session # 5a performance measurement

7/26/2019 Session # 5A Performance Measurement

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Performance Management Measurement

Ranjeet Nambudiri

Indian Institute of Management , Indore


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Research findings onAppraisals

Improved performance, cost cutting,

greater efficiency, resource allocationExpected outcomes

Waste of time and energy mere

paperwork, reduced motivation, increaseddepression, destroys trust, reduces

teamwork, little demonstrable value costs

huge amounts of money

Actual outcomes


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The traditional appraisal process..

Very small section given for self-evaluation

No objectivelylaid out goals / expectations for performance evaluation

Most items in the appraisal form are either Yes/ Noor on a scale from Not

upto the markto Outstandingwith no definitionof either scale point

Overall grading can be changed at either of the 2 levels above reporting officer

Yet.There is no need to disclosethe contents of the appraisal to the employee

the appraisal forms the basis of promotions, rewards and growth

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McGregor, 1957

1. Objective of collecting performance

information to decide upon rewards

and development needs

2. Supervisors found to have aversion tothe measurement and interviewprocess

Performance appraisals

1. Aversion toplayingGOD

2. Lack of skills / mistrust in the system

3. Split roles : Judge vs. Coach4. Poor performance ratings of subordinates are

also a measure of own leadership skills

5. Conflict between needs of the organizationand unwillingness to treat humans as physical

objects that can be measured

Supervisor's

dilemma


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Coverage

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Definition of performance management

Performance management vs. appraisals

Modern perspective vs. traditional view

Significance of PM systems Benefits and challenges

Multi-rater systems Coaching styles the good coach questionnaire


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Continuous Process of

Identifying performance of individuals and teams

Measuring performance of individuals and teams

Developing performance of individuals and teams

and

Aligning performance with the strategic goals of the organization

Performance Management - Definition


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Performance management process

Establishing performance standards

Mutually set measurable goals

Measure actual performance

Compare with set goals

Discuss with employee - feedback

Future course of action and development

Facilitate performance

Rewards and re-contractDealing with feedback

Performance improvement


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Measurement

Job analysis process

Job descriptionTask, Duties

Job specificationsKSAs

(Competencies)

Measure RESULTS

Measure BEHAVIORTRAIT

KPA / KPI

Rating

Scale


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Performance : Management or Appraisal

Focus is on MEASUREMENT

ANNUAL exercise (ritual??)

KPA / KPI are used for CONTROL

Linked to REWARDS only

EMPLOYEE centric

Focus is on GOALS

CONTINUOUS process

KPA / KPI are for PLANNING

Linked to rewards AND DEVELOPMENT

Employee AND SUPERVISOR

Performance Appraisal Performance MANAGEMENT

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Significance of performance management

Significance of PMS

CompetitivenessSustainable results

Institutionalizing high performance

Individual and organizational goals

Business results: HR contribution

Core of human capital developmentCompetency renewal

Measurable management

Integrated motivational & retention tool

Strategic significance Human resource significance


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Objectives of performance management

Performance: Individual, team and organizational

Development : Areas of enhancement for the employee

improve employee effectiveness identify training needs remove discontent / alienation motivate and retain employees

Appraisal: Recognition, rewards and growth of employees

Documentation: Fulfilling legal requirements


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Challenges for performance management

Challenges for PMS

Perceptual issuesCompatibility with culture

HR competencies within systemComplexity

Accountability- Objectivity in measurementResistance to change

Participation and involvement

Macro level Micro level

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Performance and Competency Measurement

Absolute systems

Essay appraisal (Narratives) Critical incident technique

Checklists

Adjective rating scale (ratings can be also used in forced rankings) BARS

Relative / Comparative systems

Individual rankingAlternation ranking

Paired comparison

Forced ranking

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Creating BARS using the Critical Incident Technique

Job incumbents and supervisors source of data Structured interview around the key competency categories (KSA) Identifying behavioral indicatorsfor each competency

Specific illustrations of effectiveand ineffectivebehavior in acompetency category

Content analysis for identifying themes Scale development - BARs

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Behavior Indicators

Each competency must have associated with it one to five (maybemore) behavioral indicators. Behavioral indicators describe actionsor behaviors that one can observe an individual taking or using

that signify an appropriate application of the competency in aspecific performance setting.

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Behavioral Indicators

Conflict Management: Anticipates or seeks to resolve confrontations,disagreements, or complaints in a constructive manner.Behavioral Indicators: -

Dealing effectively with others in antagonistic situations

Using appropriate interpersonal style while reducing tension between two ormore people

Recognizes the root cause for conflicts, confrontations, or disagreements.

Addresses formal and informal complaints from employees or from personother than employees (e.g., customers, suppliers).

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Creating the BARS

Job specificationsKSAs

(Competencies)

Competency 1Team player

Behavioral Indicator(C1BI1)

Offers to help

Rating

Scale

Competency 2Conflict handling

Competency 3

Analytical skills

Competency 4Leadership ability


Contributes to a

congenial

atmosphere in

the group


Listens to others

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BARS Bring objectivity in the Measurement of competencies

Behaviorally Anchored Rating Scale for

Competency : Conflict management

Behavioral Indicator USES APPROPRIATE INTERPERSONAL

STYLE TO REDUCE TENSION

Item # 1 (1)Personalizesconflict sometimesattackspeoplerather thanissues

(2) (3) Assiststeammembers inidentifyingcommon ground

(4) (5) Creates anatmosphere wheredifferences are

valued /understood andmembers collaborate

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ARS and BARS Measurement of competencies

Adjective Rating Scale for

Conflict management defined uses appropriate interpersonal style

Item # 1 (1) Poor (2)Average

(3) Good (4) Very good (5) Exceptional

Behaviorally Anchored Rating Scale for

Conflict management defined uses appropriate interpersonal style

Item # 1 (1)Personalizes

conflict sometimesattackspeoplerather thanissues

(2) (3) Assiststeam

members inidentifyingcommon ground

(4) (5) Creates anatmosphere where

differences arevalued /understood andmembers collaborate

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Factors that distort Measurement of

competencies

Leniencyerror

Halo error

Similarityerror

Lowappraiser

motivation

Centraltendency

Inflationarypressure

Inappropriatesubstitute

Attributiontheory

Appraising against onesvalue system

Rating on one or twofactorsExtremely High or low

Evaluating on basis ofperception abouthimself

Difficult employee /context1 2 3 4 5

No extremes even notto deserving ones.

Effort, enthusiasm,neatness, positiveattitude,conscientiousness,promptness etc.

External and

internal attribution


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Forced ranking

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Illustration of Normalization

PMS scores fromAppraiser

Reviewer to checkintegrity

PerformanceManagementCommittee

Final Output

Top 30%

Middle 65%

Bottom 05%

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Thank you for your time and [email protected]

session # 5a performance measurement

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