Chapter 8

Performance Management

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Introduction

8-2

Performance Management Process

8-3

5 Criteria of Performance
Measures

8-4

Competency Model
Competencies are sets of skills, knowledge,
abilities and personal characteristics that
enable employees to successfully perform
their jobs.
A competency model identifies
competencies necessary for each model and
provides descriptions common for an entire
occupation, organization, job family or
specific job, useful for recruiting, selection,
training and development.
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Balanced Scorecard Approach

8-6

Typical Rater Errors

1. Similar to Me
2. Contrast
3. Leniency
4. Strictness
5. Central Tendency
6. Halo
7. Horns
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Improve Performance
Feedback
1. Give feedback frequently, not once a year.
2. Create right context for discussion.
3. Ask employees to rate performance before the session.
4. Encourage employee to participate.
5. Recognize effective performance through praise.
6. Focus on solving problems.
7. Focus feedback on behavior or results, not on the person.
8. Minimize criticism.
9. Agree to specific goals and set progress review date.

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Employee
Characteristics

8-9

Withstand Legal Scrutiny

1. Conduct a valid job analysis related to
performance.

2. Base system on specific behaviors or results.

3. Train raters to use system correctly.
4. Review performance ratings and allow for
employee appeal.

5. Provide guidance/support for poor performers.

6. Use multiple raters.
7. Document performance evaluations.
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Summary
Measuring and managing performance are key to gain
competitive edge.

Performance management systems (PMS) serve strategic,

administrative and developmental purposes.

PMS should be evaluated against criteria of strategic

congruence, validity, reliability, acceptability and

specificity.

Effective managers need to

be aware of the issues involved in determining best methods
and legal scrutiny.
feed performance information back to employees
take action based on causes for poor performance: ability,
motivation or both

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