Académique Documents
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CHAPTER 8
Managing Employees
Performance
McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved. 8-1
What Do I Need to Know?
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What Do I Need to Know? (continued)
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Introduction
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Test Your Knowledge
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Figure 8.1: Stages of the Performance
Management Process
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Purposes of Performance Management
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Employees Want More Feedback
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Criteria for Effective
Performance Management
Fit with strategy
Validity
Reliability
Acceptability
Specific feedback
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Figure 8.2: Contamination and Deficiency
of a Job Performance Measure
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Test Your Knowledge
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Methods for Measuring Performance
Comparative
Quality Attribute
METHOD
Results Behavior
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Table 8.1:
Basic Approaches to Performance
Measurement
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Measuring Performance:
Making Comparisons
Forced Paired
Simple Ranking
Distribution Comparison
Requires Assigns a Compares
managers to certain each employee
rank percentage of with each
employees in employees to other
their group each category employee to
from the in a set of establish
highest categories. rankings.
performer to
the poorest
performer.
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Measuring Performance:
Rating Individuals - Attributes
Graphic Rating Scale Mixed-Standard Scale
Lists traits and provides a Uses several statements
rating scale for each trait. describing each trait to
The employer uses the scale produce a final score for
to indicate the extent to that trait.
which an employee displays
each trait.
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Figure 8.3:
Example of a Graphic Rating Scale
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Figure 8.4:
Example of a
Mixed-Standard
Scale
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An employees performance measurement differs
from job to job. For example, a car dealers
performance is measured by the dollar amount of
sales, the number of new customers, and customer
satisfaction surveys.
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Measuring Performance:
Rating Individuals - Behaviors
Behaviorally Anchored Rating
Critical-Incident Method Scale (BARS)
Based on managers records
Rates behavior in terms of a
of specific examples of the
employee acting in ways that scale showing specific
are either effective or statements of behavior that
ineffective. describe different levels of
Employees receive feedback performance.
about what they do well and
what they do poorly and how
they are helping the
organization achieve its
goals.
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Figure 8.5:
Example of
Task- BARS
Rating
Dimension for
a Patrol Officer
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Measuring Performance:
Rating Individuals Behaviors (continued)
Behavioral Observation Scale Organizational Behavior
(BOS) Modification (OBM)
A variation of a BARS which A plan for managing the
uses all behaviors necessary behavior of employees
for effective performance to through a formal system of
rate performance at a task. feedback and
A BOS also asks the reinforcement.
manager to rate the
frequency with which the
employee has exhibited the
behavior during the rating
period.
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Figure 8.6: Example of a Behavioral
Observation Scale (BOS)
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Measuring Performance:
Measuring Results
Management by Objectives (MBO): people at
each level of the organization set goals in a
process that flows from top to bottom, so that
all levels are contributing to the organizations
overall goals.
These goals become the standards for
evaluating each employees performance.
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Table 8.2: Management by Objectives
Two Objectives for a Bank
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Test Your Knowledge
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Measuring Performance:
Measuring Quality
The principles of total quality management
(TQM), provide methods for performance
measurement and management.
With TQM, performance measurement
combines measurements of attributes and
results.
Subjective feedback
Statistical quality control
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Coaches provide feedback to their team just as
managers provide feedback to their employees.
Feedback is important so that individuals know
what they are doing well and what areas they may
need to work on.
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Sources of Performance Information
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Performance management is critical for
executing a talent management system and
involves one-on-one contact with managers to
ensure that proper training and development
are taking place.
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Types of Performance Measurement
Rating Errors
Contrast errors: the rater compares an
individual, not against an objective standard,
but against other employees.
Distributional errors: the rater tends to use
only one part of a rating scale.
Leniency: the reviewer rates everyone near the top
Strictness: the rater favors lower rankings
Central tendency: the rater puts everyone near the
middle of the scale
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Types of Performance Measurement
Rating Errors (continued)
Rater bias: raters often let their opinion of
one quality color their opinion of others.
Halo error: when the bias is in a favorable direction.
This can mistakenly tell employees they dont need to
improve in any area.
Horns error: when the bias involves negative ratings.
This can cause employees to feel frustrated and
defensive.
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Test Your Knowledge
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Political Behavior in Performance
Appraisals
Distorting a performance evaluation to
advance ones personal goals
A technique to minimize appraisal politics is a
calibration meeting:
Meeting at which managers discuss employee
performance ratings and provide evidence
supporting their ratings with the goal of
eliminating the influence of rating errors
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Giving Performance Feedback
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Giving Performance Feedback
(continued)
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Legal and Ethical Issues in
Performance Management
Legal
Performance management processes are often
scrutinized in cases of discrimination or dismissal.
Ethical
Employee monitoring via electronic devices and
computers may raise concerns over employee
privacy.
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Legal Requirements for
Performance Management
Lawsuits related to performance management
usually involve charges of:
Discrimination
Unjust dismissal
To protect against both kinds of lawsuits, it is
important to have a legally defensible
performance management system.
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Legal Requirements for
Performance Management (continued)
A legally defensible performance management
system includes:
Based on valid job analyses, with requirements for job
success clearly communicated to employees.
Performance measurement should evaluate behaviors or
results, rather than traits.
Multiple raters (including self-appraisals) should be used.
All performance ratings should be reviewed by upper-level
managers.
There should be an appeals mechanism for employees.
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Summary
Performance management is the process through
which managers ensure that employees activities
and outputs contribute to the organizations goals.
Organizations establish performance management
systems to meet three broad purposes:
Strategic purpose
Administrative purpose
Developmental purpose
Performance measures should fit with the
organizations strategy by supporting its goals and
culture.
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Summary (continued)
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Summary (continued)
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Summary (continued)
The performance feedback discussion should focus
on behavior and results rather than on personalities.
Managers must make sure that performance
management systems and decisions treat employees
equally, without regard to their race, sex, or other
protected status.
A system is more likely to be legally defensible if it is
based on behaviors and results, rather than on traits,
and if multiple raters evaluate each persons
performance.
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