MHR9 e PPT10 Class

MANAGING HUMAN RESOURCES
Chapter 10
Measuring Performance
and Providing Feedback
RU-HRS 1 Schuler
Copyright © 2005 Thomson Business & Professional Publishing. PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama
Learning
Learning Objectives
Objectives
By the time we finish discussing and you finish
studying this chapter, you should
• Know the importance of measuring performance and
providing feedback
• Know the integrated system of performance
management
• Know the roles of the HR TRIAD in performance
management
• Know what to measure, when and how
• Know who can provide useful information
• Know the process of providing feedback
Copyright © 2005 Thomson Business & Professional Publishing. All rights reserved. 10–2
Key
Key Words
Words
• Performance appraisal
• Performance management system
• Performance measurement
• Feedback
• Personal traits
• Behaviors
• Objective results
• Performance appraisal formats
Terminology
Terminology
• Performance Management System:
!A formal, structured process used to measure,
evaluate, and influence employees’ job-related
attitudes, behaviors, and performance results.
• Performance measurement and feedback for individuals
and teams, which are the
• The rewards component of total compensation
• Performance appraisal
!Evaluating performance based on the judgments
and opinions of subordinates, peers, supervisors,
other managers and even the employees
themselves.
The
The Importance
Importance of
of Measuring
Measuring
Performance
Performance and
and Providing
Providing Feedback
Feedback
• Today’s competitive environment does not
accept the status quo—it mandates
improvement.
!Enhancing Motivation and Productivity
• Monitoring performance and providing feedback to
individuals, teams and the organization
!Components of Motivation
• Decisions about which behaviors to engage in
• Decisions about how much effort to expend are a second
element.
Enhancing
Enhancing Motivation
Motivation and
and Productivity
Productivity
• Expectancy Theory • Expectancy
! People chose their ! If I make an effort, will I be
behaviors and effort able to perform?
levels. • Instrumentality
! Choices are based on ! What consequences will
workers’ beliefs that follow from my
behaviors and efforts performance?
will lead to desired
• Valence
consequences.
! How much do I value
the consequences?
• Satisfaction
! Will I think the rewards
received are fair?
AAModel
Modelfor
forUnderstanding
UnderstandingEmployee
EmployeeMotivation
Motivationand
and
Performance
Performance
EX 10.2
The
The Importance
Importance of
of Measuring
Measuring
Performance
Performance and
and Providing
Providing Feedback
Feedback
(cont’d)
(cont’d)
• Strategic Planning and Change

!Detecting problems
!Evaluating change
• Ensuring Legal Compliance
!Performance measures must be
nondiscriminatory, job-related, and used fairly.
Performance
Performance
Management
Management
within
withinan
an
Integrated
Integrated
HRM
HRMSystem
System
EX 10.1
The
TheHRHRTriad:
Triad:
Roles
Rolesand
and
Responsibilities
Responsibilities
for
forMeasuring
Measuring
Performance
Performanceandand
Providing
Providing
Feedback
Feedback
What
What to
to Measure
Measure
• Performance Criteria
!The dimensions against which the performance of
an incumbent, a team, or a work unit is evaluated.
• Organizational Citizenship
!May want to include in evaluation as part of
overall performance:
• Volunteering for tasks not formally part of the job
• Helping others
• Following organizational rules and procedures even
when inconvenient
• Endorsing, supporting, and defending organizational
objectives
What
What to
to Measure
Measure (cont’d)
(cont’d)
• Personal Traits
!Criteria that focus on personal characteristics
such as “loyalty” and “dependability”
!Not reliable and difficult to defend as measurable
performance criteria
• Behaviors
!Focus on how work is performed
!Easier to observe and defend than traits
• “Has not been late to work during past 6 months.”
!Customer service
!Managing diversity
What
What to
to Measure
Measure (cont’d)
(cont’d)
• Objective Results
!Focus on what was accomplished or produced
!May miss critical aspects of job that are difficult to
quantify
!For example: number of traffic tickets written.
• Multiple Criteria
!Performance appraisal should capture all aspects
of the job
• Weighting the Criteria
!Adding values to specific criteria based on their
importance relative to other criteria
Validity
Validity of
of Performance
Performance Criteria
Criteria
• Issues of Reliability and Validity
!Criteria are deficient if relevant aspects of job are
not covered.
!Criteria are contaminated if evaluation includes
irrelevant factors.
• When multiple criteria are used, they can be
weighted based on:
!Job analysis
!Statistical procedures
Timing
Timing of
of Evaluations
Evaluations
• Focal-Point Approach
!All employees evaluated at the same time
• Easier to standardize across employees
• May create burdensome workload on managers
• May create artificial performance cycles
• Anniversary Model
!On employee’s anniversary with the organization
• Does not tie individual performance to overall
organizational performance
• Ratings earlier in year may be more lenient
• Difficult make comparisons to other employees
Timing
Timing of
of Evaluations
Evaluations (cont’d)
(cont’d)
• Natural Time Span of the Job
!Ensures that feedback is given when it can be
most useful.
!Not suited for short-cycle simple jobs.
• Possible Time Spans:
!For teams: feedback on progress
at the mid-point of a project and
again at project completion
to assess goal achievements.
Participants
Participants in
in Performance
Performance
Measurement
Measurement and and Feedback
Feedback
Supervisors
Electronic Self-
Monitoring Appraisal
Appraisal Appraisal
of
of
Employee
Employee
Customers Peers
Subordinates
Performance
Performance Appraisal
Appraisal Formats
Formats
Norm- !Straight ranking

Referenced !Forced distribution
! Graphic rating scales

Absolute
! Behaviorally-anchored rating scales
Standards
! Behavioral observation scales
Output-Based !Direct index

Formats !Management by objectives (MBO)
Performance
Performance Appraisal
Appraisal Formats
Formats
Forced Distribution
Graphic Rating Scale

Quantity of Work
X
1(Low) 2 3 4 5 6 7 (High)
Sample
Sample Graphic
Graphic Rating
Rating Scales
Scales for
for Work
Work
Quantity
Quantity
EX 10.5
Sample
Sample Graphic
Graphic Rating
Rating Scales
Scales for
for Work
Work
Quantity
Quantity
EX 10.5 cont’d
Sample
SampleBehaviorally
BehaviorallyAnchored
AnchoredRating
RatingScale
Scalefor
forOne
OneDimension
Dimension
of
ofthe
theWork
WorkPerformance
PerformanceofofCorporate
CorporateLoan
LoanAssistant
Assistant
EX 10.6
Sample
SampleBehavioral
Behavioral
Observation
ObservationScale
ScaleItems
Itemsfor
foraa
Maintenance
MaintenanceMechanic
Mechanic
EX 10.7
Common
Common Rating
Rating Errors
Errors
• Halo/Horn
! Overly focusing on specific performance ratings
or stereotyping employee by a single personal
characteristic.
• Leniency
! Rating all employees higher than they should be.
• Strictness
! Rating all employees lower that they should be.
• Central Tendency
! Rating all employees as average when individual
employee performance actually varies.
Common
Common Rating
Rating Errors
Errors
• Primacy
! Using initial information that supports the rating
decision while ignoring later information does
not.
• Recency
! Basing the rating decision primarily on the most
recent performance information while placing
much less emphasis on past performance.
• Contrast Effects
! Comparing one employee to another rather than
applying a common standard to all employees
Improving
Improving Rater
Rater Accuracy
Accuracy
• Rating Scale Format
!Each dimension addresses a single job activity
!Each performance dimension rated separately;
scores summed to determine overall rating
!Ambiguous terms (e.g. “average”) should not to
be used.
Improving
Improving Rater
Rater Accuracy
Accuracy
• Reward Accurate and Timely Appraisals
!Salary increases, promotions, assignments to key
positions can be partly based on performance as
a rater.
• Use Multiple Raters
!To increase evaluation accuracy by diffusing
responsibility for negative results.
!To increase employee acceptance of evaluation
results
!Allows for group discussion which can help
alleviate individual rater biases
Providing
Providing Feedback
Feedback
• Sources of Conflict Associated with Providing
Performance Feedback:
!Differing Perspectives
!Timing
!Preparation
!Content of the Discussion
!Follow-Up
!When Nothing Else Works
Providing
Providing Feedback
Feedback (cont’d)
(cont’d)
• Content of the Discussion: the Problem-Solving
Approach
!Diagnosis: seek to understand the factors that
affect performance.
!Roadblocks: seek agreement with the employee
on an action plan to address issues such as:
• Lack of resources
• Need for additional information and training
• Improving ongoing communications and feedback
!Mutual goal setting: employee participation
increases employee acceptance of goals.
Providing
Providing Feedback
Feedback (cont’d)
(cont’d)
• Diagnosing the Causes of Performance
Deficiencies
!Does the employee have the competencies and
the interest to perform as desired?
!Has have specific, difficult but attainable goals
been communicated?
!Is the employee certain about desired
performance, the consequences
of performance, his/her power
(level of authority)?
Sample
SampleChecklist
Checklistfor
forDiagnosing
Diagnosingthe
theCauses
Causesof
ofPerformance
Performance
EX 10.11
Follow-Up
Follow-Up to
to the
the Feedback
Feedback Session
Session
• Positive Reinforcement
!Use of positive rewards to increase occurrence of
desired performance
!Principles:
• People perform in ways that they find most rewarding
• By providing proper rewards, it is possible to improve
performance
• Punishment
!Decreases frequency of undesired behavior
!Gets immediate results and has vicarious power
!Can have undesirable side effects—employee
anger and contingent bad behavior
When
When Nothing
Nothing Else
Else Works
Works
• Transfer
!When employee and job are not well matched
• Neutralize
!Assign noncritical tasks to minimize the impact of
deficiencies
• Terminate
!For dishonesty, habitual absenteeism, substance
abuse, insubordination, and low productivity that
can’t be corrected
TERMS
TERMS TO
TO REMEMBER
REMEMBER
Anniversary approach Management by Objectives (MBOs)

Behavioral criteria Motivation
Behaviorally anchored rating scales Norm-referenced format
(BARS)
Performance appraisal
Behavioral observation scales (BOS)
Performance management system
Contaminated
Positive reinforcement
Criteria
Punishment
Deficient
Results criteria
Direct index approach
Self-appraisal
Expectancy
Straight ranking
Expectancy theory
360-degree appraisals
Focal-point approach
Trait-based criteria
Forced distribution method
Upward appraisal
Instrumentality
Valence
Learning
Learning Objectives
Objectives (Review)
(Review)
By the time we finish discussing and you
finish studying this chapter, you should
• Know the importance of measuring
performance and providing feedback
• Know the integrated system of performance
management
• Know the roles of the HR TRIAD in
performance management
• Know what to measure, when and how
• Know who can provide useful information
• Know the process of providing feedback

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MANAGING HUMAN RESOURCES

• Strategic Planning and Change

Norm- !Straight ranking

! Graphic rating scales

Output-Based !Direct index

Graphic Rating Scale

Anniversary approach Management by Objectives (MBOs)

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