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Chapter 11: Chapter 11: Measuring Performance and Measuring Performance and Providing Feedback Providing Feedback Jackson and Schuler Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth Eighth edition edition M an ag in g H uman M an ag in g H uman Resources Resources
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Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

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Page 1: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

Chapter 11:Chapter 11:

Measuring Performance and Measuring Performance and Providing FeedbackProviding Feedback

Jackson and SchulerJackson and Schuler

© 2003 South-Western College Publishing. All rights reserved.

Eighth editionEighth edition

Managing Human Managing Human ResourcesResources

Page 2: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–2

Chapter OutlineChapter OutlineChapter OutlineChapter Outline

The Strategic Importance of Measuring The Strategic Importance of Measuring Performance and Providing FeedbackPerformance and Providing Feedback

Deciding What to MeasureDeciding What to Measure TimingTiming Participants in Performance Measurement Participants in Performance Measurement

and Feedbackand Feedback Performance Appraisal FormatsPerformance Appraisal Formats The Rating ProcessThe Rating Process

Page 3: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–3

Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

Providing FeedbackProviding Feedback Team Appraisal and FeedbackTeam Appraisal and Feedback Roles and Responsibilities of the HR TriadRoles and Responsibilities of the HR Triad

Page 4: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–4

TerminologyTerminologyTerminologyTerminology

Performance Management System:Performance Management System: Formal, structured processFormal, structured process Used toUsed to

• MeasureMeasure• EvaluateEvaluate• InfluenceInfluence

An employee’s job-related attributes, An employee’s job-related attributes, behaviors, and performance resultsbehaviors, and performance results

Page 5: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–5

TerminologyTerminologyTerminologyTerminology

Performance appraisalPerformance appraisal Evaluating performance based on the Evaluating performance based on the

judgments and opinions of subordinates, judgments and opinions of subordinates, peers, supervisors, other managers and peers, supervisors, other managers and even the employees themselveseven the employees themselves

Page 6: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–6

Performance Management SystemPerformance Management SystemPerformance Management SystemPerformance Management System

Designing the systemDesigning the systemDesigning the systemDesigning the system

Performance measurementPerformance measurementand feedbackand feedback

Performance measurementPerformance measurementand feedbackand feedback

Employee developmentEmployee developmentEmployee developmentEmployee development

If no improvement,If no improvement,make adjustmentsmake adjustments

If no improvement,If no improvement,make adjustmentsmake adjustments

Provide rewardsProvide rewardsfor improvementfor improvement

Provide rewardsProvide rewardsfor improvementfor improvement

Page 7: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–7

Performance Management within Performance Management within an Integrated HR Systeman Integrated HR System

Performance Management within Performance Management within an Integrated HR Systeman Integrated HR System

Objectives of Performance

Measurement and Feedback

• Motivation and Productivity

• Strategic Planning and Change

• Legal Compliance

Performance Management Systems

Design • What/when to

Measure• Who to Involve• Formats• Accountability

Individual and Team Performance

Feedback and Follow-Up

If no improvement, make adjustments

Using performance-based pay to reward performance

Other HRActivities

• Fairness• Alignment• Job Analysis

External Environment

Internal Environment

Page 8: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–8

The Strategic Importance of The Strategic Importance of Measuring Performance and Measuring Performance and

Providing FeedbackProviding Feedback

The Strategic Importance of The Strategic Importance of Measuring Performance and Measuring Performance and

Providing FeedbackProviding Feedback Enhancing motivation and productivityEnhancing motivation and productivity

Monitoring performance and providing Monitoring performance and providing feedback to individuals, teams and the feedback to individuals, teams and the organizationorganization

Strategic planning and changeStrategic planning and change Detecting ProblemsDetecting Problems Evaluating ChangeEvaluating Change

Page 9: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–9

The Strategic Importance of The Strategic Importance of Measuring Performance and Measuring Performance and

Providing FeedbackProviding Feedback

The Strategic Importance of The Strategic Importance of Measuring Performance and Measuring Performance and

Providing FeedbackProviding Feedback Ensuring legal complianceEnsuring legal compliance

Measures must be Measures must be • NondiscriminatoryNondiscriminatory• Job-relatedJob-related• FairFair

Page 10: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–10

Enhancing Motivation and Enhancing Motivation and ProductivityProductivity

Enhancing Motivation and Enhancing Motivation and ProductivityProductivity

Expectancy TheoryExpectancy Theory People chose their behaviors and effort People chose their behaviors and effort

levels.levels. Choices are based on workers’ beliefs that Choices are based on workers’ beliefs that

behaviors and efforts will lead to desired behaviors and efforts will lead to desired consequences.consequences.

Page 11: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–11

Expectancy TheoryExpectancy TheoryExpectancy TheoryExpectancy Theory

ExpectancyExpectancy If I make an effort, will I be able to perform?If I make an effort, will I be able to perform?

InstrumentalityInstrumentality What consequences will follow from my What consequences will follow from my

performance?performance?

ValenceValence How much do I value How much do I value

the consequences?the consequences?

Page 12: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–12

Employee Motivation and Employee Motivation and PerformancePerformance

Employee Motivation and Employee Motivation and PerformancePerformance

MotivationMotivation• Which Which

behaviorsbehaviors

• How much How much efforteffort

Actual Performance

Actual Performance

Measured Performance

Measured Performance

Expec

tancy

Consequences Consequences for Employeefor Employee

• PositivePositive

• NegativeNegative

Perceived Perceived FairnessFairness

SatisfactionSatisfactionIn

strum

enta

lity

Page 13: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–13

Factors that Influence Motivation Factors that Influence Motivation and Translate Motivation into and Translate Motivation into

PerformancePerformance

Factors that Influence Motivation Factors that Influence Motivation and Translate Motivation into and Translate Motivation into

PerformancePerformance Performance expectations Performance expectations

and goalsand goals Performance of Performance of

interdependent othersinterdependent others Employee confidence and Employee confidence and

competenciescompetencies Access to required resourcesAccess to required resources Ongoing feedbackOngoing feedback

Page 14: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–14

Factors that Influence Whether Factors that Influence Whether Performance Will Be SustainedPerformance Will Be SustainedFactors that Influence Whether Factors that Influence Whether Performance Will Be SustainedPerformance Will Be Sustained

Valid performanceValid performancemeasurementmeasurement

Value of rewardValue of rewardand negative and negative consequenceconsequence(Valence)(Valence)

Ongoing feedbackOngoing feedback

Page 15: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–15

Legal ConsiderationsLegal ConsiderationsLegal ConsiderationsLegal Considerations

Civil Rights Acts of 1964 and 1991Civil Rights Acts of 1964 and 1991 Age Discrimination in Employment ActAge Discrimination in Employment Act

Page 16: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–16

Legally Defensible Appraisal and Legally Defensible Appraisal and FeedbackFeedback

Legally Defensible Appraisal and Legally Defensible Appraisal and FeedbackFeedback

Based on job analysisBased on job analysis Standardized and formalStandardized and formal Specific standards Specific standards

communicated in communicated in advanceadvance

Objective and Objective and uncontaminated datauncontaminated data

Ratings on traits Ratings on traits avoided or avoided or operationalized in operationalized in behavioral termsbehavioral terms

Evaluate on specific Evaluate on specific work dimensions, not work dimensions, not global measuresglobal measures

Evaluators have Evaluators have opportunity to observe opportunity to observe work behaviorswork behaviors

More than one More than one independent evaluator if independent evaluator if possiblepossible

Behavioral Behavioral documentation for documentation for extreme ratingsextreme ratings

Page 17: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–17

Legally Defensible Appraisal (cont’d)Legally Defensible Appraisal (cont’d)Legally Defensible Appraisal (cont’d)Legally Defensible Appraisal (cont’d)

Employees given the Employees given the opportunity to review opportunity to review appraisalappraisal

Formal system of Formal system of appeal is availableappeal is available

Raters trained to Raters trained to prevent discrimination prevent discrimination and to evaluate and to evaluate consistentlyconsistently

Frequent appraisals (at Frequent appraisals (at least annually)least annually)

Page 18: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–18

Deciding What to MeasureDeciding What to MeasureDeciding What to MeasureDeciding What to Measure

Personal traitsPersonal traits For example: “loyalty” or “dependability”For example: “loyalty” or “dependability” Not reliable and difficult to defend as Not reliable and difficult to defend as

measurable performance criteriameasurable performance criteria

BehaviorsBehaviors Focus on how work performedFocus on how work performed Easier to observe and defend than traitsEasier to observe and defend than traits For example, “Has not been late to work For example, “Has not been late to work

during past 6 months.”during past 6 months.”

Page 19: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–19

Deciding What to Measure, Con’t.Deciding What to Measure, Con’t.Deciding What to Measure, Con’t.Deciding What to Measure, Con’t.

Objective ResultsObjective Results Focus on what was accomplished or Focus on what was accomplished or

producedproduced May miss critical aspects of job that are May miss critical aspects of job that are

difficult to quantifydifficult to quantify For example: number of traffic tickets For example: number of traffic tickets

written.written.

Multiple CriteriaMultiple Criteria Performance appraisal should capture all Performance appraisal should capture all

aspects of the jobaspects of the job

Page 20: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–20

Organizational CitizenshipOrganizational CitizenshipOrganizational CitizenshipOrganizational Citizenship

May want to include as part of overall May want to include as part of overall performanceperformance

Includes:Includes: Volunteering for tasks not formally part of Volunteering for tasks not formally part of

the jobthe job Helping othersHelping others Following organizational rules and Following organizational rules and

procedures even when inconvenientprocedures even when inconvenient Endorsing, supporting, and defending Endorsing, supporting, and defending

organizational objectivesorganizational objectives

Page 21: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–21

Validity of Performance CriteriaValidity of Performance CriteriaValidity of Performance CriteriaValidity of Performance Criteria

Criteria are deficient if relevant aspects of job Criteria are deficient if relevant aspects of job are not covered.are not covered.

Criteria are contaminated if evaluation Criteria are contaminated if evaluation includes irrelevant factors.includes irrelevant factors.

When multiple criteria are used, they can be When multiple criteria are used, they can be weighted based on:weighted based on: Job AnalysisJob Analysis Statistical proceduresStatistical procedures

Page 22: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–22

Timing of EvaluationsTiming of EvaluationsTiming of EvaluationsTiming of Evaluations

Focal-point systemFocal-point system All employees at same timeAll employees at same time Easier to standardize across Easier to standardize across

employeesemployees May create burdensome workloadMay create burdensome workload May create artificial productivity cyclesMay create artificial productivity cycles

Anniversary modelAnniversary model On employee’s anniversary with the organizationOn employee’s anniversary with the organization Does not tie individual performance to overall Does not tie individual performance to overall

organizational performanceorganizational performance Ratings earlier in year may be more lenientRatings earlier in year may be more lenient

Page 23: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–23

Timing Appraisals to the NaturalTiming Appraisals to the NaturalTime Span of the JobTime Span of the Job

Timing Appraisals to the NaturalTiming Appraisals to the NaturalTime Span of the JobTime Span of the Job

Ensure that feedback is given when it can be Ensure that feedback is given when it can be most useful.most useful.

Possible time spans: Possible time spans: Midway through a project for teamsMidway through a project for teams After each presentation for After each presentation for

account executivesaccount executives

Page 24: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–24

Participants in Performance Participants in Performance Measurement and FeedbackMeasurement and FeedbackParticipants in Performance Participants in Performance Measurement and FeedbackMeasurement and Feedback

EmployeeAppraisal

EmployeeEmployeeAppraisalAppraisal

SupervisorsSupervisors

Self-Self-AppraisalAppraisal

PeersPeers

SubordinatesSubordinates

CustomersCustomers

ElectronicElectronic MonitoringMonitoring

Page 25: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–25

Guidelines for Determining Guidelines for Determining ParticipantsParticipants

Guidelines for Determining Guidelines for Determining ParticipantsParticipants

Involving multiple raters is generally best.Involving multiple raters is generally best. Consider the amount and type of information Consider the amount and type of information

each source has available.each source has available. Supervisors may make the most Supervisors may make the most

reliable judgments.reliable judgments. Self-appraisal increases Self-appraisal increases

employee satisfaction employee satisfaction but is subject to leniency biasbut is subject to leniency bias

Page 26: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–26

Guidelines for Determining Guidelines for Determining Participants (cont’d)Participants (cont’d)

Guidelines for Determining Guidelines for Determining Participants (cont’d)Participants (cont’d)

Cultural differences may affect appraisalsCultural differences may affect appraisals Peers often have best opportunity to observe Peers often have best opportunity to observe

behavior and peer appraisals are useful behavior and peer appraisals are useful predictorspredictors

Upward appraisalUpward appraisal by subordinates will be by subordinates will be most useful whenmost useful when Anonymity guaranteedAnonymity guaranteed Managers meet with direct reports to discuss Managers meet with direct reports to discuss

resultsresults

Page 27: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–27

Guidelines for Determining Guidelines for Determining Participants (cont’d)Participants (cont’d)

Guidelines for Determining Guidelines for Determining Participants (cont’d)Participants (cont’d)

Customer feedback most useful whenCustomer feedback most useful when A large number of customers respondA large number of customers respond Results are not biased by few customers Results are not biased by few customers

with bad experienceswith bad experiences

Page 28: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–28

360-Degree Appraisals360-Degree Appraisals360-Degree Appraisals360-Degree Appraisals

Performance information collected from Performance information collected from colleagues and internal customerscolleagues and internal customers

Less susceptible to gender/ethnicity biasesLess susceptible to gender/ethnicity biases Research supportsResearch supports

Anonymity of ratersAnonymity of raters Use of full circle of ratersUse of full circle of raters

Page 29: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–29

Performance Appraisal FormatsPerformance Appraisal FormatsPerformance Appraisal FormatsPerformance Appraisal Formats

Straight rankingStraight rankingForced distributionForced distribution

Norm-ReferencedAppraisals

AbsoluteStandards

Output-BasedFormats

Graphic rating scalesGraphic rating scalesBehaviorally-anchoredBehaviorally-anchored rating scalesrating scalesBehavioral observation Behavioral observation scalesscales

Direct indexDirect indexManagement byManagement by objectivesobjectives

Page 30: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–30

Forced DistributionForced DistributionForced DistributionForced Distribution

Lowest Next Lowest Middle Next Highest Lowest Next Lowest Middle Next Highest Performers PerformersPerformers Performers

10% 20% 40% 20% 10% 10% 20% 40% 20% 10%

5 employees 10 employees 20 employees 10 employees 5 employees5 employees 10 employees 20 employees 10 employees 5 employees

Page 31: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–31

Graphic Rating ScaleGraphic Rating ScaleGraphic Rating ScaleGraphic Rating Scale

1(Low) 2 3 4 5 6 7 (High)

Quantity of Work

X

Page 32: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–32

Behaviorally Anchored Rating ScaleBehaviorally Anchored Rating ScaleBehaviorally Anchored Rating ScaleBehaviorally Anchored Rating Scale

1

2

3

4

5

6

7Helps customers in a manner that draws praise from them

Develops loan documentation accurately

Provides information to customers, even if not asked

Conducts loan interviews in a manner that draws complaints from applicants

Assists customers with loan applications

Prepares credit reports without having to be told

Fails to help other banks participating in loans

Dimension:Dimension: Transacting Loans Transacting Loans (Corporate Loan Assistant)(Corporate Loan Assistant)

Page 33: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–33

Behavior FrequencyDimension: Teamwork

•Exhibits rude behavior that coworkers complain about (Reverse scored)

•Verbally shares technical knowledge with other technicians

•As needed, consults fellow workers for their ideas on ways to solve specific problems

Job: Maintenance MechanicJob: Maintenance Mechanic

0 1 2 3 4 5

0 1 2 3 4 5

0 1 2 3 4 5

Behavioral Behavioral Observation ScaleObservation Scale

Behavioral Behavioral Observation ScaleObservation Scale

Page 34: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–34

Management by ObjectivesManagement by ObjectivesManagement by ObjectivesManagement by Objectives

Job: Graphic ArtistJob: Graphic Artist Project: Logo Development for Project: Logo Development for

County Park SystemCounty Park System Goals and subgoals:Goals and subgoals: Meet all agreed-on deadlinesMeet all agreed-on deadlines Bill final hours within plus or minus 10 Bill final hours within plus or minus 10

% of agreed-on budget% of agreed-on budget Achieve supervisor’s criteria for logo Achieve supervisor’s criteria for logo

development:development: Reproduces well in various sizes Reproduces well in various sizes

and 3 dimensionsand 3 dimensions Has strong identityHas strong identity Uses type in a unique mannerUses type in a unique manner Has high quality artHas high quality art

Page 35: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–35

The Rating ProcessThe Rating ProcessThe Rating ProcessThe Rating Process

Selectively observe behaviorSelectively observe behaviorSelectively observe behaviorSelectively observe behavior

Encode information on behaviorEncode information on behaviorEncode information on behaviorEncode information on behavior

Store informationStore informationStore informationStore information

Retrieve informationRetrieve informationRetrieve informationRetrieve information

Integrate informationIntegrate informationIntegrate informationIntegrate information

Make an evaluationMake an evaluationMake an evaluationMake an evaluation

Record final performance ratingRecord final performance ratingRecord final performance ratingRecord final performance rating

Social andsituationalcontext

Cognitiveerrors

Page 36: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–36

Common Rating ErrorsCommon Rating ErrorsCommon Rating ErrorsCommon Rating Errors

Halo/HornHalo/Horn LeniencyLeniency StrictnessStrictness Central TendencyCentral Tendency PrimacyPrimacy RecencyRecency ContrastContrast

Page 37: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–37

Improving Rater AccuracyImproving Rater AccuracyImproving Rater AccuracyImproving Rater Accuracy

Rating scale formatRating scale format Each dimension addresses single job activityEach dimension addresses single job activity Each performance dimension rated Each performance dimension rated

separately; scores summed to determine separately; scores summed to determine overall ratingoverall rating

Ambiguous terms (e.g. “average”) should Ambiguous terms (e.g. “average”) should not to be used.not to be used.

Page 38: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–38

Improving Rater AccuracyImproving Rater AccuracyImproving Rater AccuracyImproving Rater Accuracy

Memory AidsMemory Aids Behavioral diaries and critical incident filesBehavioral diaries and critical incident files Electronic diary-keeping softwareElectronic diary-keeping software

Rater TrainingRater Training Frame-of-reference training Frame-of-reference training

especially usefulespecially useful

Page 39: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–39

Frame-of-Reference TrainingFrame-of-Reference TrainingFrame-of-Reference TrainingFrame-of-Reference Training

A group of raters (with help of trainer):A group of raters (with help of trainer): Identify criteria, using job descriptionIdentify criteria, using job description View video of employee performanceView video of employee performance Independently evaluate video performanceIndependently evaluate video performance Present rationales and Present rationales and

challenge other raterschallenge other raters Reach consensus on Reach consensus on

evaluation of job evaluation of job performanceperformance

Page 40: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–40

Improving Rater AccuracyImproving Rater AccuracyImproving Rater AccuracyImproving Rater Accuracy

Rewards for Accurate and Timely AppraisalsRewards for Accurate and Timely Appraisals Salary increases, promotions, assignments Salary increases, promotions, assignments

to key positions can be partly based on to key positions can be partly based on performance as a rater.performance as a rater.

Multiple RatersMultiple Raters Diffusion of responsibility leads to accuracyDiffusion of responsibility leads to accuracy Group discussion can alleviate biasesGroup discussion can alleviate biases

Page 41: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–41

Providing FeedbackProviding FeedbackProviding FeedbackProviding Feedback

Issues:Issues: Potential sources of conflictPotential sources of conflict TimingTiming PreparationPreparation Content of discussionContent of discussion Follow-upFollow-up Identifying causes of Identifying causes of

performance deficienciesperformance deficiencies

Page 42: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–42

Sources of Conflict DuringSources of Conflict DuringPerformance FeedbackPerformance Feedback

Sources of Conflict DuringSources of Conflict DuringPerformance FeedbackPerformance Feedback

Combining evaluative and developmental Combining evaluative and developmental goalsgoals Need to be candid and protect employee’s Need to be candid and protect employee’s

self-esteemself-esteem

Self-serving employee attributions that Self-serving employee attributions that interfere with performance improvementinterfere with performance improvement Discounting role of external Discounting role of external

forces in good performance; forces in good performance; over-emphasizing external over-emphasizing external effects in poor performanceeffects in poor performance

Page 43: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–43

Improving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback Process

Timing: Timing: Providing immediate feedback is most Providing immediate feedback is most

useful.useful. Giving only as much information as the Giving only as much information as the

receiver can usereceiver can use

PreparationPreparation Scheduling feedback sessions in advanceScheduling feedback sessions in advance Clarifying purpose and content of meetingClarifying purpose and content of meeting Giving both participants time to prepareGiving both participants time to prepare

Page 44: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–44

Improving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback Process

Why process breaks down:Why process breaks down: Supervisor uses “tell and sell” approachSupervisor uses “tell and sell” approach Subordinates frustrated in trying to justify Subordinates frustrated in trying to justify

performance to supervisors performance to supervisors Subordinates discount feedbackSubordinates discount feedback

Page 45: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–45

Improving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback ProcessImproving the Feedback Process

The Problem-Solving ApproachThe Problem-Solving Approach Using diagnosis to understand the factors that Using diagnosis to understand the factors that

affect performance.affect performance. Removing roadblocks by agreeing on an action Removing roadblocks by agreeing on an action

plan and address issues such as:plan and address issues such as:• Lack of resources.Lack of resources.• Need for additional information and training.Need for additional information and training.• Improving ongoing communications and feedback.Improving ongoing communications and feedback.

Setting goals through employee participation to Setting goals through employee participation to increase acceptance of goals.increase acceptance of goals.

Page 46: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–46

Diagnosing Causes of Diagnosing Causes of Performance DeficienciesPerformance DeficienciesDiagnosing Causes of Diagnosing Causes of

Performance DeficienciesPerformance Deficiencies

Does employee have the competencies and Does employee have the competencies and the interest to perform as desired?the interest to perform as desired?

Have specific, difficult but attainable goals Have specific, difficult but attainable goals been communicated?been communicated?

Is employee certain about desired Is employee certain about desired performance, the consequences of performance, the consequences of performance, level of authority?performance, level of authority?

Page 47: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–47

Diagnosing Causes of Performance Diagnosing Causes of Performance Deficiencies (cont’d)Deficiencies (cont’d)

Diagnosing Causes of Performance Diagnosing Causes of Performance Deficiencies (cont’d)Deficiencies (cont’d)

Has employee received Has employee received useful,clear, immediate useful,clear, immediate feedback?feedback?

Does performing well Does performing well matter? Are there matter? Are there negative negative consequences?consequences?

Does the employee Does the employee have the power and have the power and resources to perform as resources to perform as required?required?

Page 48: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–48

Follow-Up to the Feedback SessionFollow-Up to the Feedback SessionFollow-Up to the Feedback SessionFollow-Up to the Feedback Session

Positive ReinforcementPositive Reinforcement Use of positive rewards to increase Use of positive rewards to increase

occurrence of desired performanceoccurrence of desired performance Principles:Principles:

• People perform in ways that People perform in ways that they find most rewardingthey find most rewarding

• By providing proper rewards, By providing proper rewards, it’s possible to improve it’s possible to improve performanceperformance

Page 49: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–49

Follow-Up to the Feedback SessionFollow-Up to the Feedback SessionFollow-Up to the Feedback SessionFollow-Up to the Feedback Session

PunishmentPunishment Decreases frequency of undesired behaviorDecreases frequency of undesired behavior Can get immediate results and has vicarious Can get immediate results and has vicarious

powerpower Can have undesirable side effectsCan have undesirable side effects

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© 2003 South-Western College Publishing. All rights reserved. 11–50

Self-ManagementSelf-ManagementSelf-ManagementSelf-Management

People exercise control over their own People exercise control over their own behaviorbehavior

Individuals Individuals Assess own problemsAssess own problems Set specific, hard goalsSet specific, hard goals Develop strategies to eliminate Develop strategies to eliminate

blocks to successblocks to success Administer own reinforcementAdminister own reinforcement

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© 2003 South-Western College Publishing. All rights reserved. 11–51

Last Recourses in Last Recourses in Performance ManagementPerformance Management

Last Recourses in Last Recourses in Performance ManagementPerformance Management

TransferTransfer When employee and job are not well matchedWhen employee and job are not well matched

NeutralizeNeutralize Assign noncritical tasks to minimize Assign noncritical tasks to minimize

the impact of deficienciesthe impact of deficiencies

TerminateTerminate For dishonesty, habitual For dishonesty, habitual

absenteeism, substance abuse, absenteeism, substance abuse, insubordination, and low productivity insubordination, and low productivity that can’t be correctedthat can’t be corrected

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© 2003 South-Western College Publishing. All rights reserved. 11–52

Strategies for Improving Strategies for Improving PerformancePerformance

Strategies for Improving Strategies for Improving PerformancePerformance

PositiveReinforcement

Self-Management

Punishment

EmployeeAssistancePrograms

OtherStrategies

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© 2003 South-Western College Publishing. All rights reserved. 11–53

Performance Criteria for TeamsPerformance Criteria for TeamsPerformance Criteria for TeamsPerformance Criteria for Teams

Task CompletionTask Completion Accuracy, speedAccuracy, speed Creativity, costCreativity, cost

Team DevelopmentTeam Development CohesivenessCohesiveness FlexibilityFlexibility Preparedness for new tasksPreparedness for new tasks

Stakeholder SatisfactionStakeholder Satisfaction Customer, team and other teams’ Customer, team and other teams’

satisfaction with procedures and outputssatisfaction with procedures and outputs

Page 54: Chapter 11: Measuring Performance and Providing Feedback Jackson and Schuler © 2003 South-Western College Publishing. All rights reserved. Eighth edition.

© 2003 South-Western College Publishing. All rights reserved. 11–54

Individual Performance of Team Individual Performance of Team MembersMembers

Individual Performance of Team Individual Performance of Team MembersMembers

Task PerformanceTask Performance Accuracy, speed, creativity, and efficiencyAccuracy, speed, creativity, and efficiency

Relationships with OthersRelationships with Others Understanding others’ perspectivesUnderstanding others’ perspectives Trust by othersTrust by others New friendshipsNew friendships

Personal DevelopmentPersonal Development Development of competencies, Development of competencies,

technical knowledge, and skillstechnical knowledge, and skills Development of networks of colleaguesDevelopment of networks of colleagues

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© 2003 South-Western College Publishing. All rights reserved. 11–55

Factors of Team EffectivenessFactors of Team EffectivenessFactors of Team EffectivenessFactors of Team Effectiveness

External ContextExternal ContextCultureCulture Member SelectionMember Selection Team TrainingTeam Training Reward SystemsReward Systems

Team DesignTeam Design• Team SizeTeam Size

• Team LocationTeam Location

Internal ProcessesInternal Processes• Developmental Developmental

StagesStages

• FeelingsFeelings

• Behavioral NormsBehavioral NormsEffectiveness Effectiveness CriteriaCriteria

• TeamTeam

• IndividualIndividual

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Roles and Responsibilities of HR Roles and Responsibilities of HR TriadTriad

Roles and Responsibilities of HR Roles and Responsibilities of HR TriadTriad

Line Managers

• With HR and employees to develop measures

• Avoid rating errors

• Keep records and measure performance conscientiously

• Diagnose performance deficiencies

• Develop performance improvement strategies

HR Professionals

• Use job analysis to develop relevant, legal measures

• Train and assist others

• Coordinate administrative aspects

• Monitor managerial decisions

• Assist others dealing with performance deficiencies

• Administer appeals

Employees

• Work with HR and managers to set expectations

• Appraise work of others

• Participate in self-appraisal

• Learn to give feedback

• Understand criteria

• Learn to diagnose,set goals, self-manage