Part III Assessment and Development of HR Standard Slide Sample Chapter Performance Management Chapter Employee Development Chapter 10 Employee Separation and Retention Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Chapter Performance Management Objectives Irwin/McGraw-Hill • Identify the major determinants of individual performance • Discuss the three general purposes of performance management • Identify the five criteria for effective performance management • Discuss the four approaches to performance • Choose the most effective performance measurement approach for a given situation • Discuss the advantages and disadvantages of the different sources of performance information • Choose the most effective sources for performance information fo any situation • Distinguish types of rating errors and explain how to minimize each in a performance evaluation • Identify characteristics of a performance measurement system that follows legal guidelines • Conduct an effective performance feedback session © The McGraw-Hill Companies, Inc., 2000 8-2 An Organizational Model of Performance Management Organizational Strategy Long & Short term goals and values Individual Individual Attributes Attributes (skills,abilities) (skills,abilities) Individual Behaviors Objective Results Situational Situational Constraints Constraints Culture Culture Economic Economic conditions conditions Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 WHY Measure Performance? 8-3 The purposes are: Strategic Administrative Developmental Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Performance Appraisal 8-4 Developmental Administrative PURPOSE: PURPOSE: Improve Performance Information for: pay increases promotions terminations BASISFOR FOR BASIS COMPARISON:: COMPARISON Absolute Standard Relative Standard APPRAISAL APPRAISAL TECHNIQUE:: TECHNIQUE Results - Oriented BARS Rating Scale ROLEOF OF ROLE MANAGER:: MANAGER Counselor Judge Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 8-5 Performance Measures Criteria •Strategic Congruence •Validity •Reliability •Acceptability •Specificity Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Job Performance Measure: Contamination, Validity and Deficiency 8-6 Actual Job Job Performance Performance Measure Contamination Irwin/McGraw-Hill Validity Deficiency © The McGraw-Hill Companies, Inc., 2000 Acceptability 8-7 Affected by Three Categories of Perceived Fairness Procedural Irwin/McGraw-Hill Interpersonal Outcome © The McGraw-Hill Companies, Inc., 2000 8-8 Performance Measurement Approaches Irwin/McGraw-Hill Comparative Comparative ranking ranking forced distribution forced distribution paired comparison paired comparison Attribute Attribute graphic rating scales graphic rating scales mixed standard scales mixed standard scales Behavioral Behavioral critical incidents critical incidents BARS, BOS, and OBM BARS, BOS, and OBM assessment centers assessment centers Results Results MBO MBO ProMES ProMES TheQuality QualityApproach Approach The © The McGraw-Hill Companies, Inc., 2000 8-9 Comparison of Approaches to Performance Measurement Strategic Congruence Validity Reliability Acceptability Specificity Comparative Attribute Behavioral Results TQM Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 8-10 Comparison of Approaches to Performance Measurement Approach Strategic Congruence Validity Reliability Acceptability Specificity poor Modest Modest high very low Attribute low low low high very low Behavioral good high high moderate very high Results very high high high high high TQM very high high high high high Comparative Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 8-11 WHO: Source for Performance Measures Supervisors Supervisors Peers Peers Subordinates Subordinates Self Self Customer Customer Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Errors in Performance Measurement 8-12 Rater Errors Irwin/McGraw-Hill Similar to me Contrast Distributional errors Halos / Horns © The McGraw-Hill Companies, Inc., 2000 Reducing Rater Error 8-13 Two Approaches: •Rater Error Training •Rater Accuracy Training Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Improving Performance Feedback 8-14 Givefeedback feedbackfrequently frequently Give Createthe theright rightcontext contextfor forthe thediscussion discussion Create Haveemployee employeedo doself-evaluation self-evaluationbefore beforesession session Have Encourageparticipation participationduring duringsession session Encourage Praiseeffective effectiveperformance performance Praise Focuson onsolving solvingproblems problems Focus Focusfeedback feedbackon onbehavior behavioror orresults results Focus Minimizecriticism criticism Minimize Setspecific specificgoals goalsand andaadate dateto toreview reviewprogress progress Set Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Managing the Performance of Marginal Employees 8-15 Solid Performers Misdirected Effort lack of ability but high motivation managers should provide skill development activities such as training Underutilizers high ability and motivation managers should provide development opportunities high ability but lack motivation managers need to consider actions that focus on interpersonal problems or incentives Deadwood Low ability and motivation managerial action, outplacement, demotion, firing Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Legal Requirements of Performance Management Systems 8-16 Conductaavalid valid job jobanalysis analysisrelated related to to Conduct performance performance Basesystem systemon onspecific specificbehaviors behaviorsor orresults results Base Trainraters ratersto to use use system systemcorrectly correctly Train Reviewperformance performance ratings ratingsand andallow allow for for Review employee appeal appeal employee Provide guidance guidance //support supportfor for poor poor Provide performers performers Usemultiple multipleraters raters Use Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 [...]... or incentives Deadwood Low ability and motivation managerial action, outplacement, demotion, firing Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Legal Requirements of Performance Management Systems 8-16 Conductaavalid valid job jobanalysis analysisrelated related to to Conduct performance performance Basesystem systemon onspecific specificbehaviors behaviorsor orresults... Training •Rater Accuracy Training Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Improving Performance Feedback 8-14 Givefeedback feedbackfrequently frequently Give Createthe theright rightcontext contextfor forthe thediscussion discussion Create Haveemployee employeedo doself-evaluation self-evaluationbefore beforesession session Have Encourageparticipation participationduring... Managing the Performance of Marginal Employees 8-15 Solid Performers Misdirected Effort lack of ability but high motivation managers should provide skill development activities such as training Underutilizers high ability and motivation managers should provide development opportunities high ability but lack motivation managers need to consider actions that focus on interpersonal... behaviorsor orresults results Base Trainraters ratersto to use use system systemcorrectly correctly Train Reviewperformance performance ratings ratingsand andallow allow for for Review employee appeal appeal employee Provide guidance guidance //support supportfor for poor poor Provide performers performers Usemultiple multipleraters raters Use Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 ... participationduring duringsession session Encourage Praiseeffective effectiveperformance performance Praise Focuson onsolving solvingproblems problems Focus Focusfeedback feedbackon onbehavior behavioror orresults results Focus Minimizecriticism criticism Minimize Setspecific specificgoals goalsand andaadate dateto toreview reviewprogress progress Set Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc.,... Performance Measures Supervisors Supervisors Peers Peers Subordinates Subordinates Self Self Customer Customer Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 Errors in Performance Measurement 8-12 Rater Errors Irwin/McGraw-Hill Similar to me Contrast Distributional errors Halos / Horns © The McGraw-Hill Companies, Inc., 2000 Reducing Rater Error 8-13 Two Approaches: •Rater...8-10 Comparison of Approaches to Performance Measurement Approach Strategic Congruence Validity Reliability Acceptability Specificity poor Modest Modest high very low Attribute low low low high very low Behavioral good high high moderate very high Results very high high high high high TQM very high high high high high Comparative Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2000 8-11