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Chapter 10 - Performance Management.docx

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University of Waterloo
Human Resources Management
HRM 200
Katrina Di Gravio

Chapter 10: Performance Management What is Performance Management  Process encompassing all activities related to improving employee performance, productivity, effectiveness  Goal setting, pay for performance (bonus system, straight pay), training and development, career management, disciplinary action (what if they are not performing?)  Performance management Process involves: o Defining performance expectations – generally missing o Providing ongoing feedback and coaching - o Conducting performance appraisal and evaluation discussions  Usually once a year instead of ongoing but it does not give employees much opportunity to change o Determining performance rewards/consequences such as promotions, salary, increases and bonuses o Conducting development and career opportunities discussions General Problems  Lack of standards – irrelevant, unrealistic standards or very subjective  Poor measures or no measures  Rater error – person who is rating/reviewing performance has made error on how they are judging the performance  Poor feedback to employees – getting into argument “he said”, “she said” situation  Don’t use evaluations to make decisions Step 1: Defining Performance Expectations  Job description is insufficient to clarify performance expectations. We need to look at the job analysis and specification  measurable standards related to strategic objectives should be developed for each position  SMART Goals/Objectives Step 2: Providing Ongoing Coaching and Feedback  important to have open two-way communication o 60% manager and 40% employee responding  both the employee and the manager need to check in frequently throughout the performance management process to talk about progression toward goals o management by walking around. Manager is being with the employees and talking to them, asking them questions so that employees can approach them freely. Easier conversation when regular rather than once a year  Appraisal coaching worksheet o Employee information o Questions that help framing your coaching Step 3: Performance Appraisal and Evaluation Discussion  the appraisal itself is generally conducted with the aid of a predetermined and formal method such as: o graphic rating scale  a scale that lists a number of traits and a range of performance for each  the employee is then rated by identifying the score that best describes his or her level of performance for each trait  ie: customer service, communication, interpersonal, technical  not very detailed o alternation ranking method  ranking employees from best to worst on a particular trait  Knows who the best employee is and worst employee and everyone else is in the middle  Does not help people who are in between. It does not help employees improve  Not specific and very general o Paired comparison method  ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair  Everyone is rated differently but size of difference may be difficult to determine.  What is in between is very difficult  not popular because does not give enough information about performance. When you are in the lower percentage and people in bottom 10% are asked to let go but they haven’t been given anything to improve their performance. o forced distribution method  predetermined percentages of ratees are placed in various performance categories  for example, it may be decided to distribute employees as follows:  15 percent high performers  20 percent high-average performers  30 percent average performers  20 percent low-average performers  15 percent low performers  always going to be people in the bottom percentage. Are they there because they should be despite how hard they work? Not given any feedback or enough information to know what they are measured about  not very common o critical incident method  keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing the list with the employee at predetermined times  can be used to show how someone has improved  gives an explanation of how to improve, what they did wrong for a critical incident (new idea or important project)  has to be used with another method – narrative performance so that you have a better chance of explaining.  A halo or pitchfork effect can create bias o narrative forms  extention of critical incident  usually has more details, specific examples  suggested format for identifying a performance issue and presenting a performance improvement plan  Narrative of all the things you want to happen  Consequences that will occur if improvements are not made, positive outcomes o behaviourally anchored rating scales  an appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance  excellent method for performance evaluation – high quality results  raters and rates like it because there is a rating scale of how they are evaluated, specific examples, descriptions  incredibly expensive and difficult to maintain because you are trying to track throughout the year  generate critical incidents  job experts specify effective and ineffective performance. Collect any incidents they think are important  develop performance dimensions  cluster the incidents into a smaller set of performance dimensions. Team skills, productivity, communication etc.  reallocate incidents  different experts group incidents into same clusters and retain incidents similarly assigned twice. This secondary group will recreate these into definitions and any critical incidents that are misallocated will be tossed out until a core set of incidents are organized  scale the incidents  rate the behaviour described in the incident as to how effectively or ineffectively it represents performance  develop the final instrument  a subset of the incidents is used as behavioural anchors for each dimension  extremely complex system, and there are 6-7 critical factors or behavior anchors they will compare against  Ex: co-op evaluation form is a BARS  Advantages:  More accurate  Clearer standards – specific definitions linked to incidents in the work place  Assists feedback  Independent dimensions – recognize individuals  Consistency  Disadvantages:  Time consuming and expensive o management by objectives  Managed against the objectives of  set the organization’s goals  set departmental goals  discuss departmental goals  define expected results (individual goals)  performance reviews: measure the results  provide feedback  Disadvantages:  Unclear how management goals tie to personal goals, department goals, organization goals  Time consuming  Manager needs to know organization goals, what the department goals are, how individual jobs contribute to goals of department, take person’s personal goals and link them to the job, department and organization  Unclear and unmeasured o computerized and web based performance appraisal  enables managers to keep computerized notes on employees, combine these with ratings on several performance traits, and then generate written text to support each part of the appraisal  most web-based performance management systems provide advanced reporting capabilitie
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