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Performance Management

HRM 701
by

Jadran MacLeod

on 26 October 2015

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Transcript of Performance Management

Presented by Stephanie Aguiar, Jadran MacLeod and Tara Sehovic
Performance Management
The Problems with Performance Reviews
"It's a Performance Review Not an Ambush"
Mr. Hardwood at Deeley Harley-Davidson Canada explains the misunderstanding between him and an employee
Managers must recognize their responsibility to deliver a respectful, fair and constructive performance review
Deeley Harley-Davidson believes that the performance review should occur more than once a year and be based on facts
Organizations need to understand their role to develop and help grow the employee
Discussion Questions
> Is there a polite way to give a negative
performance review?

> How realistic is it that performance
reviews are based 100% off of performance?

> How do performance reviews affect the employee - employer relationship?
The employee and manager have different perceptions
Misunderstanding in the performance review
Failure to discuss what next steps the employee should take
Performance review isn't conducted often enough
Has anyone ever experienced a positive or negative performance review?
SOLUTION #1- There needs to be more focus placed on the execution of performance appraisals.
Valid and Reliable Measures

-Preparing managers and employees for the performance appraisal.
Employee concerns about performance appraisal fairness are influenced by the validity and reliability of the performance appraisal system.
VALIDITY

-Criteria used in performance appraisal must be:
1)Relevant to the job being appraised
2)Broad enough to cover all aspects of job requirements.
3)Specific.

RELIABILTY

-Effective performance appraisal criteria are precise enough to produce consistent ratings for the same performance.
3 Things to Prepare for Performance Appraisal
1) Assemble the data and study the employee’s job description, compare the employee’s performance to the standards, and review his or her previous appraisals.

2) Prepare the employee. Give the employee at least a week’s notice to analyze problems he or she may be dealing with, and gather questions and comments for the appraisal.

3) Find a mutually agreeable time and place and allow plenty of time for the appraisal.
SOLUTION #2- Managers need to engage in training on an ongoing basis in order to ensure they are in a position to engage in high-quality appraisal interviews.
- Training supervisors to use rating instruments properly and to eliminate rating errors.

- Training supervisors to apply performance appraisal standards when making judgments and criticism.
Reducing Rating Scale Problems
Rating scale problems include:

-Unclear performance standards
-Halo effect
-Central tendency-Strictness/leniency-Appraisal Bias
-Recency Effect
-Similar to me Bias
Major Parties Affected
- Employees
- Managers
- Human Resources (of course!)
CRITICISM
- Should be done in a manner that lets the person maintain his or her dignity and sense of worth.
- Criticism should be provided constructively and in a private setting.
- Manager should provide examples of critical incidents and specific suggestions of what could be done and why.
- Criticism should be objective and free of any personal biases.
What perception does each party hold towards performance reviews?
Why is the perception of performance reviews so important to the process?

TYPICAL TRAINING PROGRAM TO REDUCE RATING ERRORS
-Raters are shown a videotape of jobs being performed and are asked to rate the worker.
-Ratings made by each participant are then placed on a flip chart and various errors are explained.
-The trainer gives the correct rating and then illustrates the rating errors made by the participants.
Our Own Tips for Performance Reviews
> Plan for the reviews - failing to plan is planning to fail

> It is a vital link to the vision, mission, and values of the organization

> Consider language, be tough on behaviour not on the person ie. you're rude vs. interrupt on a continual basis

> It is one of the most important roles we have as a supervisor to show our employees we care, but is one of the most poorly done tasks
Why Performance Appraisals are of Interest to HR Professionals
> Promote the success of the organization
> Essential to Human Resource Planning
> Determine training needs of employees
> Important determinants of compensation decisions
> Assess promotion and career development opportunities
What suggestions can you offer to motivate
an employee after a negative performance review?
Full transcript