[IO PSYCH FINALS] Engagement 7

• Performance Management in the Organizational Level


  1. Performance Planning

  2. Performance Improvement

  3. Performance Review
• Performance Planning


  Includes activities such as formulating the organization's vision and strategy, defining what is meant by performance
• Performance Improvement


  Includes activities such as business process re-engineering, and continuous process improvement, benchmarking and total quality improvement
• Performance Review


  Embraces performance measurement and evaluation
• Employee Performance Management


  1. Planning

  2. Managing

  3. Appraising
• Employee Performance Management - Planning


  Involves establishing performance targets, identifying job behaviors and identifying performance measures
• Employee Performance Management - Managing


  Involves monitoring behaviors and objectives, reinforcing desired behaviors and objectives attainment and redirecting inappropriate behavior
• Employee Performance Management - Appraising


  Involves formal meeting of employee and manager, performance plan document, focus on future and employee's development and re-planning and new objective establishment
• Performance Appraisal


  System of measuring and evaluating outcomes based on agreed performance expectations between the supervisor and the direct report
• Performance Appraisal

  A structured formal interaction between a subordinate and a supervisor that usually takes the form of a periodic review where discussion and examination of the work performance takes place
• Basic Tenets of Performance Appraisal
• Mandatory for All Employees


  Nobody gets exempted from the process from the highest to the lowest people in the hierarchy, Even the business owners and top management are evaluated for their performance
• Focused on Employee Evaluation


  PA process is not a venue to discuss personal life concerns and matters of employees and supervisors but should be concentrated on the developmental and sustenance aspect of performance
• Supported with Training


  Given the complexities of different performance appraisal systems, HR should ensure that everyone receives proper training and orientation on how to rate and be rated using the systems
• Preferably Automated


  Organizations gear toward tapping the aid of technology in the smooth conduct of the PA process, Allows easier documentation of periodic performance appraisal results
• Time-Referenced


  Grounded on the reality that employee's performance may vary from period-to-period
• Performance - Employee Viewpoint


  Tell me what you want me to do, Tell me what how well have I done it, Help me improve my performance, Reward me for doing well
• Performance - Employer Viewpoint


  Establishment of Principle of Accountability, Implies alignment of responsibility and accountability, Passing responsibility / pointing fingers to other work units
• Performance - Employer Viewpoint


  Identification of performance gap, The shortfall that occurs when performance does not meet acceptable organizational standards
• PA Process


  1. Preparation and Assessment

  2. Meeting

  3. Sign Off
• Models for Rating Employees

  • Management-by-Objectives (MBO)
  • Likert Scales
  • Behaviorally-Anchored Rating Scales
  • 360o Feedback System
• Management-by-Objectives


  Proposed by Peter Drucker, there are four ingredients are common to MBO initiatives: Goal Specificity, Participative Decision-Making, Explicit Time Period, Performance Feedback
• 360o Feedback


  Multiple-rater performance assessment system, Consists of performance data gathered, analyzed and generated from various sources: supervisor, peers, direct reports, suppliers and internal/external customers
• Behaviorally-Anchored Rating Scales (BARS)


  • Descriptions provided on appraisal forms and surveys which describe a precise level of performance
  • Example: Answers phone within three rings
  • Example: Greets client with, "Good morning! Hello, this is HR, how may I help you?"
• 360o Feedback


  • Multiple-rater performance assessment system
  • Consists of performance data gathered, analyzed and generated from various sources: supervisor, peers, direct reports, suppliers and internal/external customers
• Developmental Opportunities


  • Skills that can be improved upon
  • Not necessarily "weaknesses", just opportunities to get better at some element of a person's work contribution
  • Immediate Need: A skill the employee should have strength in given their current position and/or years of experience
  • Future Need: A skill the employee is ready to move to the next level
• Stakeholders' Responsibilities


  • Organizational Unit Managers (OUM)
  • PA Approver
  • PA Supervisor
  • Employee
• PA Approver


  • Assigns employees to specific supervisors if delegated by OUM
  • Reviews complete plan
  • Provides the final signature for the completed plan
  • Monitors and documents the completion of PA plans
• Employee Responsibilities


  • Completes Employee Preparation Form
  • Gives feedback on his/her own performance and development needs
  • Submits to Supervisor
  • Meets with Supervisor to discuss ratings
  • Adds comments on Comments page
  • Signs the plan
• Providing Employee Training and Feedback


  • Geared towards improving employee performance by providing feedback about what employees are doing right and wrong
  • Time for addressing weaknesses
• Making Termination Decisions


  • Suggests that when performance management techniques are not successful, the results of a performance review might suggest that the best course of action is to terminate the employee
  • Be wary of legal issues surrounding these decisions
• Conducting SHRM Research


  • PA serves as basis for improving the organization/employee
  • Provides means for validating data within the organization, e.g. correlating employment testing results with some measures of job performance
• Employee Interventions


  • Mentoring: Unwritten rules/life lessons
  • Coaching: Performance-related matters
  • Counseling: Persistent problems
  • Rehabilitation: Major life disturbances
• Coaching for Success


  • Guiding people toward success in new or challenging situations
  • Taking in a new responsibility
  • Learning a new skill, task or job function
  • Working with new partners, work groups or vendors
• Coaching for Improvement


  • Guiding people to improve unacceptable performance or work habits
  • Missing work or coming in late
  • Using internet for non-work purposes
  • Disrupting meetings or being impatient
  • Missing deadlines or sales targets or going over budget
• Managing Performance Problems


  • Addressing chronic performance or work habit problems or serious misconduct
  • Continuing to fall short of production or sales goals
  • Repeatedly arriving late or calling in sick
  • Violating a major safety rule
  • Threatening or harassing a co-worker
• Problems with Performance Rating

  • Halo Effect
  • Central Tendency
  • Harshness/Leniency
  • Similarity/Dissimilarity
  • Contrast
  • Misunderstanding of rating standards
  • Insufficient knowledge
  • Rating based on traits instead of results
• Halo Effect


  • Failure to discriminate rating on several logically unrelated dimension due to an overall impression that influences decisions
  • Opposite is the Horn Effect
• Central Tendency


  Failure to use extreme ends of the rating scales when such ratings are appropriate due to constant psychological bias of the rater
• Harshness/Leniency


  Rating everyone too poorly or favorably with respect to actual performance