chapter 20 performance management. explain the importance of performance feedback describe the...
TRANSCRIPT
Chapter 20
Performance Management
Explain the importance of performance feedback
Describe the process of performance appraisal
Identify the components of effective appraisals
Demonstrate the skills required for a good appraisal
Objectives
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Describe 360-degree feedbackExplain the opposition to appraisal
systemsDistinguish between effective and
ineffective feedback
…Objectives
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Performance Management System - Defined
A performance management system is a
process of establishing performance
standards and evaluating performance to
ensure that goals are being effectively
accomplished
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The Balanced Scorecard
Customer perspective – How do customers see the organization?
Internal business perspective – What must the organization excel at in order to succeed?
Innovation and learning perspective – How can the organization continue to improve and create value?
Financial perspective – How does the organization look to shareholders?
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Basics of Performance Management
Develop rigorous systems that differentiate between three groups of employees
Create conditions that foster goal accomplishment
Establish a culture of accountability
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Function Of Performance Feedback
Contributes to self-conceptReduces uncertainty about whether
employee is on trackSignals which organizational goals are
most importantHelps people master their environment
and feel competent
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Manager’s Role?
Not a judge, but a coach
Not “gotcha” but “How can I help you do better and achieve your goals?”
Managers’ attitude toward appraisal and their skill in appraising and giving
feedback are crucial
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Basic Objectives of Performance Appraisal Systems
Provide employees with feedbackProvide management with data for
personnel decisionsRecognize skill acquisition and identify
skill deficits for further training and development
Motivate employees to be more effectiveComply with equal opportunity regulations
and ensure fairness
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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The Appraisal Process
Review legal requirements Translate organizational goals into job
descriptions Set clear job expectations Provide job training or coaching to meet
expectations Supply adequate supervision Acknowledge accomplishments, diagnose
strengths and weaknesses in interview Establish performance goals and development
plan
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Bias and Appraisals
Incorrect attributions can bias appraisalsPotential for bias is reduced when:
Employees make their work visible to the appraiser
Appraisers and appraisees together clarify objectives and task responsibilities
Appraisers use behaviorally-based appraisal scales
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Does Performance Appraisal Work?
Feedback generally improves performance, but it can also diminish performance
Appraisals used for developmental rather than administrative reasons (e.g., promotions, bonuses) are more likely to produce positive reactions
Meta-analysis results
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For Team AppraisalsDetermine KSAs required for team’s task
and process-oriented skillsIdentify who should be involved in the
appraisalUse both individual and team performance
measuresAddress social loafingEnsure peers are trained in performance
appraisal
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Multirater/Multisource Feedback - Defined
Multirater or multisource feedback, such as
360-degree feedback, incorporates
feedback from various sources, such as:
superiors, peers, subordinates, suppliers,
and customers
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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360-Degree Multirater Feedback
Employee
Manufacturers’ & Customers’ ratings
Suppliers’ ratings
Employee’s self-rating
Superiors’ ratings
Other Team Members’ Ratings
Subordinates’ ratings
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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For Effective 360-Feedback
Ratees are held accountable for using the feedback
Raters are held accountable for the accuracy or usefulness of their feedback
Management provides resources to support the ratee’s behavioral change
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Eliminate Performance AppraisalDeming’s criticisms of appraisals: Usually lack objectivity Ignore factors outside the employee’s control Encourage individual rather than team focus Promote short-sightedness and short-term focus Encourage employee to see boss as their
“customer” rather than the real customer, which can result in fear, rivalry, and politics
The TQM solution: recognize outstanding performers and coach poor performers; teamscontinuously gather data on own performance
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Forced Distribution Systems - Defined
In forced distribution or forced ranking systems, managers have to rank all employees and fit them into a pre-determined distribution with only a certain percentage of employees allowed in each category
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Results of Forced Distribution Systems
Employee skepticismLower morale Less collaborationLower productivity
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Develop Strengths, Not Weaknesses
Focusing on Flaws Evokes negative
memories/emotionsCreates self-doubtLowers motivation,
energy, productivity and self-assurance
Focusing onStrengths is more productiveDiscover each
employee’s unique strengths
Capitalize on themWork around their
weaknesses
Marcus
Buckingham
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Ineffective Evaluative General Directed at personality
traits Imposed Delayed Prescribes ways to
improve Intended to punish Occurs when giver is
ready
Effective Vs. Ineffective Feedback
Effective Descriptive Specific, data-based Directed at controllable
behaviors Solicited Immediate Suggests ways to
improve Intended to help Occurs when receiver is
ready to listenOrganizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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Steps in the Interview Process
Explain the format and purpose Discover employee opinions regarding
performance and career goals Provide supervisor’s appraisal Problem solve about performance if
necessary Plan for next period
Employee presents self-appraisal
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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...Steps in the Interview Process Respond to employee self-appraisal and convey
feedback Ask about conditions or problems that hinder
performance Problem solve about what both could do to
improve employee performance Together set objectives and design plan for next
period Discuss long-term career goals and
development needs
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When Does Culture Matter in Performance Appraisal?
Different cultures have different perceptions
about the purpose of performance appraisal
and how it should be carried out
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Culture and Performance Appraisal
Harmony and face-saving In Eastern cultures, negative feedback is
likely to be interpreted as a loss of face and public humiliation
Power distance In low power-distance cultures, employees
are more willing to question superiors In high power-distance cultures, employees
are more fearful of disagreeing with their boss
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…Culture and Performance Appraisal
Uncertainty avoidance In cultures characterized by high
uncertainty avoidance, appraisal systems are more formalized with more detailed regulations and procedures
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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…Culture and Performance Appraisal
Individualistic Cultures emphasize Individual achievement Individual incentive
schemes Formal appraisal
processes with feedback on performance
Merit-based hiring and promotion
Collectivist Cultures emphasize Group achievement Group incentive
schemes Informal appraisals Hire and fire based on
loyalty and seniority
Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner
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