human resource management: gaining a competitive advantage chapter 08 performance management...
TRANSCRIPT
Human Resource Management:
Gaining a Competitive Advantage
Chapter 08Performance Management
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Process of Performance Management
8-2
5 Criteria- Performance Measures
8-3
Measuring Performance
Comparative approach- compares performance with others.
Ranking Simple ranking ranks employees from highest to
lowest performer. Alternation ranking - crossing off the best and worst
employees.
Forced distribution- employees ranked in groups.
Paired comparison- managers compare every employee with every other employee in work group.
8-4
Behavioral Approach
Critical incidents approach - requires managers to keep record of specific examples of effective and ineffective performance.
Behaviorally anchored rating scales (BARS)
Behavioral observation scales (BOS)
Organizational behavior modification - formal system of behavioral feedback and reinforcement.
Assessment centers - multiple raters evaluate employees’ performance on a number of exercises.
8-5
Results Approach
Management by Objectives top management passes down company’s
strategic goals to managers to define goals.
Productivity Measurement and Evaluation System (ProMES) goal is to motivate employees to
higher levels of productivity.
Goals
Hierarchy
8-6
Competency Model
Competencies are sets of skills, knowledge, abilities and personal characteristics that enable employees to successfully perform their jobs.
A competency model identifies competencies necessary for each model and provides descriptions common for an entire occupation, organization, job family or specific job.
Also useful for recruiting, selection, training and development.
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Balanced Scorecard Approach-
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5 Performance Information Sources
P Info S
8-9
Reducing Rater Errors and Politics
Approaches to Reducing Rater Error: Rater error training Rater accuracy training
Calibration Meetings- attended by managers to discuss employee performance ratings.
8-10
3 Ways Technology Influences PMS
8-11
Typical Rater Errors
1. Similar to Me
2. Contrast
3. Leniency
4. Strictness
5. Central Tendency
6. Halo
7. HornsAppraisal Politics- evaluations distort ratings to achieve goals.
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Ways to Manage Performance
Solid performers- High ability and motivation; provide development
Misdirected effort- Lack of ability but high motivation; focus on training
Under-utilizers- High ability but lack motivation; focus on interpersonal abilities
Deadwood- Low ability and motivation; managerial action, outplacement, demotion, firing.
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Withstand Legal Scrutiny
1. Conduct a valid job analysis related to performance.
2. Base system on specific behaviors or results.
3. Train raters to use system correctly.
4. Review performance ratings and allow for employee appeal.
5. Provide guidance/support for poor performers.
6. Use multiple raters.
7. Document performance evaluations.
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Summary
Measuring and managing performance are key to gaining competitive edge.
Performance management systems (PMS) serve strategic, administrative and developmental purposes.
PMS should be evaluated against criteria of strategic congruence, validity, reliability, acceptability and specificity.
Effective managers need to be aware of the issues involved in determining best methods. feed performance information back to employees take action based on causes for poor performance: ability,
motivation or both. be sure that PMS can meet legal scrutiny
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