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UNIT 8 - Performance Management & Appraisals.docx

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Department
Administrative Studies
Course
ADMS 2600
Professor
Monica Belcourt
Semester
Fall

Description
ADMS 2600 October 31, 2013 UNIT 8 – PERFORMANCE MANAGEMENT & EMPLOYEE  APPRAISAL PROCESS Performance Management Systems  • Performance management: The process of creating a work environment in which people can perform to the best of their abilities o Ongoing performance feedback: Performance expectations should be given constantly o Steps in performance management process:  Step 1 – Goals set to align with higher level goals  Step 2 – Behavioural expectations and standards set and aligned with employee and organizational goals  Step 3 – Ongoing performance feedback provided during cycle  Step 4 – Performance appraised by manager  Step 5 – Formal review session conducted  Step 6 – HR decision making • Performance appraisal: A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success Appraisal Programs • Focal performance appraisal: all employees reviewed at the same time instead of hire anniversary date • Formal performance appraisal benefits o Administrative (compensation, job evaluation)  Provide performance feedback  Recognize individual performance  Improve communication  etc. o Developmental (evaluation, training, planning) ADMS 2600 October 31, 2013  Document personnel decisions  Determine promotions  Decide on layoffs  Etc. o Provides paper trail of evaluation  Ex: Performance appraisal justifies personnel actions  labour relations • Why appraisals fail? o Little discussion o Relationship between job description and criteria is unclear o Little to no benefit from effort spent on the process, only concerned with bad performance o Dislike face-to-face confrontation o Managers not adept at rating employees o Judgemental role o Once-a-year with little follow-up • Developing an effective appraisal program o Development of performance standards  Strategic relevance – individual standards directly relate to strategic goals  Criterion deficiency – standards capture all of an individual’s contributions. Ex: measuring only revenue which is one part of the job  Criterion contamination – performance capability is not reduced by external factors. Ex: sales rep in Toronto has better chance than in Regina  Reliability – standards are quantifiable, measurably, and stable • Some companies use calibration, process where managers meet to discuss performance of employees to ensure appraisals are in line with one another Who Should Appraise? • Self-appraisal: completed by employee prior to performance interview ADMS 2600 October 31, 2013 • Subordinate appraisal: appraisal of a superior by an employee, more for developmental purposes than administrative • Peer appraisal: done by fellow employees, on forms compiled into a single profile for use in a performance interview o Not common because: popularity contest, reluctant to give control, might foster retaliation, stereotypes • Team appraisal: based on total quality management concepts, that recognizes team accomplishment rather than individual performance • Customer appraisals: based on TQM concepts and seeks evaluation from internal and external customers • 360-degree appraisal: combination of various appraisal sources o Used by nearly all fortune-xxx companies. o Comprehensive, but complex and intimidating • Training appraisers o Common rater-errors  Error of central tendency • A rating error in which all employees are rated about average  Leniency/strictness errors • A rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings  Recency error
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