Human resource management gaining a competitive advantage 2014 chapter 8

5 Criteria of Performance
Measures

8-1


Measuring Performance
 Comparative approach compares performance
with that of others.

 Ranking
 Simple ranking ranks employees from highest to lowest performer.
 Alternation ranking is crossing off the best and worst employees.

 Forced distribution is employees ranked in groups.
 Paired comparison
 Managers compare every employee with every other employee in
work group.

8-2


Attribute Approach
 Graphic rating scales
 list of traits evaluated by 5-point rating scale.
 legally questionable.
 Mixed-standard scales
 define relevant performance dimensions
 develop statements representing good, average, and poor
performance along each dimension.

8-3


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 is a formal
system of behavioral feedback and reinforcement.

 Assessment centers are multiple raters who evaluate
employees’ performance on a number of exercises.

8-4


Results Approach
Goals

 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.

Hierarchy

8-5


5 Performance Information
Sources

8-6


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.

8-7


Typical Rater Errors
1.

Similar to Me

2.

Contrast

3.

Leniency

4.

Strictness

5.

Central Tendency

6.

Halo

7.

Horns

Appraisal Politics- evaluations distort ratings to achieve goals.
8-8


Improve Performance
Feedback
1. Give feedback frequently, not once a year.

2. Create right context for discussion.
3. Ask employees to rate performance before the session.
4. Encourage employee to participate.
5. Recognize effective performance through praise.
6. Focus on solving problems.
7. Focus feedback on behavior or results, not on the person.
8. Minimize criticism.
9. Agree to specific goals and set progress review date.

8-9


8-10


Ways to Manage Performance
 Solid performers
 High ability and motivation; provide development

 Misdirected effort
 Lack of ability but high motivation; focus on training

 Underutilizers
 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

8-13