Download - Chapter 10 dessler 12-ce_ppt_ch10
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Performance Management | 10-1
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Dessler, Chhinzer, ColeHuman Resources
Management in CanadaCanadian Twelfth Edition
Chapter 10: Performance Management
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Performance Management | 10-2
Learning Outcomes
• EXPLAIN the five steps in the performance management process.
• DESCRIBE five performance appraisal methods and the pros and cons of each.
• DISCUSS the major problems inhibiting effective performance appraisals.
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Performance Management | 10-3
Learning Outcomes
• DISCUSS 360-degree appraisal from multiple sources.
• DESCRIBE the three types of appraisal interviews.
• DISCUSS the future of performance management.
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Performance Management | 10-4
Performance Management
The process encompassing all activities related to improving employee performance, productivity, and effectiveness.
• includes goal setting, pay for performance, training and development, career management, and disciplinary action
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Performance Management | 10-5
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Performance Management Process
Step 3: Conduct performance appraisal and evaluation discussions
Step 1: Define performance expectations
Step 2: Provide ongoing feedback and coaching
Step 4: Determine performance rewards/consequences
Step 5: Conduct development and career opportunity discussions
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Performance Management | 10-6
Step 1: Defining Performance Expectations
Task performance
• direct contribution to job-related processes
Contextual performance
• indirect contribution to the organization’s social responsibility values
Legal considerations
• correlate performance expectations to job activities
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Performance Management | 10-7
Step 2: Providing Ongoing Coaching and Feedback
• important to have open two-way communication
• employee responsible for monitoring own performance, and asking for help
• manager responsible for communicating changing strategies and objectives if applicable
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Performance Management | 10-8
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Performance Improvement Plan (PIP)
continued
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Performance Management | 10-9
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Performance Improvement Plan (PIP)
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Performance Management | 10-10
Step 3: Performance Appraisal and Evaluation Discussion
Formal appraisal methods:
• graphic rating scale
• alternation ranking
• paired comparison
• forced distribution
• critical incident
• narrative forms
• behaviourally anchored rating scales (BARS)
• management by objectives (MBO)
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Performance Management | 10-11
Graphic Rating Scale
• a scale that lists a number of traits and a range of performance for each
• the employee is given a rating that best describes the level of performance for each trait
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Performance Management | 10-12
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Graphic Rating Scale - Sample
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continued
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Performance Management | 10-13
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Graphic Rating Scale - Sample
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continued
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Performance Management | 10-14
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Graphic Rating Scale - Sample
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continued
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Performance Management | 10-15
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Graphic Rating Scale - Sample
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Performance Management | 10-16
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Alternation Ranking Method
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Performance Management | 10-17
Paired Comparison Method
• for each trait, list all possible pairs of employees
• for each pair, indicate “+” for the higher ranked employee, “-” for the lower ranked
• rank employees by trait based on number of “+” scores
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Performance Management | 10-18
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Paired Comparison Sample
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Performance Management | 10-19
Forced Distribution Method
• predetermined percentages of ratees are placed in various performance categories
• example:• 15 percent high performers• 20 percent high-average performers• 30 percent average performers• 20 percent low-average performers• 15 percent low performers
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Performance Management | 10-20
Critical Incident Method
Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behaviour and reviewing the list with the employee at predetermined times.
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Performance Management | 10-21
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Critical Incident Sample
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Performance Management | 10-22
Narrative Forms
• free form report of performance
• may take form of performance improvement plan
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Performance Management | 10-23
Behaviourally Anchored Rating Scales (BARS)
An appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.
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Performance Management | 10-24
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Behaviourally Anchored Rating Scales Sample
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Performance Management | 10-25
Behaviourally Anchored Rating Scales (BARS)
Advantages
• a more accurate measure
• clearer standards
• Assists in providing feedback
• independent dimensions
• Consistency
Disadvantage
• time-consuming
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Performance Management | 10-26
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Management by Objectives (MBO)
Step 3: Discuss departmental goals
Step 1: Set the organization’s goals
Step 6: Provide feedback
Step 2: Set departmental goals
Step 4: Define expected results (individual goals)
Step 5: Performance reviews: measure results
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Performance Management | 10-27
Use of Technology in Performance Appraisals
• enables managers to automate record keeping and report writing
• provides overall performance management process
• provides employees with clear development path
• advanced reporting capabilities
• electronic performance monitoring (EPM)
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Performance Management | 10-28
Performance Appraisal Problems
• validity and reliability
• rating scale problems
• unclear performance standards
• halo effect• central tendency
• leniency or strictness
• appraisal bias• recency effect• similar-to-me bias
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Performance Management | 10-29
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Example of Unclear Standards
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Performance Management | 10-30
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Advantages and Disadvantages of Appraisal Methods
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Performance Management | 10-31
Who Should Do the Appraising?
• supervisors
• self
• peers
• committees
• subordinates
• 360-degree appraisal (all of the above)
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Performance Management | 10-32
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360-Degree Appraisal
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360-Degree Appraisal Advice
• have performance criteria developed by people familiar with the job
• be clear about who will have access to reports
• provide training for all participants
• ensure confidentiality
• evaluate 360-degree system for fine-tuning
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Performance Management | 10-34
Formal Appraisal Discussions
• supervisor and employee:• review appraisal, and plan to remedy deficiencies
and reinforce strengths
• types of interviews:• satisfactory—promotable: development plans• satisfactory—not promotable: maintain performance• unsatisfactory—correctable: action plan to correct
performance
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Performance Management | 10-35
How to Conduct the Interview
1. Be direct and specific• use objective work data
2. Do not get personal• compare against standard
3. Encourage the person to talk• use open-ended questions, listen
4. Develop an action plan• agree on future steps
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Performance Management | 10-36
How to Handle Criticism and Defensive Employees
1. Recognize that defensive behaviour is normal
2. Never attack a person’s defenses
3. Postpone action
4. Recognize human limitations
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Performance Management | 10-37
Ensuring the Discussion Leads to Improved Performance
1. Notify of unacceptable performance, explain minimum expectations
2. Ensure that expectations are reasonable
3. Explain role of warnings in the process of establishing just cause
4. Take prompt corrective measures
5. Avoid sending mixed messages
6. Provide a reasonable amount of time for improvement
7. Provide support to facilitate improvement
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Performance Management | 10-38
Step 4: Determine Performance Rewards/Consequences
• provide performance awards: merit pay, extra pay
• important aspects used to determine the appropriate reward/consequence: • achievement of goals• how the employee meets the defined standards
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Performance Management | 10-39
Step 5: Career Development Discussion
• manager and employee discuss opportunities for development
• based on current job requirements or future development
• business needs must be balanced with the employee’s preferences
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Performance Management | 10-40
Legal and Ethical Issues
• determine required characteristics through job analysis
• use characteristics in rating system
• ensure ratees and raters know performance standards
• use clearly defined dimensions of performance
• avoid abstract trait names
• use subjective ratings as only one component
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Performance Management | 10-41
Legal and Ethical Issues
• train supervisors
• allow raters regular contact with ratee
• have more than one rater, if possible
• use formal appeal mechanism
• document evaluations and reasons for termination
• provide corrective guidance to lower performers
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Performance Management | 10-42
The Future of Performance Management
• Effective performance management involves:• linking individual goals and business strategy• showing leadership and accountability• ensuring close ties among appraisal results, rewards,
and recognition outcomes• investing in employee development planning• having an administratively efficient system with
sufficient communication support