Chapter 2

Performance
Management
Process
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 Performance
Prerequisites
Planning

Performance
Execution
Performance Management Process

Performance
Performance
Renewal and
Assessment
Recontracting Performance
Review

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Performance Management Process
 Ongoing process
 Each component is important
If one is implemented poorly, the
whole system suffers
 Links between components must
be clear

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 Prerequisites

A. Knowledge of the
organization’s mission and
strategic goals
B. Knowledge of the job in
question

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Prerequisites: a. Knowledge of Mission
and Strategic Goals

 Strategic planning
• Purpose or reason for the
organization’s existence
• Where the organization is
going
• Organizational goals
• Strategies for attaining goals

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 Mission and Goals

 Cascade effect throughout

organization

•Organization Unit Employee

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Prerequisites: b. Knowledge of the
Job

 Job analysis of key components

• Activities
• Tasks
• Products
• Services
• Processes

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Knowledge of the Job (Continued)
 KSAs required to do the job
• Knowledge
• Skills
• Abilities

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 Job Description
 Job duties
 KSAs
 Working conditions

… for a particular job

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 Job Analysis

 Conducted using a variety of

tools
• Interviews
• Observation
• Questionnaires (available on
the Internet)

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 Job Analysis Follow-Up
 All incumbents (people doing
the job at present and their
supervisors) should
• Review information
• Provide feedback
• Rate tasks and KSAs in terms of
 Frequency
 Criticality

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 Example
Frequency Criticality
0: not performed 0: not critical
1: every few months to yearly 1: low level of criticality
2: every few weeks to monthly 3: 2: below average level of
every few days to weekly criticality
4: every few hours to daily 3: average level of criticality
5: hourly to many times each 4: above average level of
hour criticality
5: extremely critical

Overall score= frequency * criticality

Overall scores for all tasks can be ranked from highest to

lowest to obtain a final list of tasks.
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 Rater Biases
 Rating of frequency and
criticality of tasks and KSAs is
susceptible to:
• Self-serving bias
• Social projection bias
• False consensus bias
 These biases exaggerate the
importance of certain tasks & KSAs

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 Self-serving bias
 This bias leads people to report that
their own behaviors and personality
traits are more needed for successful
job performance compared to behaviors
and personality traits of others.
 This is because people tend to attribute
success to themselves and failure to
external causes (i.e., factors outside of
their control)..
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 Social projection bias
 Leads people to believe that others
behave similarly to themselves

 it lead people to think about

themselves when reporting KSAs for
their job instead of people in general.

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 False consensus bias

 is similar in that it leads people to

believe that others share the same
beliefs and attitudes as themselves.

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 Rater Training
 Web-based training: Structure
• Takes only about 15 minutes
• Establishes common point of
reference via largely 5 steps
 In the 5 steps, participants basically
practice their rating skills
• As a result, reduces exaggeration of
the importance of certain task and
KSAs

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 Rater Training (Continued)
 Web-based training: 5 steps
1. Defines the rating dimensions
2. Defines the scale anchors
3. Describes behaviors indicative of
each rating dimension
4. Allows raters to practice their
rating skills, and
5. Provides feedback on the practice
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 Performance Planning
 In the beginning of each
performance cycle, the supervisor
and the employee meet to discuss
and agree upon:
• What needs to be done
• How it should be done
• Results
• Behaviors
• Development plan.
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 Performance Planning:
Results
Results: what needs to be done
(produced outcomes)

Key accountabilities
Specific objectives
Performance standards

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Key Accountabilities

 Broad areas of a job for

which the employee is
responsible for producing
results

 Obtained from job description

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 Specific Objectives

 Statements of
•Important
•Measurable
.. outcomes

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 Performance Standards
 “Yardstick” to evaluate how well
employees have achieved each
objective
 Information on acceptable and
unacceptable performance, such as
• Quality
• Quantity
• Cost
• Time

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 Example of the job of university
professors
 Accountabilities:(1) teaching and (2) research.

 Objectives:
 Teaching ->“to obtain a student evaluation of teaching
performance of 3 on a 4-point scale.”
 Research -> “to publish two articles in scholarly refereed
journals per year.”

 Performance standards:
 Teaching -> “to obtain a student evaluation of teaching
performance of at least 2 on a 4-point scale”
 Research -> “to publish at least one article in scholarly
referred journals per year.”
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 Performance planning

 Thus, the objective is the desired

level of performance,
• whereas the standard is usually a
minimum acceptable level of
performance.

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 Performance Planning:
Behaviors
 How a job is done

 Behaviors should be measured

because employees may have
control over how they do their
jobs but not over the results of
their behaviors.
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 Performance Planning:
Competencies
 Measurable clusters of KSAs

 Critical in determining how

results will be achieved

 For example: customer service, written

or oral communication, creative
thinking, and dependability
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 Performance Planning:
Development Plan
An important step before the review
cycle begins is for the supervisor and
employee to agree on:
 Areas for improvement
 Goals to be achieved in each area
of improvement
 Include both results and behaviors

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 Performance Management
Process
 Once the prerequisites are met and
the planning phase has been
completed, we are ready to begin the
implementation of the performance
management system.
 This includes performance execution,
assessment, review, and renewal and
recontracting.

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 Performance Execution
 Once the review cycle begins, the employee strives to
produce the results and display the behaviors agreed
upon earlier as well as to work on developmental
needs.
 The employee has primary responsibility and
ownership of this process.
 Employee participate in:
 Provide input in the development of job descriptions, ,
performance standards, and the creation of the rating
form
 performance execution stage.
 evaluation process stage (self assessment, performance
review interview is a two-way communication process).
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 Performance Execution:
Employee’s Responsibilities
 Commitment to goal achievement
 Ongoing requests for feedback and
coaching (proactive)
 Communication with supervisor (open &
regular)
 Collecting and sharing performance
data (updates on progress)
 Preparing for performance reviews
(ongoing self-appraisal)
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 Performance Execution:
Manager’s Responsibilities
 Observation and documentation (daily basis)
 Updates (initial objectives, standards, & key
accountabilities (results) & competency
(behaviors) if the organization goal change)
 Feedback (Regular basis)
 Resources (Supervisors should provide
employees with resources and opportunities to
participate in developmental activities)
 Reinforcement (notice outstanding performance
by reinforcing effective behaviors and progress
toward goals)
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 Performance Assessment
 Manager assessment
 Self-assessment
 Other sources (e.g., peers,
customers)

 The discrepancies between self-

assessment and managers assessment on
the behavior trigger development efforts.

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 Multiple Assessments Are
Necessary To…

 Increase employee ownership

 Increase commitment
 Provide information
 Ensure mutual understanding

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 Performance Review
Overview of Appraisal Meeting
Appraisal meeting is a meeting between the
employee and the manager to review their
assessments
Past

• Behaviors and results

Present

• Compensation to be received
Future

• New goals and development plans

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 Six Steps for Conducting
Productive Performance Reviews
1. Identify what the employee has
done well and poorly (+, -
behaviors)
2. Solicit (ask for) feedback about
these behaviors
3. Discuss the implications of
changing or not changing the
behaviors
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 Six Steps for Conducting
Productive Performance Reviews

4. Explain how skills used in past

achievements can help overcome
any performance problems
5. Agree on an action plan
6. Set a follow-up meeting and
agree on behaviors, actions, and
attitudes to be evaluated

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 Performance Renewal and
Recontracting
 Identical to performance planning
(results, behavior, development plan)
EXCEPT:
• Uses insights and information from
previous phases
• Restarts the performance
management cycle

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 Restarts the performance management
cycle
 The cycle is not over after the renewal and
recontracting stage. In fact, the process starts all
over again.

 There needs to be a discussion of prerequisites.

Because markets change, customers’ preferences
and needs change, and products change, there is
a need to continuously monitor the prerequisites
so that performance planning and all the
subsequent stages are consistent with the
organization’s strategic objectives.
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Generic Job Descriptions

Occupational Informational
Network (O*Net)

http://online.onetcenter.org/

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Copyright © 2013 Pearson Education, Inc.

publishing as Prentice Hall
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