chapter 20 performance management. explain the importance of performance feedback describe the...

Chapter 20

Performance Management

Explain the importance of performance feedback

Describe the process of performance appraisal

Identify the components of effective appraisals

Demonstrate the skills required for a good appraisal

Objectives

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

20 -1

Describe 360-degree feedbackExplain the opposition to appraisal

systemsDistinguish between effective and

ineffective feedback

…Objectives


20 -2

Performance Management System - Defined

A performance management system is a

process of establishing performance

standards and evaluating performance to

ensure that goals are being effectively

accomplished


20 -3

The Balanced Scorecard

Customer perspective – How do customers see the organization?

Internal business perspective – What must the organization excel at in order to succeed?

Innovation and learning perspective – How can the organization continue to improve and create value?

Financial perspective – How does the organization look to shareholders?


20 -4

Basics of Performance Management

Develop rigorous systems that differentiate between three groups of employees

Create conditions that foster goal accomplishment

Establish a culture of accountability


20 -5

Function Of Performance Feedback

Contributes to self-conceptReduces uncertainty about whether

employee is on trackSignals which organizational goals are

most importantHelps people master their environment

and feel competent


20 -6

Manager’s Role?

Not a judge, but a coach

Not “gotcha” but “How can I help you do better and achieve your goals?”

Managers’ attitude toward appraisal and their skill in appraising and giving

feedback are crucial


20 -7

Basic Objectives of Performance Appraisal Systems

Provide employees with feedbackProvide management with data for

personnel decisionsRecognize skill acquisition and identify

skill deficits for further training and development

Motivate employees to be more effectiveComply with equal opportunity regulations

and ensure fairness


20 -8

The Appraisal Process

Review legal requirements Translate organizational goals into job

descriptions Set clear job expectations Provide job training or coaching to meet

expectations Supply adequate supervision Acknowledge accomplishments, diagnose

strengths and weaknesses in interview Establish performance goals and development

plan


20 -9

Bias and Appraisals

Incorrect attributions can bias appraisalsPotential for bias is reduced when:

Employees make their work visible to the appraiser

Appraisers and appraisees together clarify objectives and task responsibilities

Appraisers use behaviorally-based appraisal scales


20 -10

Does Performance Appraisal Work?

Feedback generally improves performance, but it can also diminish performance

Appraisals used for developmental rather than administrative reasons (e.g., promotions, bonuses) are more likely to produce positive reactions

Meta-analysis results


20 -11

For Team AppraisalsDetermine KSAs required for team’s task

and process-oriented skillsIdentify who should be involved in the

appraisalUse both individual and team performance

measuresAddress social loafingEnsure peers are trained in performance

appraisal


20 -12

Multirater/Multisource Feedback - Defined

Multirater or multisource feedback, such as

360-degree feedback, incorporates

feedback from various sources, such as:

superiors, peers, subordinates, suppliers,

and customers


20 -13

360-Degree Multirater Feedback

Employee

Manufacturers’ & Customers’ ratings

Suppliers’ ratings

Employee’s self-rating

Superiors’ ratings

Other Team Members’ Ratings

Subordinates’ ratings


20 -14

For Effective 360-Feedback

Ratees are held accountable for using the feedback

Raters are held accountable for the accuracy or usefulness of their feedback

Management provides resources to support the ratee’s behavioral change


20 -15

Eliminate Performance AppraisalDeming’s criticisms of appraisals: Usually lack objectivity Ignore factors outside the employee’s control Encourage individual rather than team focus Promote short-sightedness and short-term focus Encourage employee to see boss as their

“customer” rather than the real customer, which can result in fear, rivalry, and politics

The TQM solution: recognize outstanding performers and coach poor performers; teamscontinuously gather data on own performance


20 -16

Forced Distribution Systems - Defined

In forced distribution or forced ranking systems, managers have to rank all employees and fit them into a pre-determined distribution with only a certain percentage of employees allowed in each category


20 -17

Results of Forced Distribution Systems

Employee skepticismLower morale Less collaborationLower productivity


20 -18

Develop Strengths, Not Weaknesses

Focusing on Flaws Evokes negative

memories/emotionsCreates self-doubtLowers motivation,

energy, productivity and self-assurance

Focusing onStrengths is more productiveDiscover each

employee’s unique strengths

Capitalize on themWork around their

weaknesses

Marcus

Buckingham


20 -19

Ineffective Evaluative General Directed at personality

traits Imposed Delayed Prescribes ways to

improve Intended to punish Occurs when giver is

ready

Effective Vs. Ineffective Feedback

Effective Descriptive Specific, data-based Directed at controllable

behaviors Solicited Immediate Suggests ways to

improve Intended to help Occurs when receiver is

ready to listenOrganizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

20 -20

Steps in the Interview Process

Explain the format and purpose Discover employee opinions regarding

performance and career goals Provide supervisor’s appraisal Problem solve about performance if

necessary Plan for next period

Employee presents self-appraisal


20 -21

...Steps in the Interview Process Respond to employee self-appraisal and convey

feedback Ask about conditions or problems that hinder

performance Problem solve about what both could do to

improve employee performance Together set objectives and design plan for next

period Discuss long-term career goals and

development needs


20 -22

When Does Culture Matter in Performance Appraisal?

Different cultures have different perceptions

about the purpose of performance appraisal

and how it should be carried out


20 -23

Culture and Performance Appraisal

Harmony and face-saving In Eastern cultures, negative feedback is

likely to be interpreted as a loss of face and public humiliation

Power distance In low power-distance cultures, employees

are more willing to question superiors In high power-distance cultures, employees

are more fearful of disagreeing with their boss


20 -24

…Culture and Performance Appraisal

Uncertainty avoidance In cultures characterized by high

uncertainty avoidance, appraisal systems are more formalized with more detailed regulations and procedures


20 -25

…Culture and Performance Appraisal

Individualistic Cultures emphasize Individual achievement Individual incentive

schemes Formal appraisal

processes with feedback on performance

Merit-based hiring and promotion

Collectivist Cultures emphasize Group achievement Group incentive

schemes Informal appraisals Hire and fire based on

loyalty and seniority


20 -26

chapter 20 performance management. explain the importance of performance feedback describe the...

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