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measuring performance-results and behavior; conducting performance review discussions; harnessing performance management system for performance improvement.
Measuring performance
Key questions
Where should each individual focus efforts? (Accountabilities) What are the expected objectives? (Objectives) How do we know how well the results were achieved? (Performance Standards)
Accountabilities
Broad areas of a job for which employee is responsible for producing results
Determining Accountabilities
Collect information about job (Job Description) Determine importance of task or cluster of tasks What percentage of employees time is spent performing task / each accountability? Would there be a significant impact on work units mission, if performed inadequately? Is there a significant consequence of error?
Objectives
Statements of important and measurable outcomes
Determining Objectives
Purpose: to identify
Outcomes Limited number Highly important When achieved dramatic impact on overall organization success
After objectives are set Employees should receive feedback on their progress toward attaining objective Rewards allocated Employees who have reached their objective
Specific and Clear (For eg Cut travel cost by 20 %) Challenging (Stretch and but not impossible to achieve) Agreed Upon (Agreement between manager and
employee)
4.
Significant
Prioritized
(Critical Impact on success of organization, Employees performance and goals of organization, Value to organization )
(Unequal, hence tackle one by one)
5.
Bound by Time (deadlines) Achievable (doable by employees with their skills and
training. If NOT then resources should be provided)
8.
9.
10.
Flexible (needs changes with respect to work or business environments) Limited in Number (Few, between 5 and 10 objectives
per review period is manageable number, but can be change based on position and organization in question)
Performance Standards
Quality
How well the objective is achieved ? (Usefulness, Responsiveness, Problem-solver, Acceptance rate, Error rate, and feedback from users and customers eg Customer complains and returns)
Quantity
How much has been produced, how many, how often, at what cost
Time
Due dates, schedule, cycle times, deadlines (how quickly), timetables, progress reports
Related to Position (based on job key elements) Concrete, Specific, Measurable (Observable and
verifiable in order to avoid dispute)
3.
4. 5.
Practical to Measure (Efficiency Time, Cost and Accuracy) Meaningful (Important but relevant to job purpose to achieve
organizations mission and objectives)
(Accomplish but stretchable. Employees should reached the standards within specific time frame) (To determine whether employee has reached the standard and if not, corrective action should be taken)
6.
Identify Competencies
Measurable clusters of KSAs
Knowledges Skills Abilities
Types of Competencies
Differentiating
Distinguish between superior and average performance
Threshold
Needed to perform to minimum standard
Identify Indicators
Observable behaviors Used to measure extent to which competencies are present or not
Comparative system
Compares employees with each other
Absolute system
Compares employees with prespecified performance standard
Comparative Systems
(Best performer + 1 and second best performer + 2, Worst performer 1 and second Worst performer 2 )
Comparative Systems
Comparative Systems
Forced distribution :
Compare to absolute systems, this is Better control for biases and errors made by rating performance Leniency (Giving high scores to most employees) Severity (Giving low scores to most employees) Central tendency (not giving any above / below
expectations ratings)
Rankings may not be specific enough for Useful feedback Protection from legal challenge
(Employees are not compared based on individual behaviors or individual competencies, but are compared based on overall assessment of performance)
(Method is based on assumption some employees performing very high, some poor & majority in between . This assumption may not hold true for all units within the organization )
Absolute Systems
Essays
Describes employees strength and weakness and makes suggestions for improvement Advantage: Potential to provide detailed feedback Disadvantages: Unstructured and may lack detail Depends on supervisor writing skill Lack of quantitative information; difficult to use in personnel decisions (For eg allocation of rewards)
Behavior checklists
Employers task is to indicate check statements that described employee is being rated Example of Behavior checklist item
The Employee arrives at work on time
1 Never 2 Sometimes 3 Often 4 Fairly Often / Rarely 5 Always
Amount
Seven-Point Scale
All An extraordinary amount of A great amount of Quite a bit of A moderate amount of Somewhat None
Evaluation
Five-Point Scale
Always Very Often
Five-Point Scale
All An extreme amount of Quite a bit of Some None
Terrible
Unsatisfactory
Behavior checklists
Advantage:
Easy to use and understand
Disadvantage:
Scale points used are often randomly used Difficult to get detailed and useful feedback
Critical incidents
Kind of measurement that involves gathering reports of situations in which employees exhibited behaviors that are especially effective or ineffective in fulfilling their jobs For example, following incident is recorded by a high school principal regarding performance of Tom Jones, the head of disability services office:
Critical incidents
A sophomore with learning disabilities was experiencing difficulty in writing. Her parents wanted a laptop computer for her. Tom Jones ordered a computer and it was deliver to students teacher. No training was provided to the child, her teacher, or her parents. The laptop was never used.
Critical incidents
Example
1 Strongly Agree 2 Agree 3 Undecided 4 Disagree 5 Strongly Disagree
Critical incidents
Report of specific employee behavior Allows focus on specific behavior Very time-consuming
Importance of Job
High level of Job Knowledge. Others employees requires training High level of Job Knowledge. Consistently completes all normal tasks. Employee may seek guidance in some areas. Average level of Job Knowledge. Help in completing difficult task Not meeting deadlines or complete tasks require for this job. Does not attempt to acquire new skills or knowledge to improve performance
Abilities (A)
Performance = KSA
Competent (3) :
Performs tasks incorrectly or not at all. Employee has no appreciation for improving performance
(First Group) - Identify important job elements (Second Group) - Describe critical incidents at various levels of performance Defined clearly for the rater (Employees and Employers)
High Point Performance (3) : Shows technical foundation, Application of job, able to identify problems. Mid - point Performance (2) : Can resolve issues, application of fine tuning knowledge, can identify major problem areas. Low - Point Performance (1) : Weak knowledge, Difficulty in identifying problems
Measuring Performance
Quick Review
Measuring Results
Identify accountabilities Set objectives Determine standards of performance
Measuring Behaviors
Identify competencies Identify indicators Choose measurement system
Performance review stage involves the meeting between employee and manager / employer to review their assessments Such meeting is called appraisal meeting / discussion Appraisal meeting is important because it provides formal setting in which employee receives feedback on his or her performance
Jason is the manager in the large accounting firm, and Susan is one of the employees on his team. He chooses conference room with privacy away from other offices.
Identify what the employee has done well and poorly (about positive and negative behaviors) Solicit feedback
explanations) (Behaviors, Listen for reactions and
2.
3.
Discuss the implications of changing behaviors (Positive feedback is best, but what will
happen if any poor performance continues)
Explain how skills used in past achievements can help overcome any performance problems Agree on an action plan
(Encourage employee to improves his performance by asking questions such as What ideas do you have for and What suggestions do you have for ?)
5.
6.
Performance improvement objectives define what needs to be done to achieve better results. They may be expressed in a performance improvement plan, which specifies what actions need to be taken by role holders and their managers.
Identify an organizational problem. Articulate a relationship between the problem and human performance. Determine a quantifiable performance gap between the desired level of performance and the actual level of performance. Conduct an analysis of the root causes to reveal the reasons for the performance gap. Implement a series of solutions to address the root causes.
performance improvement targets for productivity, cost reduction, stock turn etc;