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Discussion Module 01: Performance Management Systems

Description

Module 01: Performance Management Systems

Onboarding

The performance management system is one tool that managers utilize to effectively manage people. With that in mind discuss the following:

Discuss two specific examples of where an effective performance management system will increase organizational performance.
Discuss how an organization can best implement these strategies to ensure performance management is best utilized by the organization.
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.

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 01: Introduction

Attached Files:

Chapter 1 PowerPoint Presentation Chapter 1 PowerPoint Presentation – Alternative Formats (619.586 KB)

In this module, you will explore the importance of performance management and examine how it contributes to organizational goal achievement. You will also identify and synthesize components of performance management systems to evaluate their appropriateness in achieving organizational needs. Additionally, you will consider the relationship and importance of performance management at the achievement of Saudi Vision 2030.

Learning Outcomes

In relation to Saudi Vision 2030, assess the dimensions of performance management systems and how they apply to organizations.
Evaluate performance management concepts and how they facilitate organizational goals and objectives.
Compare and contrast the risks and benefits of performance management systems.

Readings

Required:

Chapter 1 in Performance Management: Performance in Context
Janove, J., J. D. (2021, November 10). Get rid of performance reviews. SHRM.
Korn Ferry. (2022, February 9). A new blueprint for performance management.
Saudi Vision 2030

Recommended:

ADAA: The National Center for Performance Measurement. (2019). Performance measurement operations.
Chapter 1 PowerPoint Presentation in Performance Management

Part One
Strategic
and General
Considerations

Part I: Strategic And General
Considerations
■
■
■

Chapter 1: Performance Management in Context
Chapter 2: Performance Management Process
Chapter 3: Performance Management and
Strategic Planning

4-3

Chapter 1
Performance Management
in Context

1-4

Overview(1 of 2)
■

Definition of Performance Management (PM)

■

Purposes of PM

■

Contributions of PM

■

Disadvantages/Dangers of Poorly Implemented
PM Systems

1-5

Overview(2of 2)

■
■

■

Characteristics of an Ideal PM System
Integration with Other Human Resources and
Development Activities

The Changing Nature of PM

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

1-7

Definition of PM(2 of 3)
■

Performance management (PM)
is NOT
performance appraisal (PA)

1-8

Definition of PM (3 of 3)
PM

❑ 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

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

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

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

1-13

Purposes of PM Systems
Informational Purpose
■

Communicate to employees:

• Expectations
• What is important
• How they are doing
• How to improve

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

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

1-16

Purposes of PM Systems
Documentation Purpose

■

Validate selection instruments

■

Document administrative decisions

■

Help meet legal requirements

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

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

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

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

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

1-23

Disadvantage/Dangers of Poorly
Implemented PM System
For Employees
■ For Managers
■ For organization/HR function
■

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

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

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

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.”

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

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

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

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

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

1-36

An Ideal PM System: 15 Characteristics
Practical
■

Available

■

Easy to use

■

Acceptable to decision makers

■

Benefits outweigh costs

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

1-38

An Ideal P M System:15 Characteristics
Specific
▪ Concrete and detailed guidance to
employees
•

What’s expected

•

How to meet the expectations

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.

1-40

An Ideal PM System:15 Characteristics
Reliable
■

Consistent

■

Free of error

■

Inter-rater reliability

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)

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

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

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

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

1-46

An Ideal PM System:15 Characteristics
Correctable

■

Recognizes that human judgment is fallible

■

Appeals process provided

1-47

An Ideal PM System:15 Characteristics
Standardized
■

Ongoing training of managers to provide
consistent evaluations across:
• People
• Time

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

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

1-50

Changing Nature of PM

■

PM is changing rapidly due to:
■

Technological Advancements

■

Globalization

■

Demographic Changes

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)

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

1-53

Changing Nature of PM
Demographic Changes

■

Retirement of baby boomers and influx of Gen X
and Gen Y (Millennials)

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

1-55

■

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.

1-56

Module 01: Discussion
Onboarding
The performance management system is one tool that managers utilize to effectively
manage people. With that in mind discuss the following:
• Discuss two specific examples of where an effective performance management
system will increase organizational performance.
• Discuss how an organization can best implement these strategies to ensure
performance management is best utilized by the organization.
• Discuss the concepts, principles, and theories from your textbook. Cite your
textbooks and cite any other sources if appropriate.
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 01: Introduction
Attached Files:
Chapter 1 PowerPoint Presentation Chapter 1 PowerPoint Presentation Alternative Formats (619.586 KB)
In this module, you will explore the importance of performance management and examine
how it contributes to organizational goal achievement. You will also identify and synthesize
components of performance management systems to evaluate their appropriateness in
achieving organizational needs. Additionally, you will consider the relationship and
importance of performance management at the achievement of Saudi Vision 2030.
Learning Outcomes
1. In relation to Saudi Vision 2030, assess the dimensions of performance
management systems and how they apply to organizations.
2. Evaluate performance management concepts and how they facilitate organizational
goals and objectives.
3. Compare and contrast the risks and benefits of performance management systems.
Readings
Required:
• Chapter 1 in Performance Management: Performance in Context
• Janove, J., J. D. (2021, November 10). Get rid of performance reviews. SHRM.
• Korn Ferry. (2022, February 9). A new blueprint for performance management.
• Saudi Vision 2030
Recommended:
• ADAA: The National Center for Performance Measurement. (2019). Performance
measurement operations.
• Chapter 1 PowerPoint Presentation in Performance Management
•

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Description

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