CHAPTER 7 Performance Effectiveness Overview Performance Improvement Performance

CHAPTER 7 Performance Effectiveness Overview • Performance Improvement • Performance Standards • What a Good Performance Standard System Can Do • Setting Up a Performance Standard System • Implementing a Performance Standard System • Essentials of Performance Evaluation • Making the Evaluation • The Appraisal Interview • Follow-Up • Legal Aspects of Performance Evaluation Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Performance Improvement • Performance improvement operates on the premise that to be effective, individuals and teams require the following: • Direction about what the organization wants to accomplish • Clear expectations • The equipment to do the job • Information and incentives to keep them on track Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Performance Standards • Each performance standard states 3 things about each unit of the job: • • • What the employee is to do. How it is to be done. To what extent it is to be done (how much, how well, how soon). • Job descriptions are often used in recruiting, evaluating applicants, & training. • They are also useful in assigning work, evaluating performance, & deciding on disciplinary action. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Figure 7. 1 Anatomy of a performance standard. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness What a Good Performance Standard System Can Do • If you develop a full set of performance standards for each job classification you: • have the basis for a management system for your people & the work they do. • can use them to describe the jobs, to define the day’s work for each job, & to train employee’s. • can use them as a basis for rewarding achievement. • can use them as diagnostic tools to pinpoint ineffective performance. • can use them in disciplining workers. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Performance Standards: In Recruiting & Hiring • Defines the job. • Aids in planning & forecasting. • Provides a method of testing skills. • Defines a day’s work. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Performance Standards: In Training & Evaluating Performance • Provides blueprints for a training program. • Sets a competency standard for job performance. • Provides an objective evaluation method. • Pinpoints needs for improvement. • Identifies superior workers. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Performance Standards: In Your Job & Career • Helps you to develop managerial skills. • Reduces crisis management. • Provides time for true management. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Setting Up a Performance Standard System • In setting up a performance standard system, there are three essentials for success: • Employee participation: better results, commitment, & morale. • Active supervisory leadership & assistance throughout: be in charge at all times but, work together. • Built in reward system: rewards linked to how well each worker meets the performance standards. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Defining the Purpose • The first step is to define the purpose for which standards will be used. • This should define a day’s work, set standards, develop training programs, & evaluate on the job performance. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Analyzing the Job • The next step is to analyze the job & break it down into units. • You & your employees identify units of work that are performed. • List in order of performance all the tasks or steps to be taken in completing that unit of work. • Sometimes it is appropriate to define the 3 levels of performance: • • • Optimistic Realistic Minimum Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Writing the Performance Standards 1. 2. 3. 4. 5. Be specific, clear, complete, & accurate. Be measurable & observable. Be attainable. Conform to company policies, goals, legal & moral restraints. Certain kinds of standards must have time limits set for achievement. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Developing Standard Procedures • The next step is to develop standard procedures. • These state what a person must do to achieve the results, they give spelled out instructions for the action. • Functions: • To standardize procedures you want followed. • To provide a basis for training. • Areas of caution: • Do not get carried away on detail. • Do not make rigid rules when there is a choice on ho things can be done. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Training Associates to Meet Performance Standards • A training program should have a training objective for each standard. • Training objective: a trainer's’ goal: • a statement, in performance terms, of the behavior that shows when training is complete. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Evaluating On-the-Job Performance • The final step in developing a performance standard system is to evaluate worker performance on the job using the performance standards that apply to that job. • The first evaluation is a test of both the workers & the system. • If the workers meets all the standards- rewards are in order. • This also indicates that standards & procedures are suitable & workable. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Implementing a Performance Standards System Keys to making it work: 1. 2. 3. 4. 5. Workers’ cooperation in developmental stage. Put the system to work slowly over a period of time. An award or incentive system. Recognition & use of workers potential. Periodic review. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness How a Performance Standards System Can Fail • The standards are not clearly stated & communicated. • The supervisor changes standards without telling employees. • The supervisor neglects various follow up elements. • Employees find no challenges or rewards in the system. • The supervisor becomes too preoccupied with maintaining the system. • The system is administered in a negative way. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Essentials of Performance Evaluation • Performance evaluation: • A periodic review & assessment of each employee’s performance during a given period. • Are not always used for hourly workers in the hospitality industry (lack of time, workers do not stay long enough, etc. ). • Does not substitute in any way a informal evaluation. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Purpose and Benefits Five good reasons or purposes of a performance review: 1. In your day-to-day evaluations you tend to concentrate on the people who need to improve. 2. Looking back over a period of time gives you a different perspective. 3. A performance review is for the record. 4. It lets people know how well they are doing. 5. A performance review not only looks backward, it looks ahead. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Purpose and Benefits • Performance reviews have many uses beyond their primary concern with evaluating and improving performance. • One is to act as the basis for an employee’s salary increase. • Another use is to identify workers with potential for advancement. • Other managers may use your performance reviews. • Your boss, to rate your own performance as a supervisor, may use your performance reviews. • Performance reviews can provide feedback on your hiring and training procedures. • Finally, performance reviews provide the occasion for supervisors to get feedback from employees about how they feel about their job, the company, and the way they are treated. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Steps in the Process 1. 2. 3. 4. Prepare for the evaluation. Making the evaluation. Sharing it with the worker. Providing a follow up. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Making the Evaluation • Evaluations are typically formalized in an evaluation form. • This form lists performance dimensions or categories in measurable or observable terms. • Dimensions should be related to the job, & clearly defined in objective & observable terms. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Standards and Ratings • There should be measurable or observable standards, wherever possible to make evaluation more objective. • Many evaluation forms use a rating scale ranging from outstanding to unsatisfactory performance. • A common scale includes ratings of outstanding, above average, needs improvement, & poor. • The major problem with ratings such as outstanding or excellent is figuring out what they mean in performance terms. • The more precise these descriptions are, the fairer & more objective the ratings will be (i. e. point values). • No evaluation form solves all the problems of fairness & objectivity. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Pitfalls in Rating Employee Performance • The Form itself • Halo effect • Letting feeling bias judgment • Comparing one person to another • Supervisors feelings about evaluation process affects ratings • Concern about consequences • Procrastination • Supervisor gives ratings for the effect they will have • Rating employees on most recent performance Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Defense Against Pitfalls • Evaluate performance, not the employee. • Give specific examples. • Where there is substandard performance ask WHY? • Use the rule of finger. • Think fair & consistent. • Get others input. • Write down ideas & discuss with the employee how to improve performance. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Employee Self-Appraisal • Employees evaluate themselves. • May result in less employee defensiveness. • May result in a more constructive performance appraisal interview. • May improve motivation & job performance. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness The Appraisal Interview • A private face to face session between you & your employee. • Plan: • Pick a place free of interruption at an appropriate time, review the evaluation, & keep in mind your goal of a positive climate of communication & problem solving. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Planning the Interview • Each interview should take place in a quiet area free of interruption. • It is important to review your written evaluation shortly before the interview and to plan how you will communicate it to the employee for best effect. • Your major goal for the interview is to establish and maintain a calm and positive climate of communication and problem solving rather than a negative climate of criticism or reprimand. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Conducting the Interview • Start off with small talk. • Make sure the employee understands the evaluation process. • Ask the employee to rate their performance. • Encourage the employee to comment on your judgments. • Get the employee to do most of the talking. • Work with them on setting improvement objectives. • Summarize the interview, end on a positive note. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Common Mistakes in Appraisal Interviews • Authoritarian approach • Tell & sell approach • Criticizing & dwelling on past mistakes • Failing to listen-arguing- interrupting • Losing control- letting emotions take over • Reducing standards for one person Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Follow-Up • 1 st see that people receive the rewards they have coming to them. • For people you have discovered need more training, arrange to provide it for them. • For people you feel will improve themselves, follow their progress discreetly. • There will be people who you are sure will make no attempt to improve, who will continue to get by with minimum performance, reassess them in your mind. • There are 2 important facets of follow-up. • Actually carrying it out. • Use all you have discovered about your people & yourself to improve your working relationship with each person you supervise. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Legal Aspects of Performance Evaluations • EEO laws effecting performance evaluation include: • Title VII of the Civil Rights Act • Equal Pay Act • Age Discrimination in Employment Act • Americans with Disabilities Act Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved

CHAPTER 7 Performance Effectiveness Fair and Legal Evaluations 1. Evaluations should be based on standards obtained from job analysis. 2. Use objective, observable, & measurable performance standards. 3. Keep a positive rapport during the interview. 4. Do not discuss qualities of employee based on a membership of a group. 5. Document frequently. 6. Employees should be given a way to appeal. Copyright © 2016 by John Wiley & Sons, Inc. All Rights Reserved