performance management
the process through which managers ensure that employees activities and outputs contribute to the organization's goals
benefits of performance management:
tell top performers they are valued, encourage communication between managers and their employees, establish consistent standards for evaluating employees, and help the organization identify its strongest and weakest employees
Steps in the Performance Management process
1. define performance outcomes for company division and department
2. develop employee goals, behavior, and actions to achieve outcomes
3. provide support and ongoing performance discussions
4. evaluate performance
5. identify improvements needed
6. provide consequences for performance results
strategic purpose
effective performance management helps the organization achieve its business objectives and does this by helping to link employees behavior with the organizations goals
administrative purpose
a performance management systems refers to the ways in which organizations use the system to provide information for day to day decisions about salary, benefits, and recognition programs
developmental purpose
means that it serves as a basis for developing employees knowledge and skills
fit with strategy
a performance management system should aim at achieving employee behavior and attitudes that support the organization's strategy, goals, and culture
validity
the extent to which a measurement tool actually measures what it is intended to measure
venn diagram description
the circle on the left represents all the information in a performance appraisal; the circle on the right represents all relevant measures of job performance; the overlap of the circles contains the value information
reliability
describes the consistency of the results that the performance measure will deliver
interrater reliability
consistency of results when more than one person measures performance
test-retest reliability
refers to consistency of results over tim
acceptability
whether or not a measure is valid and reliable
specific feedback
a performance measure should specifically tell employees what is expected of them and how they can meet those expectations
tell and sell approach
managers tell the employees their ratings and then justify those ratings
tell and listen
managers tell employees their ratings and then let the employees explain their side of the story
problem solving apprach
managers and employees work together to solve performance problems in an atmosphere of respect and encouragement
