Learning Objectives. Objectives of Performance Management Systems. Managing and Appraising Performance. Week 8. Dr. Ronan Carbery

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1 Managing and Appraising Performance Week 8 Dr. Ronan Carbery Learning Objectives Learning Objectives 1. Describe the nature of performance management and outline the core objectives of performance management 2. Outline the performance management cycle and identify and explain the key stages of this cycle 3. Differentiate between performance management and performance appraisal 4. Identify the different performance appraisal techniques that can be used by organisations 5. Evaluate the advantages and disadvantages of different performance appraisal techniques Objectives of Performance Management Systems Motivation Development Cultural Determining promotions Identify poor performers Strategic 1

2 Performance Management Linking individual, group and organisation performance with the main strategic mission and values Organisation-wide activity Performance Management Failure of performance management systems may be due to: Belief by employees that they are being incorrectly evaluated by the wrong person i.e. not fair Feedback given is not timely or constructive 2

3 Performance Appraisal Performance Appraisal is a systematic approach to evaluating employee performance, characteristics and/or potential, with a view to assisting decisions in a wide range of areas such as pay, promotion, employee development and motivation Performance Appraisal Process 3

4 Functions of Performance Appraisal Performance evaluation and target setting Establishment of work standards Identification of skills gaps Facilitation of communications and motivation Inefficiency of PA systems Inefficiency may be due to: An unclear definition of the job Unclear objectives unaware of the format and aims Untrained appraisers and/or appraisees A high degree of subjectivity Collection of incomplete data Motivational & developmental aspects Approaches to Performance Appraisal 1. Historical 2. Here and now 3. Pull of future 4

5 PA Techniques Free form appraisal technique Rating Ranking Paired Comparison Free-form Assessment Centre Self-assessment Results-oriented schemes Critical Incident Technique Behaviourally anchored rating scales (BARS) Example of BARS 5

6 PA Techniques 360-degree Feedback Also known as multi-rater assessment and multi-sourced assessment Relatively new appraisal technique designed to provide complete feedback on employee s performance Involves sources such as subordinates/direct reports, peers/colleagues, and supervisors PA Techniques Increasing use of 360-degree feedback due to: Cost effectiveness Software Measurement Job-related feedback Maximise potential Leadership development 6

7 Appraisal Interview Styles There are 3 main interviewing styles: 1. Tell-and-sell approach Directive Manager telling employee Attempting to convince employee of the fairness of the assessment Low involvement Low commitment Not recommended Appraisal Interview Styles 2. Tell-and-listen approach Some attempt made to involve the employee Manager communicates his/her evaluation of performance to employee & actively encourages employee s response Still ineffective Appraisal Interview Styles 3. Problem-solving approach Process is jointly conducted by the manager and the employee Collaborative process Evaluation takes place at the end Most effective approach 7

8 Common Appraisal Errors Contrast effect First impression error Halo/horns effect Similar-to-me-effect Central tendency Negative and positive skew Attribution bias Recency effect Stereotyping Ethical Dilemmas Use of trait-oriented and subjective evaluation criteria Preparation and writing of performance standards and measurement indicators Use of different appraisal systems in the same organisation How results will be used Who determines the objective standards Organisational Obligations Provide sound procedure for managers to use in conducting performance appraisal Managers should receive performance appraisal training Organisations must provide leadership from above Performance appraisal process should be audited 8

9 Performance Appraisal in Ireland Over 60% of managerial employees & nearly 60% of professional employees are covered by performance appraisal Usually boss & individual appraisals only Data from process usually used for training, career development & promotion decisions 9

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