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Transcript of Chapter 10:
What is Performance Management?
Employees Need to Know:
How their performance Matters
What is considered acceptable performance
How they are being evaluated
What measurements will be used when they are evaluated
Performance- Focused Organizational Cultures
Types of Performance Information
What is the difference between Performance Management and Performance Appraisal?
- Series of Activities designed to ensure that the organization gets the performance it needs from its employees
- Process of determining how well employees do their jobs relative to a standard and communicating that information to them
How do Employees KNOW how they are Performing?
Job Duties & Job Performance
Identify the important elements in a given Job
Explain relative importance of job duties
Define why you pay the employee
Performance should be measured according to standards
Minimum Expectations for Performance Management
Explain what the organization expects
Document performance for personnel records
Identify areas of success and needed development
Provide performance information to employees
What is the organization trying to accomplish?
How does the employee act according to assigned job duties?
Are the employees' duties performed well?
Have the goals of the organization been met?
Performance Management Linkage
Global Cultural Differences in Performance Management
In the U.S. -
Feedback is common and expected
Outside the U.S. -
Feedback and Evaluation is uncommon, especially if feedback is negative.
China & Japan - Great respect for authority. Unusual & Awkward for subordinates to have direct interaction with supervisors
Some Countries feedback viewed as critical could lead to internalization and personal devastating emotions.
Adequate performance and the status quo permeate the organization
Everyone gets equal treatment regardless of performance
Performance Appraisals are just a routine
Make it or Break it
More positive performance outcomes
Clear Expectations, Goals, and Deadlines
Detailed Appraisal of Employee Performance
Clear Feedback on Performance
Manager and Employee Training as Needed
Consequences for Performance
Behavior Based Information
Timeliness of Response
Benchmarks, Targets, or Goals
What is considered Satisfactory?
Should be laid out BEFORE performance review
Numerical AND Non-Numerical standards should be set
- Group review conducted by managers to discuss the reasons behind each employee's rating
How are Employees Appraised in the Service Industry?
Regional Labor Cost Differences
Service Agreement Differences
Assess an Employee's Performance
Provide a platform for Feedback
Help administer wages and salaries
Help Identify Individual Employee Strengths & Weakness
Provide Answers to Work-Related Questions
Help Improve Job Performance
Ethics of Performance Appraisals
Studies show a relationship exists between ethics and the amount of time spent conducting performance appraisals.
More time spent means higher potential that ethical conduct is addressed.
Address ethical values and proper ethical approaches to common problems
Uses for Performance Appraisals
Dismissal from Work
Identifying Strengths & Weaknesses
Who Conducts Performance Appraisals?
Supervisors rate their Employees
Employees rate their Supervisors
Team Members Rate Each Other
Employees Rate Themselves
Outside Sources Rating Employees
A Variety of Parties Providing Multi-Source or 360 Degree Feedback
Types of Performance Appraisal
Category Scaling Methods
Graphic Rating Scales
Management by Objectives
Recency and Primacy Effects
Leniency and Strictness Errors
Halo and Horns Effects
Both an Opportunity & Challenge
Identify how employees add value
Show opportunities for growth
Conflicting roles for Managers
Employees do not always agree with Management's Assessment
SHOULD be Constructive Feedback
Effective Performance Management
Beneficial as a Development Tool
Useful as an Administrative Tool
Legal and Job Related
Viewed as Generally Fair
Effective in Documenting Performance
Clear about High, Average, and Low Performers
Now, YOU are going to conduct your OWN Performance Appraisal
Rate EACH of your Employee Handbook Group Members
Use the principles from the chapter to provide quality feedback to the CEO (Dr. Hammer) regarding each employee's performance
Be specific in Areas of Concern
Any rankings ABOVE 2 must be justified.
Any rankings BELOW 3 must be justified