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COMMON BIASES INPERFORMANCE
MANAGEMENT AND
METHODS TO OVERRULE THEM
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What is Performa!eMaa"emet#It is the process that helps for the eective management ofindividuals and teams to achieve the organizational goals
• Performance Assessment is generally subjective in nature.
intentionally or unintentionally make mistakes or exhibit biases
• iases happened during performance assessment aects o
such as pay and promotion.
Performance Assessment
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COMMON BIASES INPERFORMANCE MANAGEM
T! "alo #ect! "orn #ect
! $irst Impression or Primary #ect
! %ecency #ect
!Stereotyping & Personal iases
! Spill 'ver #ect
! (enience) Stiness and *entral tendency
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"A(' #$$#*+! +ype of *ognitive ias , systematic error in thinking that eec
decisions -e make.! +he overall impression of a person in/uences ho- -e feel abo
character
! %ater perceives one positive characteristic about an employeeperformance and allo-s it to in/uence all factors or areas in aperformance evaluation.
! (eads to a generally favorable or overall high performance rat
#xamples0
%ating attractive people more favorably in character than those less attractive.
#mployee may be punctual and have fe- or no absences and ma
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"'%1 #$$#*+
! +endency to allo- ones judgment of a person to be in/uencedunfavorable impression
! If our impression about a person is negative) -e tend to ignorpositive characteristics and concentrate only on the negative
! Personality con/icts can increase the probability of the "orn e
! %ater perceives one negative characteristic about an employetheir performance and allo-s it to in/uence all factors or areaperformance evaluation
! If a manager dislikes an employee could lead to an overall pooevaluation or appraisal.
#xamples0
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'vercoming the "alo and "o#ect
! Accountability 2 means that there are conse3uences that depe
some aspect of the ratings or judgments given! *onsider each factor independently of all other factors. An em
behavior usually is not the same on all skills that the rating scmeasure. #mployees have both -eaknesses and strengths
! (ook back at employees performance through out the year anable to justify and give real examples of -here an employee eor lacked in a certain area being rated.
! Involve the input of others in the evaluation.
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%#*#1*4 #$$#*+
! 'ccurs -hen recent behavior or performance carries too mucin evaluating an employees performance.
! 5ost recent occurrences are on the forefront of a managers m-hether good or bad and heavily in/uences or heavily colorsmanagers perception of an employee.
! 6oes not take into consideration the -hole rating period.
! *an be an advantage or a disadvantage to the employee.! 5anager may tend to forget or minimize behavior that occurr
earlier in the rating period resulting in an inaccurate evaluatio
#xamples0
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'vercoming the %ecency #
*ritical Incident 6ocumentation
! 5anager compiles a list of outstanding or unsatisfactory exama employees performance through out the rating period
! #xamples are used to rate each area of an employees performratings are determined using objective data
! 6uring appraisal intervie- manager can site speci7c exampleincidents to illustrate -hy a certain rating -as given.
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(#1#I1*#) S+I$$1#SS) A16 *#1+%A( +#16
(enience +endency 8 rating all employees highly or favorably reg
of actual performance. +ends to lead to0! 1o dierentiation bet-een employees
Stiness +endency 2
*entral +endency 2 rater avoids making 9extreme: judgments of
employees performance resulting in all employees being rated inmiddle of the rating scale
! +his can happen -hen a manager is uncomfortable -ith con/giving negative revie-s
! 1o room for personal gro-th or performance improvement sinstrengths or -eaknesses are identi7ed
#xamples 8
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'vercoming the (enience)Stiness) and *entral +enden
! #ducating managers in the dierent kinds of performance ia
! #ducating managers and allo-ing them to understand theconstructive purposes of performance appraisals
! #nabling managers to ac3uire eective skills in giving negativ
feedback
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S+#%'+4PI1
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$I%S+ I5P%#SSI'1 '% P%I5A#$$#*+
! +he tendency to let a 7rst impression of performance carry to-eight in the evaluation of performance over an entire period
! If our 7rst impression about a person is positive) -e tend to igtheir negative characteristics and concentrate only on the posones and vice versa
#xample 2 a ne- employee performing at high levels during theprobationary period and then maybe losing some of that initialmomentum during the rest of the rating period. 'verall impresshighly positive even -hen performance declines.
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'ver %uling iases
! 5anagement by 'bjectives 2 Involves the manager and employee -otogether to come up -ith performance objectives and goals for the nappraisal period. #valuate by the degree of goal achievement. "avedisscusions -here any potential problems or con/icts in performancedicsussed or clari7ed
! *ritical Incident 6ocumentation 8 both the employees and managers a online journal of key events throughout the year.+his -ill come handuring the performance evaluation.
! Input of 'thers 2 peer revie-s) =>? 2 revie-s. $eedback from peers osuperiors -ho -orked -ith the individual can provide insights on theperformance -hich the manager is not able to see due to his biases.
! +raining and a-areness building0 efore each performance evaluatiomanagers should be subjected to a short e(earning course or face todiscussion in small groups. +his should cover the importance of theperformance management process) the best -ay to evaluate performand ho- to avoid biases.
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Ho$ to ma%e Performa!e AssessmetO&'e!ti(e#
• Assi"i" SMART "oa)s to i*i(i*+a)s ,SMART sta*s
meas+ra&)e/ a!hie(a&)e/ Rea)isti! a* time &o+*0
• Ha(i" *es!ri-tors for the rati" s!a)e
• Re"+)ar re!or*i" of 'o+ra)s
• Re"+)ar fee*&a!%
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Co!)+sio
• iased performance assessment by a manager can result i
-orking relationship for the employee.
• It can result in lo- morale and poor job satisfaction from the em
• So it is the responsibility of the supervisors) managers and hum
sta to eliminate these biases
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(#1I#1+ +#16#1*4&*#1+% +#16#1*4 IAS
Cetra) te*
. Inaccurate rating
B. All employees fall
rating range.
=. Cndeserving cand
credit -hereas
candidates fails to
$ails to distinguish
terms of performan
Leiet Te*e!1
. %esults in in/ated and inaccurate
ratings
B. Areas needed for performance
improvement remains ignored
=. Cndeserving candidates get the
credit and fails to distinguish
bet-een the subordinate
employees in terms of
performance level
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Dhy certain managers go for leniecentral biased ratingsE
• Strong manager employee relationship
• 5inimize time and eort
• Avoid confrontation
• Prevent personal damage to relationships
• Agreeable personality
• (ack of preparation
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Assessment fairness from employee p
#mployees care about0 *ompensation they receive
%ating compared to theirexpectations
%ating of others
E2e!t of !etra)it1 &ias o the -er!e-tioof em-)o1ees
Above average employees become less motivated
elo- average employees think the performance ratingis fair.
E2e!t of )eie!1 &ias o the -er!e-tioof em-)o1ees
#mployees perceive leniency bias positively
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E2e!t of !etra)it1 &ias o -a1 a*-erforma!e
*reates a disproportionate pay to performance ratio
%educes incentives for both above belo- average
performers
E2e!t of )eie!1 &ias o -a1 a*-erforma!e
%educes performance%educe employee incentive
(ai) (.) F abcock) (. *. ,B?B. Asian Americans and -orkplace discrimiinterplay bet-een sex of evaluators and the perception of social skills. JoOrganizational Behavior J. Organiz. Behav., 34,=) =?8=B>.
ol) G. *. ,B?. +he 6eterminants and Performance #ects of 5anagers#valuation iases. The Accounting Review, 86,) JK8L.
Refere!es
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S+I$$1#SS +#16#1*4IAS +his is just opposite of (enient tendency bias
• 5anagers al-ays feel there is more room for impro
• 5anagers tend to set very high standards -hile
performance.
• %esult in de8motivating even good performers
• 1o distinction bet-een high) average and lo- perf
• 5ostly aects good performers
S+#%#'+4PI1< IAS
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S+#%#'+4PI1< IAS
Dhen people are categorized based on some feature ththey have.
5ost commonly race) gender) age or religion.•
+his type of bias is harmful to an organization• *an aect positively or negatively
• %esults in overestimation or under estimation of em
• Domen are more likely to be the victims gender ba
•
1egatively aected victims of stereotyping bias losand motivation
• *an result in miscommunication bet-een manage
subordinates and results in lo- productivity
•
(ack of promotion
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Dhere do stereotyping bias cfromE
• Stereotype are formed in human beings naturally
• It is a human tendency to categorize people into
groups
• +hey come from family) peers) media) society and
experience