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Full download Managing Human Resources Productivity Quality of Work Life Profits 9th Edition Cascio Solutions Manual all chapter 2024 pdf
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Chapter 09 - Performance Management
Chapter 9
Performance Management
1. What steps can I, as a manager, take to make the performance management process
more relevant and more acceptable to those who will be affected by it?
2. How can we best fit our approach to performance management with the strategic
direction of our department and business?
3. Should managers and nonmanagers be appraised from multiple perspectives—for
example, by those above, by those below, by coequals, and by customers?
4. What strategy should we use to train raters at all levels in the mechanics of
performance management and in the art of giving feedback?
5. What would an effective performance management process look like?
KEY TERMS
Performance management
Performance appraisal
Performance facilitation
Performance encouragement
Relevance
Performance standards
Sensitivity
Reliability
Acceptability
Narrative essay
9-1
Chapter 09 - Performance Management
Practicality
Applicant group
Simple ranking
Alternation ranking
Paired comparisons
Forced distribution
Leniency
Severity
Central tendency
Critical incidents
360-degree feedback
Halo error
Contrast error
Recency error
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Chapter 09 - Performance Management
Frame-of-reference training
Active listening
Destructive criticism
CHAPTER 9 OUTLINE
• In forced ranking systems, all employees are ranked against one another and grades
are distributed along a bell-shaped curve.
• This is creating a firestorm of controversy and class-action lawsuits.
• One reason that employees dislike forced rankings is because they suspect, often
correctly, that rankings are a way for companies to rationalize firings.
Challenges
1. Do you support the use of forced rankings or not?
One may support the forced ranking method of performance appraisal because it
forces managers to objectively evaluate employee performance. Further, it provides a
visual clue as to where each employee falls, as far as productivity, which makes it
easy to cull the under-performers. Business is business, not charity, so it only makes
sense to keep the best of the best on the payroll.
2. If the criteria used to determine an employee’s rank are more qualitative than
quantitative, does this undermine the forced-ranking system?
3. Suppose all of the members of a team are superstars. Can forced-ranking deal
with that situation?
If all employees are superstars, it will be difficult to utilize the forced-ranking method
of performance appraisal because a bell-shaped curve is the end result or objective of
this procedure. This would unfairly force superstars into “average” or
“underperforming” positions on the curve, assuming that one could find a means of
distinguishing between them.
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Chapter 09 - Performance Management
Define Performance
• A manager who defines performance ensures that individual employees or teams
know what is expected of them, and that they stay focused on effective performance.
• A manager does this by paying attention to three key elements:
✓ Goals
✓ Measures
✓ Assessment
• Setting a goal:
✓ Directs attention to the specific performance in question
✓ Mobilizes efforts to accomplish higher levels of performance
✓ Fosters persistence for higher levels of performance.
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Chapter 09 - Performance Management
• Specific and challenging goals clarify precisely what is expected and leads to high
levels of performance.
✓ On average, productivity improves by 10 percent when goal setting is used.
• The mere presence of goals is not sufficient. Managers must also be able to measure
the extent to which goals have been accomplished.
• In defining performance, the third requirement is assessment.
✓ Regular assessment of progress toward goals focuses the attention and efforts of
an employee or a team.
• There should be no surprises in the performance management process—and regular
appraisals help ensure that there won’t be.
Facilitate Performance
• Managers who are committed to managing for maximum performance have three
major responsibilities:
✓ Eliminate roadblocks to successful performance.
✓ Roadblocks can include:
▪ Outdated or poorly maintained equipment
▪ Delays in receiving supplies
▪ Inefficient design of work spaces
▪ Inefficient work methods
✓ Provide adequate resources to get a job done right and on time; capital resources,
material resources, or human resources.
✓ A final aspect of performance facilitation is the careful selection of employees.
▪ Having people who are ill suited to their jobs (e.g., by temperament or
training) often leads to overstaffing, excessive labor costs, and reduced
productivity.
▪ In leading companies, even top managers often get involved in selecting new
employees
• If you’re truly committed to managing for maximum performance, you pay attention
to all of the factors that might affect performance, and leave nothing to chance.
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Chapter 09 - Performance Management
Encourage Performance
• To encourage performance, especially repeated good performance, it is important to
provide a sufficient amount of rewards that employees really value in a timely and
fair manner.
✓ Ask your people what’s most important to them, then tailor your awards program
so that employees or teams can choose from a menu of similarly valued options.
• Provide rewards in a timely manner, soon after major accomplishments.
✓ If there is excessive delay between effective performance and receipt of the
reward, then the reward loses its potential to motivate subsequent high
performance.
• Provide rewards in a manner that employees consider fair. Fairness is a subjective
concept, but it can be enhanced by adhering to four important practices:
✓ Voice. Collect employee input through surveys or interviews.
✓ Consistency. Ensure that all employees are treated consistently when seeking
input and communicating about the process for administering rewards.
✓ Relevance. As noted earlier, include rewards that employees really care about.
✓ Communication. Explain clearly the rules and logic of the rewards process.
9-6
Chapter 09 - Performance Management
• Legally and scientifically, the key requirements of any appraisal system are:
✓ Relevance
✓ Sensitivity
✓ Reliability
Relevance
• Relevance implies that there are:
✓ Clear links between the performance standards for a particular job and
organizational objectives and
✓ Clear links between the critical job elements identified through a job analysis and
the dimensions to be rated on an appraisal form.
• Relevance is determined by answering the question “What really makes the
difference between success and failure on a particular job, and according to whom?”
✓ The answer to this question is simple: the customer.
• Customers may be internal or external.
✓ In all cases, it is important to pay attention to the things that the customer believes
are important.
• Performance standards translate job requirements into levels of acceptable or
unacceptable employee behavior.
• Job analysis identifies what is to be done. Performance standards specify how well
work is to be done.
✓ Such standards may be quantitative or qualitative.
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Chapter 09 - Performance Management
• Relevance also implies the periodic maintenance and updating of job analyses,
performance standards, and appraisal systems.
Sensitivity
• Sensitivity implies that a performance appraisal system is capable of distinguishing
effective from ineffective performers.
• A major concern here is the purpose of the rating.
✓ Raters process identical sets of performance appraisal information differently,
depending on whether a merit pay raise, a recommendation for further
development, or the retention of a probationary employee is involved.
✓ Appraisal systems designed for administrative purposes demand performance
information about differences between individuals.
✓ Systems designed to promote employee growth demand information about
differences within individuals.
✓ The two different types of information are not interchangeable in terms of
purposes, and that is why performance management systems designed to meet
both purposes are more complex and costly.
Reliability
• A third requirement of sound appraisal systems is reliability (consistency of
judgment).
✓ For any given employee, appraisals made by raters working independently of one
another should agree closely. In practice, ratings made by supervisors tend to be
more reliable than those made by peers.
✓ To provide reliable data, each rater must observe what the employee has done and
the conditions under which he/she has done it.
• By making appraisal systems relevant, sensitive, and reliable, we can assume that the
resulting judgments are valid.
Acceptability
• In practice, acceptability is the most important requirement of all.
• HR programs must have the support of those who will use them.
• Evidence indicates that appraisal systems that are acceptable to those who will be
affected by them lead to more favorable reactions to the process, increased motivation
to improve performance, and increased trust for top management.
• Smart managers enlist the active support and cooperation of subordinates or teams by
making explicit exactly what aspects of job performance they will be evaluated on.
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Chapter 09 - Performance Management
Practicality
• Practicality implies that appraisal instruments are easy for managers and employees
to understand and use.
• Those that are not easy, or that impose inordinate time demands, are not practical;
managers will resist using them.
• Managers need as much encouragement and organizational support as possible if
thoughtful performance management is to take place.
• The crucial question to be answered in regard to each appraisal system is whether its
use results in fewer (and less costly) human, social, and organizational errors.
PERFORMANCE APPRAISAL
• To avoid legal difficulties, consider taking the following steps:
✓ Conduct a job analysis to determine the characteristics necessary for successful
job performance.
✓ Incorporate these characteristics into a rating instrument.
✓ Provide written instructions and train supervisors to use the rating instrument
properly.
✓ Establish a system to detect potentially discriminatory effects or abuses of the
appraisal process.
✓ Include formal appeal mechanisms, coupled with higher-level review of
appraisals.
✓ Document the appraisals and the reason for any termination decisions.
✓ Provide some form of performance counseling or corrective guidance to assist
poor performers.
• The type of evidence required to defend performance ratings is linked to the purposes
for which the ratings are made.
• To assess adverse impact, organizations should keep accurate records of who is
eligible for and interested in promotion.
• Eligibility and interest, define the applicant group.
• Implementing scientifically sound, court-proof appraisal systems requires diligent
attention by organizations, plus a commitment to making them work.
• In developing a performance appraisal system, the most basic requirement is to
determine what you want the system to accomplish.
9-9
Chapter 09 - Performance Management
• Many regard rating methods or formats as the central issue in performance appraisal.
However, broader issues must also be considered, such as:
✓ Trust in the appraisal system
✓ The attitudes of managers and employees
✓ The purpose, frequency, and source of appraisal data
✓ Rater training
• Behavior-oriented rating methods focus on employee behaviors, either by
comparing the performance of employees to that of other employees (relative rating
systems) or by evaluating each employee in terms of performance standards without
reference to others (absolute rating systems).
9-10
Chapter 09 - Performance Management
• The simplest type of absolute rating system is the narrative essay, in which a rater
describes, in writing, an employee’s strengths, weaknesses, and potential, together
with suggestions for improvement.
• If essays are done well, they can provide detailed feedback to subordinates regarding
their performance.
• Comparisons across individuals, groups, or departments are almost impossible since
different essays touch on different aspects of each subordinate’s performance.
• This makes it difficult to use essay information for employment decisions since
subordinates are not compared objectively and ranked relative to one another.
Ranking
• Simple ranking requires only that a rater order all employees from highest to lowest,
from “best” employee to “worst” employee.
• Alternation ranking requires that a rater initially list all employees on a sheet of
paper. From this list he/she first chooses the best employee (No. 1), then the worst
employee, then the second best then the second worst, and so forth, alternating from
the top to the bottom of the list until all employees have been ranked.
9-11
Chapter 09 - Performance Management
Paired Comparisons
Forced Distribution
Behavioral Checklist
• The rater is provided with a series of statements that describe job-related behavior.
His/her task is simply to “check” which of the statements, or the extent to which each
statement, describes the employee.
• Raters are not so much evaluators as reporters whose task is to describe job behavior.
• Descriptive ratings are likely to be more reliable than evaluative (good-bad) ratings.
9-12
Chapter 09 - Performance Management
Critical Incidents
9-13
Chapter 09 - Performance Management
• A variation of the simple graphic rating scale is behaviorally anchored rating scales
(BARS).
• The major advantage of BARS is that they define the dimensions to be rated in
behavioral terms and use critical incidents to describe various levels of performance.
• BARS therefore provide a common frame of reference for raters.
• BARS require considerable effort to develop, yet there is little research evidence to
support the superiority of BARS over other types of rating systems.
• The participative process required to develop them provides information that is useful
for other organizational purposes, such as communicating clearly to employees
exactly what “good performance” means in the context of their jobs.
9-14
Chapter 09 - Performance Management
• Work planning and review is similar to MBO; however, it places greater emphasis
on the periodic review of work plans by both supervisor and subordinate in order to
identify goals attained, problems encountered, and the need for training.
9-15
Chapter 09 - Performance Management
• He/she is probably most familiar with the individual’s performance and, in most jobs,
has had the best opportunity to observe actual job performance.
• Is probably the person best able to relate the individual’s performance to what the
department and organization are trying to accomplish.
• Because he/she also is responsible for reward (and punishment) decisions, and for
managing the overall performance management process, feedback from supervisors is
more highly related to performance than that from any other source.
Peers
• In some jobs, the immediate supervisor may observe a subordinate’s actual job
performance only rarely. In other environments, such as self-managed work teams,
there is no “supervisor.”
• Peers can provide a perspective on performance that is different from that of
immediate supervisors.
• To reduce potential friendship bias while increasing the feedback value of the
information provided, it is important to specify exactly what the peers are to evaluate.
• In light of the potential problems associated with peer appraisals, it is wise not to rely
on them as the sole source of information about performance.
Subordinates
9-16
Chapter 09 - Performance Management
Self-Appraisal
Customers Served
9-17
Chapter 09 - Performance Management
9-18
Chapter 09 - Performance Management
9-19
Chapter 09 - Performance Management
• The use of ratings assumes that the human observer is reasonable, objective, and
accurate.
• Rater’s memories are quite fallible, and raters subscribe to their own sets of likes,
dislikes, and expectations about people, expectations that may or may not be valid.
• The most common types of rating errors:
✓ Leniency
✓ Severity
✓ Central tendency
• Other rating errors include:
✓ Halo errors: Raters who commit this error assign ratings on the basis of global
(good or bad) impressions of ratees.
✓ Contrast errors: This results when a rater compares several employees to one
another rather than to an objective standard of performance.
✓ Recency error: This results when a rater assigns his/her ratings on the basis of the
employee’s most recent performance. It is most likely to occur when appraisals
are done only after long periods.
• Implementing a performance management system without training all parties to use it
is a waste of time and money.
• Training managers but then not holding them accountable for implementing what
they have been trained on is not the best use of resources.
• Key topics to address with respect to performance-management training include:
✓ Philosophy and uses of the system.
✓ Description of the rating process.
✓ Roles and responsibilities of employees and managers.
✓ How to define performance, and to set expectations and goals.
✓ How to provide accurate assessments of performance, minimizing rating errors
and rating inflation.
✓ The importance of ongoing, constructive feedback in behavioral terms.
✓ How to give feedback in a manner that minimizes defensiveness and maintains
the self-esteem of the receiver.
✓ How to react to and act on feedback in a constructive manner.
✓ How to seek feedback from others effectively.
✓ How to identify and address needs for training and development.
9-20
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Language: Finnish
Kirj.
J. A. de Gobineau
Ranskankielestä suomentanut
Aarne Anttila
SISÄLLYS:
J.A. de Gobineau
I. Madame Marronin hotellissa
II. Orjakauppa-yhtiö
III. Kaimakamin morsian
IV. Kuvernöörin luona
V. Tataarien kunnia
VI. Tanssijattaren kohtalo
J.A. de Gobineau
Suomentaja.
I
ORJAKAUPPA-YHTIÖ