Help guide the process of development
• Support success of process
Copyright © 2023 Chicago Business Press
8-5
Personal Developmental Plans
■
■
Specify actions necessary to improve
performance
Highlight employee’s
• Strengths
• Areas in need of development
Copyright © 2023 Chicago Business Press
8-6
Personal Developmental Plans
Answer…
■
■
■
■
How can I continuously learn and grow in
the next year?
How can I do better in the future?
How can I avoid performance problems of
the past?
Where I am now and where would I like to
be in terms of my career path?
Copyright © 2023 Chicago Business Press
8-7
Personal Development Plans Focus on
Developing Career Competencies:
■
■
■
Focus on short term and on specific roles and
positions
Focus on the knowledge and skills needed for
long term career aspirations and development
Focus on developing 3 sets of career
competencies:
■ Reflective career competencies
■ Communicative career competencies
■ Behavioral career competencies
Copyright © 2023 Chicago Business Press
8-8
Overview of Benefits of Developmental
Plans:
■
■
■
■
Improved short-term performance
Improved long-term career path clarity
Greater satisfaction with the performance
management system
Allows organizations to gather information that
can be used for succession planning
Copyright © 2023 Chicago Business Press
8-9
Personal Developmental Plans:
Overview
■
■
■
Developmental Plan Objectives
Content of Developmental Plan
Developmental Activities
Copyright © 2023 Chicago Business Press
8-10
Company Spotlight(1 of 3)
■
■
■
■
■
General Mills uses individual development plans (IDP
s) throughout the company
IDPs are created annually and focus on
competencies and employee career aspirations
Company hosts speakers, providing Web-based
learning tools, and holding workshops
Sessions are tailored to different positions
IDP is kept separate from the annual performance
appraisal to maximize effectiveness
Copyright © 2023 Chicago Business Press
8-11
Overall Developmental Plan Objectives
■
Encourage…
• Continuous learning
• Performance improvement
• Personal growth
Copyright © 2023 Chicago Business Press
8-12
Specific Developmental Plan Objectives
■
■
■
■
Improve performance in current job
Sustain performance in current job
Prepare employee for advancement
Enrich employee’s work experience
Copyright © 2023 Chicago Business Press
8-13
Content of Developmental Plan(1 of 3)
1.
2.
Developmental objectives
• New skills or knowledge
• Timeline
How the new skills or knowledge will be
acquired
• Resources
• Strategies
Copyright © 2023 Chicago Business Press
8-14
Content of Developmental Plan(2 of 3)
3.
4.
5.
A time line regarding the acquisition of
new skills or knowledge
Standards and measures used to assess
achievement of objectives
Based on needs of organization and
employee
Copyright © 2023 Chicago Business Press
8-15
Content of Developmental Plan(3 of 2)
5.
6.
Chosen by employee and direct supervisor
Taking into account
• Employee’s learning preferences
• Developmental objective in question
• Organization’s available resources
Copyright © 2023 Chicago Business Press
8-16
Developmental Activities Dependent on:
■
■
■
■
Organization’s strategic goals and objectives
Organization’s available resources
Developmental objective in question
Employee’s learning preference
Copyright © 2023 Chicago Business Press
8-17
Summary of list of
Developmental Activities
On-the-job training
Courses
Self-guided studying
Mentoring
Attending a conference or trade show
Mixing with the best
Getting a degree
Job rotation
Temporary assignments
Membership or leadership role in professional, trade, or non
profit organizations
Copyright © 2023 Chicago Business Press
8-18
Direct Supervisor’s Role
■
■
Important role in creation and completion of the
employee’s developmental plan
Good for the supervisor to have their own
development plan
• Helps understand the process from employee’s
perspective
• Anticipate potential roadblocks and defensive
attitudes
• Create a plan in a collaborative fashion
Copyright © 2023 Chicago Business Press
8-19
Specific Role and Five Functions(1 of 2)
1.
2.
3.
Explain what is necessary
Refer employee to appropriate
developmental activities
Review and make suggestions regarding
developmental objectives
Copyright © 2023 Chicago Business Press
8-20
Specific Role and Five Functions(2 of 2)
4.
5.
Check on employee’s progress
Provide motivational reinforcement
Copyright © 2023 Chicago Business Press
8-21
Feedforward Interview
Goals:
• Understand the types of behaviors and
skills that individuals have that allow
them to perform well
• Think about ways to use these behaviors
and skills in other contexts to make
further improvements in the future
Copyright © 2023 Chicago Business Press
8-22
Steps of a Feed forward Interview
1.
2.
3.
Elicit a success story
Uncover the underlying success factors
Extrapolate the past into the future
Copyright © 2023 Chicago Business Press
8-23
Company Spotlight(2 of 3)
■
■
■
■
Diageo expects supervisors to play an important
role in developing their direct reports
Career development plan includes: formal review,
goal setting, and regular monthly meetings
Supervisor helps identify specific development
goals aligned with the employee’s career
aspirations
Supervisor also help employees achieve
development goals by ensuring employees receive
training, coursework, etc.
Copyright © 2023 Chicago Business Press
8-24
Multisource (360-Degree) Feedback
Systems(1 of 2)
■
Tools to help employees improve
performance by using performance
information gathered from many sources
• Superiors
• Peers
• Customers
• Subordinates
• The employee
Copyright © 2023 Chicago Business Press
8-25
360-Degree Feedback Systems (2 of 2)
■
■
■
Anonymous feedback
Most useful when used
• For DEVELOPMENT
• NOT for administrative purposes
Internet used for collecting data
Copyright © 2023 Chicago Business Press
8-26
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8-27
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8-28
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8-29
Copyright © 2023 Chicago Business Press
8-30
Necessary Organizational Norms
Include:
■
■
■
■
Cooperation
Openness and trust
Input and participation
valued
Fairness
Copyright © 2023 Chicago Business Press
8-31
Is the 360-Degree Feedback System
Always Beneficial?
■
■
Most effective for individuals who:
• Are high in self-efficacy
• Perceive a need to change
• Believe change is feasible
• Set goals and take action
Less effective for individuals who:
• Are low in self-efficacy
Copyright © 2023 Chicago Business Press
8-32
Overview of 360-Degree Feedback
Systems
■
■
■
Advantages of 360-Degree Feedback
Systems
Risks of 360-Degree Feedback Systems
Cha…
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