MHR 523 Chapter Notes - Chapter 10: Performance Appraisal, Central Tendency, Job Performance

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23 Jul 2016
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Chapter 10: Performance Management
The Strategic Importance of Performance Management
Performance Management: The process encompassing all activities related to
improving employee performance, productivity, and effectiveness
The Performance Management Process
The performance Management Process contains five steps:
1.Defining performance expectations and goals
2.Providing ongoing feedback and coaching
3.Conducting performance appraisal and evaluation discussions
4.Determining performance rewards / consequences
5.Conducting development and career opportunities discussions
Step 1: Defining Performance Expectations
Task Performance: An individuals direct contribution to their job related processes
Contextual Performance: An individuals indirect contribution to the organizational,
social, and psychological behaviours that contribute to organizational effectiveness
beyond those specified for the job
Step 2: Providing Ongoing Coaching and Feedback
-It is important to have open two way communication, and both the employee and the
manager need to check in frequently throughout the performance management process
to talk about progression toward goals
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 t\his or
her level of performance
Alteration 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
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Forced Distribution Method: Predetermined percentages of rates are placed in
various performance categories
Critical Incident Method: Keeping a record of uncommonly good or undesirable
examples of an employee’s work related behaviour and reviewing the list with the
employee at predetermined times
Behaviourally Anchored Rating Scales (BARS): An appraisal method that aims to
combine the benefits of narratives, critical incidents, and quantified scale with specific
narrative examples of good and bad performance
BARS may be time consuming but may also have important advantages:
1.A more accurate measure
2.Clearer standards
3.Feedback
4.Independent dimensions
5.Consistency
Management by Objectives: Involves setting specific measurable goals with each
employee and then periodically reviewing the progress made
-Using MBO has three potential problems; Setting unclear unmeasurable objectives,
MBO is time consuming, and setting objectives with an employee sometimes turns into
a tug of war so managers push for higher goals and employees push for lower ones
The Use of Technology in Performance Appraisals
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
Performance Appraisal Problems and Solutions
Validity and Reliability
-Appraisal systems must be based on performance criteria that are valid for the position
being rated and must be reliable, in that their application must produce consistent
ratings for the same performance
-Criteria must be (1) relevant to the job being appraised
(2) broad enough to cover all aspects of the job requirements
(3) specific
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