MANAGING EMPLOYEES’ PERFORMANCE › 2018 › 08 › unit06... · MEASURING PERFORMANCE: MAKING...
Transcript of MANAGING EMPLOYEES’ PERFORMANCE › 2018 › 08 › unit06... · MEASURING PERFORMANCE: MAKING...
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MANAGING EMPLOYEES’ PERFORMANCE
UNIT 06
NGÔ QUÝ NHÂM
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WHAT DO I NEED TO KNOW?
1. Identify the activities involved in performance management.
2. Discuss the purposes of PM systems.3. Define five criteria for measuring the effectiveness
of a performance management system.5. Compare the major methods for measuring
performance. 6. Define types of rating errors and explain how to
minimize them.7. Explain how to provide performance feedback
effectively.
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INTRODUCTION
vPerformance management: the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.
vThis process requires:²Knowing what activities and outputs are desired²Observing whether they occur²Providing feedback to help employees meet
expectations
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STAGES OF THE PERFORMANCE MANAGEMENT PROCESS
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PURPOSES OF PERFORMANCE MANAGEMENT
vStrategic Purpose
vAdministrative Purpose
vDevelopmental Purpose
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CRITERIA FOR EFFECTIVEPERFORMANCE MANAGEMENT
Fit with strategy
Validity
Reliability
Acceptability
Specific feedback
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CONTAMINATION AND DEFICIENCY OF A JOB PERFORMANCE MEASURE
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METHODS FOR MEASURING PERFORMANCE
METHOD
Comparative
Attribute
BehaviorResults
Quality
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MEASURING PERFORMANCE:MAKING COMPARISONS
Simple Ranking
• Requires managers to rank employees in their group from the highest performer to the poorest performer.
Forced Distribution
• Assigns a certain percentage of employees to each category in a set of categories.
Paired Comparison
• Compares each employee with each other employee to establish rankings.
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MEASURING PERFORMANCE:RATING INDIVIDUALS - ATTRIBUTES
v Lists traits and provides a rating scale for each trait.
v The employer uses the scale to indicate the extent to which an employee displays each trait.
Graphic Rating Scale
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EXAMPLE OF A GRAPHIC RATING SCALE
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MEASURING PERFORMANCE:RATING INDIVIDUALS – BEHAVIORS (CONTINUED)
BEHAVIORAL OBSERVATION SCALE (BOS)
v A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task.
v A BOS also asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period.
ORGANIZATIONAL BEHAVIOR MODIFICATION (OBM)
v A plan for managing the behavior of employees through a formal system of feedback and reinforcement.
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EXAMPLE OF A BOS
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MEASURING PERFORMANCE:MEASURING RESULTS
vManagement by Objectives (MBO): people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals.
vThese goals become the standards for evaluating each employee’s performance.
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MANAGEMENT BY OBJECTIVES –TWO OBJECTIVES FOR A BANK
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MEASURING PERFORMANCE:MEASURING QUALITY
vThe principles of total quality management (TQM), provide methods for performance measurement and management.
vWith TQM, performance measurement combines measurements of attributes and results.²Subjective feedback²Statistical quality control
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SOURCES OF PERFORMANCE INFORMATIONv360-Degree Performance Appraisal:
performance measurement that combines information from the employees’:²Managers²Peers²Subordinates²Self²Customers
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BASIC APPROACHES TO PERFORMANCE MEASUREMENT
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TYPES OF PERFORMANCE MEASUREMENT RATING ERRORS
vContrast errors: the rater compares an individual, not against an objective standard, but against other employees.
vDistributional errors: the rater tends to use only one part of a rating scale.²Leniency: the reviewer rates everyone near the top²Strictness: the rater favors lower rankings²Central tendency: the rater puts everyone near the middle of the
scale
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TYPES OF PERFORMANCE MEASUREMENT RATING ERRORS (CONTINUED)
vRater bias: raters often let their opinion of one quality color their opinion of others.²Halo error: when the bias is in a favorable direction. This can
mistakenly tell employees they don’t need to improve in any area.²Horns error: when the bias involves negative ratings. This can
cause employees to feel frustrated and defensive.
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GIVING PERFORMANCE FEEDBACK
vScheduling Performance Feedback²Performance feedback should be a regular, expected management
activity.²Annual feedback is not enough.²Employees should receive feedback so often that they know what
the manager will say during their annual performance review.
vPreparing for a Feedback Session²Managers should be prepared for each formal feedback session.
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GIVING PERFORMANCE FEEDBACK(CONTINUED)
vConducting the Feedback Session²During the feedback session, managers can take any of three
approaches:1.“Tell-and-Sell” – managers tell employees their ratings and then
justify those ratings.2.“Tell-and-Listen” – managers tell employees their ratings and then
let the employees explain their side of the story.3.“Problem-Solving” – managers and employees work together to
solve performance problems.
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IMPROVING PERFORMANCE