Lecture Human resource management: Gaining a competitive advantage (9/e) – Chapter 8: Performance management

Chapter 8 - Performance management. After reading this chapter, you should be able to: Identify the major determinants of effective performance management, discuss the three general purposes of performance management, identify the five criteria for effective performance management systems,...

Chapter Performance Management Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education Introduction 8­2 Performance Management Process 8­3 Criteria of Performance Measures 8­4 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, useful for recruiting, selection, training and development 8­5 Balanced Scorecard Approach 8­6 Typical Rater Errors Similar to Me Contrast Leniency Strictness Central Tendency Halo Horns 8­7 Improve Performance Feedback Give feedback frequently, not once a year Create right context for discussion Ask employees to rate performance before the session Encourage employee to participate Recognize effective performance through praise Focus on solving problems Focus feedback on behavior or results, not on the person Minimize criticism 8­8 Agree to specific goals and set progress review date Employee Characteristics 8­9 Withstand Legal Scrutiny Conduct a valid job analysis related to performance Base system on specific behaviors or results Train raters to use system correctly Review performance ratings and allow for employee appeal Provide guidance/support for poor performers Use multiple raters Document performance evaluations 8­10 Summary  Measuring and managing performance are key to gain 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 and legal scrutiny  feed performance information back to employees  take action based on causes for poor performance: ability, motivation or both 8­11 ... appeal Provide guidance/support for poor performers Use multiple raters Document performance evaluations 8­10 Summary  Measuring and managing performance are key to gain competitive edge  Performance. .. Performance management systems (PMS) serve strategic, administrative and developmental purposes  PMS should be evaluated against criteria of strategic congruence, validity, reliability, acceptability... Withstand Legal Scrutiny Conduct a valid job analysis related to performance Base system on specific behaviors or results Train raters to use system correctly Review performance ratings and allow