performance management .pptx

8/17/2019 performance management .pptx

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COMMON BIASES INPERFORMANCE

MANAGEMENT AND

METHODS TO OVERRULE THEM


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What is Performa!eMaa"emet#It is the process that helps for the eective management ofindividuals and teams to achieve the organizational goals

• Performance Assessment is generally subjective in nature.

intentionally or unintentionally make mistakes or exhibit biases

• iases happened during performance assessment aects o

such as pay and promotion.

Performance Assessment


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COMMON BIASES INPERFORMANCE MANAGEM

T! "alo #ect! "orn #ect

! $irst Impression or Primary #ect

! %ecency #ect

!Stereotyping & Personal iases

! Spill 'ver #ect

! (enience) Stiness and *entral tendency


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"A(' #$$#*+! +ype of *ognitive ias , systematic error in thinking that eec

decisions -e make.! +he overall impression of a person in/uences ho- -e feel abo

character

! %ater perceives one positive characteristic about an employeeperformance and allo-s it to in/uence all factors or areas in aperformance evaluation.

! (eads to a generally favorable or overall high performance rat

#xamples0

%ating attractive people more favorably in character than those less attractive.

#mployee may be punctual and have fe- or no absences and ma


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"'%1 #$$#*+

! +endency to allo- ones judgment of a person to be in/uencedunfavorable impression

! If our impression about a person is negative) -e tend to ignorpositive characteristics and concentrate only on the negative

! Personality con/icts can increase the probability of the "orn e

! %ater perceives one negative characteristic about an employetheir performance and allo-s it to in/uence all factors or areaperformance evaluation

! If a manager dislikes an employee could lead to an overall pooevaluation or appraisal.

#xamples0


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'vercoming the "alo and "o#ect

! Accountability 2 means that there are conse3uences that depe

some aspect of the ratings or judgments given! *onsider each factor independently of all other factors. An em

behavior usually is not the same on all skills that the rating scmeasure. #mployees have both -eaknesses and strengths

! (ook back at employees performance through out the year anable to justify and give real examples of -here an employee eor lacked in a certain area being rated.

! Involve the input of others in the evaluation.


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%#*#1*4 #$$#*+

! 'ccurs -hen recent behavior or performance carries too mucin evaluating an employees performance.

! 5ost recent occurrences are on the forefront of a managers m-hether good or bad and heavily in/uences or heavily colorsmanagers perception of an employee.

! 6oes not take into consideration the -hole rating period.

! *an be an advantage or a disadvantage to the employee.! 5anager may tend to forget or minimize behavior that occurr

earlier in the rating period resulting in an inaccurate evaluatio

#xamples0


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'vercoming the %ecency #

*ritical Incident 6ocumentation

! 5anager compiles a list of outstanding or unsatisfactory exama employees performance through out the rating period

! #xamples are used to rate each area of an employees performratings are determined using objective data

! 6uring appraisal intervie- manager can site speci7c exampleincidents to illustrate -hy a certain rating -as given.


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(#1#I1*#) S+I$$1#SS) A16 *#1+%A( +#16

(enience +endency 8 rating all employees highly or favorably reg

of actual performance. +ends to lead to0! 1o dierentiation bet-een employees

Stiness +endency 2

*entral +endency 2 rater avoids making 9extreme: judgments of

employees performance resulting in all employees being rated inmiddle of the rating scale

! +his can happen -hen a manager is uncomfortable -ith con/giving negative revie-s

! 1o room for personal gro-th or performance improvement sinstrengths or -eaknesses are identi7ed

#xamples 8


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'vercoming the (enience)Stiness) and *entral +enden

! #ducating managers in the dierent kinds of performance ia

! #ducating managers and allo-ing them to understand theconstructive purposes of performance appraisals

! #nabling managers to ac3uire eective skills in giving negativ

feedback


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S+#%'+4PI1


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$I%S+ I5P%#SSI'1 '% P%I5A#$$#*+

! +he tendency to let a 7rst impression of performance carry to-eight in the evaluation of performance over an entire period

! If our 7rst impression about a person is positive) -e tend to igtheir negative characteristics and concentrate only on the posones and vice versa

#xample 2 a ne- employee performing at high levels during theprobationary period and then maybe losing some of that initialmomentum during the rest of the rating period. 'verall impresshighly positive even -hen performance declines.


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'ver %uling iases

! 5anagement by 'bjectives 2 Involves the manager and employee -otogether to come up -ith performance objectives and goals for the nappraisal period. #valuate by the degree of goal achievement. "avedisscusions -here any potential problems or con/icts in performancedicsussed or clari7ed

! *ritical Incident 6ocumentation 8 both the employees and managers a online journal of key events throughout the year.+his -ill come handuring the performance evaluation.

! Input of 'thers 2 peer revie-s) =>? 2 revie-s. $eedback from peers osuperiors -ho -orked -ith the individual can provide insights on theperformance -hich the manager is not able to see due to his biases.

! +raining and a-areness building0 efore each performance evaluatiomanagers should be subjected to a short e(earning course or face todiscussion in small groups. +his should cover the importance of theperformance management process) the best -ay to evaluate performand ho- to avoid biases.


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Ho$ to ma%e Performa!e AssessmetO&'e!ti(e#

• Assi"i" SMART "oa)s to i*i(i*+a)s ,SMART sta*s

meas+ra&)e/ a!hie(a&)e/ Rea)isti! a* time &o+*0

• Ha(i" *es!ri-tors for the rati" s!a)e

• Re"+)ar re!or*i" of 'o+ra)s

• Re"+)ar fee*&a!%


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Co!)+sio

• iased performance assessment by a manager can result i

-orking relationship for the employee.

• It can result in lo- morale and poor job satisfaction from the em

• So it is the responsibility of the supervisors) managers and hum

sta to eliminate these biases


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(#1I#1+ +#16#1*4&*#1+% +#16#1*4 IAS

Cetra) te*

. Inaccurate rating

B. All employees fall

rating range.

=. Cndeserving cand

credit -hereas

candidates fails to

$ails to distinguish

terms of performan

Leiet Te*e!1

. %esults in in/ated and inaccurate

ratings

B. Areas needed for performance

improvement remains ignored

=. Cndeserving candidates get the

credit and fails to distinguish

bet-een the subordinate

employees in terms of

performance level


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Dhy certain managers go for leniecentral biased ratingsE

• Strong manager employee relationship

• 5inimize time and eort

• Avoid confrontation

• Prevent personal damage to relationships

• Agreeable personality

• (ack of preparation


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Assessment fairness from employee p

#mployees care about0 *ompensation they receive

%ating compared to theirexpectations

%ating of others

E2e!t of !etra)it1 &ias o the -er!e-tioof em-)o1ees

Above average employees become less motivated

elo- average employees think the performance ratingis fair.

E2e!t of )eie!1 &ias o the -er!e-tioof em-)o1ees

#mployees perceive leniency bias positively


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E2e!t of !etra)it1 &ias o -a1 a*-erforma!e

*reates a disproportionate pay to performance ratio

%educes incentives for both above belo- average

performers

E2e!t of )eie!1 &ias o -a1 a*-erforma!e

%educes performance%educe employee incentive

(ai) (.) F abcock) (. *. ,B?B. Asian Americans and -orkplace discrimiinterplay bet-een sex of evaluators and the perception of social skills. JoOrganizational Behavior J. Organiz. Behav., 34,=) =?8=B>.

ol) G. *. ,B?. +he 6eterminants and Performance #ects of 5anagers#valuation iases. The Accounting Review, 86,) JK8L.

Refere!es


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S+I$$1#SS +#16#1*4IAS +his is just opposite of (enient tendency bias

• 5anagers al-ays feel there is more room for impro

• 5anagers tend to set very high standards -hile

performance.

• %esult in de8motivating even good performers

• 1o distinction bet-een high) average and lo- perf

• 5ostly aects good performers

S+#%#'+4PI1< IAS


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S+#%#'+4PI1< IAS

Dhen people are categorized based on some feature ththey have.

5ost commonly race) gender) age or religion.•

+his type of bias is harmful to an organization• *an aect positively or negatively

• %esults in overestimation or under estimation of em

• Domen are more likely to be the victims gender ba

•

1egatively aected victims of stereotyping bias losand motivation

• *an result in miscommunication bet-een manage

subordinates and results in lo- productivity

•

(ack of promotion


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Dhere do stereotyping bias cfromE

• Stereotype are formed in human beings naturally

• It is a human tendency to categorize people into

groups

• +hey come from family) peers) media) society and

experience

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