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PERFORMANCE

APPRAISAL SYSTEM
IMPLEMENTATION
Chapter 2

Content of the chapter


A. Defining Performance
b. Determinants of Performance
c. Performance Dimensions
d. Approaches to Measuring Performance
e. Diagnosing The Causes of Poor Performance
f. Differentiating Task from Contextual Performance
g. Choosing a Performance Measurement Approach.
h. Measuring Results and Behaviors
i. Gathering Performance Information
j. Implementing Performance Management System

Defining Performance

Performance is behaviour
It is the work people do and it is
observed
in work setting performance is the
actions and behaviours demonstrated by
employee to achieve the goal of an
organization
It can be measured in terms of
individuals proficiency
performance is action itself.

Documentational Purpose

Validate selection instruments

Document administrative decisions

Help meet legal requirements

Determinants of
Performance

What is job?

Job consist of interrelated tasks, duties and


responsibilities which individual has to carry
out

The determinants of job performance are


the criterion to evaluate the
performance of an employee in
organizational settings.

Campbells Model of Job


Performance

3 direct determinants of job


performance

Declarative knowledge (DK)

Procedural knowledge & skill (PKS)

Motivation (M)
Copyright The McGraw-Hill Companies, Inc.

Campbells Determinants of
Job Performance

Full Campbell Model


8

Figure 5.2
The Full Campbell Model
Source: Based on Campbell,
McCloy, Oppler, & Sager (1993).

Copyright The McGraw-Hill Companies, Inc.

8 core job behaviours


1.

2.

3.
4.

5.

6.

7.
8.

Job specific task proficiency: individuals capacity to perform core


substantive or technical task center to the job
Non job specific task proficiency: individuals capacity to perform
task or execute behaviour that are not specific to their job
Written and oral communication task proficiency
Demonstrating efforts: the consistency of individuals efforts,
willingness to keep working in adverse conditions
Maintaining personal discipline: avoiding negative behaviours like
absenteeism, violating rules
Facilitating group and team performance: the extent to which
individual supports peers.
Supervision/leadership: influencing others to improve performance
Management/ administration: behaviour directed at articulating unit,
group and individual process.

3 essential job behviours for every job


10

1.

Core task proficiency

2.

Demonstrated effort

3.

Maintenance of personal
discipline

Extensions of the Basic Performance


Model
11

Task performance (Doing just what


is expected)
vs.
Contextual performance (Going
beyond what is
expected)

Contextual
Performance

Task Performance

Requirements vary
from job to job
Individual
differences tied to
abilities &
knowledge
Activities part of job
description

Common to most jobs

Individual differences
tied to personality

Activities not part of


job description

Supports organizational
environment
12

Increasing importance of contextual factors in todays


workplace
13

Global competition will require more


effort from employees

Teams are more common now

Downsizing requires adaptability & extra


effort

Customer service increasingly important

Contextual Performance 5 aspects


14

1.

Persisting with enthusiasm & extra effort

2.

Volunteering to carry out task activities not in


job description

3.

Helping & cooperating with others

4.

Following organizational rules & procedures

5.

Endorsing, supporting, & defending


organizational objectives

Organizational citizenship behavior (OCB)


15

Altruism
Helpful

behaviors directed toward individuals or

groups

Generalized compliance
Helpful

behaviors directed toward the broader


organization

Identifying Performance
Dimensions
Dimensions

Defined as an aspect of performance that


determines effective job performance.
Performance dimensions are defined based
on the job and the work itself.
Identified based on the job analysis
Performance dimensions help answer the
question: How does someone act and/or
behave when s/he does the job well?
May be further defined through use of
competencies
Characteristics

performance

associated with successful

Identifying Performance
Dimensions
Examples of Performance
Dimensions:

Strong Interpersonal Skills


Customer Service Orientation
Teamwork
Effective Communication
Valuing Diversity
Analysis and Problem-Solving
Decision-Making and Results Orientation
Adaptability
Fostering a Safe and Secure Environment

Identifying Performance
Dimensions

For dimensions to be an effective means of


measuring performance, they must have
two characteristics:

Have a clear general definition


Team

work might then be defined in terms of


competencies

Have well-defined levels of performance


at each point along a rating scale.

APPROACHES OF
MEASURING
PERFORMANCE

Various approaches to measure employee


performance

Comparative approach
Attribute approach
Behavioural approach
Result approach
Quality approach

Comparative Approach

Ranking

Forced distribution (Bell curve method)

Simple ranking ranks employees from highest to


lowest performer.
Alternation ranking - crossing off the best and
worst employees.

Employees are ranked in groups.

Paired comparison

Managers compare every employee with every other


employee in the work group.

8-21

Wipro

Wipro is now implementing a new evaluation system


where feedback will be more frequent and quarterly,
as opposed to a one-time annual process.
Last year, it had an ambitious pilot exercise across
the company where it ditched its traditional "bellcurve" appraisal system for a large majority of its
170,000-odd employees.
The trigger for this exercise was clear. Employees,
mid-level executives and top managers needed to be
more accountable for the company's performance.

Attribute Approach

Graphic rating scales

A list of traits is evaluated by a 5-point


rating scale.
legally questionable.

Mixed-standard scales

define relevant performance dimensions


develop statements representing good,
average, and poor performance along each
dimension.
8-23

Behavioral Approach

Critical incidents approach - requires managers to keep


record of specific examples of effective and ineffective
performance.

Behaviorally anchored rating scales (BARS)

Organizational behavior modification - a formal


system of behavioral feedback and reinforcement.

Assessment centers - multiple raters evaluate


employees performance on a number of exercises.

8-24

Results Approach

Management by Objectives

top management passes down


companys strategic goals to managers
to define the goals.

Productivity Measurement and


Evaluation System

goal is to motivate employees to


higher levels of productivity.

8-25

Quality Approach

A performance management system designed with a


strong quality orientation can:
1.

Assess both person and system factors in the measurement


system.

2. Emphasize managers and employees work together to solve


performance problems.
3. Involve both internal and external customers in setting
standards and measuring performance.
4. Use multiple sources to evaluate person and system factors.
8-26

5 Performance Measures
Criteria
Strategic Congruence

Specificity

Acceptabili
ty

Validity

Reliabili
ty

8-27

Performance Measure Criteria


Strategic Congruence

The extent to which the performance management system


elicits job performance that is congruent with the
organization's strategy, goals, and culture.

Validity

The extent to which the performance measure assesses all the


relevantand only the relevantaspects of job performance.

Reliability

The consistency of the performance measure The degree to


which performance measure is free from random error.

Acceptability

The extent to which a performance measure is deemed to be


satisfactory or adequate by those who use it. Whether the
people who use the performance measure accept it.

Specificity

The extent to which a performance measure gives specific


guidance to employees about what is28expected of them and
how they can meet these expectations.

29

What Managers Can Do to Diagnose


Performance Problems and Manage
Employee Performance
Diagnosing the Causes of Poor Performance

1- Input

2- Employee characteristics

3- Feedback

4- Performance standards/Goals

5- Consequences

30

Steps to Diagnose Performance


Problems and Manage Employee
High ability and motivation; managers should provide
Solid
Performers
Performance
development opportunities
Misdirected Effort

Underutilizers

Deadwood

Lack of ability but high motivation; managers should focus on


training

High ability but lack motivation; managers should focus on


interpersonal abilities

Low ability and motivation; managerial action, outplacement,


demotion, firing.

Raters Errors in Performance


Measurement
31

Raters Errors
1- Similar to Me

3- Distributional Errors

2- Contrast

4- Halo and Horns

Rater error training - Rater accuracy training

Appraisal Politics

Performance Feedback
32

1- Feedback should be given frequently,


not once a year.
2- Create the right context for the
discussion.
3- Ask employee to rate his or her
performance before the session.
4- Encourage the subordinate to
participate in the session.
5- Recognize effective performance
through praise.
7- Focus feedback on behavior or results,
6- Focus on solving problems.
not on the person.
8- Minimize criticism.
9- Agree to specific goals and set a date
to review progress.

Sources of Information
Collection

Measuring Results

Measuring Results
- Identify accountabilities
- Set objectives
- Determine standards of performance

Measuring Results
- Identify competencies
- Identify indicators
- Choose measurement system