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T7: Performance Management (Ch8) (Effective feedback process (praise,…
T7: Performance Management (Ch8)
Performance management system
Measures those aspects of performance through
performance appraisal
Provides feedback to employees through
performance feedback
sessions
Specifies which aspects of performance are relevant to the organisation
'Model of the Effective Performance Management Process'
Step 1: Define performance outcomes for company division and department
Step 2: Develop employee goals, behaviour, and actions to achieve outcomes
Step 3: Provide support and ongoing performance discussions - REGULAR!!
Step 4: Evaluate performance
Step 5: Identify improvements needed
Step 6: Provide consequences for performance results
Examples
'Check-Ins' used by Adobe instead of annual performance reviews - these should be every other month. (p.319)
Weekly check-ins are also used at Deloitte, along with project terms reviews, p.331
Purposes of performance management systems
Administrative purpose - support decisions around pay/promotions/recognistion/terminations/etc
Development purpose - identify performance improvement opportunities and support decisions for planning and resourcing these
Strategic purpose - identify things to support the strategic goals of the organisation
Performance management systems MUST demonstrate:
Reliability
interrater reliability - is there consistency from different raters
internal consistency reliability
test-retest reliability - consistency across different time periods
Acceptability
By managers
By employees
By administrators
Is it fair? (p.330)
Interpersonal fairness
Outcomes fairness
Procedural fairness
Validity
Contamination - evaluating things that do not directly impact on job performance
Deficiency - not evaluating all aspects of a role
Specificity
Strategic congruence
Approaches to measuring performance, p.331-351 - summary table against criteria on p.351
Attribute approach - how much does the employee have certain attributes, e.g. initiative, leadership, competitiveness
Pros
Generalisable across an organisation
IF
time spent relating closely to job, can be reliable and valid
Easy to develop
Cons
GRS version is very subjective, so needs to be backed up with hard data
If weak descriptors used, can be low on reliability and validity
Vague and therefore open to interpretation of rater
Little guidance provided on how to improve performance
Little strategic congruence
Low scores can lead to defensiveness in employees
Types
Graphic rating scales, e.g. p.336
Mixed-standard scales, e.g. p.337
Results approach, e.g. p.343 - based on strategic goals, flowing down the organisation, setting goals at each level that are linked.
Types
Balanced scorecard, p.344
Customer perspectives
Internal or operations perspectives
Financial perspectives
Learning and growth perspectives
Productivity Measurement and Evaluation System (ProMES) p.345
Pros
Provides objective, quantifiable measures
Strong strategic congruence
Cons
Focused on results, not how you get there so can encourage poor methods / behaviour
Contamination - external factors influencing results
Deficient - not all job aspects can be objectively quantified
Can lead to helping co-workers less if performance is based on individual results
Results is useful feedback but doesn't provide direction for improvement
Method
Determine measurements, e.g. time/quality/quantity / financial metrics
Determin rewards / incentives
Set SMART goals related to org strategic goals
Comparative approach (p.333) - comparing against other employees
Types
Paired comparison
Ranking (1, 2, ...)
Forced distribution (predetermined scale)
Pros
Good for administrative purposes
Easy to develop and use, making them acceptable
Virtually eliminates leniency, central tendancy and strictness
Cons
Open to bias, subjective, so moderate on validity and reliability
Commonly low on strategic congruence
Low on specificity of feedback to improve
Quality approach - customer orientation, p. 347
Characteristics
Customer orientation
Prevention approach to errors
Continuous improvement
Is a combination of 'attribute' and 'results' approaches
Expected to:
Consider both person and system factors in the appraisal
Ensure managers and employees work together on performance issues
Involve both internal and external customer in settting standards and measuring performance
Use multiple sources to evaluate person and system factors
NOTE: These are unique to Quality approach and are all characteristics of an effective performance management system.
Types of feedback advocated, p.348:
subjective feedback from managers, peers, customers
objective feedback based on the work process itself using statistical quality control methods,
Behavioural approach - assesses specific, desired behaviours
Types
BOS - Behavioural Observation Scales, e.g. p.341 (like a school report)
Competency model, e.g. p.342
BARS - Behaviourally Anchored Rating Scales, e.g. p.340
Pros
BOS is found to be prefereed to BARS or Graphic rating scales as give good feedback and easy to use
Can be linked to strategy
Gives good feedback and direction
Generally acceptable, reasonably reliable and valid
Cons
BOS can be very time consuming to do for multiple people
Assumes there is 'one best way' to do the job, ok for less complex jobs, but not so much for complex ones where there might be multiple ways to get good result
Needs to be continually monitored for relevance and updated
Sources of performance information, p.350
Subordinates
Can create a power imbalance where managers try to 'please' subordinates to improve ratings
Best used only for developmental purposes, like peers, not administrative purposes
To be effective the must be anonymous and have at least 3 raters taking part
Self
Good to create a 'conversation' about performance and issues
Empowers employees and gives them a voice
Can be inflated, especially if used for administrative purposes
People naturally have a tendency to external attribution of faults
Peers
Can have bias (good and bad)
Good technical knowledge
Regularly observe ratee
Good for development purposes, but not so much for administrative purposes such as pay rises as raters may feel conflicted
Customers
Great for 'services' where only the customer observes the employee in the act of their role
Things like email databases and software like survey monkey have made this option much more available
Managers
Can have bias (good and bad)
Good technical knowledge
Can be difficult if not observing employee regularly
360 degree model - uses 4 (Netflixs is example of this)
Modern era
Gamification - Use game-based strategies to make a system fun, effective, transparent and inclusive.
Electronic tracking and monitoring systems - to track where/how/what people are working and limit access to e.g. porn. This can be useful for OSH/customer updates etc, e.g. truck driving/on-site servicing. BUT must be carefully balanced with Trust/Big Brother effect.
SPM - Social Performance Management - use online platforms to provide regular 360 degree feedback opportunities
Subjective issues with ratings (p.358)
Rater Errors
Leniency
'Similar to me'
Strictness
Central tendency
Halo
Horns
Contrast
Appraisel Politics - intentional distortion strategies to suit personal or company goals - i.e. rating someone higher than they are in order to justify a promotion, or rating someone intentionally lower to make them leave.
Reducing rater errors
Frame-of-reference training / Rater accuracy training
Rater error training
Calibration meetings
Effective feedback process
praise
problem-solving approach
employee participation in session
focus on behaviours/results, not the person
self-appraisal before session
minimise criticism, 1-2 examples generally sufficient
create the right context for the discussion
agree to specific goals and timeframe to review - SMART
regular feedback, not once a year