Chapter 2 Performance Management Process Copyright 2013 Pearson

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

Overview Ø Ø Ø Prerequisites Performance Planning Performance Execution Performance Assessment Performance Review Performance Renewal and Recontracting Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -2

Prerequisite s Performance Planning Performance Management Process Performance Renewal and Recontractin g Performance Review Performance Execution Performance Assessment Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -3

Prerequisites A. B. Knowledge of the organization’s mission and strategic goals Knowledge of the job in question Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -4

Knowledge of Mission and Strategic Goals n Strategic planning • Purpose or reason for the organization’s existence • Where the organization is going • Organizational goals • Strategies for attaining goals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -5

Mission and Goals § Cascade effect throughout organization • Organization Unit Employee Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -6

Knowledge of the Job n Job analysis of key components • Activities • Tasks • Products • Services • Processes Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -7

Knowledge of the Job (Continued) n KSAs required to do the job • Knowledge • Skills • Abilities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -8

Job Description n Job duties KSAs Working conditions Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -9

Generic Job Descriptions Occupational Informational Network (O*Net) http: //online. onetcenter. org/ Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -10

Job Analysis n Use a variety of tools • Interviews • Observation • Questionnaires (available on the Internet) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -11

Job Analysis Follow-Up n All incumbents should • Review information • Provide feedback • Rate tasks and KSAs in terms of Frequency n Criticality n Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -12

Rater Biases n Rating of frequency and criticality of tasks and KSAs is susceptible to: • Self-serving bias • Social projection bias • False consensus bias These biases exaggerate the importance of certain tasks & KSAs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -13

Rater Training n Web-based training: Structure • Takes only about 15 minutes • Establishes common point of reference via largely 5 steps n In the 5 steps, participants basically practice their rating skills • As a result, reduces exaggeration of the importance of certain task and KSAs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -14

Rater Training (Continued) n Web-based training: 5 steps 1. Defines the rating dimensions 2. Defines the scale anchors 3. Describes behaviors indicative of each rating dimension 4. Allows raters to practice their rating skills, and 5. Provides feedback on the practice Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -15

Performance Planning: Results üKey accountabilities üSpecific objectives üPerformance standards Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -16

Key Accountabilities Broad areas of a job for which n the employee is responsible for producing results n Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -17

Specific Objectives n Statements of outcomes • Important • Measurable Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -18

Performance Standards n n “Yardstick” to evaluate how well employees have achieved each objective Information on acceptable and unacceptable performance, such as • Quality • Quantity • Cost • Time Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -19

Performance Planning: Behaviors Ø How a job is done Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -20

Performance Planning: Competencies n n Measurable clusters of KSAs Critical in determining how results will be achieved Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -21

Performance Planning: Development Plan § Areas for improvement § Goals to be achieved in each area of improvement Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -22

Performance Execution: Employee’s Responsibilities § Commitment to goal achievement § Ongoing requests for feedback and § § § coaching Communication with supervisor Collecting and sharing performance data Preparing for performance reviews Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -23

Performance Execution: Manager’s Responsibilities n n n Observation and documentation Updates Feedback Resources Reinforcement Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -24

Performance Assessment n n n Manager assessment Self-assessment Other sources (e. g. , peers, customers) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -25

Multiple Assessments Are Necessary To… Ø Ø Increase employee ownership Increase commitment Provide information Ensure mutual understanding Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -26

Performance Review Overview of Appraisal Meeting n Past • Behaviors and results n Present • Compensation to be received n Future • New goals and development plans Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -27

Six Steps for Conducting Productive Performance Reviews 1. 2. 3. Identify what the employee has done well and poorly Solicit feedback Discuss the implications of changing behaviors Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -28

Six Steps for Conducting Productive Performance Reviews 4. 5. 6. Explain how skills used in past achievements can help overcome any performance problems Agree on an action plan Set a follow-up meeting and agree on behaviors, actions, and attitudes to be evaluated Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -29

Performance Renewal and Recontracting n Identical to performance planning EXCEPT: • Uses insights and information from previous phases • Restarts the performance management cycle Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -30

Performance Management Process Summary: Key Points ü ü Ongoing process Each component is important v. If one is implemented poorly, the whole system suffers ü Links between components must be clear Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -31

Quick Review Ø Ø Ø Prerequisites Performance Planning Performance Execution Performance Assessment Performance Review Performance Renewal and Recontracting Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -32

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 2 -33