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MHR 523 Lecture Notes - Performance Management, Central Tendency

Human Resources
Course Code
MHR 523
Margaret Yap

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Chapter 10 ± Performance Management
Performance management ± encompassing all activities related to improving employee performance,
productivity & effectiveness
1. Define performance expectations & goals ± measurable
2. Providing ongoing feedback & coaching ± 2 way communication, ongoing
3. Conducting performance appraisal & evaluation discussions - formats
4. Determining performance rewards/consequences ± how employee meets standards
5. Conducting development & career opportunities discussions ± strengthen, improvements
Graphic rating scale ± lists number of traits & range of performance for each; employee rated by
identifying score that best describes their level of performance for each trait, unclear standards
Alternation ranking method ± rank employees from best to worst on particular trait
Paired compassion method ± rank employees by making chart of all possible pairs of employees for each
trait & indicate the better employee of the pair
Forced distribution method ± predetermined percentages of ratees placed in various performance
categories; bell curves
- Disadvantages: productivity affected, low morale/confidence, always have a lower %
Critical incident method ± keep record of uncommonly good/undesirable exampOHVRIHPSOR\HHVZRUN-
related behaviour & reviewing list with employee at predetermined times
Behaviourally anchored rating scale (BARS) ± appraisal method, combine benefits of narratives, critical
incidents & quantified ratings by anchoring a quantified scale with specific narrative examples of good &
poor performance, consistency & verify, employee development, time consuming to develop
1. Generate critical incidents ± specify effective & effective performance
2. Develop performance dimensions ± cluster incidents into smaller set of performance
3. Reallocate incidents ± group incidents into same clusters & retain incidents similarly assigned
4. Scale incidents ± rate behaviour representation
5. Develop final instrument ± behavioural anchors for each incident
Advantages: more accurate measure, clearer standards, feedback, independent dimensions,
Management by objectives (MBO) ± setting specific measurable goals with each employee & periodically
reviewing progress made; organization-wide, goal setting & appraisal program
2. Set departmental goals
3. Discuss departmental goals
4. Define expected results (set individual goals)
5. Performance reviews: measure the results
6. Provide feedback
Challenges: setting unclear, non-measurable objectives, time consuming
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