Performance Management
Performance Management
Performance Management
Performance Management: A process that insures that all employees know what is expected from them,
receives frequent feedback reviews, on how to improve their performance and are recognized for their
good results.
Improve = 3- development:
Increased capacity to perform through training, introducing new skills, higher level of
responsibility, improving work process etc
P.M. helps to identify the development needs
Further improving may be needed even in cases of good performance
4- Rating:
Summary of employee performance done from time to time
Identify best performers
Based on work performed during appraisal period
Recognized= 5- rewarding :
Recognizing employees individually or in groups to acknowledge their performance and
contributions.
Recognition should be ongoing and part of day to day experience.
Formal (e.g. financial) or informal (e.g. thank you)
Planning monitoring
Inputs Performance Management output
Inputs:
Information Rewarding PM Development
History : Org Life Cycle
Organization culture
Strategic business plan
Managers = agreement with employee Rating
Employee = agreement with manager
Output:
Improved performance on the level on individual and org
Motivation
Recognition
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Strategy is controlled by corporate values: Vision mission goals how to achieve it? (strategy) tasks
Appraisal methods: tools that defines: what to measure and how to measure it.
Actual performance appraisal methods:
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a. Graphic rating scales: simplest and most popular method, list traits as quality, reliability, and
rate performance from unsatisfactory to outstanding. Each subordinate is evaluated and then totals
the assigned values.
Measures: generic dimensions (communication, quality, qty) and/or job actual duties (maintaining
records, using spreadsheets) and /or competency
b. The alternation ranking method: ranking of employees from best to worst on each trait, by
choosing best then worst, till all are ranked.
c. Paired comparison method: ranking employees for each trait, by pairing and comparing every
subordinate with every other subordinate (in pairs). It’s more accurate.
d. Forced Distribution method: Place predetermined percentages of rates into several performance
categories. Example 20% top- middle 70% and bottom 10%. Each employee is placed in the
matching category for the measured trait (creativity, quality of work and so on). This method first
popularized by GE. Bottom 10% are given 90 days to improve, if not, they can resign and get
severance pay. Or stay but if it didn’t work out, fired without severance. Some reported inequality
between teams, 10% of best teams leave, while 90% of low performance teams stay!
e. Critical incident Method: supervisor keep log with positive and negative examples (critical
incidents) of subordinate behavior using incidents as examples.
f. Behaviorally anchored rating scales (BARS): narrative form with combined anchors a
numerical rating scales. Better tool. 5 steps:
1- generate critical incidents: asking people who know the job to describe specific
illustrations –incidents- of effective and ineffective performance,
2- develop performance dimensions: cluster incidents in groups or clusters of 5-10
incidents performance dimensions and define each dimension.
3- another group reallocate the incidents and reassigned to matching clusters (usually
assigned to same clusters in 50-80% of cases)
4- scale the incidents (7 to 9 points scale are common)
5- develop the final instruments. Choose 6 or 7 of the incidents as the dimensions
behavioral anchors.
Advantages:
1- More accurate gauge
2- Clearer standards
3- Better feedback
4- Dimensions are rated independently
5- More consistent and reliable
g- Management by objectives MBO: Manager needs to set specific measurable goals for each
employee. It is a comprehensive and formal organization wide goal setting and appraisal program:
1. Setting organizations goals
2. Setting departmental goals
3. Discussing departmental goals
4. Defining expected results
5. Conducting performance reviews
6. Providing feedbacks
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General appraisal Steps:
defining the job and agree of job standards,
compare the performance to the set standards,
schedule feedback sessions
Appraisal interviews: an interview in which the supervisor and the subordinates review the appraisal and
make plans to reinforce strengths and remedy the deficiencies. Types:
Satisfactory promotable interview
Satisfactory not promotable
Unsatisfactory correctable
Unsatisfactory uncorrectable
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