Unit 3.7 - Performance Management Flashcards
What is performance management?
Performance management involves all of the human resource functions associated with evaluating and rewarding employee performance.
- Integrate human resource functions
- Promote personal development
- Guide HR decisions
- Identify training needs
- Reward and motivate employees
What are the ANSI guidelines?
The American National Standards Institute (ANSI) publishes a set of guidelines explaining how performance management should be implemented.
Guidelines:
1. Goal setting
2. Performance review
3. Performance improvement plan (PIP)
What is the performance criteria?
Three basic types of behavior that should be included in a performance appraisal:
- Attracting and holding people in the organization
- Dependable task accomplishment
- Organizational citizenship behaviors - “good samaritan”
Performance measures:
- Production data
- Personnel data
- Judgements of others (ex. performance reviews, peer feedback)
What are the criterion problems?
Deficiency:
* When important performance criteria is omitted
* The evaluation is based on less important behavior or results
Contamination:
* When employee performance is influenced by factors they don’t control
* The evaluation is a result of something other than their effort
Biases:
* When a supervisor’s personal issues influence the rating
* The evaluation is more about the evaluator than the employee
What are the 2 things that should be evaluated?
- Outcomes (results)
- Behaviors (activities)
What are the Rating Errors?
- Bias error
- Recency error - judged on most recent work
- Lenience error
- Primacy error - opposite of recency
- Confrontation avoidance
- Halo effect
- A lack of clear standards / rater’s training
- Severity - unrealistic expectations on performance
- Central tendency - centralization
- Forced distribution
- Contrast error
What are the evaluation procedures?
- Classification Procedure
- Ranking
- Graphic Rating Scales
- Forced Choice
- Checklists
- Essay
Describe classification procedure
Classification:
ranking attributes as outstanding, good, average, poor
easiest to use but most biased
What are the 3 methods of ranking?
To order a group of employees from highest to lowest along some dimension, usually overall performance.
Straight ranking - best suited for small workplace, simply highest to lowest
Alternate ranking - ranked on best to poorest, placed on separate lists
Paired comparison - two employees are compared and best carries over to compete a third
What is the graphic rating scale?
Used to rate performance and personality characteristics
AKA Likert scale - a performance appraisal method that lists desired traits and behaviors for each role, then rates workers on each of those on a numbered scale.
What is Forced-Choice Evaluation Procedure?
The reviewer is given a number of statements that apply to the employee, and the reviewer must decide whether each statement is true or false
What are checklists?
Weighted on a 0-10 scale; list of behaviors to describe performance
What is a narrative appraisal / essay?
Used to describe an employee’s performance
Freeform writing to a series of questions
What is management-by-objectives (MBOs)?
Adopts a positive, proactive way of managing rather than a reactive way.
FOCUSES:
* Predicting and shaping the future of the organization by developing long range organizational objectives and strategic plans.
* Accomplishing results rather than performing activities.
* Improving both individual competence and organizational effectiveness.
* Increasing the participation and involvement of employees in the affairs of the organization.
Rater and ratee should collaborate, develop agreed upon objectives; once a year; flexible and open-ended; leadership style
What are the principles of MBO?
Goal Setting - tangible, measurable, and verifiable objectives
Delegation - focus on results rather than on activities; increase personal accountability
Feedback - evaluate progress and to provide assistance
Evaluation - celebrate success and identify improvements
