Chapter 8Learning Objectives

1. Identify the activities involved in performance management.

2. Discuss the purposes of performance management systems.

3. Define five criteria for measuring the effectiveness of a performance management system.

4. Compare the major methods for measuring performance.

Chapter 8

Learning Objectives (continued)

5. Describe major sources of performance information in terms of their advantages and disadvantages.

6. Define types of rating errors and explain how to minimize them.

7. Explain how to provide performance feedback effectively.

8. Summarize ways to produce improvement in unsatisfactory performance.

9. Discuss legal and ethical issues that affect performance management

Performance Appraisal

Purposes of Performance Management

• Strategic Purpose – how effective performance helps the organization achieve its business objectives.

• Administrative Purpose – how organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

• Developmental Purpose – how the system serves as a basis for developing employees’ knowledge and skills.

Stages of Performance Appraisal

Criteria for EffectivePerformance Management

Appraisal Methods

• Coaches provide feedback to their team just as managers provide feedback to their employees.• Feedback is important so that individuals know what they are doing well and what areas they may need to work on.

Feedback

Providing Performance Feedback

Types of Performance MeasurementRating Errors

Contrast errors:

Distributional errors:

Rater bias:

Improving Performance

Legal and Ethical Issues inPerformance Management

• Legal– Performance management processes are

often scrutinized in cases of discrimination or dismissal.

• Ethical– Employee monitoring via electronic devices

and computers may raise concerns over employee privacy.