Chapter 7-Performance Management

Performance
CHAPTER 7 Management
Today’s Class
 Define performance management and explain the five

steps in the performance management process.
 Describe the most commonly used performance

appraisal methods and the pros and cons of each
 Discuss the major problems inhibiting effective

performance appraisals
Performance Appraisals-Limitations
 A recent survey of 746 Human Resource Professional

Association members
 11% - performance appraisals were not mandatory in
their organization
 42% - no consequences for non-completion of
appraisals
 65% - somewhat to very satisfied with information
obtained from performance reports
Performance Management
The process encompassing all activities related to

improving employee performance, productivity,
and effectiveness.
 includes goal setting, pay for performance,

training and development, career
management, and disciplinary action
Performance Management Process
Performance Appraisals
 Performance appraisals in Canada are legal

documents.
 should
be used for planning promotions, career
development, training and performance
improvement plans,
 butcan also be required in courts when
assessing wrongful termination cases.
Case Incident Application
 Read the case incident
 Develop your answers to questions 1 and 2 and be

prepared to present your answer
Step 1: Defining Performance
Expectations
Task performance
 direct contribution to job-related processes
Contextual performance
 indirect contribution to the organization’s effectiveness,
beyond those specified for the job
Step 2: Providing Ongoing Coaching
and Feedback
 Performance improvement plan (PIP)
 PIP highlights expectations of

employer/employee, with timeline (often 30-90
days) required to bring performance to
acceptable levels
Step 3: Performance Appraisal and
Evaluation Discussion
 Many formal appraisal methods to choose from
 Comparative
 Non-comparative
 Past performance
 Future performance
 Job-related
 Practical
 Clear performance standards
 Clear performance measures
Past Performance: Noncomparative
Graphic Rating
scale
• Oldest and most widely used method

• Lists most important traits related to job and
range of performance for each from high to
low
Working in groups develop a graphic rating scale for
the following by completing 3 steps:
 a retail sales associate
 a fast-food restaurant manager
1) Identify the main duties and responsibilities for each job.

2) Identify the 3 most important traits associated with these duties
and responsibilities (ie. Job knowledge; Punctuality;
Accuracy).
3) Identify a range of performance for each trait.
4) Develop your graphic rating scale for each of the 3 traits you
identified.
Past Performance: Noncomparative
BARS
• Descriptions of effective/ineffective
performance—examples placed along a
scale
• Job-related, practical, and standardized
Past Performance: Comparative
• Employees ranked from best to

Ranking
worst
method • Subject to halo and recency effects
• Employees sorted into categories

Forced • Usually a certain proportion must be
distributions put into each category
Future Performance Methods
 Management-by-Objectives Approach
 Employee and supervisor jointly establish

performance goals for the future
 Starts at organization level  department  individual
 Goals should be mutually agreed upon and

objectively measurable
Advantages/Disadvantages of Each
Method
Appraisal Interviews
 Evaluationinterviews are performance

review sessions that give employees
feedback
 Theinterview should be a positive,

performance-improving dialogue
How to Conduct the Interview
1. Be direct and specific

 use objective work data
2. Do not get personal

 compare against standard
3. Encourage the person to talk

 use open-ended questions, listen
4. Develop an action plan

 agree on future steps
Step 4: Determine Performance
Rewards/Consequences
 Provide performance awards: merit pay, extra
pay
 Important aspects used to determine the

appropriate reward/consequence:
 achievement of goals
 how the employee meets the defined
standards
Step 5: Career Development
Discussion
 Manager and employee discuss opportunities for

development
 Based on current job requirements or future

development
 Business needs must be balanced with the

employee’s preferences
Legal Aspects of Performance Appraisals
 A performance appraisal form is a legal document

 Raters must use only performance criteria that are relevant to
the job
 Avoid non-relevant criteria
 A reasonable time must be set for performance
improvement
 Well-documented performance shortcomings and use of
feedback interviews have been viewed favourably in court
and with arbitrators
Review of Concepts
 Performance management
 Five steps in the performance management process
 Performance appraisal methods – advantages and

disadvantages
 The performance appraisal interview
 Performance management and legal considerations

Chapter 7-Performance Management

Uploaded by

Copyright:

Available Formats

Chapter 7-Performance Management

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 7-Performance Management

Uploaded by

Copyright:

Available Formats

Performance

 Define performance management and explain the five

 Describe the most commonly used performance

 Discuss the major problems inhibiting effective

 A recent survey of 746 Human Resource Professional

The process encompassing all activities related to

 includes goal setting, pay for performance,

 Performance appraisals in Canada are legal

 Read the case incident

 Develop your answers to questions 1 and 2 and be

 Performance improvement plan (PIP)

 PIP highlights expectations of

• Oldest and most widely used method

 a retail sales associate

 a fast-food restaurant manager

1) Identify the main duties and responsibilities for each job.

• Employees ranked from best to

• Employees sorted into categories

 Employee and supervisor jointly establish

 Goals should be mutually agreed upon and

 Evaluationinterviews are performance

 Theinterview should be a positive,

1. Be direct and specific

2. Do not get personal

3. Encourage the person to talk

4. Develop an action plan

 Important aspects used to determine the

 Manager and employee discuss opportunities for

 Based on current job requirements or future

 Business needs must be balanced with the

 A performance appraisal form is a legal document

 Five steps in the performance management process

 Performance appraisal methods – advantages and

 The performance appraisal interview

 Performance management and legal considerations

You might also like