Performance management
The process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals
what are the purposes?
-strategic ( helps organisations achieve strategic objectives)
-administrative (information for day-to-day decisions)
- developmental (basis for developing employees)
Steps of performance management
- Define performance outcomes for company division and department
- Develop employee goals, behaviour, and actions to achieve outcomes
- provide support and ongoing performance discussions
- evaluate performance
- identify improvements needed
- provide consequences for performance results
criteria for effective performance management
- Fit with strategy: support company’s strategy goals
-Specific feedback: give specific expectations and methods to achieve goals - Acceptability: yield consistent results over time
_interrater reliability
_test-retest reliability
-validity: measure all relevant aspects of performance
job performance measure
- contamination
- validity
- deficiency => closer to the actual job performance
how is performance measured? => making comparisons
-simple ranking: ranks employees
-forced distribution: assigns a certain percentage of employees to each category
-paired-comparison: compares each employee to each other employee
how is performance measured? => rating individuals
-attributes (graphic rating scale)
-behaviors (critical-incident method, behavioural observation scale)
-results ( management by objectives)
sources of performance information
-360 degree performance evaluation
_managers and supervisors, peers, direct reports, self
-crowdsourcing performance appraisal (variation of 360)
_gathering data from all coworkers and managers
_using online apps
errors in performance measurement
-simplifying mechanisms to make decisions about people
-unconscious bias (judgement outside our consciousness that affects decisions based on background)
types of rating errors
-strictness
-similar to me error
-contrast error
-halo
-horns
-recency emphasis
what can be done to reduce errors
- rate error training
- rater accuracy training
- unconscious bias training
- calibration meeting
- using data analytics
- ratee training
effective performance feedback
-feedback should be frequent
-create the right context for the discussion
-ask the employee to rate their performance
-have ongoing collaborative conversations
performance improvement
varies according employee’s ability and motivation
-lack of ability
-lack of motivation
-lack of both
legal, ethical and privacy issues
-Legal challenges usually relate to allegations of illegal discrimination and unjust or constructive dismissal
-Potential ethical and privacy issues associated with:
_Location and monitoring systems
_Software that analyzes employees’ behaviour
Wearables
