After reading chapter 8, you should be able to: Identify the activities involved in performance management, discuss the purposes of performance management systems, define five criteria for measuring the effectiveness of a performance management system,. | CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITION BY . NOE, . HOLLENBECK, B. GERHART, AND . WRIGHT Introduction Performance management: process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires: Knowing what activities and outputs are desired Observing whether they occur Providing feedback to help employees meet expectations Purposes of Performance Management Strategic Purpose - effective performance management helps the organization achieve its business objectives. Administrative Purpose –ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Developmental Purpose – serves as a basis for developing employees’ knowledge and skills. Criteria for Effective Performance Management Methods for Measuring Performance Measuring Performance: Making Comparisons Sources of Performance Information 360-Degree Performance Appraisal: performance measurement that combines information from the employees’: Managers Peers Subordinates Self Customers Types of Performance Measurement Rating Errors Contrast errors: rater compares an individual, not against an objective standard, but against other employees. Distributional errors: rater tends to use only one part of a rating scale. Leniency: the reviewer rates everyone near the top Strictness: the rater favors lower rankings Central tendency: the rater puts everyone near the middle of the scale Types of Performance Measurement Rating Errors Rater bias: raters often let their opinion of one quality color their opinion of others. Halo error: when bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area. Horns error: when bias involves negative ratings. This can cause employees to feel frustrated and defensive. Political Behavior in . | CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCE FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITION BY . NOE, . HOLLENBECK, B. GERHART, AND . WRIGHT Introduction Performance management: process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires: Knowing what activities and outputs are desired Observing whether they occur Providing feedback to help employees meet expectations Purposes of Performance Management Strategic Purpose - effective performance management helps the organization achieve its business objectives. Administrative Purpose –ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Developmental Purpose – serves as a basis for developing employees’ knowledge and skills. Criteria for Effective Performance Management Methods for Measuring Performance Measuring Performance: Making .
