Lesson 6

• Preparation steps before launching a performance management system

  • Implementing a communication plan
  • Establishing an appeals process
  • Training raters
  • Pilot testing the system
• Communication plan


  Ensures information about the performance management system is widely disseminated in the organization
• Key questions a communication plan should answer

  • What is performance management?
  • How does performance management fit into our strategy?
  • What's in it for me?
  • How does it work?
  • What are my responsibilities?
  • How is performance management related to other initiatives?
• Selective exposure


  Tendency to expose our minds only to ideas with which we already agree
• Selective perception


  Tendency to perceive a piece of information as meaning what we would like it to mean
• Selective retention


  Tendency to remember only those pieces of information with which we already agree
• Ways to minimize negative impact of cognitive biases

  1. Involve employees

  2. Understand employee needs

  3. Strike first

  4. Provide facts and consequences

  5. Put it in writing

  6. Use multiple channels of communication

  7. Use credible communicators

  8. Say it, and then say it again
• Appeals process


  Allows employees to resolve disagreements regarding performance ratings or resulting decisions in an amicable and non-retaliatory way
• Types of issues that can be appealed

  • Judgmental issues (validity of performance evaluation)
  • Administrative issues (whether policies and procedures were followed)
• Appeals process


  1. Level 1/A appeal to HR department

  2. Level 2/B appeal to outside unbiased arbitrator (panel of peers and managers)
• Training raters is a necessary step in preparing for the launch of a performance management system
• Rater error


  Unintentional or intentional errors that raters are likely to make in evaluating performance
• The Wei dynasty in China implemented a performance management system for its household members about 1,700 years ago
• the panel's vote into consideration in making the final decision
• Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES OFFICE OF THE VICE PRESIDENT FOR CAMPUSES MARAGONDON CAMPUS
• Prepared by: Ms. Eloisa Mae Lipio
• Training the raters


  Another step necessary in preparing for the launching of the performance management system
• Training


  • Provides participants in the performance management system with needed skills and tools to do a good job implementing it
  • Helps increase satisfaction with the system
• Rater Error Training (RET)


  The goal is to make raters aware of what rating errors they are likely to make and to help them develop strategies to minimize those errors
• Rater Error Training (RET)


  The goal is to increase rating accuracy by making raters aware of the unintentional errors they are likely to make
• RET programs


  1. Define the most typical errors and describe possible causes

  2. Allow trainees to view examples of common errors and review suggestions on how to avoid making errors

  3. Compare the ratings provided by the trainees and the correct ratings

  4. Explain why the errors took place, which specific errors were made, and ways to overcome the errors in the future
• RET does not guarantee increased accuracy</b>
• Rater errors


  • Similar-to-me error
  • Contrast error
  • Leniency error
  • Severity error
  • Central tendency error
  • Halo error
  • Primacy error
  • Recency error
  • Negativity error
  • First impression error
  • Spillover error
  • Stereotype error
  • Attribution error
• Intentional errors


  Errors caused by the rater's motivation (e.g. desire to maximize merit raise/rewards, avoid confrontation with employees, make the manager look good)
• Unintentional errors


  Errors that raters are not aware they are making
• Frame of Reference (FOR) Training

  Helps improve rater accuracy by thoroughly familiarizing raters with the various performance dimensions to be assessed
• Typical FOR training program

  1. Discuss job description and duties

  2. Review definitions and examples of performance dimensions

  3. Rate fictitious employees using appraisal forms and write justifications

  4. Inform trainees of correct ratings and reasons, discuss differences
• Frame of Reference (FOR) training program

  1. Discussion of job description and duties

  2. Familiarize raters with performance dimensions and definitions

  3. Rate fictitious employees in practice vignettes

  4. Write justification for ratings

  5. Trainer provides correct ratings and reasons
• FOR training program


  • Creates a common performance theory (frame of reference) among raters so they agree on appropriate performance dimension and effectiveness level for different behaviors
• Behavioral Observation (BO) training

  1. Raters learn to observe, store, recall, and use information about performance

  2. Use observational aids like notes or diaries to record behaviors on each performance dimension
• Self-Leadership (SL) training


  Improve rater's confidence in ability to manage performance<|>Techniques include positive self-talk, mental imagery, and positive beliefs and thought patterns
• Intentional rating errors are largely due to motivational issues, where raters see more benefit in distorting ratings than providing accurate information
• Unintentional rating errors are largely due to cognitive biases in observing, encoding, storing, and retrieving performance information
• Communication plan should convince raters it is more advantageous to provide accurate than inaccurate performance information
• Training programs should describe the errors raters usually make and allow them to generate a common frame of reference, improve observation and memory skills, and mitigate discomfort from interpersonal demands
• FOR training is beneficial when performance measurement emphasizes behaviors, while BO training is beneficial when performance measurement emphasizes results
• Pilot testing the performance management system

  1. Evaluations not recorded in employee files, but system implemented in full

  2. Participants maintain records of any difficulties encountered

  3. Identify and correct flaws before full implementation
• Pilot testing


  • Allows gaining information on how well the system works, difficulties and obstacles, recommendations for improvement, and understanding personal reactions
  • Achieves early acceptance from a small group who can act as champions for the system
• Pilot test group should be sufficiently large and representative of the entire organization
• Pilot testing can provide huge savings and identify potential problems before they become irreversible and ruin the credibility of the system