Noe, Ch. 10 / Performance Management Flashcards
(19 cards)
performance management
The process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals
purposes of performance management
strategic: help org achieve objectives, links employee behavior with org goals
administrative: orgs use the system to make day-to-day decisions
developmental: basis for developing employee knowledge and skill
criteria for effective performance management
- fit with strategy: system should aim to say yes to employee behavior that supports the org’s goals, strategy, culture
- validity: extent to which the measurement tool actually measures what is intended to measure (for performance appraisal, it means whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance
- reliability: consistency of results the performance appraisal delivers (interrater reliability: consistency of results when more than one person measures performance) (test-retest reliability: consistency of results over time, if it lacks this, it will be impossible to determine if performance has changed over time)
- acceptability: whether or not a measure is valid and reliable
- specific feedback: performance measure should tell employees what is expected of them and how they can meet those expectations
simple ranking
Method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer
- alternation ranking is a variation, the manager works from a list of the employees
forced-distribution method
Method of performance measurement that assigns a certain percentage of employees to each category in a set of categories (exceptional, exceed standards, etc.), only works if the group REALLY varies
paired-comparison method
Method of performance measurement that compares each employee with each other employee to establish rankings
graphic rating scale
Method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait
mixed-standard scales
Method of performance measurement that uses several statements describing each trait to produce a final score for that trait (to get around low reliability)
critical-incident method
Method of performance measurement based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective
behaviorally anchored rating scale (BARS)
Method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
behavioral observation scale (BOS)
A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task
Organizational Behavior Modification (OBM)
A plan for managing the behavior of employees through a formal system of feedback and reinforcement
components:
1. define set of key behaviors necessary for job performance
2. use a measurement system to assess whether the employee has the key behaviors
3. inform employees on the behaviors and maybe how to exhibit them
4. give feedback and reinforcement
Management by Objectives (MBO)
A system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization’s overall goals; these goals become the standards for evaluating each employee’s performance
components:
1. goals are specific and objective
2. managers and employees work together on those goals
3. manager gives objective feedback through the rating period to monitor progress
TQM
employees and customers work together to set standards and measure performance
- subjective and objective feedback (statistical quality control –> use charts to detail causes of problems)
360 degree performance appraisal
Performance measurement that combines information from the employee’s managers, peers, subordinates, self, and customers
possible rating errors
similar to me - overrating people who seem similar
contrast error - underrating people who seem different
errors in distribution - overusing part of a rating scale
halo scale - overrating on good quality
horns error -underrating based on poor quality
raters make distributional errors when…
they tend to use only one part of the rating scale
- leniency: favors the top ratings
- strictness: favors the lower ratings
- central tendency: rater puts everyone in the center
calibration meeting
Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors
feedback approaches
tell and sell - managers explain and justify (most use this)
tell and listen - employees can explain their side
problem solving - work together
