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Performance Management 2 MANA 3320. Dr. Jeanne Michalski [email protected] Performance Management. Methods used for performance evaluation. Conducting an effective performance appraisal interview. Appraisal Forms. “Least important elements of the appraisal process”

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Performance management 2 mana 3320

Performance Management 2MANA 3320

Dr. Jeanne Michalski

[email protected]

Performance management
Performance Management

  • Methods used for performance evaluation.

  • Conducting an effective performance appraisal interview.

Appraisal forms
Appraisal Forms

  • “Least important elements of the appraisal process”

  • Appraisal forms most often contain multiple styles

  • Approaches to Appraisal Forms

    • Trait

    • Behavior

    • Results / Outcomes

    • Global / Essay

Trait based appraisals
Trait-Based Appraisals

  • Characteristics that are enduring and general

    • e.g. “Leadership” “Communication” “Decisiveness”

  • Competency models vs. Trait-based appraisal

    • Are the characteristics really related to performance?

  • Potential Problems

    • Focus on person rather than performance

    • May be ambiguous or arbitrary

    • Poor feedback and goal setting

    • Poor reliability and validity

Behavior based appraisal
Behavior-Based Appraisal

  • Focus on specific behaviors with examples

    • Behavioral Frequency / Observation Scale (BOS)

    • Behaviorally Anchored Rating Scales (BARS)

  • Positives

    • More valid and reliable

    • Acceptable to employees

    • Better for development and improvement

Behavior based appraisal1
Behavior-Based Appraisal

Potential Problems

  • Difficult and expensive to develop

  • Needs to match jobs closely to be effective

  • Behaviors may be hard to develop and interpret

  • Emphasizes behaviors (at the expense of others?)

  • Focuses on behavior rather than results

  • May be no more reliable and valid than simple scale

    Process of developing the rating system is more important than the system itself.

Behavioral methods
Behavioral Methods

  • Behaviorally Anchored Rating Scale (BARS)

    • Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.

  • Behavior Observation Scale (BOS)

    • A performance appraisal that measures the frequency of observed behavior (critical incidents).

Bars for municipal fire companies
BARS For Municipal Fire Companies

FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.

Results methods
Results Methods

  • Productivity Measures

    • Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.

      • Criterion contamination

      • Focus on short-term results

  • Management by Objectives (MBO)

    • A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.

Results based appraisal
Results-Based Appraisal

Uses future results as performance targets

Challenge is setting goals and measures

  • Can the goals be quantified?

  • Unique goals for every individual

    Appraisal forms tend to be very simple

    Still need a rating scale

Results methods1
Results Methods

  • Advantages

    • Have less subjectivity bias

    • Are acceptable to employees and superiors

    • Link individual to organizational performance

    • Encourage mutual goal setting

    • Are good for reward and promotion decisions

  • Disadvantages

    • Are time-consuming to develop/use

    • May encourage short-term perspective

    • May use contaminated criteria

    • May use deficient criteria

Performance rating approaches
Performance Rating Approaches

  • Number of categories

    Example - 5 levels

    Consistently exceeds expectations, exceeds expectations, meets expectations, does not meet expectations, does not meet any expectations

    • Many supervisors believe they can differentiate however have a hard time explaining these distinctions in a way that employees in a way that employees can understand and accept.

Performance rating approaches1
Performance Rating Approaches

  • Number of categories

    • Can be controversial- experts don’t agree on what number of categories are correct

    • Some believe more categories - more accurately performance may be evaluated

    • On other hand too many categories makes hard to objectively differentiate performance at each of the levels.

    • Choice of words important - “no one wants to be average”

    • Do you have an even or odd number of categories

    • Trend is too fewer rating categories

Performance management cycle
Performance Management Cycle

  • Planning Performance for the Upcoming Period

    • Defining key results for each position (usually 5-8) that support the organization’s business strategy

    • Establishing performance standards against which key result areas will be measured

    • May assign a weight to each key result since all key results are NOT equal – adds complexity

Performance management cycle1
Performance Management Cycle

  • Coaching Performance and Giving Feedback Throughout the Period

    • Structured feedback like mid-period, quarterly, or monthly progress reviews

    • Informal feedback throughout the process

  • Rating Performance for the Just Completed Period

    • One of the most challenging aspects is the approach for rating employee performance

Managing ineffective performance
Managing Ineffective Performance

  • Possible Courses of Action

    • Provide training to increase skills and abilities

    • Transfer employee to another job or department

    • Attention of actions to motivate employee

    • Take disciplinary action

    • Discharge the employee

  • Cautions

    • All actions taken must be objective and fair.

Diagnosing performance problems
Diagnosing Performance Problems

What determines human performance in any situation?

Diagnosing performance problems1
Diagnosing Performance Problems

Performance = f (Ability, Motivation, Environment)


Technical Skills

Analytical Skills

Interpersonal Skills

Physical Limitations

Business Knowledge


Goals / Expectations

Career Motivation

Employee Conflict

Employee Satisfaction

Boredom / Frustration


Job Design

Equipment / Materials

Rules and Policies

Economic Conditions

Management Support