Performance Management Quiz

Compensation and Performance Management (BBAZI 6304)

• Course offered Spring Semester 2025
• Lecturer: Wen Xu
• Contact: 0907, [email protected]

Lecture 2: Performance Management Process

• Covers the prerequisites, planning, execution, assessment, and review of the performance management process.

Overview

• Prerequisites: Essential before starting the performance management process. Includes strategic planning and work (job) analysis.
• Performance Planning: Developing a plan for employee performance. Includes development plans, behaviors, and results.
• Performance Execution: Employee and Manager responsibilities. Active employee participation in job description, performance standards, and rating forms is vital.
• Performance Assessment: Evaluating employee results and behaviors. Uses multiple sources of assessment including manager, self-assessment, peers, and customer feedback
• Performance Review: A formal meeting to review past performance, current compensation, and future development plans.

Prerequisites

• Strategic Planning: Knowing the organization's mission, goals, and strategies for success and making informed decisions.
• Work (Job) Analysis: Thorough understanding of the job duties, tasks, required skills, activities, products, and processes. Use a variety of tools such as observation, questionnaires, and interviews to uncover this information from job incumbents, supervisors, and those creating new jobs.

Strategic Planning: Knowledge of Mission and Strategic Goals

• Purpose or reason for the organization's existence
• Where the organization is going
• Organizational goals
• Strategies for attaining goals
• The effect that objectives can have throughout the organization from overall organizational objectives to individual objectives

Work (Job) Analysis

• Using tools such as observation, questionnaires, interviews, and review of required KSAs.

• Collecting data from job incumbents, supervisors, and those responsible for crafting new job descriptions.

• All incumbents should review, provide feedback and rate tasks and KSAs in terms of frequency and criticality to obtain a ranked list of tasks.

• Rater biases need consideration when collecting this data; include self-serving bias, social projection bias, false consensus bias, and carelessness bias. Addresses methods to mitigate these biases through training and education.

Job Description as a Key Prerequisite

• Behaviors: This relates to the specific skills required, such as equipment maintenance, and the extent to which these skills are used in the job.
• Results: Success metrics for a job such as quality, quantity, cost-effectiveness, and timeliness.

Performance Planning

• Employing knowledge of the organization's goals and the position, supervisor and employee work together to establish what is needed to be done and how it should be done. Includes results, behaviors, and a development plan.

Performance Planning: Results

• Results are what needs to be accomplished.
• Key accountabilities: Main areas of a job that are the employee's responsibility for producing results.
• Specific Objectives: Measurable statements that articulate the important outcomes.
• Performance Standards: Define the metrics needed to assess if the objectives have been met (e.g. quality, quantity, cost, and time).

Performance Planning: Behaviors

• Focuses on how the work is performed, instead of purely on results.
• Important because some jobs involve behaviors that influence results, but not all factors that influence results are under the control of the employee.
• Critical in determining how results are achieved via competency recognition

Competencies

• Measurable clusters of KSAs that define how results are achieved.
• Examples: Customer service, written/oral communication, creative thinking, and dependability.

Performance Planning: Development Plan

• An important step before the review cycle begins.
• Includes identifying areas for improvement and setting goals for each area. Often includes both results and behaviors.

Performance Execution

• Employees strive to produce agreed-upon results, maintain behaviors, and work on development needs.
• Employees should be active participants in the development of job descriptions, performance standards, and the creation of the rating form.
• Employee self-assessment and active participation are vital.

Performance Execution: Employee Responsibilities

• Commitment to goal achievement.
• Ongoing feedback and coaching requests.
• Open and regular communication with supervisors.
• Collecting and sharing performance data.
• Preparing for performance reviews through self-appraisal.

Performance Execution: Manager Responsibilities

• Observation and documentation of performance (both positive and negative).
• Keeping abreast of and updating objectives, standards, and key accountabilities.
• Providing regular feedback on progress and how behaviors can improve.
• Providing employees with resources and opportunities for development.
• Reinforcing effective behaviors and progress toward achieving goals, as well as addressing performance problems.

Performance Assessment

• Methods of assessment:
• Manager assessments
• Self-assessment
• Other sources (peers, customers)

Multiple Assessments

• Both employees and managers taking part increase ownership and quality of assessment outcomes.
• Self-assessments can help reduce employee defensiveness and increase satisfaction.

Multiple Assessments are Necessary

• For increased employee ownership, commitment, information provision, & mutual understanding

Performance Review

• A formal meeting in which employees receive feedback and review areas for improvement.
• Focuses on past performance (behaviors and results), current status, and future development plans.
• Involves clear identification of what has been done well and poorly together using specific positive and negative behaviors.
• Giving specific feedback, and discussing the implications and plans for improvement are critical parts of a productive review.

Summary

• Ongoing process where all components are important.
• Poor implementation of one factor can negatively affect the whole system.
• Clear links between each component should be maintained.