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Performance Management
Introduction
Performance ManagementProcess6. Provideconsequencesforperformanceresults3. Provide support & ongoingperformance discussions4. EvaluatePerformance1.Define performance outcomesfor company division and department2. Develop employeegoals, behavior & actionto achieve outcomes5. Identifyneededimprovements
3 Purposes of PerformanceManagement (PMS)StrategicDevelopmentalAdministrative
5 Criteria of Performance Measures
Measuring PerformanceComparative approach compares performance withothers.Ranking–Simple rankingranks employees fromhighest to lowest performer.–Alternation rankingcrosses off best andworst employees.Forced distribution ranks employees in groups.Paired comparison - managers compare everyemployee with every other employee in work group.
Attribute ApproachGraphic rating scales–list of traits evaluated by 5-point ratingscale.–legally questionable.Mixed-standard scales–define relevant performance dimensions–develop statements representing good,average, and poor performance along eachdimension.
Example of a Graphic RatingScalePerformanceRatingDimensions5 Distinguished4 Excellent3 Commendable2Adequate 1 PoorKnowledge54321Communication54321Judgment54321Managerial skill54321Quality performance54321Teamwork54321Interpersonal skills5432
Behavioral ApproachCritical incidents approach requires managers to keeprecord of specific examples of effective and ineffectiveperformance.Behaviorally anchored rating scales (BARS)Behavioral observation scales (BOS)Organizational behavior modification is a formal systemof behavioral feedback and reinforcement.Assessment centers are multiple raters who evaluateemployees’ performance on a number of exercises.
Competency ModelCompetencies are sets of skills, knowledge,abilities and personal characteristics thatenable employees to successfully performtheir jobs.A competency model identifies competenciesnecessary for each model and providesdescriptions common for an entireoccupation, organization, job family orspecific job, useful for recruiting, selection,training and development.
Results ApproachManagement by Objectives–top management passes down company’s strategic goals to managers to definegoals.Productivity Measurement andEvaluation System (ProMES)–goal is tomotivateemployees tohigher levels of productivity.GoalsHierarchy