Chapter 7

Implementing a
Performance
Management System
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 Overview
Preparation
Communication Plan
Appeals Process
Rater Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Online Implementation

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 Preparation
Need to gain system buy-in through:
Communication plan regarding
performance management system
Including appeals process

Training programs for raters

Pilot testing system

Ongoing monitoring and evaluation

to show benefits
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Communication Plan Answers:
What is Performance Management
(PM)?
How does PM fit into our strategy?
Whats in it for me?
How does it work?
What are our roles and
responsibilities?
How does PM relate to other
initiatives?
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 Cognitive Biases That Affect
Communications Effectiveness
Selective exposure
Selective perception
Selective retention

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To Minimize Effects of Cognitive
Biases:

A. Consider employees
Involve employees in system design

Show how employee needs are met

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To Minimize Effects of Cognitive
Biases (Continued):
B. Emphasize the positive
Use credible communicators

Strike firstcreate positive attitude

Provide facts and consequences

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To Minimize Effects of Cognitive
Biases (Continued):

C. Repeat, document, be consistent

Put it in writing
Use multiple channels of communication
Say it, and then say it again

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 Appeals Process
Promote employee buy-in to PM
system
Amicable/Nonretaliatory

Resolution of disagreements

Increases perception of the

systems fairness

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 Appeals Process
(continued)
Employees can question two types of
issues:
Judgmental
Validity of evaluation

Administrative
Whether policies and procedures were
followed

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Recommended Appeals Process
Level 1
HR reviews facts, policies, and
procedures
HR reports to supervisor/employee
HR attempts to negotiate a settlement
Level 2
Arbitrator (panel of peers and
managers) or
High-level managerfinal decision
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 Rater Training Programs
Content Areas to Include:
Information
Identifying, observing, recording, and evaluating
How to interact with employees

Choices of Training Programs to Implement

Rater Error Training
Frame of Reference Training
Behavioral Observation
Self-Leadership Training
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 Content
A. Informationhow the system
works
Reasons for implementing the
performance management system

Information
The appraisal form

System mechanics

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 Content
(continued)

B. Identifying, observing, recording,

and evaluating performance
How to identify and rank job activities

How to observe, record, and measure

performance

How to minimize rating errors

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 Content
(continued)

C. How to interact with employees

when they receive performance
information
How to conduct an appraisal
interview

How to train, counsel, and coach

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Choices of Training Programs
Rater Error Training (RET)

Frame of Reference Training

(FOR)

Behavioral Observation Training

(BO)
Self-Leadership Training (SL)

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 Rater Error Training (RET)
Goals of RET
Make raters aware of types of rating
errors they are likely to make

Help raters minimize errors

Increase rating accuracy

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 Intentional Rating Errors

Leniency (inflation)
Severity (deflation)
Central tendency

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 Unintentional Rating Errors
Similar to Me Stereotype
Halo Negativity
Primacy Recency
First Spillover
Impression
Attribution
Contrast

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 Possible Solutions for
Types of Rating Errors
Intentional
Focus on motivation
Demonstrate benefits of providing
accurate ratings

Unintentional
Alert raters to different errors and
their causes
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 Frame of Reference Training
(FOR)
Goal of FOR*
Raters develop common frame of reference
Observing performance

Evaluating performance

Expected results of FOR

Raters provide consistent, more accurate ratings
Raters help employees design effective
development plans

*Most appropriate when PM appraisal system focuses on behaviors

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Behavioral Observation Training (BO)
Goals of BO
Minimize unintentional rating errors

Improve rater skills by focusing on how

raters:
Observe performance

Store information about performance

Recall information about performance

Use information about performance

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 Self-Leadership Training (SL)
Goals of SL
Improve raters confidence in ability to
manage performance

Enhance mental processes

Increase self-efficacy

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 Pilot Testing
Pilot testing is done before the
system is implemented.
Provides ability to:
Discover potential problems

Fix them

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 Pilot TestingBenefits
Gain information from potential participants

Learn about difficulties/obstacles

Collect recommendations on how to improve

system

Understand personal reactions

Get early buy-in from some participants

Get higher rate of acceptance

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 Implementing a Pilot Test
Roll out test version with sample group
Staff and jobs generalizable to the
organization

Fully implement planned system

All participants keep records of issues
encountered
Do not record appraisal scores
Collect input from all participants
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Ongoing Monitoring and Evaluation
When system is implemented, decide:
How to evaluate system effectiveness
How to measure implementation
How to measure results

Evaluation data to collect:

Reactions to the system
Assessments of operational and technical
requirements
Effectiveness of performance ratings
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 Indicators to Consider
Number of individuals evaluated
Distribution of performance ratings
Quality of information
Quality of follow-up actions
Quality of performance discussion meetings
System satisfaction
Cost-benefit ratio or return on investment (ROI)
Unit-level and organization-level performance
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 Online Implementation
Online tools to facilitate implementation
E-mails
Electronic newsletters
Web sites
Appeal filing
Training programs
Pop-up reminders

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Online ImplementationAdvantages
Automation
Speed up processes
Lower cost
Gather and disseminate information faster
and more effectively
System can be linked to other HR functions
Easier to monitor unit-level and
organizational-level trends over time

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Online ImplementationLimitations
PM systems that are not implemented
following best practices will not
necessarily improve from the use of
online components.
In fact, online implementation may create
a more complicated system that is a big
waste of time and resources for all
involved.

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 Quick Review
Preparation
Communication Plan
Appeals Process
Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Online Implementation
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States of America.

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publishing as Prentice Hall
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