chapter 09 performance management mcgrawhillirwin3798
TRANSCRIPT
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
1/28
Chapter 09
Performance
Management
McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
2/28
9-2
Questions This Chapter Will Help
Managers Answer What steps can I, as a manager, take to make the performance
management process more relevant and acceptable to those whowill be affected by it?
How can we best fit our approach to performance management with
the strategic direction of our dept. and business?
Should managers and nonmanagers be appraised from multipleperspectives for example, by those above, by those below, bycoequals, and by customers?
What strategy should we use to train raters at all levels in themechanics of performance management and in the art of givingfeedback?
What would an effective performance management process looklike?
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
3/28
9-3
Managing For Maximum Performance
Performance management is a kind of
compassone that indicates actual direction as
well as desired direction
Many managers incorrectly equate it with
performance appraisalan exercise they
typically do once a year to identify and discuss
job-relevant strengths and weaknesses of
individuals or work teams
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
4/28
9-4
The Process of Performance
Management
1.Define performance
2.Facilitate performance
3.Encourage performance
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
5/28
9-5
Defining Performance
Key Elements
Goals
Measures
Assessment
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
6/28
9-6
Encouraging Performance
1. Provide a sufficient amount of rewards that
employees really value
2. In a timely
3. Fair manner
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
7/28
9-7
What is Fairness?
Important Practices
Voice
Collect employee input through surveys or interviews
Consistency
Ensure that all employees are treated consistentlywhen seeking input and communicating about the
process for administering rewards
Relevance
Include rewards that employees really care aboutCommunication
Explain clearly the rules and logic of the rewards
process
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
8/28
9-8
Figure 9-1 Elements of a
Performance Management System
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
9/28
9-9
Figure 9-2 Purposes of Performance
Appraisal Systems
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
10/28
9-10
Requirements of
Effective Appraisal Systems
Legally and scientifically, the key requirements
of any appraisal system are
Relevance
Sensitivity Reliability
In the context of ongoing operations, the key
requirements are
Acceptability
Practicality
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
11/28
9-11
Relevance
Implies th at there are
1. Clear links between the performance
standards for a particular job andorganizational objectives, and
2. Clear links between the critical job
elements identified through a job
analysis and the dimensions to berated on an appraisal form
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
12/28
9-12
Performance Standards
translate job requirements into
levels of acceptable or
unacceptable employee behavior.They play a critical role in the job
analysis-performance appraisal
linkage.
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
13/28
9-13
Figure 9-3 Relationship of Performance Standards
to Job Analysis and Performance Appraisal
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
14/28
9-14
Rating Methods or Formats
Relative Rating Systems
Comparing the performance of employees to that of
other employees
Absolute Rating Systems
Evaluating each employee in terms of performance
standards without reference to others
Results-Oriented Systems
Emphasis is on what employee produces
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
15/28
9-15
Ranking
Simple ranking requires only that a rater order all
employees from highest to lowest, from best
employee to worst employee.
Alternation ranking requires that a rater initially list
all employees on a sheet of paper. From this list
he/she chooses the best employee (No. 1), then the
worst employee (No. n), then the second best (no. 2),
then the second worst (No. n -1), and so forth,
alternating from the top to the bottom of the list untilall employees have been ranked.
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
16/28
9-16
Behaviorally Anchored Rating Scales
The major advantage of BARS is that they
define the dimensions to be rated in behavioral
terms and use critical incidents to describe
various levels of performance
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
17/28
9-17
Management By Objectives (MBO)
A process of managing that relies on
goal-setting to establish objectives for
the organization as a whole, for eachdepartment, for each manager within
each department, and for each
employee
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
18/28
9-18
Establishing Objectives in MBO
What the Key People Involved Should Do
Meet to agree on the major objectives for a
given period of time
Develop plans for how and when the objectiveswill be accomplished
Agree on the measurement toolsfor
determining whether the objectives have beenmet
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
19/28
9-19
Table 91: Advantages and Disadvantages
of Alternative Appraisal Methods
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
20/28
9-20
Work Planning and Review
Work planning and review is similar to MBO;
however, it places greater emphasis on the periodic
review of work plans by both supervisor and
subordinate in order to identify goals attained,
problems encountered, and the need for training
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
21/28
9-21
Who Should Evaluate Performance?
Possible Raters
The immediate supervisor
Peers
Subordinates
Self-appraisal
Customers served
Computers
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
22/28
9-22
Multi-Rater or 360-Degree Feedback
Using input from managers,
subordinates, peers, and customers to
provide a perspective on performancefrom all angles
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
23/28
9-23
Types of Teams
Work or Service Teams
Intact teams engaged on routine tasks
Project Teams
Teams assembled for a specific purpose andexpected to disband once their task is completed
Network Teams
Teams that include membership not constrainedby time/space and membership is not limited by
organizational boundaries
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
24/28
9-24
Types of Appraisal Errors
Halo error raters assign their ratings on the basisof global (good or bad) impressions of ratees
Contrast error rater compares severalemployees to one another rather than to an objectivestandard of performance
Recency error rater assigns his/her ratings onthe basis of the employees most recent performance
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
25/28
9-25
Frame-of-reference training
Of the many types of rater training programs
available today, frame-of-reference training (FOR)
is the most effective at improving the accuracy of
performance appraisals
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
26/28
9-26
Table 9-3 Supervisory Activities Before, During,
and After Performance Feedback Interviews
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
27/28
9-27
Key Terms Discussed in the Chapter
Performance management
Performance appraisal
Performance facilitation
Performanceencouragement
Relevance
Performance standards
Sensitivity
Reliability Acceptability
Practicality
Applicant group
Behavior-oriented rating
methods
Relative rating systems Absolute rating systems
Results-oriented rating
systems
Simple ranking
Alternation ranking Paired comparisons
Forced distribution
-
7/27/2019 Chapter 09 Performance Management Mcgrawhillirwin3798
28/28
9-28
Key Terms (contd.)
Severity
Central tendency
Likert method of summed
ratings Critical incidents
Graphic rating scales
Behaviorally anchored
rating scales (BARS)
Management by objectives(MBO)
Leniency
Work planning and
review
360-degree feedback
Halo error Contrast error
Recency error
Active listening
Destructive criticism
Frame-of-referencetraining
Narrative essay