Managing employees' performance (Criteria for Effective Performance…
Managing employees' performance
process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.
This process requires:
Knowing what activities and outputs are desired
Observing whether they occur
Providing feedback to help employees meet expectations
•Assigns a certain percentage of employees to each category in a set of categories.
•Compares each employee with each other employee to establish rankings.
•Requires managers to rank employees in their group from the highest performer to the poorest performer.
Graphic Rating Scale
Lists traits and provides a rating scale for each trait.
Employer uses the scale to indicate extent to which an employee displays each trait.
Mixed-Standard Scale: Uses several statements describing each trait to produce a final score for that trait.
Based on managers’ records of specific examples of employees acting in ways that are either effective or ineffective.
Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals.
Behavioral Observation Scale (BOS):
A variation of a BARS which uses all behaviors necessary for effective performance to
rate performance at a task. A BOS also asks the manager
to rate frequency with which the employee has exhibited
the behavior during rating period.
Organizational Behavior Modification (OBM)
A plan for managing behavior of employees through a formal system of feedback and reinforcement.
Behaviorally Anchored Rating Scale (BARS)
Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance.
Productivity is an important measure of success because getting more done with a smaller amount of resources (money or people) increases the company’s profits.
Management by Objectives (MBO):
people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals. These goals become the standards for evaluating each employee’s performance.
Performance measurement combines measurements of attributes and results.
Two kinds of feedback in TQM:
Statistical quality control
The principles of total quality management (TQM), provide methods for performance measurement and management.
–ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.
– serves as a basis for
developing employees’ knowledge and skills.
- effective performance management helps the organization achieve its business objectives.
Criteria for Effective
Fit with strategy
Sources of Performance Information
360-Degree Performance Appraisal:
performance measurement that combines information from employees’: Managers, Peers, Subordinates, Self, Customers
Types of Rating Errors
rater compares an individual, not against an objective standard, but against other employees.
Distributional errors: rater tends to use only one part of a rating scale.
the rater puts everyone near the middle of the scale
the rater favors lower rankings
the reviewer rates everyone near the top
Rater Errors and Bias
Raters can be trained how to avoid rating errors.
Rater bias: raters often let their opinion of one
quality color their opinion of others.
when bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area.
when bias involves negative ratings. This
can cause employees to feel frustrated and defensive.
Political Behavior in
Distorting a performance evaluation to advance one’s personal goals
A technique to minimize appraisal politics is a calibration meeting: Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating influence of rating errors
Giving Performance Feedback
Scheduling Performance Feedback
Annual feedback is not enough.
Employees should receive feedback so often that they know what the manager will say during their annual performance review.
Performance feedback should be a regular, expected management activity.
Preparing for a Feedback Session
Managers should be prepared for each formal feedback
Legal and Ethical Issues in
Employee monitoring via electronic devices and computers may raise concerns over employee privacy.
Lawsuits related to performance management usually involve charges of: Discrimination, Unjust dismissal
Performance management processes are often scrutinized in cases of discrimination or dismissal.
To protect against both kinds of lawsuits, it is important to have a
performance management system.
performance management system:
Based on valid job analyses, with requirements for job
success clearly communicated to employees
Evaluates behaviors or results, rather than traits
Multiple raters (including self-appraisals) used
All performance ratings reviewed by upper-level
Appeals mechanism for employees.
Conducting the Feedback Session
During feedback sessions, managers can take any of
– managers tell employees their
ratings and then let employees explain view.
– managers tell employees their ratings
and then justify those ratings
– managers and employees work
together to solve performance problems.
Identify ways of improvement depending on if the
employee lacks ability, motivation or both.
6 Ways to Structure Communication
Focus on goals.
Prevent surprises and prepare for success.
Be honest and positive.
Listen as well as talk.
Use specific, concrete examples.
Treat employees with respect