MGT 303 Ch 8 - CHAPTER 8 PERFORMANCE MANAGEMENT The Practice of Performance Management o Performance management The means through which managers

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CHAPTER 8 : PERFORMANCE MANAGEMENT The Practice of Performance Management o Performance management : The means through which managers ensure that employees’ activities and outputs are congruent with the organization’s goals o Performance appraisal : The process through which an organization gets info on how well an employee is doing his or her job o Performance feedback : The process of providing employees info regarding their performance effectiveness An Organizational Model of Performance Management o Performance Planning and Evaluation (PPE) System : Any system that seeks to tie the formal performance appraisal process to the company’s strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy Purposes of Performance Management o Strategic Purpose Performance management system should link employee activities with the organization’s goals Critical for companies to execute their talent management strategy Identify employees’ strengths and weaknesses, like employees to appropriate training and development activity, and reward good performance o Administrative Purpose Use in salary administration (pay raises), promotions, retention- termination, layoffs, recognition of individual performance o Development Purpose Develop employees that are effective at their jobs Performance Measures Criteria o Strategic Congruence : The extent to which the performance management system elicits job performance that is consistent with the organization’s strategy, goals, and culture Example: if company emphasizes customer service, performance management system should assess how well its employees are serving the customers o Validity : Extent to which a performance measure assesses all the relevant –and only relevant –aspects of job performance o Reliability : Consistency of a performance measure Interrater reliability: consistency among individuals who evaluate the employee’s performance o Acceptability : Extent to which a performance measure is deemed to be satisfactory or adequate by those who use it o Specificity : Extent to which a performance measure gives detailed guidance about what is expected and how they can reach expectations Approaches to Measuring Performance
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o The Comparative
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This note was uploaded on 03/23/2012 for the course MGT 303 taught by Professor Waugh during the Fall '11 term at Miami University.

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MGT 303 Ch 8 - CHAPTER 8 PERFORMANCE MANAGEMENT The Practice of Performance Management o Performance management The means through which managers

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