Human Resource Management 6

performance management
process in which managers ensure that employee activities and outputs contribute to the organization’s goals
performance appraisals
measuring the relevant aspects of performance
strategic purpose
helps organization to achieve its business objective through linking employees behavior with organizational goals
administrative purpose
ways in which organizations use performance management to provide information for decisions about salary etc.
developmental purpose
basis for developing employees knowledge and skills
fit with strategy
highlight that a performance management system should aim at achieving employee behavior and attitudes which support the organizaiton’s strategy, goals and culture
whether appraisal measures all relevant aspects of perforamcen and omits irrelevant aspects
consistency of results
inter-rater reliability
consistency of results when more than one person measures the performance
test-retest reliability
consistency of results over time
specific feedback
performance measure should specifically tell employees what is expected of them and how they can meet those expectations
simple ranking
requires managers to rank employees in their group from the highest performer to the poorest performer
forced-distribution method
assigns a certain percentage of employees to each category in a set of categories
paired-comparison method
comparing each employee with each other employee to establish rankings
graphic rating scale
method lists traits and provides a rating scale for each traits
critical incident method
requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective
behaviorally anchored rating scale (BARS)
intended to define performance dimensions specifically, using statements of behavior that describe different levels of performance consisting of many critical incidents
behavioral observation scale (BOS)
uses all behaviors necessary for effective performance to rate performance at a task. The frequency of displayed behavior during the rating period is observed.
organizations behavior modification (OBM)
plan for managing the behavior of employees through a formal system of feedback and reinforcement
performance method
focuses on managing the objective measurable results of a job or work group
management by objectives
system in which people at each level of the organization set goals in aprocess that flows from top to bottom, so employees at all levels are contributing to the organization’s overall goals
total quality management (TQM)
assesses both individual performance and the system within which the individual works. Feedback is subjective as well as objective
statistical quality control
objective feedback based on the work process
contrast error
even though the person behaves well, others may behave excellent which makes the person’s behavior look bad
distribution error
only one part of a rating scale is used
everyone is rated at the top
everyone is rated low
everyone is rated near the middle
halo effect
bias in favorable direction
horns effect
biasin negative direction
calibration meeting
meeting at which managers discuss employee performance rating and provide evidence to support their ratings with the goal of eliminating the influence of rating errors
managers tell the employees their rating and then justify those ratings (most often used)
managers tell employees their rating and then let the employee explain their side pf the story
managers and employees work together to solve performance problems in an atmosphere of respect and courage (superior)
naive realism
A person’s conviction that he or she is privy to an objective reality – open to others, provided they are reasonable
ladders of inference
We confuse “accounts” of reality from reality
fundamental attribution bias
We attribute problems with others to personality,
but for ourselves to the situation
We do not have a voice, feedback seeking, or learning orientation
(incremental) but rather a performance orientation (entity)
we are unaware of our emotions/thoughts/behaviors until after the fact
sunk costs
we will overinvest in something that is a lost cause
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