Performance

CHAPTER 7 Management
Today’s Class

u Define performance management and explain the five

steps in the performance management process.

u Describe the most commonly used performance

appraisal methods and the pros and cons of each

u Discuss the major problems inhibiting effective

performance appraisals
Performance Appraisals-Limitations

u A recent survey of 746 Human Resource Professional

Association members
u 11% - performance appraisals were not mandatory in
their organization
u 42% - no consequences for non-completion of
appraisals
u 65% - somewhat to very satisfied with information
obtained from performance reports
Performance Management

The process encompassing all activities related to

improving employee performance, productivity,
and effectiveness.

u includes goal setting, pay for performance,

training and development, career
management, and disciplinary action
Performance Management Process
Performance Appraisals

u Performance appraisals in Canada are legal

documents.
u should
be used for planning promotions, career
development, training and performance
improvement plans,
u butcan also be required in courts when
assessing wrongful termination cases.
Case Incident Application

u Read the case incident

u Develop your answers to questions 1 and 2 and be

prepared to present your answer
 Step 1: Defining Performance
Expectations

Task performance
u direct contribution to job-related processes

Contextual performance
u indirect contribution to the organization’s effectiveness,
beyond those specified for the job
Step 2: Providing Ongoing Coaching
and Feedback

u Performance improvement plan (PIP)

u PIP highlights expectations of

employer/employee, with timeline (often 30-90
days) required to bring performance to
acceptable levels
 Step 3: Performance Appraisal and
Evaluation Discussion
u Many formal appraisal methods to choose from
u Comparative
u Non-comparative
u Past performance
u Future performance

u Job-related
u Practical
u Clear performance standards
u Clear performance measures
Past Performance: Noncomparative

Graphic Rating
scale

• Oldest and most widely used method

• Lists most important traits related to job and
range of performance for each from high to
low
Working in groups develop a graphic rating scale for
the following by completing 3 steps:

u a retail sales associate

u a fast-food restaurant manager

1) Identify the main duties and responsibilities for each job.

2) Identify the 3 most important traits associated with these duties
and responsibilities (ie. Job knowledge; Punctuality;
Accuracy).
3) Identify a range of performance for each trait.
4) Develop your graphic rating scale for each of the 3 traits you
identified.
Past Performance: Noncomparative

BARS

• Descriptions of effective/ineffective
performance—examples placed along a
scale
• Job-related, practical, and standardized
 Past Performance: Comparative

Ranking • Employees ranked from best to

worst
method • Subject to halo and recency effects

Forced • Employees sorted into categories

• Usually a certain proportion must be
distributions put into each category
Future Performance Methods

u Management-by-Objectives Approach

u Employee and supervisor jointly establish

performance goals for the future
u Starts at organization level ð department ð individual

u Goals should be mutually agreed upon and

objectively measurable
Advantages/Disadvantages of Each
Method
 Appraisal Interviews

u Evaluationinterviews are performance

review sessions that give employees
feedback

u Theinterview should be a positive,

performance-improving dialogue
How to Conduct the Interview

1. Be direct and specific

u use objective work data

2. Do not get personal

u compare against standard

3. Encourage the person to talk

u use open-ended questions, listen

4. Develop an action plan

u agree on future steps
 Step 4: Determine Performance
Rewards/Consequences
u Provide performance awards: merit pay, extra
pay

u Important aspects used to determine the

appropriate reward/consequence:
u achievement of goals
u how the employee meets the defined
standards
Step 5: Career Development
Discussion

u Manager and employee discuss opportunities for

development

u Based on current job requirements or future

development

u Business needs must be balanced with the

employee’s preferences
Legal Aspects of Performance Appraisals

u A performance appraisal form is a legal document

u Raters must use only performance criteria that are relevant to
the job
u Avoid non-relevant criteria
u A reasonable time must be set for performance
improvement
u Well-documented performance shortcomings and use of
feedback interviews have been viewed favourably in court
and with arbitrators
Review of Concepts

u Performance management

u Five steps in the performance management process

u Performance appraisal methods – advantages and

disadvantages

u The performance appraisal interview

u Performance management and legal considerations