Chapter 2 Performance Management Process 2-1 Copyright © 2013 Pearson Education, Inc. publishing as...

Chapter 2Chapter 2

Performance Performance Management Management

ProcessProcess

2-2-11Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

OverviewOverview

PrerequisitesPrerequisites Performance PlanningPerformance Planning Performance ExecutionPerformance Execution Performance AssessmentPerformance Assessment Performance ReviewPerformance Review Performance Renewal and Performance Renewal and

RecontractingRecontracting

Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2-2-22

Performance Management ProcessPerformance Management Process

Performance Review

Performance Renewal and Recontracting

Performance Assessment

Performance Execution

Performance PlanningPrerequisites


PrerequisitesPrerequisites

A.A. Knowledge of the Knowledge of the organization’s mission and organization’s mission and strategic goalsstrategic goals

B.B. Knowledge of the job in Knowledge of the job in questionquestion


Knowledge of MissionKnowledge of Mission and Strategic Goals and Strategic Goals

Strategic planning Strategic planning • Purpose or reason for the Purpose or reason for the

organization’s existenceorganization’s existence• Where the organization is goingWhere the organization is going• Organizational goalsOrganizational goals• Strategies for attaining goalsStrategies for attaining goals


Mission and GoalsMission and Goals

Cascade effect throughout Cascade effect throughout organizationorganization

•Organization Organization Unit Unit EmployeeEmployee


Knowledge of the JobKnowledge of the Job

Job analysis of key componentsJob analysis of key components• ActivitiesActivities• TasksTasks• Products Products • ServicesServices• ProcessesProcesses


Knowledge of the Job Knowledge of the Job ((ContinuedContinued))

KSAs required to do the jobKSAs required to do the job• KnowledgeKnowledge• SkillsSkills• AbilitiesAbilities


Job DescriptionJob Description

Job dutiesJob duties KSAsKSAs Working conditionsWorking conditions


Generic Job DescriptionsGeneric Job Descriptions

Occupational Informational Occupational Informational Network (O*Net)Network (O*Net)

http://online.onetcenter.org/http://online.onetcenter.org/


Job AnalysisJob Analysis

Use a variety of toolsUse a variety of tools• InterviewsInterviews• ObservationObservation• Questionnaires (available on Questionnaires (available on

the Internet)the Internet)


Job Analysis Follow-UpJob Analysis Follow-Up

All incumbents should All incumbents should • Review information Review information • Provide feedback Provide feedback • Rate tasks and KSAs in terms ofRate tasks and KSAs in terms of

FrequencyFrequency CriticalityCriticality


Rater BiasesRater Biases

Rating of frequency and Rating of frequency and criticality of tasks and KSAs is criticality of tasks and KSAs is susceptible to:susceptible to:• Self-serving biasSelf-serving bias• Social projection biasSocial projection bias• False consensus biasFalse consensus bias

These biases exaggerate the These biases exaggerate the importance of certain tasks & KSAsimportance of certain tasks & KSAs


Rater TrainingRater Training

Web-based training: StructureWeb-based training: Structure• Takes only about 15 minutesTakes only about 15 minutes• Establishes common point of Establishes common point of

reference via largely 5 stepsreference via largely 5 steps In the 5 steps, participants basically practice In the 5 steps, participants basically practice

their rating skillstheir rating skills

• As a result, reduces exaggeration of As a result, reduces exaggeration of the importance of certain task and the importance of certain task and KSAsKSAs


Rater Training (Continued)Rater Training (Continued)

Web-based training: 5 stepsWeb-based training: 5 steps1. Defines the rating dimensions1. Defines the rating dimensions

2. Defines the scale anchors2. Defines the scale anchors

3. Describes behaviors indicative of 3. Describes behaviors indicative of each rating dimensioneach rating dimension

4. Allows raters to practice their 4. Allows raters to practice their rating skills, and rating skills, and

5. Provides feedback on the practice 5. Provides feedback on the practice


Performance Planning:Performance Planning:ResultsResults

Key accountabilitiesKey accountabilities

Specific objectivesSpecific objectives

Performance standardsPerformance standards


Key AccountabilitiesKey Accountabilities

Broad areas of a job for Broad areas of a job for whichwhich

the employee is responsible the employee is responsible

for producing for producing resultsresults


Specific ObjectivesSpecific Objectives

Statements of outcomesStatements of outcomes•Important Important •Measurable Measurable


Performance StandardsPerformance Standards ““Yardstick” to evaluate how well Yardstick” to evaluate how well

employees have achieved each employees have achieved each objectiveobjective

Information on Information on acceptableacceptable and and unacceptableunacceptable performance, such as performance, such as• QualityQuality• Quantity Quantity • CostCost• TimeTime


Performance Planning:Performance Planning:BehaviorsBehaviors

HowHow a job is done a job is done


Performance Planning:Performance Planning:CompetenciesCompetencies

MeasurableMeasurable clusters of KSAs clusters of KSAs

CriticalCritical in determining how in determining how results will be achievedresults will be achieved


Performance Planning:Performance Planning:Development PlanDevelopment Plan

Areas for improvementAreas for improvement Goals to be achieved in each Goals to be achieved in each

area of improvementarea of improvement


Performance Execution:Performance Execution:Employee’s ResponsibilitiesEmployee’s Responsibilities

Commitment to goal achievementCommitment to goal achievement Ongoing requests for feedback and Ongoing requests for feedback and

coachingcoaching Communication with supervisorCommunication with supervisor Collecting and sharing performance Collecting and sharing performance

datadata Preparing for performance reviewsPreparing for performance reviews


Performance Execution:Performance Execution:Manager’s ResponsibilitiesManager’s Responsibilities

Observation and documentationObservation and documentation UpdatesUpdates FeedbackFeedback ResourcesResources ReinforcementReinforcement


Performance AssessmentPerformance Assessment

Manager assessmentManager assessment Self-assessmentSelf-assessment Other sources (e.g., peers, Other sources (e.g., peers,

customers)customers)


Multiple Assessments Are Multiple Assessments Are Necessary To…Necessary To…

Increase employee ownershipIncrease employee ownership Increase commitmentIncrease commitment Provide informationProvide information Ensure mutual understandingEnsure mutual understanding


Performance ReviewPerformance ReviewOverview of Appraisal MeetingOverview of Appraisal Meeting

PastPast• Behaviors and resultsBehaviors and results

PresentPresent• Compensation to be receivedCompensation to be received

FutureFuture• New goals and development New goals and development

plans plans


Six Steps for Conducting Six Steps for Conducting Productive Performance ReviewsProductive Performance Reviews

1.1. Identify what the employee has Identify what the employee has done well and poorlydone well and poorly

2.2. Solicit feedbackSolicit feedback3.3. Discuss the implications of Discuss the implications of

changing behaviorschanging behaviors


Six Steps for Conducting Six Steps for Conducting Productive Performance ReviewsProductive Performance Reviews

4.4. Explain how skills used in past Explain how skills used in past achievements can help overcome achievements can help overcome any performance problemsany performance problems

5.5. Agree on an action planAgree on an action plan

6.6. Set a follow-up meeting and agree Set a follow-up meeting and agree on behaviors, actions, and on behaviors, actions, and attitudes to be evaluatedattitudes to be evaluated


Performance Renewal andPerformance Renewal andRecontractingRecontracting

Identical to performance planning Identical to performance planning EXCEPT:EXCEPT:• Uses insights and information from Uses insights and information from

previous phasesprevious phases• Restarts the performance Restarts the performance

management cyclemanagement cycle


Performance Management ProcessPerformance Management ProcessSummary: Key PointsSummary: Key Points

Ongoing processOngoing process Each component is importantEach component is important

If one is implemented poorly, the If one is implemented poorly, the whole system sufferswhole system suffers

Links between components must Links between components must be clearbe clear


Quick ReviewQuick Review

PrerequisitesPrerequisites Performance PlanningPerformance Planning Performance ExecutionPerformance Execution Performance AssessmentPerformance Assessment Performance ReviewPerformance Review Performance Renewal and Performance Renewal and

RecontractingRecontracting


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