Herman Aguinis, University of Colorado at Denver

PERFORMANCE MANAGEMENT AND

EMPLOYEE DEVELOPMENT

Prof. Preeti Bhaskar

Symbiosis Centre for Management Studies, NOIDA

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Herman Aguinis, University of Colorado at Denver

Stakeholders in the Development Process

• Employees – Help plan their own development– Improve their own performance

• Managers– Help guide the process of development – Support success of process

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Herman Aguinis, University of Colorado at Denver

Personal Developmental Plans

• Specify actions necessary to improve performance

• Highlight employee’s –Strengths–Areas in need of development

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Herman Aguinis, University of Colorado at Denver

Personal Developmental Plans answer:

• How can I continuously learn and grow in the next year?

• How can I do better in the future?• How can I avoid performance

problems of the past?

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Herman Aguinis, University of Colorado at Denver

Personal Developmental Plans:Overview

• Developmental Plan Objectives• Content of Developmental Plan• Developmental Activities

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Herman Aguinis, University of Colorado at Denver

Overall Developmental Plan Objectives

• Encourage:–Continuous learning–Performance improvement–Personal growth

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Herman Aguinis, University of Colorado at Denver

Specific Developmental Plan Objectives

• Improve performance in current job

• Sustain performance in current job

• Prepare employee for advancement

• Enrich employee’s work experience

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Content of Developmental Plan

• Developmental objectives– New skills or knowledge– Timeline

• How the new skills or knowledge will be acquired– Resources– Strategies

• Standards and measures used to assess achievement of objectives

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Herman Aguinis, University of Colorado at Denver

Content of Developmental Plan

• Based on needs of organization and employee

• Chosen by employee and direct supervisor

• Taking into account– Employee’s learning preferences– Developmental objective in question– Organization’s available resources

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Herman Aguinis, University of Colorado at Denver

Developmental Activities ‘On the job’

• On-the-job-training• Mentoring• Job rotation• Temporary assignments

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Herman Aguinis, University of Colorado at Denver

Developmental ActivitiesIn addition to ‘on the job’

• Courses• Self-guided reading• Getting a degree• Attending a conference• Membership or leadership role

– in professional or trade organization

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Herman Aguinis, University of Colorado at Denver

Direct Supervisor’s Role:

• Explain what is necessary • Refer employee to appropriate

developmental activities • Review & make suggestions

regarding developmental objectives

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Herman Aguinis, University of Colorado at Denver

Direct Supervisor’s Role (ongoing):

• Check on employee’s progress

• Provide motivational reinforcement

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

360-degree Feedback Systems

Tools to help employees

• Improve performance by using • Performance information • Gathered from many sources

– Superiors– Peers– Customers– Subordinates– The employee

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

360-degree Feedback Systems

• Anonymous feedback• Most useful when used

– For DEVELOPMENT – NOT for administrative purposes

• Internet used for collecting data

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Necessary organizational norms include:

• Cooperation• Openness and trust• Input and participation

valued• Fairness

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

360-degree Feedback Systems

• Gathered from many sources– Superiors– Peers– Customers– Subordinates– The employee

Prentice Hall, Inc. © 2006

•Anonymous feedback•Most useful when used

• For DEVELOPMENT • NOT for administrative purposes

•Internet used for collecting data

Herman Aguinis, University of Colorado at Denver

Advantages of 360-degree Feedback Systems

• Decreased possibility of biases• Increased awareness of expectations• Increased commitment• Improved self-perception of performance• Improved performance• Increased employee control of their own

careers

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Risks of 360-degree Feedback Systems

• Unconstructive negative feedback hurts.

• Are individuals comfortable with the system? User acceptance is crucial.

• If few raters, anonymity is compromised.

• Raters may become overloaded..

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Process for conducting 360-degree Feedback Systems

1. All stakeholder (Superiors, Peers ,Customers, Subordinates,) do the rating.

2. Employee also rate themselves on various performance dimension.

3. Compare the self perception and information provided by others.

4. Gap Analysis is conducted to identify the difference between self perception and the perception of others

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Role of technology in conducting 360-degree Performance Appraisal

1. Reduce Paper work

2. Easy collection of data & analysis of data

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Outsource the work to consultancy company

• Send E-Mail message with instruction and time frames for assessment to each employee rated.

• Collection of data & analysis of data is done by consultancy company .

• Send report to Managers and the employee who has been rated .

• Development plans are created on the basis

Herman Aguinis, University of Colorado at Denver

Examples of vendor offering 360 degree feedback system

• Panoraamic feedback• Halogen Software• Thee Booth Company• Development dimensions international • Mindsolve • IRI consultant to management

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Herman Aguinis, University of Colorado at Denver

Characteristics of a Good 360-degree Feedback System

• Anonymity• Observation of

employee

performance• Avoidance of survey

fatigue• Raters are trained

• Used for developmental purposes only

• Emphasis on behaviors

• Raters go beyond ratings

• Feedback interpretation

• Follow-up

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