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IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM, Online Implementation—Advant…
IMPLEMENTING A PERFORMANCE MANAGEMENT SYSTEM
PREPARATION :
Need to gain organization-wide buy-in through:
Communication plan regarding performance management system, including an explanation of the appeals process.
Training programs for raters.
Pilot testing program to identify and fix any initial problems.
Ongoing monitoring and evaluation of the PM process to identify additional problems and show benefits.
COGNITIVE BIASES THAT AFFECT COMMUNICATIONS EFFECTIVENESS
Selective exposure – the tendency to expose our minds only to ideas with which we already agree. Those who do not see value in PM may ignore the communications.
Selective perception – the tendency to perceive information as meaning what we would like it to mean rather than as intended by the communication.
Selective retention – the tendency to remember only those pieces of information with which we already agree.
Appeals Process
The inclusion of an appeals process is important in gaining employee acceptance of the PM system because it allows employees to understand that if there is a disagreement regarding performance ratings or any resulting decisions, then such disagreements can be resolved in an amicable and non-retaliatory way. In addition, including an appeals process increases perceptions of the PM system as being fair.
Recommended Appeals Process
Level 1
HR serves as a mediator between the employee and supervisor. It reviews facts and judges whether policies and procedures have been implemented correctly.
HR either suggests corrective action to the supervisor or informs the employee that the decision or procedures were correct.
HR may attempt to negotiate a settlement.
Level 2
Arbitrator (panel of peers and managers) or
High-level manager makes the final decision.
Rater Training Programs
Information about the PM system and the appraisal form.
How to identify, observe, record, and evaluate performance; How to identify and rank job activities.
How to conduct an appraisal interview and interact with employees when they receive performance information.
Rater Error Training.
Frame of Reference Training.
Behavioral Observation.
Self-Leadership Training.
Intentional Rating Errors
Leniency (inflation)
Severity (deflation)
Central tendency
Unintentional Rating Errors
Stereotype
Negativity – raters place more weight on negative than on positive information.
Recency
Spillover – previous reviews influence current ratings.
Attribution – rater attributes poor performance to an employee’s personality or abilities instead of to features of the situation (e.g., malfunctioning equipment).
Similar to Me
Halo (positive and negative)
Primacy - evaluation influenced mainly by information collected during the initial phases of the review period.
First Impression
Contrast – occur when raters compare ratees to one another instead of to predetermined standards.
Frame of Reference (FOR) Training*
FOR training includes a discussion of the job description for the employee being rated. Raters are then familiarized with the performance dimensions to be rated by reviewing the definition of each dimension and discussing examples of good, average, and poor performance.
Behavioral Observation Training (BO)
Raters are shown how to use observational aids such as notes or diaries. These aids help raters record a pre-established number of behaviors on each performance dimension.
Self-Leadership Training (SL)
The goal of SL is to improve each rater’s confidence in his or her ability to use a PM system. SL identifies how raters visualize their role in the PM system and whether they believe they have the ability to observe and record performance accurately.
Pilot Testing—Benefits
Gain information from potential participants
Learn about difficulties/obstacles
Collect recommendations on how to improve the PM system
Understand personal reactions
Get early buy-in from some participants
Get higher rate of acceptance
Automation
Speed up processes
Lower cost
Gather and disseminate information faster and more effectively
System can be linked to other HR functions
Easier to monitor unit-level and organizational- level trends over time
Online Implementation—Advantages