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Chapter 10

Chapter 10 - Performance Management

4 Pages
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Department
Human Resources
Course Code
MHR 523
Professor
Margaret Yap

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Chapter 10 Performance Management
The Strategic Importance of Performance Management
Performance management process encompassing all activities related to improving
performance, productivity, and effectiveness of employees. It includes goal setting,
pay for performance, training and development, career management, and
disciplinary action.
Performance appraisal process is the foundation of performance management
The Performance Management Process
Step 1 Defining Performance Expectations
Should be linked to current strategic goals and implementation plans
Job description is often not sufficient to clarify
Step 2 Providing ongoing coaching and feedback
Two-way communication is important
Employees are responsible for monitoring their own performance and asking for help
Step 3 Performance appraisal and evaluation discussion
Formal appraisal methods:
oGraphic rating scale simplest, most popular. It lists traits and range of
performance values. The supervisor rates employees by circling/checking
score.
oAlternation ranking method ranking employees from best to worst on a
particular trait
oPaired Comparison method for each trait, every employee is paired with and
compared with every other employee
oForced distribution method places predetermined percentage of rates in
performance categories. Not everyone can be excellent, performance is
relative to others.
oCritical incident method supervisor keeps log of desirable and undesirable
examples of each employees work related behavior. Meets every 6 months or
so to discuss. This method is a good supplement to other methods.
oNarrative forms pg. 274 for example
oBehaviorally anchored rating scales (BARs) aims to combine benefits of
narrative, critical incidents, and quantified ratings by anchoring a quantified
scale with specific narrative. Example: good and poor performance.
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Description
Chapter 10 – Performance Management The Strategic Importance of Performance Management Performance management – process encompassing all activities related to improving performance, productivity, and effectiveness of employees. It includes goal setting, pay for performance, training and development, career management, and disciplinary action. Performance appraisal process is the foundation of performance management The Performance Management Process Step 1 – Defining Performance Expectations Should be linked to current strategic goals and implementation plans Job description is often not sufficient to clarify Step 2 – Providing ongoing coaching and feedback Two-way communication is important Employees are responsible for monitoring their own performance and asking for help Step 3 – Performance appraisal and evaluation discussion Formal appraisal methods: o Graphic rating scale – simplest, most popular. It lists traits and range of performance values. The supervisor rates employees by circling/checking score. o Alternation ranking method – ranking employees from best to worst on a particular trait o Paired Comparison method – for each trait, every employee is paired with and compared with every other employee o Forced distribution method – places predetermined percentage of rates in performance categories. Not everyone can be excellent, performance is relative to others. o Critical incident method – supervisor keeps log of desirable and undesirable examples of each employee’s work related behavior. Meets every 6 months or so to discuss. This method is a good supplement to other methods. o Narrative forms – pg. 274 for example o Behaviorally anchored rating scales (BARs) – aims to combine benefits of narrative, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative. Example: good and poor performance. www.notesolution.com o Management by Objectives - Setting specific measurable goals with each employee and then periodically reviewing the progress made Process: • Set the organization’s goals • Set departmental goals • Discuss departmental goals • Define expected results • Performance reviews • Provide feedback Problems to avoid: • Setting unclear, immeasurable goals • Time consuming • Tug of war (manager pushing for higher goals, employees pushing for lower ones) Developing a BAR: 1. Generate critical incidents 2. Develop performance dimensions 3. Reall
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