Performance Management

Performance Management
The continuous process of identifying, measuring and developing the performance of individuals to alight with the goals of the organization.
Performance Management
Performance Appraisal
PM – Strategic business considerations, ongoing feedback, manager driven

PA- Driven by HR, assesses employee, once a year.

Performance Management for Employees

– Consequences of poor implementation

+ Clearly defined job and success criteria
+ Increased motivation
+ Increased self Esteem
– Lowered self esteem
– Employee burnout and job dissatisfaction
– Damaged Relationships
Performance Management for Managers

– Consequences of poor implementation

+ Communicate view of performance clearly
+ Employees become more competent
+ Timely differentiation between good and bad performers
– Increased turnover
– Decreased motivation to perform
– Manager resource intensive
Performance Management for Organization

– Consequences of poor implementation

+ Facilitate organizational change
+ Better protection from lawsuits
+ Clarify organizational goals
– Wasted time and money
– Risk of litigation
– Unclear rating system
Purposes of a PM System
Strategic – Administrative – Informational – Developmental – Organizational maintennace – Documentation
Legal Issues Affecting PM
Adverse Impact
Illegal Discrimination
Legally Sound PM System
Employee – performance dimensions are clearly defined, related to the job and within the control of the employee. Provided timely feedback.

Manager – Provided with formal training on PM, and information is gathered by unbiased raters. Consistency.

Organization – System is explained and communicated to all employees, and includes an appeal process. Procedures are standardized for ALL.

Job Analysis
Systematic study of the tasks, duties and responsibilities of a job and the KSAs needed to perform it.
Products of Job Anaylsis
Job Description
Job Specification
Job Evaluation
Performance Criteria

Jobs Design – Recruitment & Selection – Compensation – Training & Development – Performance Management

Job Description
Detailed account of the tasks, procedures and responsibilities of the worker.

Identifies tools used and final output.

Job Specification
Provides information on the human attributes required for the job.
KSAs (Personality, work experience, minim qual., education, certificates, etc.)
Job Analysis Data sources
– Job analysis
– National Database
– Incumbents (workers)
– Supervisors
Job Analysis Methods
Observation + trained analysis, best for manual work, can observe things incumbents forget to mention. – Very intrusive, critical aspects may not be observable (thinking)

Interviews + Open ended or structure, collect info on tasks and KSAs, access to non-observable aspects of job. – Lack of standardization, resource intense, incumbents may forget.

Surveys + Can collect from large group of employees, cost effective, standardized. – Info obtained limited to questions asked, can’t probe further.

Existing Data
Job Diaries

Work vs Worker Oriented Job Analysis
Work – Focus on outcomes,
IE task analysis inventory
Worker – Focus on general aspects of the job (perceptual, interpersonal, etc) and those behaviours that employees engage (KSAs)
Job Element Mothod
Task Analysis Inventories
100-150 statements that employees rate in terms of frequency and importance. Efficient once developed, but can be costly to develop and not flexible.
Job Element Method
Focuses on the attributes of the worker and the KSAs required to perform. Relatively limited, and needs to combine other JA methods.
Functional Job Analysis
-Basis of O*NET
– Provides what a worker does and how the task is performed.
– Characterizes jobs in terms of Data (degree they deal with info processing, data analysis), People (degree they interact with people) and Things (degree and employee has to deal with equipment.)
+ Comprehensive, Quantitative
– Laborious, time consuming, special training required.
Critical Incident Technique
-Focuses on relevant employee behaviours on the job – not tasks or KSAs.
-Observable behaviours that result in very good or very poor performance.
– Useful for development of selection tools and performance appraisal systems.

Obtain Critical Incidents – Define performance measurements from CIs – Retranslaton

Competency Models
A measurable pattern of KSAOs that one needs to perform job roles successfully.

A framework/baseline required for all roles in an organization. “Core competencies”

4 Job Anaylsis Methods
Post Analysis Questionnaire
Critical Incident Technique
Task Analysis Inventories
Functional Job Analysis
Job Performance
The Actions or Behaviours that an employee engages in.
Broad Dimensions of Performance
1. Task Performance
2. Organizational Citizenship Behaviours
3. Counterproductive Work Behaviours
Task Performance
Behaviours involved in completion of the technical tasks of the job (proficiency), and behaviours that contribute to the production of a good or provision of a service.

Many organizations are only concerned with task performance.

Organizational Citizenship Behaviour
Employee behaviours that support the broader organizational, social and psychological environment in which the technical core must function.

Going the extra mile by engaging in behaviours that are not within one’s job description.

OCB directed at individuals or the organization.

Counterproductive Work Behaviours
Intentional employee behaviours that harm the well-being of an organization. Behaviours that are harmful to the legitimate interests and goals of an organization.

Can be directed at individuals (political deviance, personal aggression) or organizations (property deviance, production deviance)

Approaches to Measuring Performance
Behaviour Approach – Emphasizes how employees do the job. When employee is slow to learn.

Results Approach – Emphasizes what employees produce. When results are clearly tied to behaviour & consistent improvement in results.

Trait Approach – Emphasizes individual traits of employees. Positive relationship between abilities, traits and desirable work related behaviours.

Strategic Planning
Figure out where the organization wants to go, what barriers it will face and how it will get there.

Goal: Allocate resources to provide competitive advantage.
Purpose: Define organizations identity. Help prepare for future, enhance adaptability. Produce a culture of cooperation.

Gap Anaylsis
External Environment vs Internal Environment
(Opportunities & Threats) vs (Strengths and weaknesses)

Opportunity + Strength = Leverage
Opportunity + Weakness = Constraint
Threat + Strength = Vulnerability
Threat + Weakness = Problem

Characteristics of Good Objectives
1. Specific and Clear
2. Challenging
3. Agreed Upon
4. Significant
5. Prioritized
6. Bound by Time
7. Achievable
8. Fully Communicated
9. Flexible
10. Limited in Number
Characteristics of Performance Standards
1. Related to the Position.
2. Concerete, Specific, Measurable
3. Practical to Measure
4. Realistic and Achievable
6. Reviewed Regularly
Standards Must Include
A Verb
The Desired Result
A Due Date
Some type of indicator (quantity or quality)
Measuring Behaviors
– Identify competencies
– Identify indicators (observable behaviors to measure the presence of the competencies)
– Choose a measurement system
Measurement Systems
Comparative Systems
– Compares employees with one another
Absolute System
– Compares employees to an existing standard
Comparative Systems
Simple Rank Order + Simple and easy, clear results – Performance based on one dimension only.

Alternation rank orders + Simple, clear results, best and worst – Performance on one dimension, difficult to rank similar performance levels

Paired comparisons + Thorough, Final rankings more accurate – Vary time consuming – comparing apples and oranges.

Absolute Systems
Essays + Simplest absolute method, can be done any time, individualized for each employee -unstructured and may lack detail, dependent on supervisory writing skill, difficult to compare.
Behaviour Checklists + Easy to use an understand, provides quantitative information, widespread use. – May feel impersonal, scale points used are often arbitrary.
Critical Incidents +Focus on actual job behaviour, provide specific examples. – Collecting CI can be time consuming.
Graphic Rating Scales + Useful and accurate, meanings, interpretations and dimensions bering rated are clear. – Time consuming to develop, lacks individualized feedback.
Personal Development Plans Objectives

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