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Chapter 15

Chapter 15 Notes


Department
Human Resources
Course Code
MHR 505
Professor
Frank Miller
Chapter
15

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Chapter Fifteen Performance Management, Feedback, and Rewards
To keep employees motivated and performing to their potential, supervisors need to
know how to manage performance, give feedback, and reward effectively
Measuring Performance
Relative and Absolute Measurement Methods
When approaching the challenge of measuring human performance, one has to
decide whether to compare people to each other or to a common standard
Relative Measurement Methods
The most common type of relative judgment methods is called forced rankings
used when measures are required to decide on how to distribute a limited salary on
budget or bonuses
Companies also use force rankings because they think it will help them screen out
poor performers in a layoff situation
Claim that forced ranking is the best way to identify high-potential employees who
should be given training, promotion, and financial incentives
It is a vital tool to identify the bottom performers who should be helped up or out
Forced ranking is controversial because stereotypes about older workers might come
into play
Typically youll see forced ranking when upper management feel the need to get
tough
Absolute Measurement Methods
Absolute methods compare all employees doing a certain job to a set of
predetermined factors
These factors fall into three categories:
1.Traits dependability, leadership or initiative; raters are often seen as
unfair if they give low ratings because trait descriptions tend to be vague and
full of assumptions
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2.Behaviours (learning goals maintaining eye contact or approaching a
customer; the person being rated will perceive more fairness and the feedback
can help the person improve on the job
3.Results (outcome goals) provide clear direction as to desired end or
outcome
It is generally believed that a combination of behavioural and outcome-orientated
measures work best
Giving Effective Performance Feedback
Feedback any information that people receive about their behaviour or
performance, its effect on others, or how it compares to a standard or expectation
Verbal feedback sessions are among the more stressful events for supervisors and
employees
Typical responses to negative feedback include shifting responsibility for the
shortcoming or behaviour, denying it outright, or providing a wide range of excuses
for it
Characteristics of Effective Feedback
Clear and accurate performance feedback helps to identify the employees
developmental needs, to make promotion and reward decisions, to make demotion
and termination decisions, and to develop information about the organizations
selection and placement decisions
Three characteristics of effective feedback:
1.Feedback is most effective when it is specific rather than general; own your
feelings by making I statements and describe your own emotional response
to the persons behaviour with words for actual feelings
2.Feedback is more effective when it is non-personal and focused on the
problem or behaviour rather than on personality traits; avoid mentioning
intrinsic or personality based attributes like lazy’ or rude
3.Feedback should be given regularly and promptly (immediately after the
event whenever possible); constructive criticism is a part of life, but is far
better received where there is regular communication between manager and
employees
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The Multi-Source (360-Degree) Feedback Technique
While the actual measure and standards designed for use in appraisals are critical to
the success of the process, it also helps to have multiple evaluators contribute to the
final appraisal, rather than rely on the persons supervisor alone
It is important that the person being assessed conduct self-assessment using the
same measures; this encourages the person being evaluated to reflect on his or her
own strengths or weaknesses and to compare the self-assessment with the
assessments of others
Multi-source (360-degree) feedback structured feedback is received from ones
supervisor, subordinates, peers, and customers
Managing Performance
In order to effectively manage an employees performance, managers need to
understand and be able to identify and correct performance problems, coach their
employees to help them improve, as well as sometimes counsel and mentor them
Correcting Poor Performance
When performance does not meet the standard, managers need to explore the causes
of poor performance
Poor performance may result from a variety of causes such as poorly designed work
systems, poor selection processes, poor supervision, lack of clarity regarding
expectations, inadequate training, and personal problems intruding on the work
environment
Carefully identifying the causes of poor performance should come first and should be
done in communication with the employee
If the problem is with the system and the supervisor can fix it, than everyone wins
If the poor performance is not attributable to the work design or organizational
process problems, then attention should be focused on the employee
It is important to consider the human tendency to make the fundamental
attribution error (FAE) the tendency to make attributions to internal rather
than external causes when focusing on someone elses behaviour
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