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MGT520 Module 02-Discussion Forum: The performance management system

Description

I need help completing a discussion board post for my Management course (Managing Perform. for Results). Below are the exact requirements provided by my instructor:

Description:

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. Be sure to cite the textbook and use the lectures provided so that the analysis aligns with the material we’ve covered so far in the course.
  • Your initial post should address all components of the question with a 550-650 words limit.
  • Please ensure that the citations and analysis reflect the concepts we’ve discussed in class, so it doesn’t appear that the analysis was done using advanced skills we haven’t covered yet.
  • Support your submission with course material concepts, principles, and theories from the textbook and at least Two scholarly, peer-reviewed journal articles. Use the Library to find your resources.
  • Use the University academic writing standards and follow APA style guidelines.

Readings

Required:

Recommended:

Note: I’ve attached the slides for the relevant chapter.

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

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1-4

Overview(1 of 2)

Definition of Performance Management (PM)

Purposes of PM

Contributions of PM

Disadvantages/Dangers of Poorly Implemented
PM Systems

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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

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1-7

Definition of PM(2 of 3)

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

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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)
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1-10

Purposes of PM Systems
Strategic Purpose

Link individual goals with organization’s goals
Communicate most crucial business strategic
initiatives

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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

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1-13

Purposes of PM Systems
Informational Purpose

Communicate to employees:

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

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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

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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

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1-16

Purposes of PM Systems
Documentation Purpose

Validate selection instruments

Document administrative decisions

Help meet legal requirements

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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

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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

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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

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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

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1-23

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

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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
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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

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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

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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

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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
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1-33

An Ideal PM System: 15 Characteristics
Strategically Congruent

Consistent with organization’s strategy

Aligned with unit and organizational goals

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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

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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

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1-36

An Ideal PM System: 15 Characteristics
Practical

Available

Easy to use

Acceptable to decision makers

Benefits outweigh costs

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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

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1-38

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

What’s expected

How to meet the expectations

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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.

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1-40

An Ideal PM System:15 Characteristics
Reliable

Consistent

Free of error

Inter-rater reliability

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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

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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

1-44
Copyright © 2023 Chicago Business Press

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.
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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

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An Ideal PM System:15 Characteristics
Correctable

Recognizes that human judgment is fallible

Appeals process provided

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1-47

An Ideal PM System:15 Characteristics
Standardized

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

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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

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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

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1-50

Changing Nature of PM

PM is changing rapidly due to:

Technological Advancements

Globalization

Demographic Changes

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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)

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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

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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

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

1-56

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