Performance Appraisal System Implementation 5

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
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
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

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PERFORMANCE

Content of the chapter

Validate selection instruments

Document administrative decisions

Help meet legal requirements

Job consist of interrelated tasks, duties and

The determinants of job performance are

Campbells Model of Job

3 direct determinants of job

Declarative knowledge (DK)

Procedural knowledge & skill (PKS)

Full Campbell Model

Copyright The McGraw-Hill Companies, Inc.

8 core job behaviours

Job specific task proficiency: individuals capacity to perform core

3 essential job behviours for every job

Core task proficiency

Extensions of the Basic Performance

Task performance (Doing just what

Common to most jobs

Activities not part of

Increasing importance of contextual factors in todays

Global competition will require more

Teams are more common now

Downsizing requires adaptability & extra

Customer service increasingly important

Contextual Performance 5 aspects

Persisting with enthusiasm & extra effort

Volunteering to carry out task activities not in

Helping & cooperating with others

Following organizational rules & procedures

Endorsing, supporting, & defending

Organizational citizenship behavior (OCB)

behaviors directed toward individuals or

behaviors directed toward the broader

Defined as an aspect of performance that

associated with successful

Strong Interpersonal Skills

For dimensions to be an effective means of

Have a clear general definition

work might then be defined in terms of

Have well-defined levels of performance

Various approaches to measure employee

Forced distribution (Bell curve method)

Simple ranking ranks employees from highest to

Employees are ranked in groups.

Managers compare every employee with every other

Wipro is now implementing a new evaluation system

Graphic rating scales

A list of traits is evaluated by a 5-point

define relevant performance dimensions

Critical incidents approach - requires managers to keep

Behaviorally anchored rating scales (BARS)

Organizational behavior modification - a formal

Assessment centers - multiple raters evaluate

top management passes down

Productivity Measurement and

goal is to motivate employees to

A performance management system designed with a