Bài giảng Human resource managemen - Chapter 6: Managing employees’ performance - Ngô Quý Nhâm

beha iors. u             v .
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Figure 8.1: Stages of the Performance 
Management Process
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Purposes of Performance Management
• Strategic Purpose – means effective performance       
management helps the organization achieve its 
business objectives.
• Administrative Purpose – refers to the ways in which 
organizations use the system to provide information 
for day‐to‐day decisions about salary, benefits, and 
recognition programs.
l l h• Deve opmenta  Purpose – means t at it serves as a 
basis for developing employees’ knowledge and 
skills
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.
Criteria for Effective
Performance Management
Fit ith t t w  s ra egy
V lidita y
Reliability
Acceptability
Specific feedback
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Figure 8.2: Contamination and Deficiency 
of a Job Performance Measure
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Test Your Knowledge
• Martin is a computer programmer whose job             
mainly consists of independently coding 
software If interpersonal and teamwork skills.            
were weighted heavily on his job performance 
measure it would suffer from       
A. Criterion contamination
B Criterion deficiency.  
C. Unreliability
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Methods for Measuring Performance
Comparative
AttributeQuality
METHOD
BehaviorResults
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Table 8.1:
Basic Approaches to Performance       
Measurement
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Measuring Performance:
Making Comparisons
i l ki Forced PairedS mp e Ran ng
• Requires 
Distribution
• Assigns a 
Comparison
• Compares 
managers to 
rank 
employees in
certain 
percentage of 
employees to
each employee 
with each 
other   
their group 
from the 
highest
each category 
in a set of 
categories
employee to 
establish 
rankings 
performer to 
the poorest 
f
. .
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per ormer.
Measuring Performance:
Rating Individuals ‐ Attributes
Graphic Rating Scale Mixed‐Standard Scale   
• Lists traits and provides a 
rating scale for each trait.
• Uses several statements 
describing each trait to 
• The employer uses the scale 
to indicate the extent to 
which an employee displays
produce a final score for 
that trait.
each trait.
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Figure 8.3:
Example of a Graphic Rating Scale
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Figure 8 4:  .  
Example of a 
Mixed‐Standard 
Scale
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Measuring Performance:
R ti I di id l B h ia ng  n v ua s ‐ e av ors
Critical‐Incident Method
Behaviorally Anchored Rating 
• Based on managers’ records 
of specific examples of the 
Scale (BARS)
• Rates behavior in terms of a 
scale showing specificemployee acting in ways that 
are either effective or 
ineffective.
statements of behavior that 
describe different levels of 
f• Employees receive feedback 
about what they do well and 
what they do poorly and how 
per ormance.
they are helping the 
organization achieve its 
goals.
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Figure 8 5:  .  
Example of 
Task‐ BARS 
Rating 
Dimension for 
a Patrol Officer   
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Measuring Performance:
Rating Individuals – Behaviors (continued)
Behavioral Observation Scale Organizational Behavior 
(BOS)
• A variation of a BARS which 
uses all behaviors necessary
Modification (OBM)
• A plan for managing the 
behavior of employees       
for effective performance to 
rate performance at a task.
through a formal system of 
feedback and 
• A BOS also asks the 
manager to rate the 
frequency with which the
reinforcement.
employee has exhibited the 
behavior during the rating 
i d
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per o .
Figure 8.6: Example of a Behavioral 
Observation Scale (BOS)
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Measuring Performance:
Measuring Results
• Management by Objectives (MBO): people at           
each level of the organization set goals in a 
process that flows from top to bottom so that            ,     
all levels are contributing to the organization’s 
overall goals  .
• These goals become the standards for 
evaluating each employee’s performance      .
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Table 8.2: Management by Objectives –
Two Objectives for a Bank
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Test Your Knowledge 
• The performance management system at XYZ           
company currently is perceived as unfair and 
is time consuming for managers.  Which of the 
following systems is the most likely and least 
likely used, respectively.
A. Paired comparisons; Results
B. Results; Forced distribution
C. Behavioral; Attributes
D. Attributes; Comparative
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Measuring Performance:
Measuring Quality
• The principles of total quality management           
(TQM), provide methods for performance 
measurement and management    .
• With TQM, performance measurement 
combines measurements of attributes and       
results.
S bj ti f db k– u ec ve  ee ac
– Statistical quality control
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Sources of Performance Information
• 360‐Degree Performance Appraisal:     
performance measurement that combines 
information from the employees’:     
–Managers
Peers–
– Subordinates
Self–
– Customers
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Types of Performance Measurement
Rating Errors
• Contrast errors: the rater compares an           
individual, not against an objective standard, 
but against other employees      .
• Distributional errors: the rater tends to use 
only one part of a rating scale            .
– Leniency: the reviewer rates everyone near the top
St i t th t f l ki– r c ness: e ra er avors ower ran ngs
– Central tendency: the rater puts everyone near the 
iddl f th l
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m e o e sca e
Types of Performance Measurement
Rating Errors (continued)
• Rater bias: raters often let their opinion of               
one quality color their opinion of others.
Halo error: when the bias is in a favorable direction – .
This can mistakenly tell employees they don’t need to 
improve in any area.
– Horns error: when the bias involves negative ratings. 
This can cause employees to feel frustrated and 
defensive.
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Test Your Knowledge 
• Bill rates all of his employees very low except                 
for Jan.  Jan gets above average ratings 
because she consistently comes to work on             
time. The rating errors Bill makes are _______ 
and respectively _______,  .
A. Leniency; Horn
B Strictness; Halo.  
C. Similar‐to‐me; Central Tendency
D Horn Strictness
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. ; 
Giving Performance Feedback
• Scheduling Performance Feedback   
– Performance feedback should be a regular, expected 
management activity.
– Annual feedback is not enough.
– Employees should receive feedback so often that they 
know what the manager will say during their annual 
performance review.
• Preparing for a Feedback Session
– Managers should be prepared for each formal feedback 
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session.
Giving Performance Feedback
(continued)
• Conducting the Feedback Session     
– During the feedback session, managers can take any of 
three approaches:
1. “Tell-and-Sell” – managers tell employees their ratings 
and then justify those ratings.
2. “Tell-and-Listen” – managers tell employees their ratings 
and then let the employees explain their side of the 
story.
3. “Problem-Solving” – managers and employees work 
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together to solve performance problems.
Figure 8.7: Improving Performance
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Legal and Ethical Issues in
Performance Management 
• Legal
– Performance management processes are often 
scrutinized in cases of discrimination or dismissal            .
• Ethical
Employee monitoring via electronic devices and–            
computers may raise concerns over employee 
privacy.
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Legal Requirements for
Performance Management
• Lawsuits related to performance management         
usually involve charges of:
– Discrimination
– Unjust dismissal
T t t i t b th ki d f l it it i• o pro ec  aga ns   o   n s o   awsu s,    s 
important to have a legally defensible 
f t tper ormance managemen  sys em.
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Legal Requirements for
Performance Management (continued)
• A legally defensible performance management       
system includes:
Based on valid job analyses with requirements for job – ,
success clearly communicated to employees.
– Performance measurement should evaluate behaviors or 
results, rather than traits.
– Multiple raters (including self-appraisals) should be used.
– All performance ratings should be reviewed by upper-level 
managers.
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– There should be an appeals mechanism for employees.
Summary
• Performance management is the process through 
which managers ensure that employees’ activities 
and outputs contribute to the organization’s goals.
• Organizations establish performance management       
systems to meet three broad purposes:
– Strategic purpose
– Administrative purpose
– Developmental purpose
• Performance measures should fit with the           
organization’s strategy by supporting its goals and 
culture.
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Summary (continued)
• Performance information may come from an           
employee’s self‐appraisal and from appraisals by the 
employee’s supervisor, employees, peers, and 
customers.
• Using only one source makes the appraisal more 
subjective.
• Organizations may combine many sources into a 360‐
d f legree per ormance appraisa .
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Summary (continued)
• Organizations can minimize appraisal politics by           
establishing a fair appraisal system, involving 
managers and employees in developing the system, 
allowing employees to challenge evaluations, 
communicating expectations, and having open 
di iscuss on.
• Performance feedback should be a regular, 
scheduled management activity so that employees    ,       
can correct problems as soon as they occur.
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Summary (continued)
• The performance feedback discussion should focus 
on behavior and results rather than on personalities.
• Managers must make sure that performance 
d d lmanagement systems an   ecisions treat emp oyees 
equally, without regard to their race, sex, or other 
protected status. 
• A system is more likely to be legally defensible if it is 
based on behaviors and results, rather than on traits, 
and if multiple raters evaluate each person’s 
performance.
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