Chapter 11

Performance Management System

Prepared By:
Aashi Noor Muhammad
 What is Performance
1. Degree of accomplishment of the tasks that make up
an employee’s job.
2. Organizational performance comprises the
actual output or results of an organization as
measured against its intended outputs (or goals and
objectives). ... Specialists in many fields are
concerned with organizational performance
including strategic planners, operations, finance,
legal, and organizational development.

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 Definition And Uses
Process of Evaluating and communicating to an employee how
he or she is performing the job and establishing a plan for
improvement.

1-3 Copyright © 2006 Pearson Education Canada Inc.

 Role of the Human Resources Department in
Performance Management
Human resource department plays an important role in designing
and implementing performance appraisals. Infact, the HR team
acts as mediator between the functional heads or reviewing
authorities and the employee. It is the human resource team's
responsibility to ensure a smooth implementation of the appraisal
process.

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 Responsibilities of the Human Resource
Department in Performance Management

1. Design the performance management system and select

the methods and forms to be used for appraising
employees.

2. Train managers in conducting performance appraisal.

3. Maintain a reporting system to ensure that appraisal are

conducted on a timely basis.

4. Maintain performance appraisal records for individual

employees

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 Performance Appraisal Methods

1. Management by objectives(MBO)
2. Multi-rater assessment (or 360 degree feedback)
3. Graphic rating scale
4. Behaviorally Anchored Rating Scale(BARS)
5. Critical incident appraisal
6. Essay appraisal
7. Checklist
8. Forced choice rating
9. Ranking Methods
10.Work Standards

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 Potential Errors In Performance Appraisals
Scoring Errors
Scoring is inaccurate when the manager rates too many performance
objectives on one part of the rating scale -- high, middle or low --
without basing the ratings on concrete data or knowledge.

Recency
Focusing only on recent performance within the evaluation period is
a common error in performance evaluations. For example, a
manager should not consider only an employee's performance
within the last three months during an annual evaluation. The entire
period of employee performance must be evaluated.

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Potential Errors In Performance Appraisals
 Similarity Errors
Managers sometimes rate employees more favorably if the employees
consistently perform job functions in the same style or by using the same
process as they do. Instead, managers should focus on the outcome --
whether the employee was able to achieve the desired results in an
acceptable way.
 Contrast Errors
The error occurs when the manager rates one employee lower than the
other because the manager likes the other employee better. Giving ratings
based on an employee's likability, rather than her performance, qualifies
as job discrimination, which can lead to legal claims and other
complications.
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 Potential Errors In Performance Appraisals
Annual vs. Ongoing Reviews
Many managers conduct annual reviews instead of investing the time in ongoing
reviews. Annual reviews must cover 12 months of performance, while ongoing
reviews focus on smaller blocks of time. A manager conducting an annual
review can fail to address problematic issues.

Insufficient Listening
Not listening is a characteristic of poor interviewing skills -- one of the 10 most
common errors of performance appraisals/ Not only is the manager's job to
deliver feedback to an employee regarding performance, she should also listen.

Negative Approach
Sometimes managers begin a performance evaluation with a negative feedback..
Acting negative from the start can put the employee on the defensive

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 Potential Errors In Performance Appraisals

Positive Generalizations
An employee positive impression. This happens when a manager
rates other areas of an employee's performance highly based on
one thing the employee does well.

Negative Generalizations
Perhaps an employee ignores your advice and completes tasks her
own way -- often with poor results. An employee's unprofessional
behavior in one area can negatively influence unrelated areas
during a performance evaluation

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 Importance of Providing Effective Feedback
Without accurate feedback employees will not know what they need to improve
and the workplace suffers. How then, can we give accurate, candid feedback
without damaging work relationships or hurting those we are trying to help.

1. Ensure the employee understands the process of the appraisal

and criteria under evaluation
2. Continuous feedback ensures open communication and
awareness.
3. Fair procedures and communication can make up for negative
outcomes.
4. Giving the employee a voice, even when it will not change the
rating it will help with acceptance.
5. Ensure consistent standards are used to evaluate job relevant
behaviors
6. Remember you are working to improve employees and help UNI
put students first.
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 Developing Performance Improvement Plans

1. Where are we now?

2. Where do we want to be?
3. How does the employee get to the desired position?

1-12 Copyright © 2006 Pearson Education Canada Inc.