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Chapter 10

Human Resources Management Chapter 10

5 Pages
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Department
Human Resources
Course Code
MHR 523
Professor
Kristyn Scott

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Chapter 10
THE STRATEGIC IMPORTANCE OF PERFORMANCE MANAGEMENT
-Performance management: the process encompassing all activities related to improving employee
performance, productivity, and effectiveness (directs work behaviour)
-includes: goal setting, pay for performance, training and development, career management and
disciplinary action
-performance appraisal process provides the foundation for performance management
THE PERFORMANCE MANAGEMENT PROCESS
1) Defining performance expectations
2) Providing ongoing feedback and coaching
3) Conducting performance appraisals and evaluation discussions
4) Determining performance rewards/consequences
5) Conducting development and career opportunities discussions
-problems that may occur: unsure of expectations; standards are irrelevant, subjective, unrealistic;
lenient/strict supervisors may differ in rating for performance appraisals; poor communications
STEP 1: DEFINING PERFORMANCE EXPECTATIONS
-employees require clarification of performance expectations and how they contriµ}}Pv]}v[
overall results
-measurable standards related to strategic objectives should be developed
-e.g. personal selling can be measured in dollars of sales
STEP 2: PROVIDING ONGOING COACHING AND FEEDBACK
-two-way communication between both employee and manager about progression towards goal
STEP 3: PERFORMANCE APPRAISAL AND EVALUATION DISCUSSION
FORMAL APPRAISAL METHODS
-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
-Alternation ranking method: ranking employees from best to worst on a particular trait
-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
-Forced distribution method: predetermined percentages of rates are placed in various performance
categories (similar to bell-curving for uni grades)
-Critical incident method: keeping a record of uncommonly good or undesirable examples of an
uo}Ç[Á}l-related behaviour and reviewing the list with the employee at predetermined times
www.notesolution.com
(usually used as a supplement for another ranking technique)
-Narrative formsÆ e.g. performance improvement plan
-Behaviourally anchored rating scales (BARS): 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 examples
-5 Steps of developing a BARS:
1) Generate critical incidentsÆ describe/illustrate effective or ineffective performance
2) Develop performance dimensionsÆ cluster the incidents and define each
3) Reallocate incidentsÆ another group given the clusters and critical incidents will try to
reassign each incident to the cluster they think best fits
4) Scale the incidentsÆrate behaviour in the incident
5) Develop the final instrument
-Disadvantages of BARSÆ time consuming
-Advantages of BARS Æ more accurate measure, clearer standards, feedback, independent
dimensions, consistency
-Management by objectives (MBO): involves setting specific measurable goals with each employee and
then periodically reviewing the progress made
-Six steps:
í^Z}Pv]}v[P}o
2) Set departmental goals
3) Discuss departmental goals
4) Define expected results
5) Performance reviews
6) Provide feedback
-problems to avoidÆ setting unclear, unmeasurable objectives; MBO is time consuming;
employer pushes for higher goals and employees pushes for lower ones
- Computerized and web-based performance appraisal
-leads to higher completion rates, clearer understanding of goals, advanced reporting
capabilities
-electronic performance monitoring (EPM): having supervisors electronically monitor the
amount of computerized data an employee is processing per day and thereby his or her performance
MIXING THE METHODSÆ most firms combine several appraisal techniques
PERFORMANCE APPRAISAL PROBLEMS AND SOLUTIONS
-Validity and reliability
-criteria: 1) relevant to the job being appraised, 2) broad enough to cover all aspects of the job
requirements, 3) Specific
-Rating scale problems
-unclear performance standards: appraisal scale that is too open to interpretation of traits and
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Description
Chapter 10 THE STRATEGIC IMPORTANCE OF PERFORMANCE MANAGEMENT -Performance management: the process encompassing all activities related to improving employee performance, productivity, and effectiveness (directs work behaviour) -includes: goal setting, pay for performance, training and development, career management and disciplinary action -performance appraisal process provides the foundation for performance management THE PERFORMANCE MANAGEMENT PROCESS 1) Defining performance expectations 2) Providing ongoing feedback and coaching 3) Conducting performance appraisals and evaluation discussions 4) Determining performance rewardsconsequences 5) Conducting development and career opportunities discussions -problems that may occur: unsure of expectations; standards are irrelevant, subjective, unrealistic; lenientstrict supervisors may differ in rating for performance appraisals; poor communications STEP 1: DEFINING PERFORMANCE EXPECTATIONS -employees require clarification of performance expectations and how they contri}}2L]]}L[Z overall results -measurable standards related to strategic objectives should be developed -e.g. personal selling can be measured in dollars of sales STEP 2: PROVIDING ONGOING COACHING AND FEEDBACK -two-way communication between both employee and manager about progression towards goal STEP 3: PERFORMANCE APPRAISAL AND EVALUATION DISCUSSION FORMAL APPRAISAL METHODS -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 -Alternation ranking method: ranking employees from best to worst on a particular trait -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 -Forced distribution method: predetermined percentages of rates are placed in various performance categories (similar to bell-curving for uni grades) -Critical incident method: keeping a record of uncommonly good or undesirable examples of an Ko}[Z}l-related behaviour and reviewing the list with the employee at predetermined times www.notesolution.com
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