Chapter 8 notes (book + slides)

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3 Jan 2011
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CHAPTER 8: MANAGING PERFORMANCE
Performance Management: ensuring that the employee’s activities match the
organizations goals.
Performance Appraisal: measurements of specific areas of an employee’s performance
Purposes of performance management:
-1. Strategic Purpose
oLink behaviour of employee with organization’s goals
Identify when expectations are not being met
Take corrective measures
-2. Administrative Purpose
oHow organization uses system to provide information for day to day
decisions regarding:
Salary
Benefits
Recognition programs
Employee retention
Hiring
Layoffs
-3. Developmental Purpose
oBasis for improving competencies
Identify areas of improvement for all employees through feedback
Job performance:
-Task performance: Behaviours that contribute to the production of goods or
provision of services
-Citizenship performance: Behaviours that contribute to the organization’s goals
by positively influencing its social and psychological environment
-Counterproductive performance: Voluntary behaviours that harm the well-
being of the organization
Criteria for measuring Performance Management methods:
-Validity
odoes it measure what its intended to measure (see chart)
-Reliability
oInter-rater reliability: consistency of results among different testers
oTest Retake Reliability: consistence of results over time
-Fit with Strategy
oAim for behaviours aligned with company strategy
-Acceptability
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oPractical, not too time consuming
-Feedback
oCommunicate w employees what is expected and how they can meet those
expectations.
How to measure Performance:
Comparing Employees:
-Simple ranking
oDisadv: poor validity doesn’t define what exactly is effective /
ineffective about employees
-Forced distribution method
oAssigns ppl to categories
oEx: exceptional not acceptable
-Paired comparison method
oCompares each employee to each other so as to establish ranking
advantage: counteracts tendency to rate everyone favourably
disadvantage: often not linked to organizations goals
often subjective legal challenges
may hurt moral
Rating Employees:
-graphic rating scale
ouses scale to measure employees on a specific standard competencies
odisadv: subjective, low reliability
-mixed standard scale:
omanagement scores employees in terms of how they compare to each
statement
-critical incident method:
obased on managements records of specific events
omay be classified into
BARS (behaviourally anchored rating scales): scale showing
different statements of behaviour that describe different levels of
performance
BOS (Behavioural Observational Scale) : uses all behaviour
necessary for effective performance to rate performance of a task
- OBS (organizational behaviour modification) : plan for managing behaviour of
employees through a formal system of feedbacks and reinforcements
Management by Objectives: system in which ppl at each level of the organization set
goals in a process that flows from top to bottom so that employees at all levels are
contributing to the overall goals of the company.
360 Performance Appraisal: combines info from employees, managers, peers, direct
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Document Summary

Performance management: ensuring that the employee"s activities match the organizations goals. Performance appraisal: measurements of specific areas of an employee"s performance. Purposes of performance management: strategic purpose, link behaviour of employee with organization"s goals. take corrective measures: administrative purpose, how organization uses system to provide information for day to day decisions regarding, salary, benefits, recognition programs, employee retention, hiring, layoffs, developmental purpose, basis for improving competencies. Identify areas of improvement for all employees through feedback. Task performance: behaviours that contribute to the production of goods or provision of services. Citizenship performance: behaviours that contribute to the organization"s goals by positively influencing its social and psychological environment. Counterproductive performance: voluntary behaviours that harm the well- being of the organization. Validity: does it measure what its intended to measure (see chart) Reliability: inter-rater reliability: consistency of results among different testers, test retake reliability: consistence of results over time. Fit with strategy: aim for behaviours aligned with company strategy.

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