Management – Performance Management

Process of Performance Management
Set expectations: Job descriptions help set standards
Assess performance and provide feedback
Construct reward system so behavior continues
What is Performance Management
Systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.
Goals of Performance Management
Strategic Congruence
What is the purpose of PM?
Administrative purpose: Who to promote and give a raise
Strategic Performance: Greeting at Walmart vs. Nordstrom
Developmental Performance: How to get better performance and feedback
What are the components of job performance?
Task Performance –
Effectiveness: Quality of outcomes
Efficiency: Resources used to claim outcome
Contextual Performance –
Rewarding Organizational Citizenship Behaviors (OCB’s)
Avoiding Organizational Cynicism
Examples of OCB’s
Altruism: Helping others
Civic Virtue: Involvement in political life (attending meetings, answering emails, etc)
Conscientiousness: Going beyond the basic requirements
Courtesy: Being thoughtful to others
Sportsmanship: Putting up with less than ideal situations
Performance Evaluation Methods
Absolute Evaluation Method 1: Graphic Rating Scale
Define Ideal performance, break into constructs, evaluate applicant vs. Ideal performer
Example: 1-5 on Workplace Safety
Absolute Evaluation Method 2: Behaviorally Anchored Rating
Examples of scores to describe how the employee rates in workplace safety
Example: 5 = Employee demonstrates excellent workplace safety through blah blah blah
Variability vs. Variance
Variability – How spread out the data is
Variance – The average of the squared differences from the mean
Pros and Cons of the absolute method
+ Increased Reliability
+ Standardized feedback
+ Gives Direction
+ Easy to update
– Time-consuming to make
– Can provide poor administrative data
Relative Methods of Performance Management
Ranking: Individual ranking scale
Forced Distribution: Evaluation on individual, ranking in categories, typically used with percentages against group (9 box thing)
Paired Comparison: Comparing entities in pairs
Pros and cons of Relative method
+Clear Succession Planning
+Easy to develop and use
+Excellent administrative data
– No absolute standard
– Little Developmental Feedback
Results Approach of Performance Management – Management by objective
Managers and employees find goals
Employees evaluated on goal attainment
Pros and Cons of Results Approach
+ Strong Strategic Congruence
+ Enlists employee in process
+ Emphasizes action and result
– Prioritizes results over behavior
– Employee may not control outcome
– Can result in resource conflict
Types of common errors in performance management systems (the more you like someone, the higher rating you will give them). Systemic Errors!!
-Halo/Horns effect: Halo effect – You do one thing really well, so I’ll assume you’re great everywhere. VV for horns
-Similarity/Contrast effect: This person is similar to me, I will give them a higher rating. Vice Versa with contrast. (very common with matching or mismatching values)
-Recency/Primacy effect: Recency – I only remember what you did in the last week. Primacy – Never got over our first impression
-Central Tendency: Everybody is in the middle of the scale
-Leniency/Severity: Leniency – I like everybody and want to be liked so give them high rankings. VV with severity (ex. Severity is like that dick professor that doesn’t give A’s no matter what)

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