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Chapter 6: Performance Management - Coggle Diagram
Chapter 6: Performance Management
Performance Management Systems
Performance management – The process of creating a work environment which people can perform to the best of their abilities
Performance reviews – A process in which a manager evaluates an employee’s performance
Developing an Effective Performance Management System
HR department ordinarily has the primary responsibility
Employees are more likely to accept and be satisfied with a performance management system
What Are the Performance Standards?
based on job-related requirements derived from a job analysis and reflected
SMART goals – Goals that are specific, measurable, achievable, realistic, and time-based
Strategic Relevance- refers to the extent to which the performance standards relate to the strategic objectives
Criterion Deficiency- exclusion of other important but less quantifiable performance dimensions
Criterion Contamination- There are factors outside an employee’s control that can influence his or her performance.
Do Your Performance Reviews Comply with the Law?
Employees must be provided with clear, written job standards in advance of their reviews
Managers who conduct the reviews must be able to observe the behavior they are rating.
Performance ratings must be job related, with performance standards
Document performance problems when they occur.
Sources of Performance Review Information
Self-evaluation – A performance evaluation done by the employee being evaluated
Subordinate evaluations – A performance evaluation of a superior by an employee
Manager evaluation – A performance evaluation done by an employee’s manager
Peer evaluation – A performance evaluation done by one’s fellow employees
Team evaluation – A performance evaluation that recognizes team accomplishments
Training Appraisers
Establishing a Review Plan
most effective when it follows a systematic process that begins by explaining the objectives of the firm’s performance
The mechanics of the rating system should also be explained
Distributional Errors
Error of central tendency – A performance rating error in which all employees are rated about average
Leniency or strictness error- give employees either unusually high or unusually low ratings
Temporal Errors
Recency error- employee’s most recent behavior rather than on behavior throughout the evaluation period
Contrast error – A performance rating error in which an employee’s review is biased either upward or downward
Performance Review Methods
Trait Methods
Mixed-standard scale method- comparison with (better than, equal to, or worse than) a standard
Forced-choice method- choose from statements designed to distinguish between successful and unsuccessful performance
Graphic rating scale method- each employee is rated according to a scale of characteristics
Behavioral Methods
Critical Incident Method- manager keeps a log or diary for each employee throughout the review period
Behavioral Checklist Method- check statements on a list that describe characteristics of the employee’s behavior.
can be broadly classified as measuring traits, behaviors, or results.
Performance Review Meetings and Feedback Sessions
Types of Performance
Tell-and-sell- use motivational and persuasive techniques
Tell-and-listen- communicates the strong and weak points of an employee’s job performance
Problem-solving- employees’ buy-in for a mutually agreed-upon way to overcome obstacles
Conducting the Performance
Ask for a self-evaluation
Invite participation
Be supportive and demonstrate that you care
determined in large part by its purpose, type of performance management system used