09 Performance Management

1、Performance Management,Nancy Brown Johnson, 2002,Performance Management,Ensure that employees activities congruent with organizational goals Includes defining performance measuring performance feedback,What is Performance Appraisal,The ongoing process of evaluating and managing employee effectivenes

2、s,Why is it Difficult,Difficult to Conduct Correctly Personal Relationships Interfere May Rate Irrelevant Factors Appraisers not Trained Appraiser not Familiar with Job Appraiser not Familiar with Performance Subjective,What Managers Say,One Manager from DEC Suggested he would rather: “.Kick bricks

3、with his bare feet than do Performance Appraisals” Deming calls it one of the “Deadly Diseases of Management,Objectives of Appraisals,Strategic Developmental Administrative: Evaluation,Criteria for Judging Appraisal Effectiveness,Validity: Are we measuring what we want to measure? Reliability: consi

4、stency Acceptability: Do people accept it? Specificity: Guidance for improving performance Cost: Is the cost of the appraisal yielding increased performance results,a Times Mirror Higher Education Group, Inc., company, 1997,IRWIN,Job Performance Measure,Actual Job Performance,Deficiency,Contaminatio

5、n,Validity,Contamination & Deficiency,Performance Appraisal Criteria,Attributes: Traits Behaviors Results: Output Management by Objectives (MBO,TraitsCharacteristics of the Person: Dependable, Loyal,Subjective: Poor Inter-rater Reliability Vague: Unclear as to How These Traits Relate to Job Ineffect

6、ive: Does not Tell the Employee How to Improve Difficult to pay,Behaviors:Relates Job-Specific Tasks & Responsibilities,Relatively Objective Criteria Identifies Specific Behaviors for Effective Performance Provides Specific Feedback Informative: Conveys the Employers Expectations Diagnostic: Identif

7、ies Training and Development Needs,Output Measurable Performance:Production, Sales, Quantifiable Measures,Objective: If Measures Exist Unequal: May Have Unequal Inputs Ineffective: Does not Tell Employee How to Improve Exclusive: Tends of Focus on the Measurable Output Exclusively Easy to tie to pay

8、,Management by Objectives,Employee & Supervisor jointly set goals Employee and supervisor then review goal achievement at the end of the year Research show that if goals are difficult but achievable, motivation increases Difficult to tie to pay,Errors in Performance Appraisal,Leniency Central Tenden

9、cy Strictness Halo/Horns Effect Similar-to-Me Primacy and Recency,Organizational JusticeAffects Organizational Citizenship Behaviors,Distributive Justice: Satisfaction with the Outcomes Procedural Justice: Satisfaction with the Process Interactional Justice: Satisfaction with Interpersonal Relations

10、 During the Performance Appraisal Process,Appeals Process,Objectives: Gives the Employee a Voice Enhances Employees Organizational Commitment Legal Support for Appraisal Procedures Evidence that Existence of Appeals Process Leads to a Decline in Lawsuits,Why You May Want to Skip PAs,Legal liability

11、people dont tell the truth and then later get you in trouble in court. Time consuming they take a lot of time and many question the benefit. Dont need them for discipline Value what are you getting,Summary,Individual employee performance is just one determinant of organizational performance Focus on behaviors, not personality It is limited in its ability to measure performance differences which makes it difficult for compensation,Total Quality Management & PA,TQM Against PA Calls it one of the “Deadly Diseases of Management” Performance Variation Function of Systems