Performance Management PDF

 PERFORMANCE MANAGEMENT REVIEWER Employee Level of commitment workers make to their employer, seen in their willingness Engagement (EE) to stay at the firm and to go beyond the call of duty. Performance PERFORMANCE MANAGEMENT is a goal-oriented process...

 PERFORMANCE MANAGEMENT REVIEWER Employee Level of commitment workers make to their employer, seen in their willingness Engagement (EE) to stay at the firm and to go beyond the call of duty. Performance PERFORMANCE MANAGEMENT is a goal-oriented process that is directed management toward ensuring that organizational processes are in place to maximize (PM) productivity of employees, teams, and ultimately, the organization. Whereas PERFORMANCE APPRAISAL is a one-time event each year, performance management is a dynamic, ongoing, continuous process. Performance Formal system of review and evaluation of individual or team task performance. Appraisal (PA) one component of performance management. Occurs at a specific time. Done so managers can provide feedback, encourage performance improvement, make valid decisions, justify terminations, identify training and development needs, and defend personnel decisions. Effective Evaluates accomplishments and initiates plans for development, goals, and appraisal system objectives. USES OF PERFORMANCE APPRAISAL [assessment/eval] Human Resource To identify those who have the potential to be promoted or for any area of Planning internal employee relations. Through performance appraisal it may be discovered that there is an insufficient number of workers who are prepared to enter management. Recruitment and Performance evaluation ratings may be helpful in predicting the performance of Selection job applicants. Training and Performance appraisal should point out an employee’s specific needs for training Development and development. By identifying deficiencies that adversely affect performance, T&D programs can be developed that permit individuals to build on their strengths and minimize their deficiencies. Career Planning Performance appraisal data is essential in assessing an employee’s strengths and and Development weaknesses and in determining the person’s potential. Terms Career Planning - an ongoing process whereby an individual sets career goals and identifies the means to achieve them Career Development - a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Compensation Performance appraisal results provide a basis for rational decisions regarding pay Programs adjustments. Most managers believe that you should reward outstanding job performance tangibly with pay increases. Internal Employee Performance appraisal data are also used for decisions in several areas of Relations internal employee relations, including promotion, demotion, termination, layoff, and transfer. Assessment of Some organizations attempt to assess an employee’s potential as they appraise Employee his or her job performance. Although past behaviors may be a good predictor of Potential future behaviors in some jobs, an employee’s past performance may not accurately indicate future performance in other jobs.  PERFORMANCE MANAGEMENT REVIEWER Terms Appraisal Performance - focuses on past behavior Assessment of Potential – future-oriented PERFORMANCE Legislation requires that appraisal systems be nondiscriminatory. Unions have APPRAISAL traditionally stressed seniority as the basis for promotions and pay increases. A ENVIRONMENTAL firm’s corporate culture can assist or hinder the process. FACTORS External Factors – ex. age bias and age-based policies, seniority as the basis for promotions and pay increases Internal Factors - firm’s corporate culture can assist or hinder the process PERFORMANCE APPRAISAL Identify Specific Establish Performance Performance Criteria and Communicate Examine Work PROCESS Appraisal Goals Them to Employees Performed Discuss Appraise Appraisal with Performance Employee (5) Criterias are determined thru Job Analysis PERFORMANCE Traits CRITERIA Behavior (STANDARDS) Competency THAT CAN BE Goal achievement ESTABLISHED Improvement potential RESPONSIBLE 1. Immediate supervisor FOR APPRAISAL 2. Subordinates – ex. In the higher education environment, it is a common practice for instructors to be evaluated by students. 3. Peers and Team Members 4. Self-appraisal 5. Customer Appraisal PERFORMANCE 360-degree feedback evaluation method - Popular performance appraisal APPRAISAL method that involves evaluation input from multiple levels within the firm as METHODS well as external sources. In this method, people all around the rated employee may provide ratings, including senior managers, the employee himself or herself, supervisors, subordinates, peers, team members, and internal or external customers. Many companies use results from 360-degree programs not only for conventional applications but also for succession planning, training, and professional development Rating Scales Method - Performance appraisal method that rates employees  PERFORMANCE MANAGEMENT REVIEWER according to defined factors. Popular because it is simple, allows for the use of more than one performance criterion. The factors chosen for evaluation are typically of two types: job-related and personal characteristics. The scale includes several categories, normally 5–7 in number, defined by adjectives such as outstanding, meets expectations, or needs improvement. Critical Incident Method - is a performance appraisal method that requires keeping written records of highly favorable and unfavorable employee work actions. When such an action, a “critical incident,” affects the department’s effectiveness significantly, either positively or negatively, the manager writes it down. The Essay Method - is a performance appraisal method in which the rater writes a brief narrative describing the employee’s performance. This method tends to focus on extreme behavior in the employee’s work rather than on routine day-to- day performance. Work Standards Method - performance appraisal method that compares each employee’s performance to a predetermined standard or expected level of output. Ranking Method - a performance appraisal method in which the rater ranks all employees from a group in order of overall performance. Paired comparison - is a variation of the ranking method in which the performance of each employee is compared with that of every other employee in the group. A single criterion, such as overall performance, is often the basis for this comparison. Forced Distribution Method - Performance appraisal method in which the rater is required to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution. Behaviorally Anchored Rating Scale (BARS) Method - is a performance appraisal method that combines elements of the traditional rating scales and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee’s specific job behavior. A BARS system differs from rating scales because, instead of using terms such as high, medium, and low at each scale point, it uses behavioral anchors related to the criterion being measured. Results-Based System - Performance appraisal method in which the manager and subordinate jointly agree on objectives for the next appraisal period; in the past a form of management by objectives. In such a system, one objective might be, for example, to cut waste by 10 percent. At the end of the appraisal period, an evaluation focuses on how well the employee achieved this objective.  PERFORMANCE MANAGEMENT REVIEWER PROBLEMS IN 1. Appraiser Discomfort PERFORMANCE 2. Lack of Objectivity APPRAISAL a. Halo Error - Evaluation error that occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance, resulting in a higher rating. b. Horn Error - Evaluation error that occurs when a manager generalizes one negative performance feature or incident to all aspects of employee performance, resulting in a lower rating. (ex. Neatness) c. Leniency/Strictness – Leniency (Giving an undeserved high performance appraisal rating to an employee.) Strictness (Being unduly critical of an employee’s work performance.) d. Central Tendency Error - Evaluation appraisal error that occurs when employees are incorrectly rated near the average or middle of a scale. e. Recent Behavior Bias f. Personal Bias/Stereotyping g. Manipulating the Evaluation h. Employee Anxiety CHARACTERISTIC Characteristics include: S OF AN ▪ Job related criteria EFFECTIVE ▪ performance expectations APPRAISAL ▪ standardization SYSTEM ▪ Trained appraisers ▪ continuous open communication ▪ performance reviews ▪ due process LEGAL It is unlikely that any appraisal system will be totally immune to legal challenge. IMPLICATIONS OF However, systems that possess certain characteristics are more legally defensible. PERFORMANCE APPRAISAL Negligent retention - if an employee who continually receives unsatisfactory ratings in safety practices, for example, is kept on the payroll and he or she causes injury to a third party. In these instances, firms might reduce their liability if they provide substandard performers with training designed to overcome the deficiencies. APPRAISAL A successful appraisal interview should be structured in a way that allows both INTERVIEW the supervisor and the subordinate to view it as a problem-solving rather than a fault-finding session.