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Performance Management 2 MANA 3320. Dr. Jeanne Michalski 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

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