Performance Management

Designing and Maintaining

Effective Organizations
For and With People

What Is Good Performance?

More than just activities, effort, good intentions, or
results
Working hard and staying busy are not necessarily
high performance
Attending training sessions and studying hard does not
necessarily lead to good performance
Strong commitment may not lead to good performance
Even accomplishing some goals may not be high
performance

Performance Management
Broader Than
Begins with a look at goals
Performance
Appraisal
& strategies of the
organization

Organizational Alignment
a key to Performance
Management
All efforts must be aligned with
overall goals and strategies of
the organization.

Performance Management
a Cascading Process

Mission, goals, and strategies should

be defined, and clearly understood by
everyone
How do all tasks contribute to overall
plans for the organization?

Annual Plans Should Create

Performance Standards for
Each Department
These should translate into performance
goals for each worker

Quantity
Quality
Time
Cost

What Are the Three Steps in

Performance Management?

Defining Performance
Facilitating Performance
Encouraging Performance

Performance Appraisal

Developmental and
Administrative Decision
Processes

Performance Appraisal
continues to be one of the
most criticized HR functions in
organizations

Performance Appraisal
We all measure our subordinates
performance whether we do it formally
or informally
Very important to document what we
evaluate
Also necessary to show a clear link
between what we evaluate and job
requirements

What Purposes Can P.A.

Serve in an Organization?

Any potential conflicts

here? Explain.

Discuss the Five

Requirements of Performance
Appraisal as Cited in the Text

Any additions or
modifications to these?

Remember...
Appraisals are tests as defined by
EEOC
Validity must be demonstrated if they
result in adverse impact
What kind of validity?

What Guidelines Can be Used to

Help Insure Legal Compliance for
Appraisal Systems?

Why is Appraisal Validity

Important to Selection
Instrument Validation?

Look at Albemarle Paper

Co. v. Moody 422 U.S. 405
(available at findlaw.com)

How Frequently Should

Performance Appraisal Be
Done?
Why?

Performance Appraisal a Continuing Process

Is not a once-a-year or once-a-quarter
experience
Effective appraisal occurs frequently
There should be no surprises when an
employee is given his or her formal appraisal
interview
Essential for coaching &
positive motivation

The Main Point

Be sure that what is measured
is documented & can be shown
to match job expectations

A Key to All of This:

Supervisors must
have the support
& encouragement
of higher
management to
make all this work

Our Author Groups

Measurement Systems
into Behavioral and
SomeOriented
of the firstSystems
group
Results

could fall into either trait or

behavior - oriented systems

Behavior - Oriented
Systems
Ranking Methods
Strait Ranking
High-Low (Alternate Ranking)
Paired Comparison

Forced Distribution (similar to ranking)

Graphic Rating Scales

Ranking Method
Straight ranking
Alternation ranking
Paired comparison

Explain Each of the

Ranking Methods

Preference Among Them?

Attractions? Limitations?

Forced Distribution
Design?
Purpose?
Do you recommend or not
recommend?
Why or why not?

Graphic Rating Scale

Single Most Popular Method of

Appraisal

Graphic Rating Scale

Explain how it works
Give an example

Potential strengths?
Potential weaknesses?

Critical Incidents
Based on Observation of Behaviors
Positive
Negative

Written Notation of Behaviors is

Made & Placed in Each Employees
File

Critical Incidents

Each Observation is Discussed With

the Employee at the Time of
Occurrence
A Portfolio of Observed Events is
Collected Over Time

Any Problems With Critical

Incident Method for
Appraisal?

Behaviorally Anchored
Rating Scales (BARS)
A form of graphic rating scale
How is different from traditional
rating scale?

Behaviorally Anchored
Rating Scales (BARS)

Attractions?
Limitations?

Results (Outcome) Based

Appraisal
Management by Objectives (MBO) in
Some Form is Commonly Used
Focuses on Measurable Results of
Mutually Agreed-Upon Goals for a
Work Cycle

MBO
Steps in development and usage?
Potential strengths and weaknesses?

Factors to Consider in
Choice of a P. A. System
Cost
Usefulness in employee development
Usefulness in administrative decisions
Validity

One-Page Article to Look

At

Performance Appraisal
Reappraised, Harvard
Business Review,
Jan/Feb,2000, p. 21

What Do You Think?

What Form of Performance Appraisal
Would You Recommend?
What Criteria Have You Used in
Making Your Recommendation?
What Limitations (As Well As
Strengths) Does Your Recommended
Method Have?
Post your response to the Lesson 8
Discussion area no later than the date
shown on the syllabus.

Who Appraises?
Supervisor
Peers
Subordinates
Self Appraisal
Customers

Usefulness of Each?

Explain

360 Degree Appraisal

Best Known Book on the
Subject: Edwards & Ewen,
360 (degree) Feedback,
Amacom, 1996.

Check This Article

Getting 360 degree

Feedback Right, Harvard
Business Review, Jan.,
2001, pp. 142-147.

Three Types of Appraisal

Interviews
Tell & Sell
Tell & Listen
Problem Solving