Amity Business School
Introduction
• Performance management: the process
through which managers ensure that
employees’ activities and outputs
contribute to the organization’s goals.
• This process requires:
– Knowing what activities and outputs are
desired
– Observing whether they occur
– Providing feedback to help employees meet
expectations
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Figure Stages of the Performance
Amity Business School
Management Process
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Purposes of Performance Amity Business School
Management
• Strategic Purpose – means effective
performance management helps the
organization achieve its business objectives.
• Administrative Purpose – refers to the ways in
which organizations use the system to provide
information for day-to-day decisions about
salary, benefits, and recognition programs.
• Developmental Purpose – means that it serves
as a basis for developing employees’ knowledge
and skills.
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Employees Want More Feedback
Amity Business School
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Criteria for Effective
Amity Business School
Performance Management
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Methods for Measuring
Amity Business School
Performance
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Measuring Performance:
Amity Business School
Making Comparisons
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Measuring Performance: Amity Business School
Rating Individuals - Attributes
Graphic Rating Scale Mixed-Standard Scale
• Lists traits and provides a • Uses several statements
rating scale for each trait. describing each trait to
• The employer uses the produce a final score for
scale to indicate the that trait.
extent to which an
employee displays each
trait.
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Measuring Performance: Amity Business School
Rating Individuals - Behaviors
Behaviorally Anchored
Critical-Incident Method
Rating Scale (BARS)
• Based on managers’
• Rates behavior in terms
records of specific
examples of the employee of a scale showing
acting in ways that are specific statements of
either effective or behavior that describe
ineffective. different levels of
• Employees receive performance.
feedback about what they
do well and what they do
poorly and how they are
helping the organization
achieve its goals.
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Measuring Performance: Amity Business School
Rating Individuals – Behaviors (continued)
Behavioral Observation Scale Organizational Behavior
(BOS) Modification (OBM)
• A variation of a BARS • A plan for managing the
which uses all behaviors behavior of employees
necessary for effective through a formal system
performance to rate of feedback and
performance at a task. reinforcement.
• A BOS also asks the
manager to rate the
frequency with which the
employee has exhibited
the behavior during the
rating period.
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Measuring Performance: Amity Business School
Measuring Results
• Management by Objectives (MBO):
people at each level of the organization
set goals in a process that flows from top
to bottom, so that all levels are
contributing to the organization’s overall
goals.
• These goals become the standards for
evaluating each employee’s performance.
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Sources of Performance
Amity Business School
Information
• 360-Degree Performance Appraisal:
performance measurement that combines
information from the employees’:
– Managers
– Peers
– Subordinates
– Self
– Customers
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Amity Business School
Giving Performance Feedback
• Scheduling Performance Feedback
– Performance feedback should be a regular, expected
management activity.
– Annual feedback is not enough.
– Employees should receive feedback so often that they
know what the manager will say during their annual
performance review.
• Preparing for a Feedback Session
– Managers should be prepared for each formal feedback
session.
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Amity Business School
Giving Performance Feedback
(continued)
• Conducting the Feedback Session
– During the feedback session, managers can take any of
three approaches:
1. “Tell-and-Sell” – managers tell employees their ratings
and then justify those ratings.
2. “Tell-and-Listen” – managers tell employees their ratings
and then let the employees explain their side of the
story.
3. “Problem-Solving” – managers and employees work
together to solve performance problems.
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Figure Improving Performance
Amity Business School
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Legal and Ethical Issues in Amity Business School
Performance Management
• Legal
– Performance management processes are
often scrutinized in cases of discrimination or
dismissal.
• Ethical
– Employee monitoring via electronic devices
and computers may raise concerns over
employee privacy.
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Legal Requirements for Amity Business School
Performance Management
• Lawsuits related to performance
management usually involve charges of:
– Discrimination
– Unjust dismissal
• To protect against both kinds of lawsuits, it
is important to have a legally defensible
performance management system.
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