Chapter 7

Implementing a
Performance
Management System
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Overview

Preparation
Communication Plan
Appeals Process
Rater Training Programs
Pilot Testing
Ongoing Monitoring and Evaluation
Online Implementation

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Preparation

Need to gain system buy-in through:

Communication plan regarding
performance management system

Including appeals process

Training programs for raters

Pilot testing system

Ongoing monitoring and evaluation

to show benefits
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Communication Plan Answers:

What is Performance Management

(PM)?

How does PM fit into our strategy?

Whats in it for me?

How does it work?

What are our roles and

responsibilities?

How does PM relate to other

initiatives?
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Cognitive Biases That Affect

Communications Effectiveness

Selective exposure

Selective perception

Selective retention

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To Minimize Effects of Cognitive

Biases:
A. Consider employees

Involve employees in system design

Show how employee needs are met

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To Minimize Effects of Cognitive

Biases (Continued):
B. Emphasize the positive

Use credible communicators

Strike firstcreate positive attitude

Provide facts and consequences

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To Minimize Effects of Cognitive

Biases (Continued):
C. Repeat, document, be consistent

Put it in writing

Use multiple channels of communication

Say it, and then say it again

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Appeals Process

Promote employee buy-in to PM

system
Amicable/Nonretaliatory

Resolution of disagreements

Increases perception of the

systems fairness

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Appeals Process
(continued)

Employees can question two types of

issues:
Judgmental

Validity of evaluation

Administrative

Whether policies and procedures were

followed

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Recommended Appeals Process

Level 1
HR reviews facts, policies, and
procedures
HR reports to supervisor/employee
HR attempts to negotiate a settlement

Level 2
Arbitrator (panel of peers and
managers) or
High-level managerfinal decision
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Rater Training Programs

Content Areas to Include:

Information
Identifying, observing, recording, and evaluating
How to interact with employees

Choices of Training Programs to Implement

Rater Error Training
Frame of Reference Training

Behavioral Observation
Self-Leadership Training
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Content
A. Informationhow the system
works
Reasons for implementing the
performance management system
Information

The appraisal form

System mechanics
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Content
(continued)

B. Identifying, observing, recording,

and evaluating performance
How to identify and rank job activities
How to observe, record, and measure
performance
How to minimize rating errors

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Content
(continued)

C. How to interact with employees

when they receive performance
information
How to conduct an appraisal
interview
How to train, counsel, and coach

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Choices of Training Programs

Rater Error Training (RET)

Frame of Reference Training

(FOR)
Behavioral Observation Training
(BO)
Self-Leadership Training (SL)
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Rater Error Training (RET)

Goals of RET
Make raters aware of types of rating
errors they are likely to make
Help raters minimize errors
Increase rating accuracy

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Intentional Rating Errors

Leniency (inflation)

Severity (deflation)

Central tendency

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Unintentional Rating Errors

Similar to Me

Stereotype

Halo

Negativity

Primacy

Recency

Spillover

Attribution

First
Impression

Contrast

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Possible Solutions for

Types of Rating Errors

Intentional
Focus on motivation
Demonstrate benefits of providing
accurate ratings

Unintentional
Alert raters to different errors and
their causes
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Frame of Reference Training

(FOR)

Goal of FOR*

Raters develop common frame of reference

Observing performance

Evaluating performance

Expected results of FOR

Raters provide consistent, more accurate ratings
Raters help employees design effective
development plans

*Most appropriate when PM appraisal system focuses on behaviors

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Behavioral Observation Training (BO)

Goals of BO
Minimize unintentional rating errors
Improve rater skills by focusing on how
raters:

Observe performance

Store information about performance

Recall information about performance

Use information about performance

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Self-Leadership Training (SL)

Goals of SL
Improve raters confidence in ability to
manage performance
Enhance mental processes
Increase self-efficacy

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Pilot Testing

Pilot testing is done before the

system is implemented.
Provides ability to:

Discover potential problems

Fix them

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Pilot TestingBenefits

Gain information from potential participants

Learn about difficulties/obstacles

Collect recommendations on how to improve

system

Understand personal reactions

Get early buy-in from some participants

Get higher rate of acceptance

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Implementing a Pilot Test

Roll out test version with sample group

Staff and jobs generalizable to the
organization

Fully implement planned system

All participants keep records of issues
encountered
Do not record appraisal scores
Collect input from all participants
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Ongoing Monitoring and Evaluation

When system is implemented, decide:

How to evaluate system effectiveness
How to measure implementation
How to measure results

Evaluation data to collect:

Reactions to the system
Assessments of operational and technical
requirements
Effectiveness of performance ratings
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Indicators to Consider

Number of individuals evaluated

Distribution of performance ratings

Quality of information

Quality of follow-up actions

Quality of performance discussion meetings

System satisfaction

Cost-benefit ratio or return on investment (ROI)

Unit-level and organization-level performance

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Online Implementation

Online tools to facilitate implementation

E-mails
Electronic newsletters
Web sites
Appeal filing
Training programs
Pop-up reminders
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Online ImplementationAdvantages

Automation

Speed up processes

Lower cost

Gather and disseminate information faster

and more effectively
System can be linked to other HR functions
Easier to monitor unit-level and
organizational-level trends over time
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Online ImplementationLimitations

PM systems that are not implemented

following best practices will not
necessarily improve from the use of
online components.
In fact, online implementation may create
a more complicated system that is a big
waste of time and resources for all
involved.

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Quick Review

Preparation

Communication Plan

Appeals Process

Training Programs

Pilot Testing

Ongoing Monitoring and Evaluation

Online Implementation
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All rights reserved. No part of this publication may be

reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.

Copyright 2013 Pearson Education, Inc.

publishing as Prentice Hall
Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall

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