steps involved in performance management
performance management
align individual efforts to achieve organizational goals
performance appraisal/evaluation
judge how well employees have performed relevant to expectations + use info for org. decisions
uses of performance management
developmental use (improve employees’ performance + skills)
administrative use (basis for decisions on: promotions, rewards, termination…)
approaches to performance measurement
comparative approach (forced distribution, ranking…)
attribute approach
results approach (KPIs)
behavioral approach (critical incidents, BARS, BOS)
forced distribution
threatens teamwork
encourages sabotage
middle performers?
attribute approach
+ easy
- ambiguous
- prone to bias
- less defensible in court
- subjective
- focused on the person rather than on performance = not conductive for development
behavioral approach
ex: BOS, BARS + critical incidents
biases in performance management
rater responding bias
rater perceptual bias
rater social bias
ratee bias
rater responding bias
leniency bias
central tendency bias
rater perceptual bias
contrast effect
recency effect (ending is easier to recall)
primary effect (beginning is easier to recall)
rater social bias
confirmation bias
implicit bias
social perception errors (halo, horns, similarity…)
ratee bias
Dunning-Kruger effect
- cognitive bias in which people assess their cognitive ability as greater than it is (“better than average” effect)
results approach
managing objectives (quantifiable outcomes)
- measured by results