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PM2009.pdf

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Kiran Dubb

This chapter provides an expanded view of performance management that goes beyond the traditional I/O psychology focus on performance measurement. It discusses performance management as including what happens before and after performance is measured, considering the role of time and context. It also notes the divide between the topics academics research and those practitioners are interested in, with academics focusing more on measurement and practitioners more interested in talent management and leadership development. The chapter argues this divide needs to be addressed to better help practitioners implement research-based performance management.

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Management PuttingResearch intoAction Performance James W. Smither and ManuelLondon, Editors lB*?*Lilf:l-
i oprrlr t 2004btrloFn s ld & bn,. Ini ll nBhnre'^^l c{ eal0}l7al-}ar josb.s.otr' No pan of dL publicrrio' mavbt r€Produ..d, r.r.d in a r€tic2l s or bi .nv ntaq .l€.hni., ddhmnal, Photr.tDinS, r€.ordi4, (mn'ns or 'otRu €! 'pt r pemnrd under :iedDn l0t or lo3 ol rh€ 1976unitd sb..5 c,Drighr A.r' {nhod €nh.r lhe Prior nrntd p€rnision of $c pdblnh€. or Nrh.rtanon thrcush parm.nr or thc ,Pp'.Pn:F lrr{oP! I" to d. cop.{ishr cl.d.e u.nr. Itsi4C86O0, .r dn lne r|?b arr*:top)riShr .on R.qu.ns b .h. p{blnh.r lor P'mision should b. rld( $*d b the Pemi$i..r DrFm€nc John $'Js." & 9'q Inc.. I I I Rnt sft( HotDL'n, NJ 07030,201 t43{{rr l. tu 201 t435x13. or onlin. araa !ir9.om/3o/p.mns'ons R.rdeE lhould & trwr€ tbar Incmcr $lb jd ofi.rdl s .ihdons andlor btrt€s nr tu'de' inromarion nar btrvt tbmg€d or diePp.r€d h.k.n ln. rin€ thi Umn orl.i,biljry/Di$laim.r,fltdml)] rlniL rht pub|nh( r"n n' in pr€panng thn bool. rh nDr. no r.?r.$nadoB orEfrrdrs "ith.€sPe( t b thc a"uraq or :on,pl.renes or rh. ..nt .6 or $n lxx* md sF.iri.allr didrin any imPlitd N:.Rnries or !'r(hmhbint or 6h.s ror a Pannuhr pupoc No {]lrfl! mar b. .tacd or ext.od'd ta sles rep.eknhnrh .r rritkn sal€snarri2L Th. adi.c Md frt.*i6 onhin.d h.rein mr not h ;rhk iq r.r situanon YD should .onn . sid' r Proresionil *her. aPPrcPrift' N'ith'r ']t publiitrr nor aurhor :hrll bt lj2bl€ ror mv l(K or prolit or rnr .tn.. .onnrr.ial dmas6. in'luding bu, n.t linned ro sP(.iai, in.identl, .on?qtrmrirl, or oth.r dmag€! Josey Bs b@Lr rd P.odR! a amilrbl. drousl mdr breldo6 ro .onhd JrM,FBas dir'dr ."rr .". C*--- c-. u.p".-.nt fithin th. U s 3ur9567719, oucid. rhc rr s' ar 3115?2'3s46 Jds,+Bas ale pubhb.! ic boors in r wtn or.l€.hmi. romaa s,nr cont€nr rha' rPpta6 'n prinr mar nor bt aailable n cldronic booL! UbEy or co.rt6 Cidro3i.Gi.nrbbddd De P.domm.. nrn4.m.nt : p nns rer.b inror.rn n /Jm€s $l smitherrnd ou'l p. .m -lTk proftstunal pa.nr€ sri6) ISaN s7a{-17cl9r52rl (clorh) l. cr.€.ddelopmcm. 2 linpr,,rt.noritidon I. snidtild6| ll. r'ndon. Pdntedin d. UniFd sdt.s ol An€da l 0 c 3 7 6 5 , 13 2 1
AN EXPANDED VIEW OFPERFORMANCE MANAGEMENT' Herman Aguinis AnExpanded Viewof Performance Management The purposr of this ch:rpreris ro pr1)irte.tn cJran.te.t!'c ot the perlormancc nr:rD;rqcIlrenr pfoccs that subsuDres rhc lrldiri()nal I/O pqcholog pcifonn:ur.c apprai! lilclature. Ii is ar)cxpiur.tcd iiew in relarion ro dle traditioDalI/O ps.chol(,t^oeatrrlenrof the topic irl fitc dillercnr avs. Fir.sr. ir goesbcvorrrtan allrost exclusiteemphasis,so re rLould 5a alnrost aD obressi.trr,on rhe meaurenlcnt ol pcrfor.n arrce aDd in.Lrdcr a considcratii)n oi what happens bt'fbre and iticr pertirn ance is nr(.asure.t (lhat is, the role ol lirne an.l .i) tcxr). S(c(rrd. alth()ugh the I/a) *Thisresearchas(oDdu.t.di.pr hit.tie,nruguirnl,et(trh.Nt..)r.rl{1,n, Tem Profes$xhiu nr hnagrrnenr rh. t-!nertis o' (:olorarloI).n.f nrxl visiling appoinrne.tsat th. t lne.ih ol SihIrarxi (spanrrrnd lrDn.rih (n PuenoPjco.lrharl(.barl.s1.lier(c.tan!ell_on{r.D.iDd.lnn'sDrirheri(, .ommenb on preriou dlari!. Tl,;.brpro n(h(L.s rn oi.t f,on, .rr.l is trased on llre tolloring boofr r$rlni. H l!(lr)!r) Pa/ontn,n,marq.nar! enn cn.). Upp€r SaddleRtr.r. J: Ilrn,r P.en!.. tt.,ll Add.e$.on.spond€rx. r.r Ilenu.ur flrinir. ]'lolc*, ,,f OrgrDtIi.,rrl Behariorod Hunran Revntr..s atrd De.nr. R.a,&L Itotie,r lielle strir .l &^inN, Indima tlnirer sn t.nrail: lknlnri@ indi.x,a.cd,,) CHAPTER
2 rtrrorurrceMrucrurxr ps)cholosv lirerature reats *:':l': t,nHr*T'oPil:J ;::-# #.:';:#*1T.,-fl ,l",tii:::.T,1;,{*." *:;il* nizational psycholog domains {cf Agun *llfl*il:m::;x;;ig,r';]:nfl ,r;'#Tffii 5"".'"*11'flT;1',#i jiT$il*si;;;andclonsidersthe i::l:lll ri"*"w'r ffln:'ffi;ill: ilixHt' T"-l u:1,:x:l,x:':r;xHi::'i::."-'on,informadons! m:m:l*,*"::'[H ;i:fJ:il ffi,ffi :*ilil$ #'il*i*h*,Ti:.':^*fi 'ffi:T:;i'ff I':irtr': ,n. .iJ"* ", *? **ncipractice gapin theareaof performance manag€ment TheScience-Practice Divideand PerformanceManagement IH:"',,j*1:nffi:#x, ETff" research conducted bv ^J"J""J1izoro,,*"-'*.11gT,ilit{ *hxih -iltut#*$igi';i* [.l:,'.'ilffi,ff]ff.illil'lT'l?*;' . Br"""r' 2002: R'ne' L:f; i: ; ffi;. -;t 7) Mu(hinskY .(2004 ) notli,$i,l;JJll;; lXf 'H::'fr ::::J,Tfili#;,-iill;;;;;r,",-'se" *:*'**:'ru'+Y;".m"r*'H":'f:]: "l;ffi*:iilf1:ST*s kii*red,,B' to"nea.other' onemight ;:11'"*f 'l;::"T:":1T1$t$il:'1$: lii:.3"J
1 hp1.'r, D '1f (n prRron! ( I ttr 1Gr.rGr 3 implcfilenra(ion. Ihis ilcreasing scicnce,pmcriceschisDris parrjc ularh puzlling in rhe cascof t/O pschol:rg hcause rhe fit ld Nas crcated iurd secrnsro bc predicated lilndajncr)raliv on rhe prin crplcsol the scientist-pra.riti.nrer Dvfiel (Rass tq74: nrnrkffe. 1990:lclIenl. 2007:lrrryh & Sarl, t!)90;Rrrpp& Beal,2007). Thc genefalscienccPracriccsap is particrrla.lcviden{in the area ol peflinrnancc lnanagcnlenr.ptacorroltcrsare lntcresre.l rn sc|eral issuesdiiccth rclated ft) perfirrar)(e ma|agenlenl, including talenr nr:rnascrenr. lcadership de'elopn)eDr. in(cn sificaticrn oi l)r'ka cnrploefs rn () incrcaseproductiit with tewer rmploccs. ancl nranagingdrangc (Fa: 2006; Schr.amm, 2006;Schwiud. 2007). On rhe orhcr haDd. a reie{ b cas.i() ,r'r,lqrri'ri.,..iririx.U .lr.r1l rlr,,rr1,,. t;e rrr,,,r p,,prrt.ir r,,p,i,. published in ttie Joutut of ttppti{t ps.ttdos,i (J,p) fi c,Il) 2i)03 lo 2007 :rrc (t ) job s:lrifirtn)D,atritu.tes./inoh.emcDt/conrnril trert: (2) rvofl eroups/reams:(3) pertbr.rnance appraisa]/fced, back;(.1)ofganirari(,nalculrrrr.cs. clinr:rrcs. policics,cirizcDs)rip; and (5) beha'x)r,p.cdicrion ot pr.occsses. and out.o )cs.Th^r samerelicl linrnd drar (he fie nro5tpoputar n)pi(s publish(.d i Per.a,d Pst.holagi(PP!ch) also bencor 2003 ar)d 2007 rre (l) behavior'. prcclictionof proccsres and olrtconrcs:(2) perfor mance rplrraisal,/fcedblckr (:l) p5chomcrric,/resling issuesi (1) testvalidit'/?lidatiur issue;and (5) for( groups,/teams (Ctascio & Aguilis, 2008a). Three conclusionscrn bc drarrn from rhis i))t(r.ma(ic,n. Firsr. gircn that Clas.io arrrl Agrrinis (2008a) corlcd rhe articles pLrl> lished in JAP and PPsch using fifr dilltreDt carcBories,rhc con_ gruencc ben{ccrr the li!c, lisls of rhe rop 6e I)ost popular (L,pics is remarkablc and sLLgeests rhat thesc publicarioD rrencls are soundindicarorsol cornnmn, unrlerhing o.endsin rhe rcsearch produced in the field ol I,/O ps'.holos: Secrnrd,a ..rnllarison of rhe topics in which practiriurer.s are inrcr.cstert.irh those in which academics are intcresred rlro{s rangenrial orer)ap onlr: r!'hilethe k)pic peflbfmalce applaisal,/fccdba.k.'s iDclu.ted on tlte lists fi)r borh joufnals. the majoril of articles addressropics that arr nor suflicienrh broad lo address pracrili.)r)u con.cnls abotr talent nlanaflementand lcadershipderelt4rrncnt,to mcn tronJustrrr(). The rhird conclusio| is rharpracririoDcrs inrercsrcd in implemcnting sourrrlr.est'alchbascdpertin-manceman;rqcrnenr
4 ruronNscr {errcwnm tT:ffi;TJ'.1#"*:;Hil1.::"#':"Lil [H,T:- iJ.? ";. ;;:i;;i;J;d berween practitionirintelesbandpubrica- il^ trla. i" t/o Psvchologv' rhereisa needto gobeyond HRM ;;*l.""'#Tin:ff :i'f#3,T'i.,:i"illlin"o^ a.in." p..fo.-utt.. management and describes six kev Pur- li:ffi"*l'r:*.d*".-;ryT#. *::,::l *ll ;:",ii.11;'il'i,"liji'li; each o'iieiss'es dis iussedin thischapter,s€eAguinis(2009)' what lsPerformance Management? Considerthe followingsituation(Aguinis'2009'p 2): ;::t';;:'ii':fi i::#i::f '.i:',ffi'trff '-:l''iJ:#' lit"^.""^. i*t.' iJ"ains reviewingthebudsetsheislik€lvto be :l'i'"'::::n'm*:u.-"mffru1'#f *:*:::l"Ly-*mxi;5;;i ;[7,'flffi :::' .*" ;*::';::u""1'l'E:"m[]H f:F:: ift''* ;:mrum;m;:,;;"lliii ffii'i'""-| il "''::. **:{';j"um*r,i591il:;:"H:*;1T ,i. ir-.. ,cJG', "h.Lo*" "b'* tt''i'"Pe'f**' b..b&' sales 6sures,whichdePendmoreon I *;m::;)#n";:;**6#ift *:::n. of rewards,regardlessof her raungs' "*-ftttr"",l"a *ftty adjustmen6 are bas€don s€niority rather hlt,ll;:**p"::tT"f i:''',#lf; .;,[T!5*".:. ';il'"TTl"Tll"sfi #iL'?:T:;"i"'Ti.;'1iil" ffi;il.;;;;;;; ;e wn nothave ; dear withcomPrajnrs
s E r r r r ! ) ' , l s , t r P ! r + o R M 1 N ( : , 1 A 1 ( r r r l or lolknv{rp meerings. Salh lllls ou1rhelirrns i,r lrsslhaDnfenl nunutes andselsbackro bef icalt()b." ,ts is ilhrsrnred b this lii{ncltc. lhich des.ribcs a sirrrrlil,l that i painfulh t:nliliar r() DraD.eadetJ.p.rtbrDlnn(c rrrr!rag. ment svtemsafe ('f(c Lrnder-ulili/cd arrd also|risusrd. ID la.l, rn man organizarIon, poorh iDrplcnrcnred perlbr.niu)ce man;Hc- ment svstems can do rnore hrrm tl)ar)good, asrfasdenxDslr.utr'(l bv a legalcasc in the consrrrcrirm indust. (I'fl (ir.p().xrior). 2000).A {inrale empbcc rasprom()lcd cleral rim(s an(l sllc, ceededuntil shesraf{cdorkine Indcr the supeNis;(,Iofa Der managcr She latcd iI her lasuiltl)at.oD.e shc $as lrrom(,lcd and reportedlo thc nerr m:rnt{er. thal boss;gnoredher.and dnl not gne her rhc anreslrppoi (,) oppornrnilicsfor rrainine (hirr her malecolleacucs receired.lfrer eighr nrontl)sol re.eiin!.ll(t teedback Irom hcr rnanaecr. lihr rtasc:rllcdiDto Ii olti.c. rlhcre the mlna{cr told her rhat she Nasfhilins. resnltinc iD a demo, tion and a $20.{XX} rc(lucri(xrin hcr irDrualsalan.'lren sheron hrr.e{lirirninrr',,n Inr'ir.,,i,,' ,sarrie,tlr,irqt .l r,,i i,,,,i,l emotionaldislrcsand e.on.nnic darnaee. In addition tc,an in.rc:bcd isk ol li(i!.arior. rhefe al.c crral other detrinrcntalortco nrcsof poor]r irnplcrmcn re.l s.sl cnrs.; )clLrrl, ing ernploec burnour an(l -iob dissalisfirctic,n. damaecd rclatx)n- ships,and i cre:rs€drunrcer (Rrofn &-llenson, 2005; (;abris & Ihrke.2001). In addirion, rhere is ir large oppor.tDit cosrbe.arsc poorly rmplemented slstemsrrasrc rirne and rcources. iD.lldiDs Befole dcsigning a pcrfonnan.e nraDagemeDl slcllr. tlrere needsto be a clear definiriotl ol perlirr.rrance nritDr(crJl(.nt.per, formancemanagenrenris a coDtirLrousprocessoI identilring, measurine. and dercloping dle pcrforrnaD.eof iDdiidnals:urd teamsand alignin{ perfirrrnancc 1ith rhe slrarcgic goals ol lhe organization (Aguinis.2009. p. 3). Nolc rhar the ker.c{rnrlnF nentsof $is definition arc rhar rhis is a conriDuo s pt1xes:rDd that there is an alignirc t r'irhsl.a(egicgoals.U a 'ltanager. I;lls out a lbnn once a ciu becauselhis is a reqnircilent ol the "HR cops,"thcn this is ccnainlL nor a c.rntir)Lronspr.occss. Also, er:rhr- ating emploee pcrformrn.e (lhat is, perfb.nrar)ce appmisal) withoutclearconsilerationsof the exren(ro rr.trich an indiridual
6 rtrrorurce Mrucrvrxr is contnbuting to unit and about how Performancewill consistent with thisdefinition organizadonalPerformance and improle in the future ls also not of performancemanagement Why lmplementa Performance ManagementSystem? Performancemanagements)stemscan poses((t. Cleveland& MurPhy' 1989) summar)). s€ne six imPofiant Pur- (s€e Exhibit l.l tbr a Sn**,r r, ttrr* *. organization's goalswith individual goals' h"i..rt" i.i"i"..i"! behatior" consisrtnt with the atainment Exhibit 1.1 Summaryof Six Purpos€sof a Performanc€ MaDageme SFtem' ongoing basis. o,goni-ai*t,*tntn*ng' ltv"l9:t"bj11,":11Y."*'.li: ;;ffi1#ffi;J'Jpo*n'."l -a u"i gn.":l 1'::::l :il:;i'"fid;i; il trsed inworkroice pranl:13^-1"-" of organizational goals' Adninisriattue|r isa sturce ofralid and useful infornation for makinederisionsaboulemPlovees' includingsalarv adjusl- *.t"lp-.",t""t. ttPlovee retenuonor lerminatron ..."*i i"" "f ."p*.iperformance' identificauon of poor oerf6rmers, layoffs' and merit increases' Cnmmun/.al')n: lt allows employees to be informed aboulhow """*"ji ,it.'"-. a"t.'g' ro 'eceiu' i"fo'murion on specilic "."".in^, -"y ".Ja lmprovement' and to learn about ttre l.n"nirurto,t t unOtftesupervisor's exPecudlionsand whal. ".i"." "f*"* tftr.*Peftiv:lr brlietesaremostimPortanl Deltel(hntntat:lt nclrdesfeedback' which allowsmanagersto """'JJ "-or"v.o u"d help them imProvePerformanceon an lin*mT:mm:"*llxTiH:H i***:*,*[:ru;:r:n[r.r#i";$ in a training Progmm)'
. EprDrD1r$ (tr PrR!oRrl(.I: lANr(,!^rl:Nl 7 Dorutnentatiott: It |irl<ls data rhat can be used to asscss dre predictive accuracvof nerrh proposed scicctioll instrumenr-s aswell asimportant admin'suaricdccisions. This inlormation can b(:cspccialh uselirl iD rhe cascof litigation. L Sbakgi( lu4n e. R! linking the orgaDizarion'sg.rals$irb indi idual goals. thc pcrfonnance managerrenr svstcnrrcinfrrrces behaviors consistent with rhe arrainrnent of orgrnizational goals. Nloreoier. een il fbr somc reason indiidual goals are not achieed, linking indiidual goals Lith organi/arional goals senes as a wa,to crJmnruni.ate $hat arc thc trrost cru, cial brNincss strategic initiaties. ,{s ar) illustration of how perlornra'r, r rLrrraBemenr can c11e d rfdrr qi, purpoc.r,,l sider the cascof Seal.s Holdings (lorporarion, rhe third largest broadline retailer in thf tlritcd States($55 billnrn in annrral reverrues,about 3,900 rctail stores in the Unite.l Slales and Canada) and thr leading home appliance rcrailcr a]j $cll as a leader irl tools. la$Tl arrd garden producti. horne electron, ics. and automotile repair and nrainrcr)aice (Belner. 2(X)5). Following the melger ol Kmart Corp. and Sears.Roebuck & Comparrr: Avlwil B. l.c$is nas pronrotcd to chiet execntie and tzLsked with a stratcgic culture change iniriatie in hopes of reinr,igorating the struggling retail companr A srratcgic objectie is to move liom an inrrard fo.us to a crrstoner ser tice approach. A second kc obj(tie is to bring about an entrepreneutial spirit rvherebr store managersstlie lbr linarr- cial literacl and are challeDged t() identili opportunities lb. greater profits. Sclcral aspectsof the perlormance manage- ment svstcrnare norv being used ro achirre thcsc stlatceic objcctives.For eremple, emploee dutics and c'bjectiles are being rerised so drat emplotccs will spend lesstime in back rooms and more tin)e interacting $ith customers to lacili- tate pu.chascs and undersLrnd customer needs. In addition, leadership conlmunicati()n r!ith emploees and facc-ro-facc intrraction are being encouraged. l-e$'s sp.nds rhrcc davspcr neek in storeswith emplolees and frequcnth quizzesrrarag ers on their knoi!'lfdge, such as asking about pro6t maryins for a gien department. The greatest compliment emplovees
8 PrRroRM^Ncl:MsNActnNr receive is to be referred to as "commercial" or someone who i*"',*y;'m:llrl.i",i'"Jllf ;tl'Til.'1!r*'lili *l.mll*ll,S:: j:l..fjil:;.::::""".i;fi T::.i:li r,ffi;nn;j;:::TiT:#1,':Ti:#::i ..,*,,r'" p".ro.-.".. -{'g'T'"1 ii]il'ili$il'#f.J i.'.T:'fl i'[l'.:.:llli'"i'*Toli;* *'ariorr as rriricar to ,t..o.prnr'. "t'ttttt in lhe martelPlace' "llru*lg'rur:J;JillilHT.Tir-.ff;: i u".'a.i.,"".-ail"t tmPlo.vees Su'h administrative decisions :**ru:m*v::["J:"."ilil'.:fi :ffi *:1.'": *;**:tL::r::fi i:HI"J;:TTlsi'rs.T lli*'"'n:m'ru:*lx"*'rT:ff ::i'Til::;ili i"" i"." "", tt^'e a good Performance management sfsrcm ilpr...'J-'""'*i*:11':..':TJfi""*'J;:"i.: ilJ":ffilX-ff;:!::'el"oi";;;;."hr'1vre'Ieuntror ,i"'i-f i.,'i'",:.r"" "i-"--:":tfr .1;:Iiii:::^t;;li:i ffiffi:rfu;*"S"x$T*i *n:';g:m'l'1."3:il;ffi ffi::JJ"*':i:ffi: *l*l*i;'f,n"n:$H;'rn:t"Jx*ilJ in:rix"m';':;i,ll l;ffi rff:;'T&f i*: il*ni*'ffl,Ji;;:ro1.{x:,9;n n'.*runl*tlY,lHlil;;lo.H;;;;o;; o"** .'o.' formance management sisrcms'
I A EpaNDrD VrEs oF l'ERlotrM^Ncr trN^cr:MrNt y 3. Communicalionputpore A performance management s)stem can be an excellent communication device. EmDlolees are informed dbour hun well ther are doing and r.,.ile inlormarion on specific areas that mar need to be improled. Also, related to the strategic purpose described abor€, per{brmance manage- m€nt s)'stems are a conduit to communicate the organization's and the supenisor's expectationsand $har aspectsofivork the supenisor believesare most imporranl 4. Deo?lofupntallru4x$e. Feedback is an imporranr component ot a well-implemented performzrnce m:rnagement sstem. Managers can u-s€ feedback to coach employees and improe perfor- mance on an ongoing basis.This feedback allows for the iden- tificaiion of strengths and weaknessesas well as the causesfor p€rformance deficiencies (which could be due to ind idual, group, or contextual fhctors)- Of course, feedback is useful onlv to the extent that remedial action is taken and concrete steps are implemented io remed), any de6ciencies (Aguinis & Ikaiger 2009) . Another aspect of the developmental purpose is that emplo,yees receive informadon abour themselves thar can help them indilidualize their career paihs. Thus, the develop mental purpose refers to both short-tcrm and long-term asp€cts of development. 5. Oryaniultimnl nnint"nan? purpoc.An impor tanr componenl of any workforce planning effort is the talent inlcnton, which is information on current resources (lor example, skills,abili- ties, promotional potential, and assignment hisrories of cur' reni emplovees). Performance management s,vstems a.rethe primary means through which accurate talent iNentories can be assembled. Other organizational maintenance purposes served bv performance management systemsinclude ass€ss- ing future training needs, eraluating performance achieve- ments at the organizational level, and evaluating rhe effectilcness of HRM intenenrions (for example, whether employees p€rform at higher levels after participating in a training progmm). h_oneof theseactivitiescan be conducted effectivel)' in the absence of a good performance manage- ment system. 6. Dorxtnenlatiar Pu4nse. Performance data can be used ro assess the predictile accurac! of newlv proposed selecrion instruments
10 Pruonurce Msrcev*.'r lcis{io & Asuinis,2008b) For examPle a newlvdereloped tesl "i*."-o",.i fi,.*.y ."n br adminisered !o all adminisratre o..*"Ji.f. S.".." "n the tesl 'an dlen be pairrd wi r srores collected through the p€rformance management ststem rl scores on the teit and on the Performance measure are corre- i"iJ, ,rt.t tre test can be us€d with future aPplicants for the administratr€ positions Second, Perfornance management *.L-. "1"* f,i. m aocumenation of imporhnt adminisua_ i'"-i*iJ""l rrli" i"formation can be esPecialty useful in the caseof litiFauon. As ,roied earlie.' many Performance management s'srcms are under-utilized and' hence' do not sen€ all ol these slx ;;;;;;. F";.,."-Ple resuls or a sunev o[ industrial and orqanirational Psychologisls working in human resourcrs a..rurt-.nt" in more than one hundred diflerent organt- zations indicated that the two most frequent purposes -are aJministrative (salaiy decisions) and developmental (to iden- tifi €mplovees' weakness€s and strengths) (Cleveland & vil.prtyl rsssr' rhere is muchro gainil organizarions are able lo usr their perlormance mana8emenl svslemslor all six ourooses- This would have an important imPact on orga- ,rirjtio.t" u. well as possibly entire countr:ies' grven the per- vasiveness of Performance management systems worldwide For example, a recent suwey or almost l'000 HRM profes sionals reveated that 96 Percent of Australian comPanres cur_ rcnllv implemenl some rypr of Perlormance managrmenl *.i.'" irl".l.^* & Compton, 2006) Similarly resuls ol "."*.t a 278 organiations aboul iwcdlirds of which are multinational corporations lrom Ffleen diJlerent countnes' indicaredt}lat aboul 9l pertent ol olganizadonsimplem^ent a lormal perlormance mani€emenl Vslem (Lasclo zuuo) 14".""*.,'".grft.Oons with-formal and ststematrc Perfor_ mance manaSement sl"slemsafe 5l pfrcenl mofe like lo oerform bettir lhan the other olgani'/alions ln lrre sample 'reeardine financialoulcomesand 4l percent mole llkell lo De"rform-betlet than the olhel organizations in lhe -sample legard.ingother outcomes including customcr sallsla(lron' ..iolovei r.tention. and other imporonl metncs
t I . UprDr D -rrr o. l:RroRu() laNA(,firtsN r ll N4aximizing the Purposes 5erved by Performance lvlanagement: |||ustration There afe ntlnrefousc:llr)pl(s ()f r)rlairriTations that irnple)nenI perfofnra cc t"n?rgenrent svterns lhat allijrl thern to accorl plish rhe mrLltiplcobjcctircr dcscriberiabore.(h,rrsiderthc casc of SEt,ClOGedit Unnrn in Lugere. Oregon. a not-tir.proiit con sumcr cooperative that Nas establisiredin 1936 (Fandl' 2{)01). SELCO'seight bran.hes sene nearlr .ight lhonsand mcm- bers. SEL(]() ollcrs man of thc san)c scr'iccs ollcrcd b othcr' banks, inctLdine personal chcckiug and sarilgs accounts, loans, and cfedit cards. Recentll SELCO scrapped an old pertonnance appraisal svsternand replaced it rith a Derr nlrltipurpose and Norc cffcctive perfomrance nanagemenl sslem.Firsl. the timing ofthe ncw svstcnris nor aligned lith the busiDess cvcle,insteadol the empk)ee s d:rte o{ hire, (o eDsrue lhat busiress needs al.c alignedwith individual coals.This alignnrcnt scr'csboth str'atcgjc and infbrmational prLrpc,scs. Second, rnanagersare gnen a pool of moncy that the' caD$ork ith to arard bonuses and laises as necded,rrhich is nore ellectie than rlre co'nple set ol matrices that had been in place ft) calculatebonuses.This inrproved the i,rav in rvhich the s'sten is used lor aliocadng re$ards an.l rherelbre s€nes an adminisrrarive purposc. Third, rnaraecrs are rcquircd to hae regular convc.sat;ons $ith thcir cmplolces about their per(brmancc and rlake ote of all problems that arise. lbis gilcs the emplorees a clear sense ol areas in $hich the need improvement and also pfoides documen6rion il disciplinaN action is needed- This componcnt scrlcs both irfornrational and documentation purposes. Finalh, thc linrc that rLa-s prcvioLrslr spent lilling out coorplicatcd matiices and forrrs is no$ spcDl lalking rith thc cmplorecs about horl thel can improve their per formance,allowing for progresson an ongoiDg basis.This sel1es a developmenralpurpose. Manl organizations mai halc a sG(allcd pcrforrrar)cc man- agementsvstem,bur this ma! l)c a pcrfrJrmaDcc appraisal at bcsr and an administrarir'c hurdle imposcd b thc HR departmcnt ar $'orst.So it is not sufficiort to hac an Npe ofperfornrance nral agementsvstcm,but one should hare one that serrcs as man' of
12 Prrrorurrcrl-qucwtlr the six purpos€s described above as possible The next section addressesa'performance management process that allo$s orga- nizations to maximize the benehts oftheir ststem' As noted earliet t)erforrnance management is a conunuous process' However, when i system is first implemented, the process follo s rhe following stages(Aguinis, 20)9; Grote, 1996): (I ) pre-requisites' (2) performince planning, (3) performance execution, (4) perfor- -r,r.. """.o-.ni, (5) p€rformance reliew, and (6) Perfonnance renewal and recond'f,cing. Each of these stages is descdbed next' Th€ flow of the p€rformance management process ls deprcteo graphicallyin Figure l.l. Stage1:Prerequisites There are two imPortant prerequisites. ihat are needed befbre a Derforrnance managemenl syslem is implemen(ed: t l) knowl_ eiee ol the o.ganiru-tion. mission and slrategic goal' and {2' knirwledge ol r}e job in question. lf there is a lacl of (larir) resardin"s whererhi organizalionwanGlo go or the Ield(ionshiP tretween the orsanization . mission and strdlegiesand each of its unit's mission ind strategiesis not clear, there will be a lack of clariq regarding what each emplovee needs to do and achieve to helo the ,rrganiralion get thcre. An org:rnization s mission and straregi( go;ls are a resull ol strategrcplannin8' whirh allo$' an organizatron to clearly define its pur?ose or reason ior exrsong' .nh... it *uttt. to be in the future' the goals it wants to achieve' and the strategiesit will use to attain thes€ goals Once the Soals fbr the entire organization have been established' similar goals cas_ cade do$'n*ard, wi(h departments setting objectives to support Performance ManagementProcess Figure l.l Flow of the Performance Manag€ment Process'
lpntl-rLs (tr PnRroRlj(.I:I{N( fMr:NT 1l the c'rganiration s olerall mission and objectics. The cascading continues downwatd until each ctnPloee has a sct of goals com patible$ith thoscofhis or her unit and lhe organizatio ls an cample, Exhibit 1.2 sho{s lrof the Ke Bank of Ltah successfullrdcveloPed a Perfonlan.e managen)cnl stenr tha( Exhibit 1.2 Cascading of Goals from the Organizationat to the Deparhnental and Individual lrvel at Key Bank of Utah. Organizational Level . .Xlisliontut,,ttnt'fl].e mission ol dre corPoralior is to oPcrate asa high pcrfo.nring financi:rlinslinrtionpIoliding a ridc rangeof profitable,competitic,arrdsuPerio finrncial services in orLrmarket- . Godb:To attract and tetain an olrtstandiDg staff$ho are highh nrotivated and productile and Jro liSorotrsh Pursrre rerenueaencrarirrgand , ol_rc.hr, Ii.'n l ratcqir' . ,Str.rlzg': (lfiticall) rc,icr| our existing branctresand departments() ensurc(ha(all branchesare coDsis(enl in rh.rrgoal..wrarrgr... anrlPrnlilul,tc'lie. Depar'tmental Irvel . iIission(d?Potn.a ln?I/: $e $ill increrLse thc knorledgc' management skills,and de':ision-making abilitics ol our branch managels so that {e rill mininriTe lossesand other oprr:rting epenses $hile rnaximizing thc prolitabili( ol our blanching svstcms. Individual (Supervisor ) Level . Potitun des(ription lu 111irrrarraga: Administers a co rprehensive human resoulccs Plograln in tlre dilision to ensurc the expertisc. ellectiveness,motivation, and depth (including ptoriding appropriate IrranagementsuccessroD) to the diision's staff rnembers. Individual (Employee) I-evel . Indit luat Pe'fon a .c InfbunatioD on various resPor)sibilities, standardsexpected, goals to be rcached, and acti()nsto be taken ro improve perfo.mance in thc firture
14 Pmroruerctr'texrcrn*r is alicned wi(h the srategic Plan of the organization (Addams & F.mblr'. 1988). To do this' the bank 6rst involcd managers at all hicrar, hnal lelels lo devrlop an orFrni/atjon mlsron stdlr'- mcnl. Next. fiev defeh,pedEoalsan'l su?t(giesthal $ould hclp achieve Key Bank's mission. The mission statement' goals' ano .,*i"gi." "i th" organizational lerel sen'cd as the foundation for develiping the strategiesfor indilidual dePanmeits -and unils To develop these, s€nior managers met with each dePartment *.nue". to ai...,o Oe olganization's goals and stmtegies and to explain the importance of haring similar items in Place in each deoartmcnt. Subsequendy earh ol the departmenul maraqer' mer wi$ his or her employees lo derelup r dcprlunenl mision statement and goals. One imPortant premis€ in this exercrsewas that each depJment's missionstatementand objectiles had to.be aligned rnithihe corpoiate mission statement' goals' and strategles ie, "reattirod.nai and departmenLJ goal arrd ualegies ^(re alil.ned, managelsand emPlores rriewe'l indiidu'Jl job descrrP tio-n,.Eachi.u"dernption wasuilored so thar indiriduallob tc'pon sibilities weie cler and contributed to meeting the departmenfs and the orsanizations obiertile' tnrohing emplo)eesin this Pro(€ss ft.ro.i,rt.- ro gain a cledr undersrandingol ho$ lheir pelfor- mancr aflecred rlie departrnenl and. in lum the orydni"adon' The second important prerequisite befbre a Performance man- aeemenls]stemii implementedis lo undrrstand lhejob in ques- rion. This is d.ne r}iough lob anurlrsisJoh analrsis is a ptoce* o[ delermining the key romponens ol a pattr(ular 'loD_In( luo- ing activities, ta.ks, p.odu.s' s€nices, and Processes There are ,r.r-'me.,r..sqpes oflott analltic tools' including some that focus on soccific oersonalii trarls needed lol lariolls Positions {Aguinis v-rrt i"*.t. & Heggestad.2009) A job analvsisis a fundamen- tal prerequisite of an"yPerforrnance m?rnagement system' Withoxt " iif urtutrti., it is iiiB."lt to understand what constitutes the reiuired <iuties for a panicular job lf we don't know what an .-ito-r"" i. ".rpp{)."a to do on thijob, *e won't know what needs to be eraluated and how to do so' Stage2: Performance Planning The performance planning stagehas the goal for emPloyees to hale a thorough knowledge of the Perfofinance management qstem'
. t - r r t r i ) ' r ' o r l , ! R r r l R ! { r t { 1 ( r r r r i i ln lact. nt the bceil)niDg ()l each FrlirInincc (clr. tl)e npcnisc, and the emploee meel lrr disclrss. rncl alrree()n. 'ha(Dccdst() be ddle rnd how ir shl)rLltl be ctonc.This pertomra (c planDinedis cuisiur in.hL(lcra consi(l(ri(i(nrol (l) r.sulr. (2). b.hai('s. aD.l (3) derel,,p'nenr plaD. licjlrrr. Rerrrftsreler r() what needs ro be d(De of lhc out cornesarr enrpk)i1r rur prorhr.c. coDsi.terari(nr of resutts needs (f ilclude lhc ke! ac.()[n(al)ilitie.or broa(l areasol a job lbr $tich rhr cnpk)vec i rcp)nsible lin.producing resrl(. A discussion of resulrsxlso irclurles spcci6r obje.ri.r's thar the cnrplovccrill achierc 1 piur ol each lccounrabililr. Objcctlres are s(alcrrenlsol irriporranrrnd nlcasurableo lcornes.t'iDalh. div rr*rrrcr',r rlr..rl'urrr..rr.(li' ,j*,rl- I'Frt,,r,r.,r, c .r,,1,t.r,1.. ,A. pfffornrance s(tndard i.r :rrclrickuse.ll{) cvaluateh(nf wcll emploeeshrrt a(hiere.t er.h objecrre.P.rfonIla,.re srandirds provideinlbfnrrtion aboLrr lrcepribl( rnd ur)a..eprrtrlcpcrf{)r, nrance(lor canrple, quirlit,quanril. (o1. an.t rimc). (i)Dsi.ter the.job of unnersir profassor. Tr!(, ke acco nrabilitiesare ) teaching(prepirutiorl and dr.lit.l ol insrrncrionalmarefials(o srudcnts)rn.l (2) research(crfation an.l disserniDari('r ()f rcr knor,!ledge).An objecrive f1,, reaching c{)uld be 1() obrai,i a slrtdrnt ev:rlua(ion()1rea(hing perlornr:rrrccot 3 oD a l poinl scale.,n (ibjrctie lor rcscarchcoul(tbc to publishxo articles in schola|lr reiefeed jourllals per car: Pe).tormanrcraD.tar.ls colrldbc 1o obtain I srlrdenr caluati()nol reachiri{r perlorlnancr ol at lcast: on a lpoi[t scalc ar)d 1o publih ar ](.asrone iiicl( in scholarh felrrced joufnrl IJrr ear. Thu. rhe obje.ri( j the dijsiredlecl of perlbrnrarrce. rhere;tsrlre san.tafd is usuali :r "ri in,,'r', .,,, ' prJhl-lc, I ur prr i,,|'r,.,I( , . B.r.n,n,r. Afthortgh it ir irnpomnt 1(,n)easurercnrtl. aD exctrF sir€emph$is on fesulrstan gire an incorrplere pictLrc olenlptt)ec perlornrirnce.This is lralti.ul;rh rrue r()d.t lrcausc. in conlrasl lr) I n el r i | r . r r r l r i ' : r l " r q . , n r / . U i , , r , l r . r r r , , l r l l i - , o r l I e r r 1 1, , r q , rr / . , tion,the 2Is({cnrlrl'i oflrirrji,,ation is lar rrx)rcliLeh ro lrok like a ifeb: a flal. ilricareh (^cI n)rm rhlr links pa Dcr.s. crnplo?es, txtemal c{,ntri{ctors.supplier. an.l .usr(nnersin r io s collab(r.a- tions ((iascio&-rI.uinis. 2008b). A..or{ljngli: lor sonrci(,bsit nlar be diliicult to est^blishpreciseobjccrircs an.t srlndirrds. tor.olher. jobs.cnrplovees nravllae c(n(.ol oer ho.rhc do rheir j(nrs, bur not o'cr dle renll of rheif bchaiors. For catDple, the sJes ilsurcs
l6 Prrroruarcni'l,srcennr :*ffiTili"T:i,nfTff il"fi "b**il'tr:iff *'fil tr.Ttr"l:?i;U'#'ryi****m ::hT",:jr"ji:i[',j"#,,Tl"fr T,"uil;A;lrettilor,n,pa'k t' I'lll:ff f^i'l;itll'*n"r.o," incrudes dis'usins (omPrten- .*'.-r'i.r'l*meaurabre crusrers ollllil'ii-l'Ill]i,lil,iti ::ffi.':ffi IJlil,il'ilx".:1'l"rffiil*-ires o'| c'rmperen ;;;""i.;.. ".'ruice,*"ritten or oral communicauon'creanve [*:]l*"tril*l',t-.:ll]:i!f '].JT jfuffi.,;; ::si^",1:?;'T.:'::J#:l'ffi "'Ji:'':J*tl.**iffr i"tr* lH'ffi iiFJi:::*$r"i::'I#"* skills (for examPle' in the chat room) ' ;ir',rq;rtlru":*T+i:Jff "f **..1;.* ilI'.lXl *:: illT,H;:l'".1f li,ilg' ili.i"*,.n'"".0 *.;*'n*iim*1ff H';:; J'#,:l lT'Ifi i:il"#i: kn:;F*:m:ffi ;"','n'*;lrut:;"' ;;.1;;;;i; ";J "io"*'*.1::l; i:*a":n:l JIX:1': :iff:i:; :l:1.';lH;[il."l",.,.lrii:Tii,i::t J,'J,,: delelopmenr plans allow employee questrons: . How(an I contrnualtylearnand growin de nex(yearl . Howcan I do belter in the future) . H.r*."n t u"oia ptrformance problemsfacedin the Past?
l : I I h Errtr rl [ $ (, PrR]oRr1( I taN 1r,rN! NI ll Inlbrrnatior to be uscd in clesigningrtelelop )rDr plaDscomes Iiom the appnisal lir.rn. Specificalhr a dcrelopnrent plan can bc dcsignedhasedon cach ol rhe pc.firr)rance rtinlensi()ncalu atecl.For ermple. i{ thc perkrlnrancc di )cnsion comn]lrnica tion" is rate.l as substandard. dris arca rr.ould be rargercclbr the de!clopmentplan.In acldition, horrercr:clcrelopmenr plansfocus on the knor'lcd!.e aud skills nccclcd li)r rxn.e lons-trr'm career aspirationr. In atldition ro irrprorcd perlormallcc,rhr inclrsnnl ol declopmeDtplans and, ir rrlore eeDcralrcnns. the identifi- cation of empl()vec strengths and Neakncsscsas parl ol lhc pcr tornunce nlrnagcmcnt ssrem ha.c anolher importanl bcnefit: entploreesare rlore likeh ft) llc : isfieclr.irhrhe srslcnr(Bo$!ell & Boudre:ru,2000). The direct supenisor or linc Inallagerlrasan irrporrant role in the crea(ionand conrpletiur of the emplo.ecs clrelopmeDr plan. This actie role $ill help the superrisor understaD.trhc processfrom the emploees perspectilj,:urticiparepolenti:rl roadblocks and defcDsie atrirudes.and create a plan in a collal> oratie Iashion (Dunnnlg. 200.1).!'irsr. rhe supenisor r)e€dsro explain lhat $orrld be re.tuircd for tbe ernp)orc.crc,achiele rhe desiredpeffbrmancelerei, inclrrdirrgdle srepsrharan ernpl(xee must take to improie pe.fornrance. This inforJnati{D needs to be providerl togerhc. rrith irfi)rmation o,) rh€ probabilin ot' success if the empklrcc conrpleres rhc sLrggested sleps. Sccorrd. lhe supenisor has a priman lolc iD refe:r.ing rhe c plolec ro appropriate dcrelopment acliirics rhar can assisr$c crnplovee in achievineher goals.This inclrrdes helping rhc ernplovee setect a mentot appropriarc rcxdnrg resour.cs, courses.aDd so lbl.lh. Third, thr supenisol rericNs and nlakcs nrggesti(rrs aboul thc deleloprrent objectirt. Specilicalh; rhc' supenisor. helps irssurc lhc goalsare achicvable,spe.il;c, and doable. Follr.rh.rhc srpeni, sorh:rspriman resFmsibili[ fbr checkiDgotr rhe cn)ploee'sprog, resstor?rd achieing thc dcelopmerr goals. For ex:unple, dre supenisor c:rrrremind thc empftx€e ol duc datesand reise goals il needed.Firudl; lhc supenivn needs to proride reinlbrccmcnrs so thc enrplolee will be motiared lr) achi$e rhe .terelopnrcnt goals.Reinlorcemcnts can be exlrinsic:u)d iDclude rex.ardsluch as tFnuses and ildditi()nal beDefirs,b r reiD{arcemenrscan also
18 P.RFoRvacLM^N^cEM.r include the aasignment of more challenging and interesting work that takes adantaqe of the new skills leamed. Supenisors themsehes need to be motirated to Perform func- tions ihat .llill support the employees'completion oftheir deleloP ment obiectrves.For this to bappen, supenisors must b€ rewarded for doing a goodjob in helping their employeesdevelop. Consider how rhis is done at Kl-{-Tencor C,orPorztion, one of the horld's top ten manufacturers ofsemiconductor equipment (Ellis, 2003). Af KLA-Tencor, between 10 and 30 percent of supenisors' bonus pay is direcdy tied ro employee developrnent. Employee del'eloF ment is measured in terms of employee training and certification levels. Managers are gilen at least quarter updates on the sta- tus of their staff development. In addition, employees themselves are reLffded for engaging in development activities. In fact, only employees wiih uptodate raining and certrlication levels are eli- gible for bonuses. Thus, employee derelopment is successful at KL,A-Tencor because both employees and managers are direcdy rewarded for employee develoPmenL Alter several years of imPle' menting these pracuces,emplo.veedeveloPment has become the norm and is plLnol Kl-A-l-encor'sI ulturr ' As an example of the implementation of development plans, consider (he caseof General Mills (Ellis, 2004), where individual development plans (IDPS) are promoted strongly throughout the company. The Minneapolis, Minnesota-basedG€neral Mills is an inlernational foods company. Some of the best-kno n brands include Pillsbury Cheerios, Green Giant, and Yoplait. The for- mally wrirten IDPS are completed annuallv, but the exPectation is for ongoing conversaoons between managers and emPlo,vees' focusing not only on comPetencies that are well developed and thos€ that are in need of improvement, but also on employees' carecr aspirations.The romPanvs IDP scason Promoles lhe process for employees by hosling speake.s, offering web-based learning tools, and holding workshops for emplovees and man- agers to get lhe most out of the procei.s Some of these sessions are specifically tailored to different kinds of positions within the company with different needs in the development process.Also, the IDP is kept separatefiom the annual performance apPraisal, as the b€lief is that development planning cannot be sufficiently addressedin the context ofappmisal.
[prr rJ ft s or PrRroR1( | IlaN (,!N!N1 lt] !'illalh a ftxrl tha( has bccor)rc polrular in helpiDg empk)rccs, parli.ulaflr thoe in supeniso'' roles, irnp.oc pcrf()rn)alre b galhrling inldrnation lrom.iifiil.cnt eroups is the 36(!.tegfce ieedhx(l svstcrn (l(nseson. lrrrlnrrl. & tlanrpnri, 2(X)5). These ssremstle cirllcd :16(klegreeslsleInsbe.ause irlli)rmarion i calh- ered liom in.liichal :rllaround rhe eIrlplolee.Spe.i{icalh.inldf- m;rli()non tal pernrrnrancedinleDsions .oLrldlr implr^cd i gathrrcdfronr slrperiors, peers..usr()rncr'. nDCl sub(nclirratc. Ihis intornrati(mis usrralhcolkctcti aD(nNnroudrn) nrinin)izer':rtini{ rnflati(m.Empbrccs also ratc thenrselres on the i{nrsperlor- nance dinrcnsi(rrsarrd co:npareselherceprionsrLith rhc irJi)f- malionproideclb others., t{apaDah sisiscondLrclccl r(,cxan)i c the rfcas for which there are l:rrge.lis.rcpancicsbctwcer sclt perccpuons rrd the percepli{)ns ol orhcr.A 36(klcerccfcrdback svsrcnr.cPtrt unralh in.ludes inlalrrati.r) (rr dirrc sjoll li'r idrich thereisagreemenl(hallir'lhcr dcrckrprnerrt isneederl.l his rnfdrmrri(D is usedro crcltc:r dt'el4rrlent pian. Implemenling a Sti{trdeerec fi'cdback s,tlenrshould Dol be.r one-rimc-onl! ccnt. The sstcr)lsholrld be in ph.e and daLl collcctcd ()cr tiur.()n an ongojng basis.Ihe imptemerlari(rr of urgoiDg 360tlepee lee<t back srstcrrrsis sonetimes labcled it 720<lc!.rcc tfcdbacl svstern. rcfcrrirg to the lacr dr:l rhe c()llccli(rr of 360<legree data takes place at least rlri.e. In shr)r'l.adrninite llg the slstenl orlh oDce $ill not be asbcncficitl asachrinistering the ssren repealedl. ()nce (hc prclrquisitesare rrreland the plannine phasc hirs beencompleted-r'eare rea.lvro bcein lhc ;rlploncntation oftLc pctfcrrnrance managerrrenlsrstcrn.This nrcluclespertirrrnance cxecuti(m.:rssessnrcnt. rcricr, arrtlrcll$r'alan.l recontracrjnia. Stage 3:Performance Execution On.e thc rcior crcle begins.Ihe enrplo'('cs(ric l() Irroducr the fcsultsand displ:rvthe behai{)r a!.rccd 0rr earlicr as nell as to r.ork on .leleloprncnt ,)ccd. Ihe ernpl(xee has primar' resporsibilin anrl drneirh{r of this process.Empk^ee pani.i- p:rtion .toes nor bcsin xt thc perfom)ance execntioD srage,h()$- ever. ,{s noted carlicr,cnrploreeslleed to hae adie inpnr in rhc deelopm.n( of thc job desc prions. perlbrnlan.c slandafds, and thc crcation of tlre lating lorm. In addition, at later stage.
20 PiRroRM^NctNr^NActvtrr employees are actrve ParticiPants in the elaluation process rn thai thev provide a s€lf-assessment and the perlormance revlew inteniew is a t.*o_way communication p'ocess' Although the employee hds Primary responsibilities. for Derforma;ce execution, the suPenisor also needs to do his or i.. sha.e of the work. Supewi$rs ha€ primary responsibility ol'er the following issues: . Obta- olioTtonl do.ltnnlulion suPervirots musl observe and document performance on a darly basis lt is important to keeo track ofexamples of both good and poor performance . t ralr.er.A: r}le oryanization's goalsmav chzLngeit is imPortanl rJ uodare and tl"i.. ini,int objecti?s standards and ke) accountabilities (in the cas€ of results) and competency areas (in ihe caseof behaiioE) . . Iaadbacft.Feedback on Progression toward goals and coaching to improve performance should be provided on a regular basis. and certainlv before the review cycle is over' . R"sorrt"r. Supervisors should proride employees with rcsources and opportunilies lo Partrcipale in detelupmcnl activiries it'"t. ir'.y sh'uld encouragi (and Ponsol ) parti( iPation in training, .la-...es,and sP€cial assignments Overall' supervisors have aiesponsibilitv to ensure that the employee has the nec_ essarrsuppliesand tundinB lo Perlorm the iob properlv' . n"iri-ilrr,^t. supervisorimusr ler emPlovresljto]v rt-ta' itt.i'. o,tt.t"nalttg performanceis noticedby reinforcing effective behaliors and Progress toward goals' Also' suPe _ sors should Provide feedback regarding negative Pertornance and how to remedy the observed Problem' Observation and communication are not sumcient Performance problems must be diagnos€d early, and appropriate steps must be taken assoon asthe Problem is discovered_ As an example of this shared responsibility in an actual or€a- nization, consider the ca-s€of lnckheed Martin CorPoratron' an adranced technology comPany that as formed in March 1995 with the merger oitwo of tlre world's Premier technology com- oanies: t ockhled Corporation and Martin Marietta corPoration' i,ollfr..a Uuni" ftu. .pproximately l'10,000 employees worldwide
I t !_f rr D rl or pi:RroR!rr.r Ur1rror ,ll l lhc Battiit ! Surr, 2001t). The arc engaecd in thc research. dtsign. dcrck;pnrt.rrt, manufacnn.c. anrt i regmrioD()f adaDce.t tcchnologr s$tcrlls. pr.rxlucrs. and scr.!ices.I_orkhee.t Ntarrirl s pok)nnar(r m:rnasementilstenr jrcludes the aclic l)articjpr txrn of both rr pkxces arrrtrhrir supc|risor.s. Spcciti.ath.crnplo- eeswrite rh(ir orrn pcrk)rmirncer)aDlgenen( objectncshasert on (nsani/atrcnand unir objccries. Tl)eD,rnaragells irpprole rhc objcctnesard:rrc cu.ourrge.t ro gje ong()irrgkcdback atrur tlre pmsress r(xvar.lnrcctiDqlhe obj(c(ies.Thc acnral p|Itor_ manceapplrrisal ldrln isan elccrroDic, ('l)e,paec cornpulerscreen. 'Ihc progmnr ras clesigned ro "in.nc enrptoeein sc[ing rh(.ir o$n gollls. to m"le dlosc lroals(:1car. aDd to prolidc reglllar.fcr:rt, backon theil p|ogress roirrrl r.hiciDg rhosei{oal.,. 'har derefnrinesrtlrrther an cnrptorceis perfonning {cll or not?r cornbinirridl of rhree licr().s :rllowssonrcpeoplc 1()pef_ form ar hiflhcr leetr rhan orhcrs:(i)tteclar.arireknoil(.dge.(2) proccdural k'loltledge. and (3) motjarion. Dec]ar.atjre kno$l edgr is infirmr(iclIr ihort iacrsar(t rhings,in.ln(lirrg iDliirrna- tiorrreeardineir gien tasks requiremenrs.labcls.principtcs.and goals.ProcetiLr.alknoi'ledge is l colnbillrrj{D (,t knoNins whal l{) do and hoN ro do ir a,rclin.h,descognilne. phrsical.pcr(rtrnral, motor'.:rndinrcrpel:(nlirlskitti.t(niarjur iD(tes rhfcc h?es ()f choicebehatius: (l) choi.c ro eripcndefibrt (Ior.eranrple. ..t $ill go to wofr t()da"), (:,1) choice of lerel of efio (for exa,Iple, "I $ill put in mr besrr:fhl r ar rork rcrsus ..t ljll nor rl ien. h a ' d , . . , n d. 3 ' , l r , , i . 'r , ,p e r . i , r r r h , c p e r , , t i t | c n t r l r . , r t c ! . 1 ofeFort (lbfexamplc, I 'ittsieup aflera lirrlcrrhite..rcFrrsIrvill persi( no nl:uterrlhar"). BecaLrscperlbl rance i afiectcd b rhc combinctl efiicr 01 threediflcrent lirct(ns,rna|lagers rnlrsrllDd inlb.rlatjon that rili allorvthcm ro uldersraDdwhcrher rhc sour.c of the problen is declar:rrie knowle.lsc, pr.occtlur.al (llo{ledge. moriration, or somc combi arion of rhrse tl)ree fac&)rs.If an enrpk)eelacks motiiationbur rhc manaecrbelicesthe s(Jlrrce ofrhe problon is declaratire knoledge, rhe manager mav senrl lhr ernplocc ro a companvsponoredtr.ainingprogmm so thar hc ran acquirr the lno$tcdge thar is presumabh lacking. OD tbe othrr hand. if nlori_ latron is dre problem. then rhe implcrnenrati.,n()l somc tlpe of CP plan nrr he a good inrenenli.rn. This js rfh. pcrfonrance
22 Prrrotuxcr t'lrMccun".'r manasemenlsyslems need not on to measurePerfolmancebul alro to'ororide inltrrmation aboul lhe sour(e ol any pel formance rleficiencies,which is done in the p€rformance :rss€ssment stage' Stage4: Performance Assessment ln the as.s€ssm€ntphase, both the emPloyee and the manager are resDonsible for elaluatingthe exltnt lo which the desiredbehav_ iori hare been displayed.and whethel the desiled resulE hate been achieved. Although many sources can be used to collect oerlorman(e intormation (lor examph' Peersor subordinales) in mo.r care. rne direct supewisor Providesthe inlormadon This also includes an elaluation of the extent to which the goalsstated in the dereloPment plan have been achieled This is the stage of the performance management process that has received the *"rt."i "tt rrtion from I/b psychology researchers (Aguinis & Fierce, 2008; Bennett, l-ance' & r,!behr, 2006)' It is imDortant that both the employee and the manager take ownershio ol the assessmen I proress. fhe manager fi lls oul his or her oooia;"al form, and rii employee should also 6ll out his ". rr.i io.t". Trt. facl lhal bolh parues are invohed in the zssesv ment prolides good information to be us€d in the review phase' !hen both the employee and the suPervisor are acu{e p:tl:ncF pants in the evaluati;n Process,there is a greater likelihood *lat ihe infor.rtation will be used productively in the future SPeci- n.lU ttt. inclusion of self_mtrngs helPs emphasize Possible discrepancies between self-views and the views that imPortant other; (that is, supewisors) have lt is the discrepancy between these t-*o views thit is most likely to trigger deteloPment efforts' Darticularly when feedback frorn the supervisor is more negatlve ihan are employee self_eEluations. The inclusion of self-aPPraisals is also beneficial regarding important additional factors. Self-appraisals can reduce an employ_ ee"s defensiveness during an appraisal meeung arrd increase the emDlovee's satisfaction with the Performance management sye i.,ri. * *"tl * ""tt*ce perceprions of accumc-yand farm€ss and therefore acceptance of the ststem (Shore, Adams' & Tashchian' 1998).
I rD.D rlr or I}:RroRrA.F Nl1N1(,rMrNr ll Ar an illrrstlation, corrsidcr the caseof [.NSR, a tirll-scrice glo bat pr<xider of cnironnrental and encrg' de|elopment seniccs to in.hst.t and golernmenr (IaCharce. 2006). ENSRs l$o rhou sanciprolessionrlspr()ide clienrswirh ..nsulrnrg, engineering. remediation. and related senices liom Drorc than serenrvr()rld- $ide locations.including fort,lie in (hc Unircd States.INSR h:rs createdand utilizesa scorecad ith six categoriesrhar are directl' linked to its 6e-ve: ision: hcalrh and saien, errploree cngagc- mcnt, client louln, cost itanagenrent, prolllabilir.r, and re.enue groN.th.This information is Ised in rhc colnpaDr's elaluation ol curfent pc.forrnaDce fi)r indi|iduals and groups uith a scorecard lha( shors cLrrrentperlbrnrancc against "arerage' in(ernal pcrfor mancc and 'top 25 perccDt pcrforrnance. {anagers a.c cxpecred to utilize the scorecard i|l discussionsibour perlbrm?r)cc and to discussthe relationship bctseen the merrics and rhc direclies and initiariles frorn senior rnanagement. Th( corecard is a i(x)l used to motiYate emplorees ro achicvc top perf()rnrance an.l lo proYidc a clear link ben{ecn cach indi|idual and leam acriirr to thc strategicobjectircr of the organizarion. In surnnar, LNSR utilirera h.rlan,e,l vure,ard r, l r,, jir ma|l.tH. j I'r a5.csrnH and reiewing perforfilance and ensndng a closc link ro rhe objec, tivesol the organization. Stage 5:Performance Review The perfonnance reiie slagc inrolres the meering betl,rccn thc emplolee and the managcr to reier their asscssmcr)rs. This mccting is usualh callcd the apptaisal mecrine or disclrssioD. Thc appraisal meeting is importanr becauseir prrJvidesa fonnal setdng in rshich thc cmploee receivesfccdbark on his or her. perfbrmancc. In spite of its imponancc in perftrrrnance nanage- ment, the appraisal meelirg i5 oftcD regarded as rhe "Achillcs' heel of the entile process" (Kikoski. 1999). This ir becauscnanY managers are uncomfortable proiding perlbl.nrancc fcedback. particularlv rvhcn performarrce is deficicnl (Ghorpade & tlben, 1995).This high k:vel of discomlb , $hich ofie| translatesinr() arlietr and thc aoidance of rhe appraisal inlcnic$, can be miti gatedthrough trainirrg those responsibJcfor proridirrg feedback. Providing fcedback in an ellcctic manner is extremeh important
24 P*ronvercnMrNrccvrM because it leads not only io perforrnance improvem€nt blrt also to emDloiee satisfacdon with lhe system' For examplc' a studv i"r.rri'"n'-".. than two hundred teachers in Malasia' includ- i"" i"alila"^r. -";,rt distinct chinese, MalaY'and Indian cultural ir?l*.""ta", found that when the,v receicd effective feedback' ,fr., ?.ooa.d g..^t., satislactionwith the 'rstrm een I'hen lhey ,..ii'.a t"* frtr".-an(e ratings {Rahman 20o6lAl lhi' Pornr' io*.n ., t"t .'.-ptt"tlze thatpeopleareapprehensie almrt both receiinq and giing Prrformance inlbrmation and lhis dpPtehen- si.rn reiifor.e" rie intponance ot a lotrnal Perlormdn'e re ier as oan ol anYperforman( e mani{gemenl svlem For example Ja(r W.t.t, r".-., CEO ot CE. ha-s addlesed rhis issuein Inanv ol nrs oubli. "op.*n....in(e he rehred Al an apprarancein fronl ol i" l"aiJ'i. | "r abourt*o rhousand managers hc astc'irhemil' their orqanizations had integrity (Rogers, 2fi)6) A5 $as expected' " "^, -'.1";," "f -."agers'-about 95 percent' raised their hands' itr"" tt"L[a the saml audience if their organizadon's leaders Drovide subordinates bith honesl and straighforward Pcrfol_ mance feedbatk. Onlv about 5 Percenl o[ lhe PeoPle rarseo their hands. Avoiding giving negati€ feedback is ery dangerous becaus€ it conveys the message that mediocriry is acceptable and damages the morale of the top Performers' tn "*o., ,t.t, rhc aPpmial meeling is regardedas a rcrcw ol lhe pasl. lhal is. whal wasdone {resulls) and ho'! rl i'rs oone it.touio..l. f-.*u-ple a suney including more rhan l50orga- nizations in Scotland showed lhat Perlorman( r managemenl svs- ;;; i; -;t. than 80 percenr oi organization' empha'i/e the Dast{Soltani,2003) Howeter' lhe aPpraisal meeling hould also include a discussion of the emPloyee'sdevelopment progress as *.ff * pf"". for the future The conversation should include a Ji"...rriin of eoulr.rrd development plans that the emPloyeewill i. .-o..i.a io achieve over the period before the next review ;;ttJ. i; addition' a good appi'isal meeting incllrdes infor- -o,ion o" what new co-mpentation' if anv' lhe emplovee m2) be receivjngasa resultofhisorher performance lnhorl lne appraisal disrussion locus€son lhe Pasl (whal has been done rnc how), Ihe pres€nl(whal comPensationis Ieceiled or denied asa result), uni t}e l,.tu.. {goals lo hr alEined brfore lhe upcomlng reiew session).
A lip1Dn) 'rlr or P.RroR^r4No }{1-Acry^r l5 ln scneral. (;rossman aDd Parkinson (2002) offer.rhc follo$" ing six recommendarions lbr conducting ellicrive pe.formancc l. Identih whar the emploree has done l.ell anct poorlv bl. cit, irg specilic positie and negadre behaiors. 2. Solicit leedback fiom vour cmptovec abour (hese behaiors. Listen Ior rfacriotrs and explanariorr5. 3. Discussthe inrplirarions of changing, or nor changing, rhe behariors. Positire ficdback is besr, but an emplovee musr be made a$are ol $hat i{ilt happen if anr poor pertbrmance 4. Explainro the enrplovechor.ski s usedin pasrachicemen6 can help him or her olcrcomc an.r'curreDt performancc problellrs. 5. Agree on an action phn. Encourage rhc emplo,veero inesr in improving his or her pcrforrnance b asking qucsrirrrs such as 'lhar idcas do r.ou hare for _?. and ..i{,har sug- gestioDsdo You hale lbr _?" 6. Set up a mecrin€Jro folkxl up and agree on (hc behaviors, actions.and artitudes ro be elaluated. Stage 6:Performance Renewal andRecontracting The final sragein the perlbrmance processis renewal and recon tracting. Essentialltthis is idenrical to the perfor.nranceplanning component. Thc main difference is that the rencwal ancl recon- lracting stageusesrhe insighl-sand informarion gained fron rhe orher phases.For exanlple, so[le ol rhc goals mav have bcen set unrealisticallv high eiren an unexpccted economic do$,nrurn. This ryould lcad ro setting lcssambiiious goals for rhc upcomiDg reiew pedod. The performarrce nranagement proccss incluclcs a cvclc rhat starls $ ith prer.,luiirc! an.l e||dsNirh perl,,rman,e renctldland recontracdtrg.'l-he clcle is nor oer afier rhe rcre$.al and recon- tracung stage. [n fact. the process srarrs all o€r again: rhere needs to be a discussion of prerequjsites, including thc organi- zations mission and srrategic goals aDd rhe job's XSAS.Becausc marketschange, customcrs' prefcrences and needs changc. and
26 Ptrrorrnrcrueneceurxr Drodu.ts change there is a need to contlnuously monitor lhe i..r*to-." i dral perlormance Planning and all lhe sut] l.ou.n, .oe.r, are consistenl r*rlh lhe organizatron s lraleglc obiecLires.iecall that in rhe end one of the marn goals ol anv i]li"r*""." *rn.e.menl slslem is to promole the achievement ii "tg""t"t,i." *a"" goals bbviouslv' if managers and emPlov- "." .i. ,to, "r"-. of thes€ strategrc goals' it is unlikely that the o"at"a--aa --"g"ment systemwill be instmmental in accom_ plishing the strategic goals. Additional lssues to ConsiderRegarding Team Performance A tram is in place when two or more peoPlr interacl drlami- ;il;; ;;,J;;;endv and share ^ 'o"on and valued "li. "ui*i"., .'' -ission (Reillv& M(courw lg9l) Examples :i;;;;*. from a group ot top managers working rogerher i".oi-f".. &r an ongoing uaslswith the goal of achievrng cor- Jo.u," no"l. ,o u group of Programmers in India and the Uniled i;;;;." p.3s.";-i;'s iode rhat eventuallvwill be put ;;;;.' ,; "'J *i*are pro'gramTeamsdo not havero be per' rnln.nr, -a leam membersdo not havelo br in the samegeo_ sraDhicallocation.ln [acl. leam memtrrs do not nred to have l..i -"ii" oersonlo br members of lhe samcteam Aslongas trt. *"ti id",n... "..a eacholher' and sharecommon Eoals'thev ureconsiaeia to be membersof lhe same(eam Numerousorgd- l;;;.;. structured around teams' including teams called autonomous work groups' ProcessGams' and self-managingwork teams (S(olt& Einstein.200l)' Organizations (hat choos€ to include a team component ln thJ!..fo.-.rr.. -anagement q/stemmust Provide answersto lhe following quesrons: l. How do we assess relative individual contribution? How do we ' 't"'"* ,i" .*,.", - which particular individuals havecontrit> .,iJ to i..* ..r.ttar How much hasone member contr:ibuted in relatioD to the other members?Are there any slackersor i."otiJ.." "" aft. ,.-? ls everyoneconributing to the same
. [ pDr D r! $ rn Pt Rrr,k! 1(r ta1(,] {r ! | 2l extcnr,or:rrc snrnemcnrbrrscofcr.iDg up lbr the la.k ol c(nr rfibutioDof orhers: 2. tlo$ do se balanceinrtnidual and rcar)rlrertb. raucerHow can $e mo(jvatereanr reDlbersso that the supporr a col, lcctire missionand collecricgoals?In rddiri('r. h(iw do rLl. rotivarctcaln mcn)bersro bc accounurbleaD.l .cspoDsibl(. indnidrullv: In ()therords. hoN rto rt arJrierca goorl tl|l ance brtrreen rneasuriDe arrd rearding indiiduats in rcla (io ro reanrIrerli)rntance: 3. Ho$ do rveidenril indj|i(tual and rearr rneasrrres of l)ertor- mancei Flol can e i.tenliji rneasur.es ot perlirrnranr.e thar indicirtein.liiclual per.ibrnrance rcrsrrsmcaruresot pcrlirr mancc thar indicarereit|r perlor rancei I'trcrc rtoesindirid ual pcrtarmance end antl ream pcrli)nnancc begin-: t'ill1lh. basecl on thcc rnerisu'e5, ho'do e allocarcre,afds 10indi, viduals versusteanr!: lle.aD use the sanresi tages.lescribe.t eirr.ticr anctinclutle team pcrformancc bl lolloing rhcscix basicprnrciplc (Salas, Burkc,& Fo$lle, 2(XXi)| l. IIok( sut?.tou,.tm,t rcnl t t?utt.,snorctl aborc. rher.ear.c different tpes ol rcarls. Rcfore a tean)co)nponcnt is inr.o duced in the pcrforlrranccnranagcn)errr svslcrn. {e nr,cd t() makc surerhc Lrrgrnizarion hasic(ual reaDrs. 2. IIatu thc itn,.tln.nt 1, ,r.a. /,a lcasuriDe rcarn per.firrrnance. as is the caseilh uleasruinsin.ti|idual perlin.nrance, r:rtcs trmeanclcflirrr.The organi/arionmusr be rea.h lo make rhis inr.rnr.'|rl,,r'1,,n'eanr'..ru iel.l ! t t d.r'd 3. Dc.JIn( ncasuft at gaalr rlearir.Defining ho$ rhc (tar.twilt be used (fol.example.adminisrraricers s.tcrloprnenlal pur, posc5. or borh) is r decisionrhar rnrsr bc kken bctinc rrea- suresol (carnperfo.tnancearc designed Ar is rhc caservith indnidrel lelel drh and discussedrhroughoL,rrhe bo(,k. there arc dillercnt variablcsthar musr be takcn iDt()a..oLrr)t in relationshiplo rhe mcirsuresprrrpose(tb. cxample.$hal Irill bc dre soruces ol dirra, horr dara rill bc colle.red. an(l solbfrh).
28 PttuoRirANcu[NrcFIrNr 4. (lsea multiaAlhod awoa'h lo neasumnznt' The measurement - .ri't."- p..f.,..t"'ie is complex Thus' multipte methods and souriesof dataare"t." "...".1:;or^r/proceseoriented b- Focus onPt'ess as,u?t!^ Ti':1::::'**l f"r individuar asrbr me:rsuresaswell asresults are asul l*r',:*xlm;rmm:lTliT:;ITi;"i be usedwithin lhe ( ontext of managingleam prr'orman'( i 6. ]y,p&uv langInm tnangu Aldough horl-term Processe' arru resuhs are easier to measure' rt rs rmpofiant to also consider ionnla..- -....,..t "f Performance Team Performance must i. ia-ot.d o*". u "-iet.v of contexts and alsoolcr ttme' (ionsidereachof the sagesof rhe Perlormani e managrmenl o';.:;;h;;-i" F"ure I"l and how thev can bc modified to l..o,,,'"odur" dredm componrn,. t'^,; ;f;ill'l: ::'.';l:'i}'j;- in addition to considering the team :s ff;*;;;if "tto'n'i"ar'ia"'t' to make a positive contri- i irt""-- aft. ..*. these includenot only KSAS relateddirectly i" itt" ,*t at hand, such as a programmerwho needsto nave i"".Lag. of ihe programming language These are KsAs that r." ..o.lidt" .ottdu.iie to team Perlbrmance such ascommu- itlt,i", ilrt,"" -aking, collaboration' rcam leadership'and *ie.-i"iiCr'."g Dairiw& Moore20o5i Reilly & vccourrv' lgs8,R;'.*,". eib. &sa'oie 20{16) Resar:l':i:'.:lliJ;: Dlanning, this suge must include !;';;:i't. ;*;trJ ;xpected or the ream brhariors epecred lii.'-1".-u*r, .ti d'r'elopme"tal objectives to be achieved ;; ;;. ;- and its members- Regarding Performanc€ execu- t.",-L.- -.-f.* teed to be committedto goal achievement ;;'.;;;il ;k. a Proactile role in seeking feedback rrom one onottre. aswett a. fiom the supervisor (if there is one) ln terms ;;;i;;;. **"ment' ali teammembers musrealuare one ;;5;i;;{';;;,".e as wel as rhe oerrorman'e or the team overall. ln addition, d'e s"petT v'r t'raiuates the Performance'of .;.;;; ;-";;' * well ; that of the team asa whole Finallv' ffi;;;;;;;;.; ,.ams alsoetduate the performance of.the ;;;. il;;;;H "pPlv onlv if membersof other teamsha€ tirst- funJ "*p..i.n." *itrt 'he Perfbrmance of the team in question
A ExpaDEDVTFw or PrruoLw^r.'cF MANAcTnENT 29 Itisimportant to emphasizeaharthree q?es ofp€rformance need to t€ assessed: (l) individual performance regarding task perfor- mance, which refers to the specific activities required bv one's individual job, such as a programmer's abiliry write qualiry code; (2) individual performance regarding conrexruat perfornance, lvhich refers to specific activities that contribute to team perfor- mance,such as team members cooperating with each other; and (3) team performance as a whole. Regarding rhe performance rcview, at least two me€tings are needed. First, rhe supenisor meets with all members of the tearn together. The focrls of this meering is to dis{uss overall team performance, including results achieved bt the team as a whole. Informarion for this meeting comes liom !€am membels e,aluating their collective performance, other teams e"luating the team in question, and the superiisor's e!?luation, Second.dre supervisormectswith edrh (ram membcr indir'idltalll The focusof this meering is to disflr-ss how r}e individual s behai- iors conlributed to team performance. Inforrnation for this meec ing comes from individuals eraluating their ovm perform2nce, peer ratings of the individual's performance, and the supervisor's elalu- ation. Finally, the performance renewal and recontmcting stage is identical to the perfomance planning stage; howercr, perfor mance renerral aDd reconl.i_acting uses information Fathered dur- ing the review period to make adjustments asneeded. For example, somenew key accountabilities and competencies may be included. C,oNusely, some goals may have io be adjusted either upr$rd or dovrnvrard. In short, including team performance as part of the perfor- DUmCe mzmagement svstem involves the same basic components that are included in individual performance. An imponanr di! ferenceis that, in addirion to individual performance. the svstem iocludes individual prr formanre as ir aflet a lhe luncrioning ol the tean, aswell as the p€rformance of the tearn as a whole. PertomanceManagementBestPractices What do we know about performance management best prac- tices?What are ahe featur:esof a performance management s)stem that are likely to produce good resuks in terms of individual, team, md olganizational p€rformarice? The following characteristics are
30 stcoruxcrt*urcrusxr likel to allow a p€rlormanre managemenl syslemlo be su(cessfu]' ."a *t.-i"f ui. .ft"pters in t}is 6oot descritr thest leature' in i.oif. N",. ,ft.a p*.tic,l consttaittts may ttot allolv for the imple- irJta,iot or "I'*.". features' The reality is that perforrnance ;:;;;;.t, s'vsrems are tldom imPlemrnred in an idcal wav ,'ti.ei"-, Hi.ii g c.*y.2005t Forexampletheremavnotbe umcienl tunds lo deliver raining lo all PeoPleinvolveo superu- v)rs mav have bias€s in how they provide Perlbrmance radngs' o-r oeoole may be iust luo busv lo Pav altenlion lo a ne4 olBanl'/a- i""!i-r.i"lti". ",r'" requires rhiir dmr anda(ention However' *'.1i."J.*-.tri"".rs' we shouldstriveto placea checkmark ;;; eJ of these chamcrcristrcs: the more featu:es that are .fr..t a, ,ft. -".. f*ely it will be that the systemwitl live up to ia promis€. . Strakli. tott!ru.nc?-The wslem hould be t ongruenl with.$e ".i l"i-"L-i-""n s straregv ln ot.her words individual "."i" ^"" # "figt.a widr uniiand organizauonal goals .. . ithortuehnz:s. The system should be lhorough regarorng ;;;";i;;;:-".. First all emplovees should be evaluard (in(ludinq managers). S€(ond all major iob responlorn- rl". shouid be evalualed (including brhaviors and results)' Third, the evaluaEon should include performance spannrng lhe entirr reriew Period nol just lhe few weeks or montns before the review. _finally' feedback should be given on posr- ;;;;;.;;;r;.. *pects as well as those that are in need of imProvement. . nia;^t;n. Slstems that are loo exPcnsive lime<onsumrng' and convoluted will obviouslv nol be effective (;ooo eas!- ;;.;;;; (for example, performance data are entered J. "...lni."art ."r*arei are available for managersto helP G- -uL a"ii.iott.. Finally, the benefits of using the system ir"t_.""-tr., increasedpirformance and job satisfaction) irr"., u .t " * out'neighing the cos6 (for example' time' eflorr,exPense) . . M?aninc[uln?s5. lhe s]slrm musr be meaning{ul in sevelal *u"t fi*, tft. .o"a"tds and elaluationsconducledlor each i"u i".ri". murbeconsidered i"p-T' 3ld-i:l:'-T": Lcond. performance assrssmentmusl emPhasizeonly tnose
A Exp DEr' yrEtr otsPrsoRM^NcF M^xAcEvEr 3l functions that are under t}e control of the emDlovee. For example. there is no point in lerting an employ;e know he or she needs !o increirse the speed of service deli!€ry when the supplier does not get the product ro him or her on time. Third, evaluations musr take place at regular inten-dls and at appropriate moments. Becaus€ one formal e.aluation per year is usually not sufficient, informal quarrerlt reviews are recommended. Founh, the system should proride for the continuing skill developmenr of e,aluators.Finally, the results should be used for imporranr adminisfiative deci- sions. People will not pay attention to a slstem that has no consequencesin terrnsofoutcomes that they lalue. qp"dl.rry. A good system should b€ specific: it should provide detailed and concrete guidance to emplovees about what is exp€cted ofthem and how they can meet theseexpectations. Identifution of effecttueann in4fectiae pe{om.an(z. The perfor- mance management systemshould provide information thai allows for the identification of efiective and ineffective per- formance. That is, rhe slstem should allow for distinguish- ing between effective and ineffective trehaviors and resuhs, lhereby also allowing for the identification of employees dis- plafng larious levels of performance effecti,eness. In rerms of decision making, a q'stem that classifies or lank all le€ls ofperformaDce, and all employees,similarly is useless. RcliabiEry.A good sysrem should include measures of perfor- mance that are consistent and free of error. For examole. if iwo supervisors prorided ratings ol rhe same employe; and peformance dimensions, ratings should be similar. yd&diry.The measures of perforrnance should also be ralid. ln this context, lzlidity refers to the fact that the measures include all relel?nt performance facets and do not include irrelel?nt performance facets. ln other words, measures are releva.nt (include all criticil performance facets), not deficient (do nor leaveany important aspectsout), and are not contaminared (do not include factors outside of the contlol of the emDlovee or factorsunrelated to performance). In shorr- measurei include what is imporlanr and do not ass€sswhat is not important and ouaide of the control of the employee. For example, the gon- dolieri in dre City of Venice (Iraly) have had a perfomance
32 PnMoRtaNcr ![ANAGTMEN r' managemenl ststem lot about one rhousand vears {trhntton' :ZOOIrl,l-"ne'",h., relerant performanr^edimehions older rersions o[ thc p€tlorrnance manaSemcnl s]sFm lequlreo """lJi".i ," a.."""u-ale tieir level of rowing skillsand rhcir lbitiry ro rratt"pon people and goods salelv Thee are clearlr ,.1*" i ai-.Jt.i"tl. ot".u.t -'-ttt slslem was (onuminatrd because it included ahe following requirement "E!€ry btother shall be obliged to confess t*ice a yeif, or at least once and rt xi., u t.-lie, tt. t *ains impenitent, he shall be expelled ' I{iom the sondolieri guildl." a,it"tit;fr and @;". A good srstem is aceeptable and is p.r,'eirtd ,s lair bu ,ll ParticiPanls Per(ePtion' of faimessdre i"Oi..,it., ."0 the onlv wa1 lo know nhefier a ssrem is seen ^ i"l. l. ," ask the panicipana l!'e can ask about distribu- rive iustice, which includes pcrrepdons of the performaneP evalLiaLion receired rclatrve (o lhe work perlormed and Per ceptions of the rewards received relati€ to the elaluauon reieired, particularly when the s_tstemis imPlemented across ."r"-"..'f- example diflerencesin perreplions.mav be lound ln (omParing emPlore€sfrom more lnolrlouallsu' tfor examplc, the United Sates) lo more (ollectivistic (fol exumot., i.,rea) cullures(Chang& Hahn 2006l ll a dicretr ancv is perceived between $ork and elaluation or between "naiuarion and rewards, then the system is likely to be seen as unfai. In adaition, ,ne can ask about proceduraljustice' which inrludes per(eptions ol the Prorcdure usrd lo determrne ,'rr. r"J"n'. * tiar as r}re proctdutt' uttd lo linl mtings wirh i.*ora.. "g....t.. a good system is inherendy discriminatory *.. l-pf"v..t .ifi'receive Etings that are lower than those receired by other emPlovee' Howetrr' r'e should stnve (o a.r.t.,o .ri,"rrr" lhal are reFarded as fair from bo$ drstribu- tive and proceduraf perspectives becaus€ each ryP€ ol jltstrce DerceDtion leads to different oulcome' For examPle a ptr_ :;;;;;", fie srsrem is nor lair llom iddisrriburive poinr of "i.[i. iit fv ," f."a ,o a Poor relationship between emPloyee "rJ **rvi*. ""a f"*.red satisfaction of the employee with J. ."ir.^i*t on lhe other hand a percePtioi.thal,the srs(emis unfarr lrom a plo(edural poinl ol vie$ ls llkely to leao to decreasrd employei cr,mmitmenl lowwd lhe olganizdtron
. Epi.'DEDvrF$ oI Ptr&oRttAcE NIANAG!:MFN'l ]3 and increased intentions to lea.€(Erdorgan, 2002). One rav !o improve both disEiburive and procedural justice is to set clear rules that are applied consistentlybv all supenisors. Inclusiomess.Good ststems include inpur from multiple sourceson an ongoing basis.Firsr,the evaluation processmust represent the concerns of all the people rvho will be affected bv thr urrlcome.(:onsequcnrl'. emploree mur parti(ipatein the processof creating the sr4itembv pro,iding input regard- ing what behaliors or results will be measured and ho*. Second, input about employee performance should be garh- ered from the emplovees rhems€h,es before rhe appraisal meeting (Canley, Keeping, & l-r},, 1998). In shorr, all parrici- pants musr be given a voice in the processof designing and implementing the wstem. Such inclusire s,vstems are likeh to lead to more successlirlsysrems,including less emplovee resistance,improved performance, and felrer legal challenges (Elicker, Levr, & Hall, 2006), Oy'?zrurs-Good systems have no s€crets. Firsr, perfomance is eEluated frequendy and performance feedback is protided on an ongoing basis. Therefore, employees are continually informed of the qualiry of their perfbmance. Second, the apprairal meeLingronsistso[ a iwel{?'communi( aLionprocess during which information is exchanged, not delivered from the supenisor to the employeewithout his or her inpur. Third, standardsshould be clear and communicated on an ongoing basis.Finall,r', communicarions are facrual,open, and honest. Caftdabilir. The processof assigningrarings should minimize subjectire asp€ct$ however, ir is virtually impossible to create a slslem that is completely objective becausehuman judgment is an important component of the evaluarion process.fhen employees p€rceive an error has been made, there should be a mechanism throueh which rhis error can be corrected. Establishing an appeals process, rhrough which emplolees can rhallenge what may be unjus( rle.isions. i dn imporran( asPectof a good perfornance management system. Standad;zalint. Good systems are standardized. This means that performance is eraluated consistendyacrosspeople and ljme. To achieve this goal, the ongoing rraining of rhe indi- vidualsin chargeofappraisals.usuallvmanagers. isa must.
34 Prrromrcrt"texrcwnu . t nt.art Good systems comply with ethical standards opera- *i*tig;*x,*1ffi trummffi i:fi,Hi fi#;;;;;; o'iv p"fo'"""" dimensionsfor which .iii* *m.i.", mr"rmadon'andtheprivacy oflh€ employee i, t .p..,"a 1.f naanStone'& Stone-Romero' 1999) ' Howdoweknowwheth€rdreperformance management system :i:*#*:;*ill]il:il:,-"f ff I:ffi,fr "'1i#! ni:k;l *.1;ll*ir',il,T'ff ::T:1";:T il'H?T, I; ';;';;;'.;,;;'-.rudingarr or'' :,1:ffi.:,?'$lU;i i.:.]:f; %"J,:J: ffi:'1ffi ttH*:sr;t*lit,'* pilot-tesr provide feedbackon any possi 'ili'lli,"ti;T,il;Iritor-rest mav revear rhar rhe srstem was nol n'***.:*:trlilil$h''il1'11 ;ll;.'#l l:"il] ;: :;;""fis**fil':l':lt d$i".sil W.-:l r: il:s,ilH'tr iff:':"ilfl#ffi #+itt1,rlil* :i,:;[:'J-::ji1*Liiil?"illllffi ;;:;;;;rJ..i"..*"i 5io."p'"- u.r."*. r,: t-o!l:lj:u"ffiXfriT-#f""; IXH: particular example,the insruments wo '"1r1'loli'.'ll**r..-9r._:'jlfl l*'ffi lr*T'.'.:ll; ffi"Jilil[*":i':"|i''#J:Ilft ",-i"i;".""J'*'"'i Ll;*JlLH,:*l;'"$:ff :H:f"ff fffl:iyJi !:L:1 l*lL::lir*n;TiT;Tll'ff ll.e'"?$:iff"* L ,. .*pr.' tlre United Statesfederalc*"t:1t T::.i:'.". :rsru ";sl:rmffi 5ffi:tr':.T J?.fi ;};l
i . [rDrr] 'rr r o] t,] eroRr1..r hNA(,rNr!N| 35 ser€ral lails harc bcen passcd rlral r)andalc fcclerat agcncies lo developa stratesic plan. a perli)rnrance plan, anrl a pcrfornrancc reporr..{lthoush rheseinitiaries(oncern aqencies aDd nor incli riduals,Lrlrimarehthe perl()rmanceol an agen$ depeDdson the perlormanceof (he indiriduals$.r:rrkirg in rhat uDil. The ne( result ol sLLch larr'sas the (;.trcrnnlenr I'erlbnn:rnce and Results Act is an increaseirr ac.ouorabitirar)dlil|rding alto.arjonbascd on perlbnnancc. Thus. ladcral aecDci€sarc requifcd to ealuare the rclative efficien. c,f rheif ari(nrs nraDagemcnt re.hnjques, including pcrformance nranaserneDlsstems. Ealuation da|a should inclurte reacrionsto rhe vsren aDd assessmcnts o{ rhe svsrc t s opcr:ltir)Dal anci re.hnjcal requjre menrs.For exanrple,a .onfidenrial sune coutd bc adminisicrcd Io all . rpl,^c,. d.lin{ dL", r I!.rfpri,,r). :rnd:rrrirrrrl-s .rl,urrr the svstcnl.This surr$ can bc adminisrcred during the iDirial stagcsof implemenratiol and then al rhe end of the lil.sr reviet! c,vcle to lind our 'hether (here hac beeD anr chanscs. In adcli tron, regarding the s'srelris resultl. one can assess pcrf()rmance ratingsover tilrle k) seervhar positi.e ellccrs the implernenration ofthe slstemis haring. tinalh, iDterlic$scan bc cond .lcd i{irh key stakeholdcrs. inclrrding malagers ald emplor.eesrho hale beeninr'ohcd in decloping ancl irrptcrnenrire (he pertbrDraDce managements.r'stem (llarper & 'itkinas, 2(X),-,). Seieul additional nleasurescan be useclon a regular basisro monitor and evaluatethc s.stem: Numba of inttntituals h,alu(k.f. Oft of rhc Dx)sr basic meas ures is to assessthe n[n]ber of en)pbvccs $ho arc acrualh. pdI|iripdl"{ in rlrd{r, r. tt p.flo'rndn,( Fat Jriu . lrJ. not bccn completed for some ernploccs. r|e nccd to flnd out who thev are and r|lrr a pcrformancc review has not bcen conlplered. Dstibution oJpo|rna'r.? ,1rringr. An iDdica(or of .tnal;rv of rhe perioruunce asscssments i trhelhcr all ol. most s.orcs are too high, roo l()$,o[ clunrpcd around rhe cenlcroft]e disribudm. This m:rl indicare inrenrioral errors sn.h as lenien(1r selerin! and ccntl.alrendencil f)istribulior)s of perfonnancc raringscan be broken do$rr br rrnit and srrpenisor ro derernline r,he{her anl, ren.ls exisr rcsarding mling disrortion ancl{,hether these
36 PnRroRrANcE {NAGEMT,NT distortions are localized in Patlicular units Note that there may be exceDEonaiunil-sin which mo$ emPlovres are outsEnding DerformeN and units in which most emPlo,veesare poor p€r- ibrmers. This is the exception to the rule, however' and such distributions usually indicate inteniional errors on the part of ratels. Ouali' ol inlonntion. Atrother indicatol ot qualiiy of $e per- il.*un.. "*r.*...no is the qualirv ol thr information PrG vided in the opentnded sectionsol the lorms For example how mDch did the rater rrrite? What is the relevance of the examDlesprovided? o'al;k ot oatornanu di-l..asion n?ating A confidential survey .]n # ai"ttit rr"a t" ^ll employeeson a regular basisto gather informatron about how the supewisor is managing the PeF formance discussion meetings. For example' is the feedback useful? Has tbe supeftisor made resources atailable so the employee can accomPlish the development Plan objectives? Hoir reler'antl,r,as the Peformance reliew drscussion to one's job? To what degree have development objectives and plans been discussed? ir^ *rirlont r. n .ontidential survey could also be distrit} "J ," "it-* the perceptions of the ststem's users' both raters and mt€es. Thit ao*ay can include questions about satisfaction with equiry' us€fulness' and accuracy' A4rall costngnfil ntio. A fairly simple way to addressthe Per- ceived overall impact of the system is to ask particiPan6 to rate the overall c;st/bene6t r:atio for the performance man_ aeemenl svslem.This i a t'?e of boltomline quesuon lnal cln provide convin<ing evidince for t-heoverall worth of the """,.-. .Iittl" perceivei cost/benefit ratio question can be asked in reference to an individual (emPloyee or manager) ' her iob. and her orqani/ational unil Nole rat lhe Per(eived .orr7b.n.fit ratio muy n.,t be lhe samr as the aclual (osl/ benefit ratio. However, as is the cas€with most organuatronar interventions involving people (Farmer & Aguinis' 2005)' per- ceptions are crucial becaus€they will determine the amount ofsuppon and resources to be allocatedto the interventlon Irni;i rl and oryaniutkn+u?lpPrlomtnta Another indicalor that the systernii working well isprorided by the mealiurement
E h r ) r | ' r r o r I } R l ( ) R n ( L M 1 . . , r { r N r l l of unir- x d orqanir:rrioD leel pclfonnan.c. Srrth per.tor.- nan.. iodicatofs nright be .Lrsronrersarisfa(tiorr rirh spc- citic Lrnits and irr(lic:rrols ol rhc Iinancialp(r fumaD.e of tLc rariou unirs or rhe org:rDiTatiur as a tholc. 'e De(d t() l)e arLare that il rnal rake ()rnerime lir thalges in in(lnidual anclgroup pcrlirrrnancclcrl r() be rrandaredinlo Lrlit an.l organizrtiorrlevel fcsul15.e shorrlclnor erpccl resnl|i as s(x)n:rsthc srstemis inrplementcd:horle'er.. 1vrhould slarl Io scc some ransible resullsr! rl)e uDil lclt.l a lerf morrrhs : r(r the svs(cm is in plac.. Conclusion In todavs globalized,{:st pace.t.rnd irterconnccrcti world. i( is relatileh cts k) f{ain irccessr() lh. cornperirioD s rcchnologl a d products. 'lhank r{) rhe Inrernrt a:rctrhc acconrpanrinqhigh speedof c(DrmLUric:Ltiorls. lcchnologi.al alld prorhr(r (liffer.en- tiationis n() longel a k. conrperirirt at]anraeeill nr()srin.tus, trics.For carnpie, most balks oller rhe sametprs ot prod{rc( (for examplc.diller.tlr tpes ol ai gsa..()rntlsand ir]crrDrrrr oppofruni(ies). Il a particul:rrbanl decidesro offer i ncLt]lod uctor scr!ice (lbf r.arnple.onlilrc baDking).it {itl rlor bc lo)g until rhlj competilors(tler prccisehrhe sarJrc prod .l. Ai,noted bv.lames Kellc, perlofmarrce manaqcrrenr projccl lrader ar IdahoPoler: Technolog ij,a lacilirillor,but nol a guaranror,()f effectilencss of elli.icncr of a companr's$orkJi).cc (GeDerali g buzz, 2006). Organirationswirh mdivalcd and |ale l((l enplovc(s oller ing outsurrrdingserlice &) . lorners are litclr to pnll tihcr,(l ol tjlecompetition.ijen il tht prrxiucrsollc|ed are sinrilarro thr)se oflercd br' (hr conrperilor!.(]Lrsromcr.s rranl ro ec( tlre righ( an${erirt rhr right rimc allcl rhev!alr t() receirc rjrcir.pl1rclLrcrs and serviccspronrplh aDd accLrrateh. ODh pcople can nrake thesethiflgs happtn and prtxlLrcea susrainablt competirirc adlan- tage.Pcrfi)rmance rnan:rgcnrcrrtsilsremare te' ft)ols rhat caDbe usedto tmnsfb. r people s trleDt aDd nrotilati{m inl(' l traregi. business advrnrage. Unlirrrunarelr allhougtr 1)6perccr)t 01 HRt profcssionals report thar pcrfirr.nanccrnanagemenr is their nunr berone concern, fccr than l2 pcrcenr ol HR erecutics lDCi
38 Prnroxv$tct l'hMctu*n rechnology managersbelievethat theirorganizdtions hae align(d :'.nn j.:ru"**. iJfi Tltt.;:fff:-::i::ili: :; *il*:i1.1[T-t$il: l*:'r'*9.ffiT6::#i i: i::*:trilT:n:g::: l",lH':::'n::ili:n* llrrnt.-'*:iiT$lff ::'Tlffi ..1ifi 11x"'":f :: i;;:#;i; ;;;e, fiRM tunctio"s {torexamPre s'^rlins L'.:'i'i j;uj".;"::11il,:".lJiil."iHll" *nt*fum**x;::}ff txli:;'#:'li"i',', References n*", ". t., * "-Ott'' K (1988) Performance management qstems: From strategic Planning to emp'ovec productiliry PasonntL 65' 55-€0. ,rguinis. H. (2m9). P"rlonwne na@eena l2tt'r Upper Saddl€ Riler. NJ:PearsonPrentice HalL ^*"'.Tlt :"t';;;;'a,,..*'-"li: :l^lT'li1'..il3"f ii,i',; *i';i,i;;,':;;;;;i.,-' "ry'";''i'* *d tu'renA"udr Rttitu oI Pr.hotog' 60' 451474' ^*'.Tfl iffi;;;#.., in,i.o".gg'"''-a. .:.i:Y:,::;X"f:, ";;)r;:;;;i;;;;;,;"'w"y:11't',";1'171'! :#':::'T'#;;;i:Y:*,,?^,y'-'.::o'^^2:: ^*,,illii..i i;'-i*..'e.i:ooe) Lnt''ncins f":::'"i:;;:$.T; ;',";;;' ;;h,""' b cmbra'ins Perrorman^((..manasement .""fvt**lmr :":l 3!:;n3: i',*,-,1,,,0 *,?:jf$t*X2 ffi:Ti':H, Hn :;';.TK;.';# """#H:"ti;;x'"h],,:y;"&y Larrence Erlbaum Assoc'aGs'
I I d ExpANDED'rEw oF PruoshMrr yaNAcrMrM 39 Bemer.R. (2005,Octob€r3l). At Sears, a grearcommunicaror. thir.rr ly,"t Alailableonlincat http://nr1^.businrsseek.com/ magazre / .ontent/05-44/b3957t03-hrm.Retricaal date:November7.2007. Boswell, i R., & Boudreau,J. ar.(2000).Emploveesarisfaction wirh performanceappraiels and appraiscrs:The role of percciled app.^is t rse.HuMn R.stur( DdelrpMt Quaru,l, /./, 283-299. Brom, M., & B€nson,.l. (2005). Managinlato oi€rload? $brk o!cr- load and performanceappraisalproccsrs. Crou! {, (hsanization Managnn , JO,99_124. Cascio, 14'.F. (2006)- Global p€rfbmance management$srems.In I. Bjorkman & G. Srahl Gns., Ilandbookot returd in intnnattonat hunan mres nanagmr (pp. 176-196).London, Uy! Ed$ard f,lgar Lrd. Cas.io, $l F.,&Aguinis. H. (20O8a)- Res€arch in industrialandorga iza- tionalpsrchology fiom 1963ro 2007:Changcs, choices, and rrends. Jolmat ofAtph&l Pnj.hotas.91 1062-1081. Cascio, tl'. F., & Agunris,H. (2008b).Staliing 2lsr{enrury organiza- rrons. A.aderyof^lanag.wnI Anra&, a l33_l65. Cawl+ B. D., Keeping,L. M., & t-e$,,P E. (t998). Parriciparion in rhe performarcc appraisalprocessand emploee reacrions: A mera anadc reri.lv or field inlesrirarions. /arndl o/AWIi2d Pet.hobg. 8J.615-633. Chang, E..& Hahn,.l. (2006).Doespa!'for perfomance enhanceper ceiveddistributivejustice for collecririsricemplovees-1 Paron,pl Rrvizr!, 35,397412. Clt€ng,M.. Dainty,A. R-J., & Moore, D. R. (2005).Toards a multi, dimensionalcompetencFbded managerialpcrformance frame- vrork: A hybrid ^pprca.h. loumal ol Managtial Pr.hobs, 20, 340-396. Oet€land,J.N, & Murphi! R. E. (1989).Multiple usesofperlbrmancc appmisal: Preulencc and correlares. /oaDal o/ Afflt?.d p$dotap, 74,130-135. Dunnette,M. D. (t99O)-Blending rhe scirnceand pracriceof indus trial and organizational ps!,cholog!: I4here are$e and whereare wegoingl In M- D. Dunneue & L. M. Hough (Eds.),Hatutbook o[ in'lushialanl oryaniatioml?rchola$ (2nd ed.,yol. l, pp. l-27). PaloAlto, CA:ConsultingPslchologists Pre$. Dunning, D. 12004). l LC at tu*: Tratnins, Ieoding,na.hing .tlt 6pt for starWJman... P^lo llro, C"{: DarieeBlack. f,ddy, E. R.,Stone,D. L.. & StoneRomero,E. F. (1999).The etTecbof informarionmanagement policieson reacrions ro humanresource
40 rtrroronrcr Nrsrcutu inlo'madon ssrcm: An inkgradon ul prit"q.-'.and pro'cdrIal iuq ,,,.,.ill il:i:,'.:]'J; ". ?Hi1 fi Tr.;i"'"ri'"';r rcadr'I.me " " -'l-l n"-*l'"'"' *iormanr eappraisa! proce $ pundlvanns"v,! llll, iii*1;i::::tl- ::1,',:1,il^i''i:ll5 if:'i'l'5il "-*'' '-{iljtir'$j I ##l;lil;;'.m;l*: "i':'r;i '-'${{fr if*:rkrd}*;ii{fi *rf,".', '-fi#;ffi ''l:r[:1il]l:,ffr'i1 i,*il i;;3' -tff iilii"J:P..1,:i''* ;r*::riri iis* *,*#;ti''-S,'#: :::. ;::r,,HWH, ! '- f*i**,;r*il*T,t""rru,.:: n':r*': -11**n#*f-'p .****'$**W{##,J# ifie ):r:w,ir:;iir;x:r,s^ : *++;*i;.***,m,*i*s'r'r rr;'3 rtate Norember 7' XX)7
, EXPA.'DFD vrnw o! PruoRMANcr MANacEMrr 4l Harpcr,S.,& Vilkinas,T. (2005).Determiningrhe impacl ofan organ istion's performancemanagemenr sysrem.AsiaPa.if. Jounal o1 Hunan Resoures, 43,i6-97. Johnston,J. (2005). Perfornance meBuremcnr uncertaintv on ihe Grand Canal: Ethical and producriib.-' conflicrsbebr€en social and economic agen ? In!?mational Joumal of Prottu.tifi.tj and Peiomane Managm , t4, 59'412. Kikoski.J. n (1999). f,ffecri€ communi(ation in the performancc appmisalintenier': Face,nface communication for public rnana|ers in the culturalfy dilelle lro(kpl: ce.PuNi. P?rsonnal Manryemt, 28, 301-322. laChance, S. (2006).,A.pphingrhe balancedscorecard.srrakSr.HR Rtuiru,5(2r,5. latham, G. P (2007). A spcculatile perspecrileon rhc transfer of behaiorrience findingsto rhesorkplace:-Thc timesrhevarea ch^n9;n." A.anenJoIManagemtJoururl 50. ro27-ro32. McAdam,R., H^zlett, S., & CaF', C. (2005). Pertormancemanage, ment in the UK public Fcror: Addressingnulriple srrkeholder .omptexirr. Intanational Jounal oI Publi. :*ttot ManLg?Nnr, 18, 256 213. McHenry,J. (2007, Aprit). t+baft thz IE) nol".l Presidenrial address deliveredat thc meeringofrhe Sociehfor Indusrrialand Organ; zationalPq,cholo$,NewYork. [{illiman,J..Na$n, S.,Zhu, C., & De cieri, H. (2m2). An explonron as!€ssment of the purpos€sof perfbmance appnisals in Norrh and Cenral America and rhe Pa.ific Rim. l' m, R?.rolrre ManaKtunt, 4L a7-t02. Moryeson, r P, Mumford, T. a, & Campion, M. A. (2005).coming li l circle: Using researchand pncrice ro addrc$ 27 quesrion! about 360{egree faedbackprog|ams. C/ruurtng Psrdnlop JournaL ha.tie and R?sear.h, 57, 196-2A). Muchinskv, P M. (2004). 4rhenthe psr-chomerrics of rest deieloF ment meetsorganiati(,nal realities:A concepttralfiamework for organizational change,examples,and recommenda6ons.Pa.somzl Prcholog, 57, ri->2W. Mubaney, R. R. H., Z$ahr, M., & Baranoski, L. (2006).The rrend roward accountabili9: What doesit meanfor HR manage$l Hwaan R2sourc? ManagMt Rtutha I 6. 43144:2. Mu-rphy, K R., & Sazl,F. E. (Eds.) (1990).Psrchrlopin organizations: Int sroting s.ia." onl p.ack4 Mah$ah, NJ: tnrence Erlbaum Nankenis,A. R., & Compron, R (2mG). Performanccmmagemenr: Thory in pmctice?,45tu Pa.ij.lunnl oIHu,tnn RMds, 4a3,101.
42 Proonurcrt"texecwtrr Pettiiohn, L. S., Parker,R S' Petijohn' C E' & Iknt' J L (2001)' ' 'p..i..rnance appraisals: I rsJge(rireria and obenations /olnzi otl4ous.nmr DwlalnvnL 2q'754-7at R h."i;.::';-;r,106r ' 'ertrua" or Malar$ian reachersro$ard a -- ;;".-,...-pp*i'^ ,ster,- ltunar oI At'Pti"n sodatP"hotog' .."lLT:t;#L".o,J. (rses)Perrormance apPraisar inteam ser' """,i.o i"t.Ws.ltii'rcat p-t*^"t' "WuoL statPotttu ar1in uiaie tip.2ar-277.sanFrdn( 'v o Josrv-Bass dniduatmanage- r.r'' j, u., a si-., R R {1995)A h-amet '--' -l'""ia*a"o-*( in th€publics€ctor. A'1ttic P*somzlManagm'llt' 24,5245. n"".r],, i frooel.Higr'Performance ismo'ethana dream-lt's acul- ture.I+A 6o(l)' l2' *",,*.];. ;,",il;:';- t s'""i', A (2006) reamwork behaviors: ^'"1;;; ;;;;' int€srationor rramewotkss*u cnup Rzseanh' i7.540-570. r.r"o. o. e.,* s."1.o f20o7)checkin8 rnwirnLhe r<ientisr-Pt a(uuonel ^""";;i,;;;;; * doi;n,1? rh. tndL'tnators'n"alio*t P'hobs6t .','."1'J]1.::1,L"' ^. E.'& Brown. K G (2002)HRProressionars ""- *ri.r"'.i"", .r..dre human rcsour(epractkes:LonesPond'nre beMeen rcsear(hand Pra(uce Hutun R"oltru Motuptn?nL1I' 149-174. **"' i. i, ii"n' r t., & Brown' K G' (2007)' rhe lery s€Parate worlds '--- J n .a.*i" una practitioner Periodicalsin human resource man- *.-..','irnoi-"I'"^ r"r eviien e+ard manage*.entA'dt'n oJ tion*n rt^n-I so gal-to0s' sd*.';i:,;i;:6. 4 t Fowrles l E t2006)Mcaiurins team Pertor' '*- mence'rnd'e$rld: " challenges andtiP6ln W Bcnnert.C E l-ance -i o. t w".t" ttAs t' Pnla1'utttt" ffiu|Ma: Cunnt p^pt'nt6 -i n i- a-u,i* 1pp 245-2?2) Mahrrah' NJ:l-awrenceErlbaum s.r'..*Ti. izi'o6'J"". r' sHRMan'*Pt4"Iattl'lAlexandria' vA:societv for Human Re$urce Managemenl s.r'"i"'i. Iu rzoozr' ru tud) oltumn am't? na^s'nnt L*sits - "' inti ** .i"a'* Alexand'ria vnuS'xierv forHuman Resour'e Manaqement Foundalron' *".,.;:f;;i;:.t;' 4'.o (20or)strategic perroTal:e.apl*is1f **"ii ,."--u*a ".s,"iations: one sizedoes not frt all A'adery 0l Manaseaott ExaattiLv,I 5' 10l'116'
A ExpAr.'DEDYtEsoF PTEoRMNcE MlNAcnMrNl 43 Shippnrnn,J. S.,Ash,R.A, Banisra, M., C,an,L., Elde, L. D., Heskerh, 8.,Ikhoe,J.. Pedlnan, K, Prien,E. P, & Smchez,J.r (2000).The practice of competencymodelilg. Pe'som.lPr.halog, 53, 703-741. Shore,T. H., Adams,J. S., & Tashchian,A. (1998)-iifIects of self- appraisalinformation,appmisalpurpo*, and feedbackrargeron performance appnisl Erings. /@ruI of Bbiuss anA p$chotas, 12.243 294. Sohani, E. (2003).Towds a TqM{riven HR performanceevrluation: An empirical stud.vant '", Rcl4tiorc,25,347-370. Tht Bakimoft!tun (2003, December l4). The besrappini$ls of workert can b€ simplq objectiviry,feedback are important fearures,p. D6. Thomas, S. L., & Brerz,R. D. (lE)4). Res€arch and pracricein perfor, mance appmisal: Ealuaring ernployee perfomance in America's largestcompanies..MM Ahantul Managa@tJoumol 592),28-34. Work{orce perfomance isrop HR prioriq. (2005r.T+D, 59(7),16.

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  • 2. i oprrlr t 2004btrloFn s ld & bn,. Ini ll nBhnre'^^l c{ eal0}l7al-}ar josb.s.otr' No pan of dL publicrrio' mavbt r€Produ..d, r.r.d in a r€tic2l s or bi .nv ntaq .l€.hni., ddhmnal, Photr.tDinS, r€.ordi4, (mn'ns or 'otRu €! 'pt r pemnrd under :iedDn l0t or lo3 ol rh€ 1976unitd sb..5 c,Drighr A.r' {nhod €nh.r lhe Prior nrntd p€rnision of $c pdblnh€. or Nrh.rtanon thrcush parm.nr or thc ,Pp'.Pn:F lrr{oP! I" to d. cop.{ishr cl.d.e u.nr. Itsi4C86O0, .r dn lne r|?b arr*:top)riShr .on R.qu.ns b .h. p{blnh.r lor P'mision should b. rld( $*d b the Pemi$i..r DrFm€nc John $'Js." & 9'q Inc.. I I I Rnt sft( HotDL'n, NJ 07030,201 t43{{rr l. tu 201 t435x13. or onlin. araa !ir9.om/3o/p.mns'ons R.rdeE lhould & trwr€ tbar Incmcr $lb jd ofi.rdl s .ihdons andlor btrt€s nr tu'de' inromarion nar btrvt tbmg€d or diePp.r€d h.k.n ln. rin€ thi Umn orl.i,biljry/Di$laim.r,fltdml)] rlniL rht pub|nh( r"n n' in pr€panng thn bool. rh nDr. no r.?r.$nadoB orEfrrdrs "ith.€sPe( t b thc a"uraq or :on,pl.renes or rh. ..nt .6 or $n lxx* md sF.iri.allr didrin any imPlitd N:.Rnries or !'r(hmhbint or 6h.s ror a Pannuhr pupoc No {]lrfl! mar b. .tacd or ext.od'd ta sles rep.eknhnrh .r rritkn sal€snarri2L Th. adi.c Md frt.*i6 onhin.d h.rein mr not h ;rhk iq r.r situanon YD should .onn . sid' r Proresionil *her. aPPrcPrift' N'ith'r ']t publiitrr nor aurhor :hrll bt lj2bl€ ror mv l(K or prolit or rnr .tn.. .onnrr.ial dmas6. in'luding bu, n.t linned ro sP(.iai, in.identl, .on?qtrmrirl, or oth.r dmag€! Josey Bs b@Lr rd P.odR! a amilrbl. drousl mdr breldo6 ro .onhd JrM,FBas dir'dr ."rr .". C*--- c-. u.p".-.nt fithin th. U s 3ur9567719, oucid. rhc rr s' ar 3115?2'3s46 Jds,+Bas ale pubhb.! ic boors in r wtn or.l€.hmi. romaa s,nr cont€nr rha' rPpta6 'n prinr mar nor bt aailable n cldronic booL! UbEy or co.rt6 Cidro3i.Gi.nrbbddd De P.domm.. nrn4.m.nt : p nns rer.b inror.rn n /Jm€s $l smitherrnd ou'l p. .m -lTk proftstunal pa.nr€ sri6) ISaN s7a{-17cl9r52rl (clorh) l. cr.€.ddelopmcm. 2 linpr,,rt.noritidon I. snidtild6| ll. r'ndon. Pdntedin d. UniFd sdt.s ol An€da l 0 c 3 7 6 5 , 13 2 1
  • 3. AN EXPANDED VIEW OFPERFORMANCE MANAGEMENT' Herman Aguinis AnExpanded Viewof Performance Management The purposr of this ch:rpreris ro pr1)irte.tn cJran.te.t!'c ot the perlormancc nr:rD;rqcIlrenr pfoccs that subsuDres rhc lrldiri()nal I/O pqcholog pcifonn:ur.c apprai! lilclature. Ii is ar)cxpiur.tcd iiew in relarion ro dle traditioDalI/O ps.chol(,t^oeatrrlenrof the topic irl fitc dillercnr avs. Fir.sr. ir goesbcvorrrtan allrost exclusiteemphasis,so re rLould 5a alnrost aD obressi.trr,on rhe meaurenlcnt ol pcrfor.n arrce aDd in.Lrdcr a considcratii)n oi what happens bt'fbre and iticr pertirn ance is nr(.asure.t (lhat is, the role ol lirne an.l .i) tcxr). S(c(rrd. alth()ugh the I/a) *Thisresearchas(oDdu.t.di.pr hit.tie,nruguirnl,et(trh.Nt..)r.rl{1,n, Tem Profes$xhiu nr hnagrrnenr rh. t-!nertis o' (:olorarloI).n.f nrxl visiling appoinrne.tsat th. t lne.ih ol SihIrarxi (spanrrrnd lrDn.rih (n PuenoPjco.lrharl(.barl.s1.lier(c.tan!ell_on{r.D.iDd.lnn'sDrirheri(, .ommenb on preriou dlari!. Tl,;.brpro n(h(L.s rn oi.t f,on, .rr.l is trased on llre tolloring boofr r$rlni. H l!(lr)!r) Pa/ontn,n,marq.nar! enn cn.). Upp€r SaddleRtr.r. J: Ilrn,r P.en!.. tt.,ll Add.e$.on.spond€rx. r.r Ilenu.ur flrinir. ]'lolc*, ,,f OrgrDtIi.,rrl Behariorod Hunran Revntr..s atrd De.nr. R.a,&L Itotie,r lielle strir .l &^inN, Indima tlnirer sn t.nrail: lknlnri@ indi.x,a.cd,,) CHAPTER
  • 4. 2 rtrrorurrceMrucrurxr ps)cholosv lirerature reats *:':l': t,nHr*T'oPil:J ;::-# #.:';:#*1T.,-fl ,l",tii:::.T,1;,{*." *:;il* nizational psycholog domains {cf Agun *llfl*il:m::;x;;ig,r';]:nfl ,r;'#Tffii 5"".'"*11'flT;1',#i jiT$il*si;;;andclonsidersthe i::l:lll ri"*"w'r ffln:'ffi;ill: ilixHt' T"-l u:1,:x:l,x:':r;xHi::'i::."-'on,informadons! m:m:l*,*"::'[H ;i:fJ:il ffi,ffi :*ilil$ #'il*i*h*,Ti:.':^*fi 'ffi:T:;i'ff I':irtr': ,n. .iJ"* ", *? **ncipractice gapin theareaof performance manag€ment TheScience-Practice Divideand PerformanceManagement IH:"',,j*1:nffi:#x, ETff" research conducted bv ^J"J""J1izoro,,*"-'*.11gT,ilit{ *hxih -iltut#*$igi';i* [.l:,'.'ilffi,ff]ff.illil'lT'l?*;' . Br"""r' 2002: R'ne' L:f; i: ; ffi;. -;t 7) Mu(hinskY .(2004 ) notli,$i,l;JJll;; lXf 'H::'fr ::::J,Tfili#;,-iill;;;;;r,",-'se" *:*'**:'ru'+Y;".m"r*'H":'f:]: "l;ffi*:iilf1:ST*s kii*red,,B' to"nea.other' onemight ;:11'"*f 'l;::"T:":1T1$t$il:'1$: lii:.3"J
  • 5. 1 hp1.'r, D '1f (n prRron! ( I ttr 1Gr.rGr 3 implcfilenra(ion. Ihis ilcreasing scicnce,pmcriceschisDris parrjc ularh puzlling in rhe cascof t/O pschol:rg hcause rhe fit ld Nas crcated iurd secrnsro bc predicated lilndajncr)raliv on rhe prin crplcsol the scientist-pra.riti.nrer Dvfiel (Rass tq74: nrnrkffe. 1990:lclIenl. 2007:lrrryh & Sarl, t!)90;Rrrpp& Beal,2007). Thc genefalscienccPracriccsap is particrrla.lcviden{in the area ol peflinrnancc lnanagcnlenr.ptacorroltcrsare lntcresre.l rn sc|eral issuesdiiccth rclated ft) perfirrar)(e ma|agenlenl, including talenr nr:rnascrenr. lcadership de'elopn)eDr. in(cn sificaticrn oi l)r'ka cnrploefs rn () incrcaseproductiit with tewer rmploccs. ancl nranagingdrangc (Fa: 2006; Schr.amm, 2006;Schwiud. 2007). On rhe orhcr haDd. a reie{ b cas.i() ,r'r,lqrri'ri.,..iririx.U .lr.r1l rlr,,rr1,,. t;e rrr,,,r p,,prrt.ir r,,p,i,. published in ttie Joutut of ttppti{t ps.ttdos,i (J,p) fi c,Il) 2i)03 lo 2007 :rrc (t ) job s:lrifirtn)D,atritu.tes./inoh.emcDt/conrnril trert: (2) rvofl eroups/reams:(3) pertbr.rnance appraisa]/fced, back;(.1)ofganirari(,nalculrrrr.cs. clinr:rrcs. policics,cirizcDs)rip; and (5) beha'x)r,p.cdicrion ot pr.occsses. and out.o )cs.Th^r samerelicl linrnd drar (he fie nro5tpoputar n)pi(s publish(.d i Per.a,d Pst.holagi(PP!ch) also bencor 2003 ar)d 2007 rre (l) behavior'. prcclictionof proccsres and olrtconrcs:(2) perfor mance rplrraisal,/fcedblckr (:l) p5chomcrric,/resling issuesi (1) testvalidit'/?lidatiur issue;and (5) for( groups,/teams (Ctascio & Aguilis, 2008a). Three conclusionscrn bc drarrn from rhis i))t(r.ma(ic,n. Firsr. gircn that Clas.io arrrl Agrrinis (2008a) corlcd rhe articles pLrl> lished in JAP and PPsch using fifr dilltreDt carcBories,rhc con_ gruencc ben{ccrr the li!c, lisls of rhe rop 6e I)ost popular (L,pics is remarkablc and sLLgeests rhat thesc publicarioD rrencls are soundindicarorsol cornnmn, unrlerhing o.endsin rhe rcsearch produced in the field ol I,/O ps'.holos: Secrnrd,a ..rnllarison of rhe topics in which practiriurer.s are inrcr.cstert.irh those in which academics are intcresred rlro{s rangenrial orer)ap onlr: r!'hilethe k)pic peflbfmalce applaisal,/fccdba.k.'s iDclu.ted on tlte lists fi)r borh joufnals. the majoril of articles addressropics that arr nor suflicienrh broad lo address pracrili.)r)u con.cnls abotr talent nlanaflementand lcadershipderelt4rrncnt,to mcn tronJustrrr(). The rhird conclusio| is rharpracririoDcrs inrercsrcd in implemcnting sourrrlr.est'alchbascdpertin-manceman;rqcrnenr
  • 6. 4 ruronNscr {errcwnm tT:ffi;TJ'.1#"*:;Hil1.::"#':"Lil [H,T:- iJ.? ";. ;;:i;;i;J;d berween practitionirintelesbandpubrica- il^ trla. i" t/o Psvchologv' rhereisa needto gobeyond HRM ;;*l.""'#Tin:ff :i'f#3,T'i.,:i"illlin"o^ a.in." p..fo.-utt.. management and describes six kev Pur- li:ffi"*l'r:*.d*".-;ryT#. *::,::l *ll ;:",ii.11;'il'i,"liji'li; each o'iieiss'es dis iussedin thischapter,s€eAguinis(2009)' what lsPerformance Management? Considerthe followingsituation(Aguinis'2009'p 2): ;::t';;:'ii':fi i::#i::f '.i:',ffi'trff '-:l''iJ:#' lit"^.""^. i*t.' iJ"ains reviewingthebudsetsheislik€lvto be :l'i'"'::::n'm*:u.-"mffru1'#f *:*:::l"Ly-*mxi;5;;i ;[7,'flffi :::' .*" ;*::';::u""1'l'E:"m[]H f:F:: ift''* ;:mrum;m;:,;;"lliii ffii'i'""-| il "''::. **:{';j"um*r,i591il:;:"H:*;1T ,i. ir-.. ,cJG', "h.Lo*" "b'* tt''i'"Pe'f**' b..b&' sales 6sures,whichdePendmoreon I *;m::;)#n";:;**6#ift *:::n. of rewards,regardlessof her raungs' "*-ftttr"",l"a *ftty adjustmen6 are bas€don s€niority rather hlt,ll;:**p"::tT"f i:''',#lf; .;,[T!5*".:. ';il'"TTl"Tll"sfi #iL'?:T:;"i"'Ti.;'1iil" ffi;il.;;;;;;; ;e wn nothave ; dear withcomPrajnrs
  • 7. s E r r r r ! ) ' , l s , t r P ! r + o R M 1 N ( : , 1 A 1 ( r r r l or lolknv{rp meerings. Salh lllls ou1rhelirrns i,r lrsslhaDnfenl nunutes andselsbackro bef icalt()b." ,ts is ilhrsrnred b this lii{ncltc. lhich des.ribcs a sirrrrlil,l that i painfulh t:nliliar r() DraD.eadetJ.p.rtbrDlnn(c rrrr!rag. ment svtemsafe ('f(c Lrnder-ulili/cd arrd also|risusrd. ID la.l, rn man organizarIon, poorh iDrplcnrcnred perlbr.niu)ce man;Hc- ment svstems can do rnore hrrm tl)ar)good, asrfasdenxDslr.utr'(l bv a legalcasc in the consrrrcrirm indust. (I'fl (ir.p().xrior). 2000).A {inrale empbcc rasprom()lcd cleral rim(s an(l sllc, ceededuntil shesraf{cdorkine Indcr the supeNis;(,Iofa Der managcr She latcd iI her lasuiltl)at.oD.e shc $as lrrom(,lcd and reportedlo thc nerr m:rnt{er. thal boss;gnoredher.and dnl not gne her rhc anreslrppoi (,) oppornrnilicsfor rrainine (hirr her malecolleacucs receired.lfrer eighr nrontl)sol re.eiin!.ll(t teedback Irom hcr rnanaecr. lihr rtasc:rllcdiDto Ii olti.c. rlhcre the mlna{cr told her rhat she Nasfhilins. resnltinc iD a demo, tion and a $20.{XX} rc(lucri(xrin hcr irDrualsalan.'lren sheron hrr.e{lirirninrr',,n Inr'ir.,,i,,' ,sarrie,tlr,irqt .l r,,i i,,,,i,l emotionaldislrcsand e.on.nnic darnaee. In addition tc,an in.rc:bcd isk ol li(i!.arior. rhefe al.c crral other detrinrcntalortco nrcsof poor]r irnplcrmcn re.l s.sl cnrs.; )clLrrl, ing ernploec burnour an(l -iob dissalisfirctic,n. damaecd rclatx)n- ships,and i cre:rs€drunrcer (Rrofn &-llenson, 2005; (;abris & Ihrke.2001). In addirion, rhere is ir large oppor.tDit cosrbe.arsc poorly rmplemented slstemsrrasrc rirne and rcources. iD.lldiDs Befole dcsigning a pcrfonnan.e nraDagemeDl slcllr. tlrere needsto be a clear definiriotl ol perlirr.rrance nritDr(crJl(.nt.per, formancemanagenrenris a coDtirLrousprocessoI identilring, measurine. and dercloping dle pcrforrnaD.eof iDdiidnals:urd teamsand alignin{ perfirrrnancc 1ith rhe slrarcgic goals ol lhe organization (Aguinis.2009. p. 3). Nolc rhar the ker.c{rnrlnF nentsof $is definition arc rhar rhis is a conriDuo s pt1xes:rDd that there is an alignirc t r'irhsl.a(egicgoals.U a 'ltanager. I;lls out a lbnn once a ciu becauselhis is a reqnircilent ol the "HR cops,"thcn this is ccnainlL nor a c.rntir)Lronspr.occss. Also, er:rhr- ating emploee pcrformrn.e (lhat is, perfb.nrar)ce appmisal) withoutclearconsilerationsof the exren(ro rr.trich an indiridual
  • 8. 6 rtrrorurce Mrucrvrxr is contnbuting to unit and about how Performancewill consistent with thisdefinition organizadonalPerformance and improle in the future ls also not of performancemanagement Why lmplementa Performance ManagementSystem? Performancemanagements)stemscan poses((t. Cleveland& MurPhy' 1989) summar)). s€ne six imPofiant Pur- (s€e Exhibit l.l tbr a Sn**,r r, ttrr* *. organization's goalswith individual goals' h"i..rt" i.i"i"..i"! behatior" consisrtnt with the atainment Exhibit 1.1 Summaryof Six Purpos€sof a Performanc€ MaDageme SFtem' ongoing basis. o,goni-ai*t,*tntn*ng' ltv"l9:t"bj11,":11Y."*'.li: ;;ffi1#ffi;J'Jpo*n'."l -a u"i gn.":l 1'::::l :il:;i'"fid;i; il trsed inworkroice pranl:13^-1"-" of organizational goals' Adninisriattue|r isa sturce ofralid and useful infornation for makinederisionsaboulemPlovees' includingsalarv adjusl- *.t"lp-.",t""t. ttPlovee retenuonor lerminatron ..."*i i"" "f ."p*.iperformance' identificauon of poor oerf6rmers, layoffs' and merit increases' Cnmmun/.al')n: lt allows employees to be informed aboulhow """*"ji ,it.'"-. a"t.'g' ro 'eceiu' i"fo'murion on specilic "."".in^, -"y ".Ja lmprovement' and to learn about ttre l.n"nirurto,t t unOtftesupervisor's exPecudlionsand whal. ".i"." "f*"* tftr.*Peftiv:lr brlietesaremostimPortanl Deltel(hntntat:lt nclrdesfeedback' which allowsmanagersto """'JJ "-or"v.o u"d help them imProvePerformanceon an lin*mT:mm:"*llxTiH:H i***:*,*[:ru;:r:n[r.r#i";$ in a training Progmm)'
  • 9. . EprDrD1r$ (tr PrR!oRrl(.I: lANr(,!^rl:Nl 7 Dorutnentatiott: It |irl<ls data rhat can be used to asscss dre predictive accuracvof nerrh proposed scicctioll instrumenr-s aswell asimportant admin'suaricdccisions. This inlormation can b(:cspccialh uselirl iD rhe cascof litigation. L Sbakgi( lu4n e. R! linking the orgaDizarion'sg.rals$irb indi idual goals. thc pcrfonnance managerrenr svstcnrrcinfrrrces behaviors consistent with rhe arrainrnent of orgrnizational goals. Nloreoier. een il fbr somc reason indiidual goals are not achieed, linking indiidual goals Lith organi/arional goals senes as a wa,to crJmnruni.ate $hat arc thc trrost cru, cial brNincss strategic initiaties. ,{s ar) illustration of how perlornra'r, r rLrrraBemenr can c11e d rfdrr qi, purpoc.r,,l sider the cascof Seal.s Holdings (lorporarion, rhe third largest broadline retailer in thf tlritcd States($55 billnrn in annrral reverrues,about 3,900 rctail stores in the Unite.l Slales and Canada) and thr leading home appliance rcrailcr a]j $cll as a leader irl tools. la$Tl arrd garden producti. horne electron, ics. and automotile repair and nrainrcr)aice (Belner. 2(X)5). Following the melger ol Kmart Corp. and Sears.Roebuck & Comparrr: Avlwil B. l.c$is nas pronrotcd to chiet execntie and tzLsked with a stratcgic culture change iniriatie in hopes of reinr,igorating the struggling retail companr A srratcgic objectie is to move liom an inrrard fo.us to a crrstoner ser tice approach. A second kc obj(tie is to bring about an entrepreneutial spirit rvherebr store managersstlie lbr linarr- cial literacl and are challeDged t() identili opportunities lb. greater profits. Sclcral aspectsof the perlormance manage- ment svstcrnare norv being used ro achirre thcsc stlatceic objcctives.For eremple, emploee dutics and c'bjectiles are being rerised so drat emplotccs will spend lesstime in back rooms and more tin)e interacting $ith customers to lacili- tate pu.chascs and undersLrnd customer needs. In addition, leadership conlmunicati()n r!ith emploees and facc-ro-facc intrraction are being encouraged. l-e$'s sp.nds rhrcc davspcr neek in storeswith emplolees and frequcnth quizzesrrarag ers on their knoi!'lfdge, such as asking about pro6t maryins for a gien department. The greatest compliment emplovees
  • 10. 8 PrRroRM^Ncl:MsNActnNr receive is to be referred to as "commercial" or someone who i*"',*y;'m:llrl.i",i'"Jllf ;tl'Til.'1!r*'lili *l.mll*ll,S:: j:l..fjil:;.::::""".i;fi T::.i:li r,ffi;nn;j;:::TiT:#1,':Ti:#::i ..,*,,r'" p".ro.-.".. -{'g'T'"1 ii]il'ili$il'#f.J i.'.T:'fl i'[l'.:.:llli'"i'*Toli;* *'ariorr as rriricar to ,t..o.prnr'. "t'ttttt in lhe martelPlace' "llru*lg'rur:J;JillilHT.Tir-.ff;: i u".'a.i.,"".-ail"t tmPlo.vees Su'h administrative decisions :**ru:m*v::["J:"."ilil'.:fi :ffi *:1.'": *;**:tL::r::fi i:HI"J;:TTlsi'rs.T lli*'"'n:m'ru:*lx"*'rT:ff ::i'Til::;ili i"" i"." "", tt^'e a good Performance management sfsrcm ilpr...'J-'""'*i*:11':..':TJfi""*'J;:"i.: ilJ":ffilX-ff;:!::'el"oi";;;;."hr'1vre'Ieuntror ,i"'i-f i.,'i'",:.r"" "i-"--:":tfr .1;:Iiii:::^t;;li:i ffiffi:rfu;*"S"x$T*i *n:';g:m'l'1."3:il;ffi ffi::JJ"*':i:ffi: *l*l*i;'f,n"n:$H;'rn:t"Jx*ilJ in:rix"m';':;i,ll l;ffi rff:;'T&f i*: il*ni*'ffl,Ji;;:ro1.{x:,9;n n'.*runl*tlY,lHlil;;lo.H;;;;o;; o"** .'o.' formance management sisrcms'
  • 11. I A EpaNDrD VrEs oF l'ERlotrM^Ncr trN^cr:MrNt y 3. Communicalionputpore A performance management s)stem can be an excellent communication device. EmDlolees are informed dbour hun well ther are doing and r.,.ile inlormarion on specific areas that mar need to be improled. Also, related to the strategic purpose described abor€, per{brmance manage- m€nt s)'stems are a conduit to communicate the organization's and the supenisor's expectationsand $har aspectsofivork the supenisor believesare most imporranl 4. Deo?lofupntallru4x$e. Feedback is an imporranr component ot a well-implemented performzrnce m:rnagement sstem. Managers can u-s€ feedback to coach employees and improe perfor- mance on an ongoing basis.This feedback allows for the iden- tificaiion of strengths and weaknessesas well as the causesfor p€rformance deficiencies (which could be due to ind idual, group, or contextual fhctors)- Of course, feedback is useful onlv to the extent that remedial action is taken and concrete steps are implemented io remed), any de6ciencies (Aguinis & Ikaiger 2009) . Another aspect of the developmental purpose is that emplo,yees receive informadon abour themselves thar can help them indilidualize their career paihs. Thus, the develop mental purpose refers to both short-tcrm and long-term asp€cts of development. 5. Oryaniultimnl nnint"nan? purpoc.An impor tanr componenl of any workforce planning effort is the talent inlcnton, which is information on current resources (lor example, skills,abili- ties, promotional potential, and assignment hisrories of cur' reni emplovees). Performance management s,vstems a.rethe primary means through which accurate talent iNentories can be assembled. Other organizational maintenance purposes served bv performance management systemsinclude ass€ss- ing future training needs, eraluating performance achieve- ments at the organizational level, and evaluating rhe effectilcness of HRM intenenrions (for example, whether employees p€rform at higher levels after participating in a training progmm). h_oneof theseactivitiescan be conducted effectivel)' in the absence of a good performance manage- ment system. 6. Dorxtnenlatiar Pu4nse. Performance data can be used ro assess the predictile accurac! of newlv proposed selecrion instruments
  • 12. 10 Pruonurce Msrcev*.'r lcis{io & Asuinis,2008b) For examPle a newlvdereloped tesl "i*."-o",.i fi,.*.y ."n br adminisered !o all adminisratre o..*"Ji.f. S.".." "n the tesl 'an dlen be pairrd wi r srores collected through the p€rformance management ststem rl scores on the teit and on the Performance measure are corre- i"iJ, ,rt.t tre test can be us€d with future aPplicants for the administratr€ positions Second, Perfornance management *.L-. "1"* f,i. m aocumenation of imporhnt adminisua_ i'"-i*iJ""l rrli" i"formation can be esPecialty useful in the caseof litiFauon. As ,roied earlie.' many Performance management s'srcms are under-utilized and' hence' do not sen€ all ol these slx ;;;;;;. F";.,."-Ple resuls or a sunev o[ industrial and orqanirational Psychologisls working in human resourcrs a..rurt-.nt" in more than one hundred diflerent organt- zations indicated that the two most frequent purposes -are aJministrative (salaiy decisions) and developmental (to iden- tifi €mplovees' weakness€s and strengths) (Cleveland & vil.prtyl rsssr' rhere is muchro gainil organizarions are able lo usr their perlormance mana8emenl svslemslor all six ourooses- This would have an important imPact on orga- ,rirjtio.t" u. well as possibly entire countr:ies' grven the per- vasiveness of Performance management systems worldwide For example, a recent suwey or almost l'000 HRM profes sionals reveated that 96 Percent of Australian comPanres cur_ rcnllv implemenl some rypr of Perlormance managrmenl *.i.'" irl".l.^* & Compton, 2006) Similarly resuls ol "."*.t a 278 organiations aboul iwcdlirds of which are multinational corporations lrom Ffleen diJlerent countnes' indicaredt}lat aboul 9l pertent ol olganizadonsimplem^ent a lormal perlormance mani€emenl Vslem (Lasclo zuuo) 14".""*.,'".grft.Oons with-formal and ststematrc Perfor_ mance manaSement sl"slemsafe 5l pfrcenl mofe like lo oerform bettir lhan the other olgani'/alions ln lrre sample 'reeardine financialoulcomesand 4l percent mole llkell lo De"rform-betlet than the olhel organizations in lhe -sample legard.ingother outcomes including customcr sallsla(lron' ..iolovei r.tention. and other imporonl metncs
  • 13. t I . UprDr D -rrr o. l:RroRu() laNA(,firtsN r ll N4aximizing the Purposes 5erved by Performance lvlanagement: |||ustration There afe ntlnrefousc:llr)pl(s ()f r)rlairriTations that irnple)nenI perfofnra cc t"n?rgenrent svterns lhat allijrl thern to accorl plish rhe mrLltiplcobjcctircr dcscriberiabore.(h,rrsiderthc casc of SEt,ClOGedit Unnrn in Lugere. Oregon. a not-tir.proiit con sumcr cooperative that Nas establisiredin 1936 (Fandl' 2{)01). SELCO'seight bran.hes sene nearlr .ight lhonsand mcm- bers. SEL(]() ollcrs man of thc san)c scr'iccs ollcrcd b othcr' banks, inctLdine personal chcckiug and sarilgs accounts, loans, and cfedit cards. Recentll SELCO scrapped an old pertonnance appraisal svsternand replaced it rith a Derr nlrltipurpose and Norc cffcctive perfomrance nanagemenl sslem.Firsl. the timing ofthe ncw svstcnris nor aligned lith the busiDess cvcle,insteadol the empk)ee s d:rte o{ hire, (o eDsrue lhat busiress needs al.c alignedwith individual coals.This alignnrcnt scr'csboth str'atcgjc and infbrmational prLrpc,scs. Second, rnanagersare gnen a pool of moncy that the' caD$ork ith to arard bonuses and laises as necded,rrhich is nore ellectie than rlre co'nple set ol matrices that had been in place ft) calculatebonuses.This inrproved the i,rav in rvhich the s'sten is used lor aliocadng re$ards an.l rherelbre s€nes an adminisrrarive purposc. Third, rnaraecrs are rcquircd to hae regular convc.sat;ons $ith thcir cmplolces about their per(brmancc and rlake ote of all problems that arise. lbis gilcs the emplorees a clear sense ol areas in $hich the need improvement and also pfoides documen6rion il disciplinaN action is needed- This componcnt scrlcs both irfornrational and documentation purposes. Finalh, thc linrc that rLa-s prcvioLrslr spent lilling out coorplicatcd matiices and forrrs is no$ spcDl lalking rith thc cmplorecs about horl thel can improve their per formance,allowing for progresson an ongoiDg basis.This sel1es a developmenralpurpose. Manl organizations mai halc a sG(allcd pcrforrrar)cc man- agementsvstem,bur this ma! l)c a pcrfrJrmaDcc appraisal at bcsr and an administrarir'c hurdle imposcd b thc HR departmcnt ar $'orst.So it is not sufficiort to hac an Npe ofperfornrance nral agementsvstcm,but one should hare one that serrcs as man' of
  • 14. 12 Prrrorurrcrl-qucwtlr the six purpos€s described above as possible The next section addressesa'performance management process that allo$s orga- nizations to maximize the benehts oftheir ststem' As noted earliet t)erforrnance management is a conunuous process' However, when i system is first implemented, the process follo s rhe following stages(Aguinis, 20)9; Grote, 1996): (I ) pre-requisites' (2) performince planning, (3) performance execution, (4) perfor- -r,r.. """.o-.ni, (5) p€rformance reliew, and (6) Perfonnance renewal and recond'f,cing. Each of these stages is descdbed next' Th€ flow of the p€rformance management process ls deprcteo graphicallyin Figure l.l. Stage1:Prerequisites There are two imPortant prerequisites. ihat are needed befbre a Derforrnance managemenl syslem is implemen(ed: t l) knowl_ eiee ol the o.ganiru-tion. mission and slrategic goal' and {2' knirwledge ol r}e job in question. lf there is a lacl of (larir) resardin"s whererhi organizalionwanGlo go or the Ield(ionshiP tretween the orsanization . mission and strdlegiesand each of its unit's mission ind strategiesis not clear, there will be a lack of clariq regarding what each emplovee needs to do and achieve to helo the ,rrganiralion get thcre. An org:rnization s mission and straregi( go;ls are a resull ol strategrcplannin8' whirh allo$' an organizatron to clearly define its pur?ose or reason ior exrsong' .nh... it *uttt. to be in the future' the goals it wants to achieve' and the strategiesit will use to attain thes€ goals Once the Soals fbr the entire organization have been established' similar goals cas_ cade do$'n*ard, wi(h departments setting objectives to support Performance ManagementProcess Figure l.l Flow of the Performance Manag€ment Process'
  • 15. lpntl-rLs (tr PnRroRlj(.I:I{N( fMr:NT 1l the c'rganiration s olerall mission and objectics. The cascading continues downwatd until each ctnPloee has a sct of goals com patible$ith thoscofhis or her unit and lhe organizatio ls an cample, Exhibit 1.2 sho{s lrof the Ke Bank of Ltah successfullrdcveloPed a Perfonlan.e managen)cnl stenr tha( Exhibit 1.2 Cascading of Goals from the Organizationat to the Deparhnental and Individual lrvel at Key Bank of Utah. Organizational Level . .Xlisliontut,,ttnt'fl].e mission ol dre corPoralior is to oPcrate asa high pcrfo.nring financi:rlinslinrtionpIoliding a ridc rangeof profitable,competitic,arrdsuPerio finrncial services in orLrmarket- . Godb:To attract and tetain an olrtstandiDg staff$ho are highh nrotivated and productile and Jro liSorotrsh Pursrre rerenueaencrarirrgand , ol_rc.hr, Ii.'n l ratcqir' . ,Str.rlzg': (lfiticall) rc,icr| our existing branctresand departments() ensurc(ha(all branchesare coDsis(enl in rh.rrgoal..wrarrgr... anrlPrnlilul,tc'lie. Depar'tmental Irvel . iIission(d?Potn.a ln?I/: $e $ill increrLse thc knorledgc' management skills,and de':ision-making abilitics ol our branch managels so that {e rill mininriTe lossesand other oprr:rting epenses $hile rnaximizing thc prolitabili( ol our blanching svstcms. Individual (Supervisor ) Level . Potitun des(ription lu 111irrrarraga: Administers a co rprehensive human resoulccs Plograln in tlre dilision to ensurc the expertisc. ellectiveness,motivation, and depth (including ptoriding appropriate IrranagementsuccessroD) to the diision's staff rnembers. Individual (Employee) I-evel . Indit luat Pe'fon a .c InfbunatioD on various resPor)sibilities, standardsexpected, goals to be rcached, and acti()nsto be taken ro improve perfo.mance in thc firture
  • 16. 14 Pmroruerctr'texrcrn*r is alicned wi(h the srategic Plan of the organization (Addams & F.mblr'. 1988). To do this' the bank 6rst involcd managers at all hicrar, hnal lelels lo devrlop an orFrni/atjon mlsron stdlr'- mcnl. Next. fiev defeh,pedEoalsan'l su?t(giesthal $ould hclp achieve Key Bank's mission. The mission statement' goals' ano .,*i"gi." "i th" organizational lerel sen'cd as the foundation for develiping the strategiesfor indilidual dePanmeits -and unils To develop these, s€nior managers met with each dePartment *.nue". to ai...,o Oe olganization's goals and stmtegies and to explain the importance of haring similar items in Place in each deoartmcnt. Subsequendy earh ol the departmenul maraqer' mer wi$ his or her employees lo derelup r dcprlunenl mision statement and goals. One imPortant premis€ in this exercrsewas that each depJment's missionstatementand objectiles had to.be aligned rnithihe corpoiate mission statement' goals' and strategles ie, "reattirod.nai and departmenLJ goal arrd ualegies ^(re alil.ned, managelsand emPlores rriewe'l indiidu'Jl job descrrP tio-n,.Eachi.u"dernption wasuilored so thar indiriduallob tc'pon sibilities weie cler and contributed to meeting the departmenfs and the orsanizations obiertile' tnrohing emplo)eesin this Pro(€ss ft.ro.i,rt.- ro gain a cledr undersrandingol ho$ lheir pelfor- mancr aflecred rlie departrnenl and. in lum the orydni"adon' The second important prerequisite befbre a Performance man- aeemenls]stemii implementedis lo undrrstand lhejob in ques- rion. This is d.ne r}iough lob anurlrsisJoh analrsis is a ptoce* o[ delermining the key romponens ol a pattr(ular 'loD_In( luo- ing activities, ta.ks, p.odu.s' s€nices, and Processes There are ,r.r-'me.,r..sqpes oflott analltic tools' including some that focus on soccific oersonalii trarls needed lol lariolls Positions {Aguinis v-rrt i"*.t. & Heggestad.2009) A job analvsisis a fundamen- tal prerequisite of an"yPerforrnance m?rnagement system' Withoxt " iif urtutrti., it is iiiB."lt to understand what constitutes the reiuired <iuties for a panicular job lf we don't know what an .-ito-r"" i. ".rpp{)."a to do on thijob, *e won't know what needs to be eraluated and how to do so' Stage2: Performance Planning The performance planning stagehas the goal for emPloyees to hale a thorough knowledge of the Perfofinance management qstem'
  • 17. . t - r r t r i ) ' r ' o r l , ! R r r l R ! { r t { 1 ( r r r r i i ln lact. nt the bceil)niDg ()l each FrlirInincc (clr. tl)e npcnisc, and the emploee meel lrr disclrss. rncl alrree()n. 'ha(Dccdst() be ddle rnd how ir shl)rLltl be ctonc.This pertomra (c planDinedis cuisiur in.hL(lcra consi(l(ri(i(nrol (l) r.sulr. (2). b.hai('s. aD.l (3) derel,,p'nenr plaD. licjlrrr. Rerrrftsreler r() what needs ro be d(De of lhc out cornesarr enrpk)i1r rur prorhr.c. coDsi.terari(nr of resutts needs (f ilclude lhc ke! ac.()[n(al)ilitie.or broa(l areasol a job lbr $tich rhr cnpk)vec i rcp)nsible lin.producing resrl(. A discussion of resulrsxlso irclurles spcci6r obje.ri.r's thar the cnrplovccrill achierc 1 piur ol each lccounrabililr. Objcctlres are s(alcrrenlsol irriporranrrnd nlcasurableo lcornes.t'iDalh. div rr*rrrcr',r rlr..rl'urrr..rr.(li' ,j*,rl- I'Frt,,r,r.,r, c .r,,1,t.r,1.. ,A. pfffornrance s(tndard i.r :rrclrickuse.ll{) cvaluateh(nf wcll emploeeshrrt a(hiere.t er.h objecrre.P.rfonIla,.re srandirds provideinlbfnrrtion aboLrr lrcepribl( rnd ur)a..eprrtrlcpcrf{)r, nrance(lor canrple, quirlit,quanril. (o1. an.t rimc). (i)Dsi.ter the.job of unnersir profassor. Tr!(, ke acco nrabilitiesare ) teaching(prepirutiorl and dr.lit.l ol insrrncrionalmarefials(o srudcnts)rn.l (2) research(crfation an.l disserniDari('r ()f rcr knor,!ledge).An objecrive f1,, reaching c{)uld be 1() obrai,i a slrtdrnt ev:rlua(ion()1rea(hing perlornr:rrrccot 3 oD a l poinl scale.,n (ibjrctie lor rcscarchcoul(tbc to publishxo articles in schola|lr reiefeed jourllals per car: Pe).tormanrcraD.tar.ls colrldbc 1o obtain I srlrdenr caluati()nol reachiri{r perlorlnancr ol at lcast: on a lpoi[t scalc ar)d 1o publih ar ](.asrone iiicl( in scholarh felrrced joufnrl IJrr ear. Thu. rhe obje.ri( j the dijsiredlecl of perlbrnrarrce. rhere;tsrlre san.tafd is usuali :r "ri in,,'r', .,,, ' prJhl-lc, I ur prr i,,|'r,.,I( , . B.r.n,n,r. Afthortgh it ir irnpomnt 1(,n)easurercnrtl. aD exctrF sir€emph$is on fesulrstan gire an incorrplere pictLrc olenlptt)ec perlornrirnce.This is lralti.ul;rh rrue r()d.t lrcausc. in conlrasl lr) I n el r i | r . r r r l r i ' : r l " r q . , n r / . U i , , r , l r . r r r , , l r l l i - , o r l I e r r 1 1, , r q , rr / . , tion,the 2Is({cnrlrl'i oflrirrji,,ation is lar rrx)rcliLeh ro lrok like a ifeb: a flal. ilricareh (^cI n)rm rhlr links pa Dcr.s. crnplo?es, txtemal c{,ntri{ctors.supplier. an.l .usr(nnersin r io s collab(r.a- tions ((iascio&-rI.uinis. 2008b). A..or{ljngli: lor sonrci(,bsit nlar be diliicult to est^blishpreciseobjccrircs an.t srlndirrds. tor.olher. jobs.cnrplovees nravllae c(n(.ol oer ho.rhc do rheir j(nrs, bur not o'cr dle renll of rheif bchaiors. For catDple, the sJes ilsurcs
  • 18. l6 Prrroruarcni'l,srcennr :*ffiTili"T:i,nfTff il"fi "b**il'tr:iff *'fil tr.Ttr"l:?i;U'#'ryi****m ::hT",:jr"ji:i[',j"#,,Tl"fr T,"uil;A;lrettilor,n,pa'k t' I'lll:ff f^i'l;itll'*n"r.o," incrudes dis'usins (omPrten- .*'.-r'i.r'l*meaurabre crusrers ollllil'ii-l'Ill]i,lil,iti ::ffi.':ffi IJlil,il'ilx".:1'l"rffiil*-ires o'| c'rmperen ;;;""i.;.. ".'ruice,*"ritten or oral communicauon'creanve [*:]l*"tril*l',t-.:ll]:i!f '].JT jfuffi.,;; ::si^",1:?;'T.:'::J#:l'ffi "'Ji:'':J*tl.**iffr i"tr* lH'ffi iiFJi:::*$r"i::'I#"* skills (for examPle' in the chat room) ' ;ir',rq;rtlru":*T+i:Jff "f **..1;.* ilI'.lXl *:: illT,H;:l'".1f li,ilg' ili.i"*,.n'"".0 *.;*'n*iim*1ff H';:; J'#,:l lT'Ifi i:il"#i: kn:;F*:m:ffi ;"','n'*;lrut:;"' ;;.1;;;;i; ";J "io"*'*.1::l; i:*a":n:l JIX:1': :iff:i:; :l:1.';lH;[il."l",.,.lrii:Tii,i::t J,'J,,: delelopmenr plans allow employee questrons: . How(an I contrnualtylearnand growin de nex(yearl . Howcan I do belter in the future) . H.r*."n t u"oia ptrformance problemsfacedin the Past?
  • 19. l : I I h Errtr rl [ $ (, PrR]oRr1( I taN 1r,rN! NI ll Inlbrrnatior to be uscd in clesigningrtelelop )rDr plaDscomes Iiom the appnisal lir.rn. Specificalhr a dcrelopnrent plan can bc dcsignedhasedon cach ol rhe pc.firr)rance rtinlensi()ncalu atecl.For ermple. i{ thc perkrlnrancc di )cnsion comn]lrnica tion" is rate.l as substandard. dris arca rr.ould be rargercclbr the de!clopmentplan.In acldition, horrercr:clcrelopmenr plansfocus on the knor'lcd!.e aud skills nccclcd li)r rxn.e lons-trr'm career aspirationr. In atldition ro irrprorcd perlormallcc,rhr inclrsnnl ol declopmeDtplans and, ir rrlore eeDcralrcnns. the identifi- cation of empl()vec strengths and Neakncsscsas parl ol lhc pcr tornunce nlrnagcmcnt ssrem ha.c anolher importanl bcnefit: entploreesare rlore likeh ft) llc : isfieclr.irhrhe srslcnr(Bo$!ell & Boudre:ru,2000). The direct supenisor or linc Inallagerlrasan irrporrant role in the crea(ionand conrpletiur of the emplo.ecs clrelopmeDr plan. This actie role $ill help the superrisor understaD.trhc processfrom the emploees perspectilj,:urticiparepolenti:rl roadblocks and defcDsie atrirudes.and create a plan in a collal> oratie Iashion (Dunnnlg. 200.1).!'irsr. rhe supenisor r)e€dsro explain lhat $orrld be re.tuircd for tbe ernp)orc.crc,achiele rhe desiredpeffbrmancelerei, inclrrdirrgdle srepsrharan ernpl(xee must take to improie pe.fornrance. This inforJnati{D needs to be providerl togerhc. rrith irfi)rmation o,) rh€ probabilin ot' success if the empklrcc conrpleres rhc sLrggested sleps. Sccorrd. lhe supenisor has a priman lolc iD refe:r.ing rhe c plolec ro appropriate dcrelopment acliirics rhar can assisr$c crnplovee in achievineher goals.This inclrrdes helping rhc ernplovee setect a mentot appropriarc rcxdnrg resour.cs, courses.aDd so lbl.lh. Third, thr supenisol rericNs and nlakcs nrggesti(rrs aboul thc deleloprrent objectirt. Specilicalh; rhc' supenisor. helps irssurc lhc goalsare achicvable,spe.il;c, and doable. Follr.rh.rhc srpeni, sorh:rspriman resFmsibili[ fbr checkiDgotr rhe cn)ploee'sprog, resstor?rd achieing thc dcelopmerr goals. For ex:unple, dre supenisor c:rrrremind thc empftx€e ol duc datesand reise goals il needed.Firudl; lhc supenivn needs to proride reinlbrccmcnrs so thc enrplolee will be motiared lr) achi$e rhe .terelopnrcnt goals.Reinlorcemcnts can be exlrinsic:u)d iDclude rex.ardsluch as tFnuses and ildditi()nal beDefirs,b r reiD{arcemenrscan also
  • 20. 18 P.RFoRvacLM^N^cEM.r include the aasignment of more challenging and interesting work that takes adantaqe of the new skills leamed. Supenisors themsehes need to be motirated to Perform func- tions ihat .llill support the employees'completion oftheir deleloP ment obiectrves.For this to bappen, supenisors must b€ rewarded for doing a goodjob in helping their employeesdevelop. Consider how rhis is done at Kl-{-Tencor C,orPorztion, one of the horld's top ten manufacturers ofsemiconductor equipment (Ellis, 2003). Af KLA-Tencor, between 10 and 30 percent of supenisors' bonus pay is direcdy tied ro employee developrnent. Employee del'eloF ment is measured in terms of employee training and certification levels. Managers are gilen at least quarter updates on the sta- tus of their staff development. In addition, employees themselves are reLffded for engaging in development activities. In fact, only employees wiih uptodate raining and certrlication levels are eli- gible for bonuses. Thus, employee derelopment is successful at KL,A-Tencor because both employees and managers are direcdy rewarded for employee develoPmenL Alter several years of imPle' menting these pracuces,emplo.veedeveloPment has become the norm and is plLnol Kl-A-l-encor'sI ulturr ' As an example of the implementation of development plans, consider (he caseof General Mills (Ellis, 2004), where individual development plans (IDPS) are promoted strongly throughout the company. The Minneapolis, Minnesota-basedG€neral Mills is an inlernational foods company. Some of the best-kno n brands include Pillsbury Cheerios, Green Giant, and Yoplait. The for- mally wrirten IDPS are completed annuallv, but the exPectation is for ongoing conversaoons between managers and emPlo,vees' focusing not only on comPetencies that are well developed and thos€ that are in need of improvement, but also on employees' carecr aspirations.The romPanvs IDP scason Promoles lhe process for employees by hosling speake.s, offering web-based learning tools, and holding workshops for emplovees and man- agers to get lhe most out of the procei.s Some of these sessions are specifically tailored to different kinds of positions within the company with different needs in the development process.Also, the IDP is kept separatefiom the annual performance apPraisal, as the b€lief is that development planning cannot be sufficiently addressedin the context ofappmisal.
  • 21. [prr rJ ft s or PrRroR1( | IlaN (,!N!N1 lt] !'illalh a ftxrl tha( has bccor)rc polrular in helpiDg empk)rccs, parli.ulaflr thoe in supeniso'' roles, irnp.oc pcrf()rn)alre b galhrling inldrnation lrom.iifiil.cnt eroups is the 36(!.tegfce ieedhx(l svstcrn (l(nseson. lrrrlnrrl. & tlanrpnri, 2(X)5). These ssremstle cirllcd :16(klegreeslsleInsbe.ause irlli)rmarion i calh- ered liom in.liichal :rllaround rhe eIrlplolee.Spe.i{icalh.inldf- m;rli()non tal pernrrnrancedinleDsions .oLrldlr implr^cd i gathrrcdfronr slrperiors, peers..usr()rncr'. nDCl sub(nclirratc. Ihis intornrati(mis usrralhcolkctcti aD(nNnroudrn) nrinin)izer':rtini{ rnflati(m.Empbrccs also ratc thenrselres on the i{nrsperlor- nance dinrcnsi(rrsarrd co:npareselherceprionsrLith rhc irJi)f- malionproideclb others., t{apaDah sisiscondLrclccl r(,cxan)i c the rfcas for which there are l:rrge.lis.rcpancicsbctwcer sclt perccpuons rrd the percepli{)ns ol orhcr.A 36(klcerccfcrdback svsrcnr.cPtrt unralh in.ludes inlalrrati.r) (rr dirrc sjoll li'r idrich thereisagreemenl(hallir'lhcr dcrckrprnerrt isneederl.l his rnfdrmrri(D is usedro crcltc:r dt'el4rrlent pian. Implemenling a Sti{trdeerec fi'cdback s,tlenrshould Dol be.r one-rimc-onl! ccnt. The sstcr)lsholrld be in ph.e and daLl collcctcd ()cr tiur.()n an ongojng basis.Ihe imptemerlari(rr of urgoiDg 360tlepee lee<t back srstcrrrsis sonetimes labcled it 720<lc!.rcc tfcdbacl svstern. rcfcrrirg to the lacr dr:l rhe c()llccli(rr of 360<legree data takes place at least rlri.e. In shr)r'l.adrninite llg the slstenl orlh oDce $ill not be asbcncficitl asachrinistering the ssren repealedl. ()nce (hc prclrquisitesare rrreland the plannine phasc hirs beencompleted-r'eare rea.lvro bcein lhc ;rlploncntation oftLc pctfcrrnrance managerrrenlsrstcrn.This nrcluclespertirrrnance cxecuti(m.:rssessnrcnt. rcricr, arrtlrcll$r'alan.l recontracrjnia. Stage 3:Performance Execution On.e thc rcior crcle begins.Ihe enrplo'('cs(ric l() Irroducr the fcsultsand displ:rvthe behai{)r a!.rccd 0rr earlicr as nell as to r.ork on .leleloprncnt ,)ccd. Ihe ernpl(xee has primar' resporsibilin anrl drneirh{r of this process.Empk^ee pani.i- p:rtion .toes nor bcsin xt thc perfom)ance execntioD srage,h()$- ever. ,{s noted carlicr,cnrploreeslleed to hae adie inpnr in rhc deelopm.n( of thc job desc prions. perlbrnlan.c slandafds, and thc crcation of tlre lating lorm. In addition, at later stage.
  • 22. 20 PiRroRM^NctNr^NActvtrr employees are actrve ParticiPants in the elaluation process rn thai thev provide a s€lf-assessment and the perlormance revlew inteniew is a t.*o_way communication p'ocess' Although the employee hds Primary responsibilities. for Derforma;ce execution, the suPenisor also needs to do his or i.. sha.e of the work. Supewi$rs ha€ primary responsibility ol'er the following issues: . Obta- olioTtonl do.ltnnlulion suPervirots musl observe and document performance on a darly basis lt is important to keeo track ofexamples of both good and poor performance . t ralr.er.A: r}le oryanization's goalsmav chzLngeit is imPortanl rJ uodare and tl"i.. ini,int objecti?s standards and ke) accountabilities (in the cas€ of results) and competency areas (in ihe caseof behaiioE) . . Iaadbacft.Feedback on Progression toward goals and coaching to improve performance should be provided on a regular basis. and certainlv before the review cycle is over' . R"sorrt"r. Supervisors should proride employees with rcsources and opportunilies lo Partrcipale in detelupmcnl activiries it'"t. ir'.y sh'uld encouragi (and Ponsol ) parti( iPation in training, .la-...es,and sP€cial assignments Overall' supervisors have aiesponsibilitv to ensure that the employee has the nec_ essarrsuppliesand tundinB lo Perlorm the iob properlv' . n"iri-ilrr,^t. supervisorimusr ler emPlovresljto]v rt-ta' itt.i'. o,tt.t"nalttg performanceis noticedby reinforcing effective behaliors and Progress toward goals' Also' suPe _ sors should Provide feedback regarding negative Pertornance and how to remedy the observed Problem' Observation and communication are not sumcient Performance problems must be diagnos€d early, and appropriate steps must be taken assoon asthe Problem is discovered_ As an example of this shared responsibility in an actual or€a- nization, consider the ca-s€of lnckheed Martin CorPoratron' an adranced technology comPany that as formed in March 1995 with the merger oitwo of tlre world's Premier technology com- oanies: t ockhled Corporation and Martin Marietta corPoration' i,ollfr..a Uuni" ftu. .pproximately l'10,000 employees worldwide
  • 23. I t !_f rr D rl or pi:RroR!rr.r Ur1rror ,ll l lhc Battiit ! Surr, 2001t). The arc engaecd in thc research. dtsign. dcrck;pnrt.rrt, manufacnn.c. anrt i regmrioD()f adaDce.t tcchnologr s$tcrlls. pr.rxlucrs. and scr.!ices.I_orkhee.t Ntarrirl s pok)nnar(r m:rnasementilstenr jrcludes the aclic l)articjpr txrn of both rr pkxces arrrtrhrir supc|risor.s. Spcciti.ath.crnplo- eeswrite rh(ir orrn pcrk)rmirncer)aDlgenen( objectncshasert on (nsani/atrcnand unir objccries. Tl)eD,rnaragells irpprole rhc objcctnesard:rrc cu.ourrge.t ro gje ong()irrgkcdback atrur tlre pmsress r(xvar.lnrcctiDqlhe obj(c(ies.Thc acnral p|Itor_ manceapplrrisal ldrln isan elccrroDic, ('l)e,paec cornpulerscreen. 'Ihc progmnr ras clesigned ro "in.nc enrptoeein sc[ing rh(.ir o$n gollls. to m"le dlosc lroals(:1car. aDd to prolidc reglllar.fcr:rt, backon theil p|ogress roirrrl r.hiciDg rhosei{oal.,. 'har derefnrinesrtlrrther an cnrptorceis perfonning {cll or not?r cornbinirridl of rhree licr().s :rllowssonrcpeoplc 1()pef_ form ar hiflhcr leetr rhan orhcrs:(i)tteclar.arireknoil(.dge.(2) proccdural k'loltledge. and (3) motjarion. Dec]ar.atjre kno$l edgr is infirmr(iclIr ihort iacrsar(t rhings,in.ln(lirrg iDliirrna- tiorrreeardineir gien tasks requiremenrs.labcls.principtcs.and goals.ProcetiLr.alknoi'ledge is l colnbillrrj{D (,t knoNins whal l{) do and hoN ro do ir a,rclin.h,descognilne. phrsical.pcr(rtrnral, motor'.:rndinrcrpel:(nlirlskitti.t(niarjur iD(tes rhfcc h?es ()f choicebehatius: (l) choi.c ro eripcndefibrt (Ior.eranrple. ..t $ill go to wofr t()da"), (:,1) choice of lerel of efio (for exa,Iple, "I $ill put in mr besrr:fhl r ar rork rcrsus ..t ljll nor rl ien. h a ' d , . . , n d. 3 ' , l r , , i . 'r , ,p e r . i , r r r h , c p e r , , t i t | c n t r l r . , r t c ! . 1 ofeFort (lbfexamplc, I 'ittsieup aflera lirrlcrrhite..rcFrrsIrvill persi( no nl:uterrlhar"). BecaLrscperlbl rance i afiectcd b rhc combinctl efiicr 01 threediflcrent lirct(ns,rna|lagers rnlrsrllDd inlb.rlatjon that rili allorvthcm ro uldersraDdwhcrher rhc sour.c of the problen is declar:rrie knowle.lsc, pr.occtlur.al (llo{ledge. moriration, or somc combi arion of rhrse tl)ree fac&)rs.If an enrpk)eelacks motiiationbur rhc manaecrbelicesthe s(Jlrrce ofrhe problon is declaratire knoledge, rhe manager mav senrl lhr ernplocc ro a companvsponoredtr.ainingprogmm so thar hc ran acquirr the lno$tcdge thar is presumabh lacking. OD tbe othrr hand. if nlori_ latron is dre problem. then rhe implcrnenrati.,n()l somc tlpe of CP plan nrr he a good inrenenli.rn. This js rfh. pcrfonrance
  • 24. 22 Prrrotuxcr t'lrMccun".'r manasemenlsyslems need not on to measurePerfolmancebul alro to'ororide inltrrmation aboul lhe sour(e ol any pel formance rleficiencies,which is done in the p€rformance :rss€ssment stage' Stage4: Performance Assessment ln the as.s€ssm€ntphase, both the emPloyee and the manager are resDonsible for elaluatingthe exltnt lo which the desiredbehav_ iori hare been displayed.and whethel the desiled resulE hate been achieved. Although many sources can be used to collect oerlorman(e intormation (lor examph' Peersor subordinales) in mo.r care. rne direct supewisor Providesthe inlormadon This also includes an elaluation of the extent to which the goalsstated in the dereloPment plan have been achieled This is the stage of the performance management process that has received the *"rt."i "tt rrtion from I/b psychology researchers (Aguinis & Fierce, 2008; Bennett, l-ance' & r,!behr, 2006)' It is imDortant that both the employee and the manager take ownershio ol the assessmen I proress. fhe manager fi lls oul his or her oooia;"al form, and rii employee should also 6ll out his ". rr.i io.t". Trt. facl lhal bolh parues are invohed in the zssesv ment prolides good information to be us€d in the review phase' !hen both the employee and the suPervisor are acu{e p:tl:ncF pants in the evaluati;n Process,there is a greater likelihood *lat ihe infor.rtation will be used productively in the future SPeci- n.lU ttt. inclusion of self_mtrngs helPs emphasize Possible discrepancies between self-views and the views that imPortant other; (that is, supewisors) have lt is the discrepancy between these t-*o views thit is most likely to trigger deteloPment efforts' Darticularly when feedback frorn the supervisor is more negatlve ihan are employee self_eEluations. The inclusion of self-aPPraisals is also beneficial regarding important additional factors. Self-appraisals can reduce an employ_ ee"s defensiveness during an appraisal meeung arrd increase the emDlovee's satisfaction with the Performance management sye i.,ri. * *"tl * ""tt*ce perceprions of accumc-yand farm€ss and therefore acceptance of the ststem (Shore, Adams' & Tashchian' 1998).
  • 25. I rD.D rlr or I}:RroRrA.F Nl1N1(,rMrNr ll Ar an illrrstlation, corrsidcr the caseof [.NSR, a tirll-scrice glo bat pr<xider of cnironnrental and encrg' de|elopment seniccs to in.hst.t and golernmenr (IaCharce. 2006). ENSRs l$o rhou sanciprolessionrlspr()ide clienrswirh ..nsulrnrg, engineering. remediation. and related senices liom Drorc than serenrvr()rld- $ide locations.including fort,lie in (hc Unircd States.INSR h:rs createdand utilizesa scorecad ith six categoriesrhar are directl' linked to its 6e-ve: ision: hcalrh and saien, errploree cngagc- mcnt, client louln, cost itanagenrent, prolllabilir.r, and re.enue groN.th.This information is Ised in rhc colnpaDr's elaluation ol curfent pc.forrnaDce fi)r indi|iduals and groups uith a scorecard lha( shors cLrrrentperlbrnrancc against "arerage' in(ernal pcrfor mancc and 'top 25 perccDt pcrforrnance. {anagers a.c cxpecred to utilize the scorecard i|l discussionsibour perlbrm?r)cc and to discussthe relationship bctseen the merrics and rhc direclies and initiariles frorn senior rnanagement. Th( corecard is a i(x)l used to motiYate emplorees ro achicvc top perf()rnrance an.l lo proYidc a clear link ben{ecn cach indi|idual and leam acriirr to thc strategicobjectircr of the organizarion. In surnnar, LNSR utilirera h.rlan,e,l vure,ard r, l r,, jir ma|l.tH. j I'r a5.csrnH and reiewing perforfilance and ensndng a closc link ro rhe objec, tivesol the organization. Stage 5:Performance Review The perfonnance reiie slagc inrolres the meering betl,rccn thc emplolee and the managcr to reier their asscssmcr)rs. This mccting is usualh callcd the apptaisal mecrine or disclrssioD. Thc appraisal meeting is importanr becauseir prrJvidesa fonnal setdng in rshich thc cmploee receivesfccdbark on his or her. perfbrmancc. In spite of its imponancc in perftrrrnance nanage- ment, the appraisal meelirg i5 oftcD regarded as rhe "Achillcs' heel of the entile process" (Kikoski. 1999). This ir becauscnanY managers are uncomfortable proiding perlbl.nrancc fcedback. particularlv rvhcn performarrce is deficicnl (Ghorpade & tlben, 1995).This high k:vel of discomlb , $hich ofie| translatesinr() arlietr and thc aoidance of rhe appraisal inlcnic$, can be miti gatedthrough trainirrg those responsibJcfor proridirrg feedback. Providing fcedback in an ellcctic manner is extremeh important
  • 26. 24 P*ronvercnMrNrccvrM because it leads not only io perforrnance improvem€nt blrt also to emDloiee satisfacdon with lhe system' For examplc' a studv i"r.rri'"n'-".. than two hundred teachers in Malasia' includ- i"" i"alila"^r. -";,rt distinct chinese, MalaY'and Indian cultural ir?l*.""ta", found that when the,v receicd effective feedback' ,fr., ?.ooa.d g..^t., satislactionwith the 'rstrm een I'hen lhey ,..ii'.a t"* frtr".-an(e ratings {Rahman 20o6lAl lhi' Pornr' io*.n ., t"t .'.-ptt"tlze thatpeopleareapprehensie almrt both receiinq and giing Prrformance inlbrmation and lhis dpPtehen- si.rn reiifor.e" rie intponance ot a lotrnal Perlormdn'e re ier as oan ol anYperforman( e mani{gemenl svlem For example Ja(r W.t.t, r".-., CEO ot CE. ha-s addlesed rhis issuein Inanv ol nrs oubli. "op.*n....in(e he rehred Al an apprarancein fronl ol i" l"aiJ'i. | "r abourt*o rhousand managers hc astc'irhemil' their orqanizations had integrity (Rogers, 2fi)6) A5 $as expected' " "^, -'.1";," "f -."agers'-about 95 percent' raised their hands' itr"" tt"L[a the saml audience if their organizadon's leaders Drovide subordinates bith honesl and straighforward Pcrfol_ mance feedbatk. Onlv about 5 Percenl o[ lhe PeoPle rarseo their hands. Avoiding giving negati€ feedback is ery dangerous becaus€ it conveys the message that mediocriry is acceptable and damages the morale of the top Performers' tn "*o., ,t.t, rhc aPpmial meeling is regardedas a rcrcw ol lhe pasl. lhal is. whal wasdone {resulls) and ho'! rl i'rs oone it.touio..l. f-.*u-ple a suney including more rhan l50orga- nizations in Scotland showed lhat Perlorman( r managemenl svs- ;;; i; -;t. than 80 percenr oi organization' empha'i/e the Dast{Soltani,2003) Howeter' lhe aPpraisal meeling hould also include a discussion of the emPloyee'sdevelopment progress as *.ff * pf"". for the future The conversation should include a Ji"...rriin of eoulr.rrd development plans that the emPloyeewill i. .-o..i.a io achieve over the period before the next review ;;ttJ. i; addition' a good appi'isal meeting incllrdes infor- -o,ion o" what new co-mpentation' if anv' lhe emplovee m2) be receivjngasa resultofhisorher performance lnhorl lne appraisal disrussion locus€son lhe Pasl (whal has been done rnc how), Ihe pres€nl(whal comPensationis Ieceiled or denied asa result), uni t}e l,.tu.. {goals lo hr alEined brfore lhe upcomlng reiew session).
  • 27. A lip1Dn) 'rlr or P.RroR^r4No }{1-Acry^r l5 ln scneral. (;rossman aDd Parkinson (2002) offer.rhc follo$" ing six recommendarions lbr conducting ellicrive pe.formancc l. Identih whar the emploree has done l.ell anct poorlv bl. cit, irg specilic positie and negadre behaiors. 2. Solicit leedback fiom vour cmptovec abour (hese behaiors. Listen Ior rfacriotrs and explanariorr5. 3. Discussthe inrplirarions of changing, or nor changing, rhe behariors. Positire ficdback is besr, but an emplovee musr be made a$are ol $hat i{ilt happen if anr poor pertbrmance 4. Explainro the enrplovechor.ski s usedin pasrachicemen6 can help him or her olcrcomc an.r'curreDt performancc problellrs. 5. Agree on an action phn. Encourage rhc emplo,veero inesr in improving his or her pcrforrnance b asking qucsrirrrs such as 'lhar idcas do r.ou hare for _?. and ..i{,har sug- gestioDsdo You hale lbr _?" 6. Set up a mecrin€Jro folkxl up and agree on (hc behaviors, actions.and artitudes ro be elaluated. Stage 6:Performance Renewal andRecontracting The final sragein the perlbrmance processis renewal and recon tracting. Essentialltthis is idenrical to the perfor.nranceplanning component. Thc main difference is that the rencwal ancl recon- lracting stageusesrhe insighl-sand informarion gained fron rhe orher phases.For exanlple, so[le ol rhc goals mav have bcen set unrealisticallv high eiren an unexpccted economic do$,nrurn. This ryould lcad ro setting lcssambiiious goals for rhc upcomiDg reiew pedod. The performarrce nranagement proccss incluclcs a cvclc rhat starls $ ith prer.,luiirc! an.l e||dsNirh perl,,rman,e renctldland recontracdtrg.'l-he clcle is nor oer afier rhe rcre$.al and recon- tracung stage. [n fact. the process srarrs all o€r again: rhere needs to be a discussion of prerequjsites, including thc organi- zations mission and srrategic goals aDd rhe job's XSAS.Becausc marketschange, customcrs' prefcrences and needs changc. and
  • 28. 26 Ptrrorrnrcrueneceurxr Drodu.ts change there is a need to contlnuously monitor lhe i..r*to-." i dral perlormance Planning and all lhe sut] l.ou.n, .oe.r, are consistenl r*rlh lhe organizatron s lraleglc obiecLires.iecall that in rhe end one of the marn goals ol anv i]li"r*""." *rn.e.menl slslem is to promole the achievement ii "tg""t"t,i." *a"" goals bbviouslv' if managers and emPlov- "." .i. ,to, "r"-. of thes€ strategrc goals' it is unlikely that the o"at"a--aa --"g"ment systemwill be instmmental in accom_ plishing the strategic goals. Additional lssues to ConsiderRegarding Team Performance A tram is in place when two or more peoPlr interacl drlami- ;il;; ;;,J;;;endv and share ^ 'o"on and valued "li. "ui*i"., .'' -ission (Reillv& M(courw lg9l) Examples :i;;;;*. from a group ot top managers working rogerher i".oi-f".. &r an ongoing uaslswith the goal of achievrng cor- Jo.u," no"l. ,o u group of Programmers in India and the Uniled i;;;;." p.3s.";-i;'s iode rhat eventuallvwill be put ;;;;.' ,; "'J *i*are pro'gramTeamsdo not havero be per' rnln.nr, -a leam membersdo not havelo br in the samegeo_ sraDhicallocation.ln [acl. leam memtrrs do not nred to have l..i -"ii" oersonlo br members of lhe samcteam Aslongas trt. *"ti id",n... "..a eacholher' and sharecommon Eoals'thev ureconsiaeia to be membersof lhe same(eam Numerousorgd- l;;;.;. structured around teams' including teams called autonomous work groups' ProcessGams' and self-managingwork teams (S(olt& Einstein.200l)' Organizations (hat choos€ to include a team component ln thJ!..fo.-.rr.. -anagement q/stemmust Provide answersto lhe following quesrons: l. How do we assess relative individual contribution? How do we ' 't"'"* ,i" .*,.", - which particular individuals havecontrit> .,iJ to i..* ..r.ttar How much hasone member contr:ibuted in relatioD to the other members?Are there any slackersor i."otiJ.." "" aft. ,.-? ls everyoneconributing to the same
  • 29. . [ pDr D r! $ rn Pt Rrr,k! 1(r ta1(,] {r ! | 2l extcnr,or:rrc snrnemcnrbrrscofcr.iDg up lbr the la.k ol c(nr rfibutioDof orhers: 2. tlo$ do se balanceinrtnidual and rcar)rlrertb. raucerHow can $e mo(jvatereanr reDlbersso that the supporr a col, lcctire missionand collecricgoals?In rddiri('r. h(iw do rLl. rotivarctcaln mcn)bersro bc accounurbleaD.l .cspoDsibl(. indnidrullv: In ()therords. hoN rto rt arJrierca goorl tl|l ance brtrreen rneasuriDe arrd rearding indiiduats in rcla (io ro reanrIrerli)rntance: 3. Ho$ do rveidenril indj|i(tual and rearr rneasrrres of l)ertor- mancei Flol can e i.tenliji rneasur.es ot perlirrnranr.e thar indicirtein.liiclual per.ibrnrance rcrsrrsmcaruresot pcrlirr mancc thar indicarereit|r perlor rancei I'trcrc rtoesindirid ual pcrtarmance end antl ream pcrli)nnancc begin-: t'ill1lh. basecl on thcc rnerisu'e5, ho'do e allocarcre,afds 10indi, viduals versusteanr!: lle.aD use the sanresi tages.lescribe.t eirr.ticr anctinclutle team pcrformancc bl lolloing rhcscix basicprnrciplc (Salas, Burkc,& Fo$lle, 2(XXi)| l. IIok( sut?.tou,.tm,t rcnl t t?utt.,snorctl aborc. rher.ear.c different tpes ol rcarls. Rcfore a tean)co)nponcnt is inr.o duced in the pcrforlrranccnranagcn)errr svslcrn. {e nr,cd t() makc surerhc Lrrgrnizarion hasic(ual reaDrs. 2. IIatu thc itn,.tln.nt 1, ,r.a. /,a lcasuriDe rcarn per.firrrnance. as is the caseilh uleasruinsin.ti|idual perlin.nrance, r:rtcs trmeanclcflirrr.The organi/arionmusr be rea.h lo make rhis inr.rnr.'|rl,,r'1,,n'eanr'..ru iel.l ! t t d.r'd 3. Dc.JIn( ncasuft at gaalr rlearir.Defining ho$ rhc (tar.twilt be used (fol.example.adminisrraricers s.tcrloprnenlal pur, posc5. or borh) is r decisionrhar rnrsr bc kken bctinc rrea- suresol (carnperfo.tnancearc designed Ar is rhc caservith indnidrel lelel drh and discussedrhroughoL,rrhe bo(,k. there arc dillercnt variablcsthar musr be takcn iDt()a..oLrr)t in relationshiplo rhe mcirsuresprrrpose(tb. cxample.$hal Irill bc dre soruces ol dirra, horr dara rill bc colle.red. an(l solbfrh).
  • 30. 28 PttuoRirANcu[NrcFIrNr 4. (lsea multiaAlhod awoa'h lo neasumnznt' The measurement - .ri't."- p..f.,..t"'ie is complex Thus' multipte methods and souriesof dataare"t." "...".1:;or^r/proceseoriented b- Focus onPt'ess as,u?t!^ Ti':1::::'**l f"r individuar asrbr me:rsuresaswell asresults are asul l*r',:*xlm;rmm:lTliT:;ITi;"i be usedwithin lhe ( ontext of managingleam prr'orman'( i 6. ]y,p&uv langInm tnangu Aldough horl-term Processe' arru resuhs are easier to measure' rt rs rmpofiant to also consider ionnla..- -....,..t "f Performance Team Performance must i. ia-ot.d o*". u "-iet.v of contexts and alsoolcr ttme' (ionsidereachof the sagesof rhe Perlormani e managrmenl o';.:;;h;;-i" F"ure I"l and how thev can bc modified to l..o,,,'"odur" dredm componrn,. t'^,; ;f;ill'l: ::'.';l:'i}'j;- in addition to considering the team :s ff;*;;;if "tto'n'i"ar'ia"'t' to make a positive contri- i irt""-- aft. ..*. these includenot only KSAS relateddirectly i" itt" ,*t at hand, such as a programmerwho needsto nave i"".Lag. of ihe programming language These are KsAs that r." ..o.lidt" .ottdu.iie to team Perlbrmance such ascommu- itlt,i", ilrt,"" -aking, collaboration' rcam leadership'and *ie.-i"iiCr'."g Dairiw& Moore20o5i Reilly & vccourrv' lgs8,R;'.*,". eib. &sa'oie 20{16) Resar:l':i:'.:lliJ;: Dlanning, this suge must include !;';;:i't. ;*;trJ ;xpected or the ream brhariors epecred lii.'-1".-u*r, .ti d'r'elopme"tal objectives to be achieved ;; ;;. ;- and its members- Regarding Performanc€ execu- t.",-L.- -.-f.* teed to be committedto goal achievement ;;'.;;;il ;k. a Proactile role in seeking feedback rrom one onottre. aswett a. fiom the supervisor (if there is one) ln terms ;;;i;;;. **"ment' ali teammembers musrealuare one ;;5;i;;{';;;,".e as wel as rhe oerrorman'e or the team overall. ln addition, d'e s"petT v'r t'raiuates the Performance'of .;.;;; ;-";;' * well ; that of the team asa whole Finallv' ffi;;;;;;;;.; ,.ams alsoetduate the performance of.the ;;;. il;;;;H "pPlv onlv if membersof other teamsha€ tirst- funJ "*p..i.n." *itrt 'he Perfbrmance of the team in question
  • 31. A ExpaDEDVTFw or PrruoLw^r.'cF MANAcTnENT 29 Itisimportant to emphasizeaharthree q?es ofp€rformance need to t€ assessed: (l) individual performance regarding task perfor- mance, which refers to the specific activities required bv one's individual job, such as a programmer's abiliry write qualiry code; (2) individual performance regarding conrexruat perfornance, lvhich refers to specific activities that contribute to team perfor- mance,such as team members cooperating with each other; and (3) team performance as a whole. Regarding rhe performance rcview, at least two me€tings are needed. First, rhe supenisor meets with all members of the tearn together. The focrls of this meering is to dis{uss overall team performance, including results achieved bt the team as a whole. Informarion for this meeting comes liom !€am membels e,aluating their collective performance, other teams e"luating the team in question, and the superiisor's e!?luation, Second.dre supervisormectswith edrh (ram membcr indir'idltalll The focusof this meering is to disflr-ss how r}e individual s behai- iors conlributed to team performance. Inforrnation for this meec ing comes from individuals eraluating their ovm perform2nce, peer ratings of the individual's performance, and the supervisor's elalu- ation. Finally, the performance renewal and recontmcting stage is identical to the perfomance planning stage; howercr, perfor mance renerral aDd reconl.i_acting uses information Fathered dur- ing the review period to make adjustments asneeded. For example, somenew key accountabilities and competencies may be included. C,oNusely, some goals may have io be adjusted either upr$rd or dovrnvrard. In short, including team performance as part of the perfor- DUmCe mzmagement svstem involves the same basic components that are included in individual performance. An imponanr di! ferenceis that, in addirion to individual performance. the svstem iocludes individual prr formanre as ir aflet a lhe luncrioning ol the tean, aswell as the p€rformance of the tearn as a whole. PertomanceManagementBestPractices What do we know about performance management best prac- tices?What are ahe featur:esof a performance management s)stem that are likely to produce good resuks in terms of individual, team, md olganizational p€rformarice? The following characteristics are
  • 32. 30 stcoruxcrt*urcrusxr likel to allow a p€rlormanre managemenl syslemlo be su(cessfu]' ."a *t.-i"f ui. .ft"pters in t}is 6oot descritr thest leature' in i.oif. N",. ,ft.a p*.tic,l consttaittts may ttot allolv for the imple- irJta,iot or "I'*.". features' The reality is that perforrnance ;:;;;;.t, s'vsrems are tldom imPlemrnred in an idcal wav ,'ti.ei"-, Hi.ii g c.*y.2005t Forexampletheremavnotbe umcienl tunds lo deliver raining lo all PeoPleinvolveo superu- v)rs mav have bias€s in how they provide Perlbrmance radngs' o-r oeoole may be iust luo busv lo Pav altenlion lo a ne4 olBanl'/a- i""!i-r.i"lti". ",r'" requires rhiir dmr anda(ention However' *'.1i."J.*-.tri"".rs' we shouldstriveto placea checkmark ;;; eJ of these chamcrcristrcs: the more featu:es that are .fr..t a, ,ft. -".. f*ely it will be that the systemwitl live up to ia promis€. . Strakli. tott!ru.nc?-The wslem hould be t ongruenl with.$e ".i l"i-"L-i-""n s straregv ln ot.her words individual "."i" ^"" # "figt.a widr uniiand organizauonal goals .. . ithortuehnz:s. The system should be lhorough regarorng ;;;";i;;;:-".. First all emplovees should be evaluard (in(ludinq managers). S€(ond all major iob responlorn- rl". shouid be evalualed (including brhaviors and results)' Third, the evaluaEon should include performance spannrng lhe entirr reriew Period nol just lhe few weeks or montns before the review. _finally' feedback should be given on posr- ;;;;;.;;;r;.. *pects as well as those that are in need of imProvement. . nia;^t;n. Slstems that are loo exPcnsive lime<onsumrng' and convoluted will obviouslv nol be effective (;ooo eas!- ;;.;;;; (for example, performance data are entered J. "...lni."art ."r*arei are available for managersto helP G- -uL a"ii.iott.. Finally, the benefits of using the system ir"t_.""-tr., increasedpirformance and job satisfaction) irr"., u .t " * out'neighing the cos6 (for example' time' eflorr,exPense) . . M?aninc[uln?s5. lhe s]slrm musr be meaning{ul in sevelal *u"t fi*, tft. .o"a"tds and elaluationsconducledlor each i"u i".ri". murbeconsidered i"p-T' 3ld-i:l:'-T": Lcond. performance assrssmentmusl emPhasizeonly tnose
  • 33. A Exp DEr' yrEtr otsPrsoRM^NcF M^xAcEvEr 3l functions that are under t}e control of the emDlovee. For example. there is no point in lerting an employ;e know he or she needs !o increirse the speed of service deli!€ry when the supplier does not get the product ro him or her on time. Third, evaluations musr take place at regular inten-dls and at appropriate moments. Becaus€ one formal e.aluation per year is usually not sufficient, informal quarrerlt reviews are recommended. Founh, the system should proride for the continuing skill developmenr of e,aluators.Finally, the results should be used for imporranr adminisfiative deci- sions. People will not pay attention to a slstem that has no consequencesin terrnsofoutcomes that they lalue. qp"dl.rry. A good system should b€ specific: it should provide detailed and concrete guidance to emplovees about what is exp€cted ofthem and how they can meet theseexpectations. Identifution of effecttueann in4fectiae pe{om.an(z. The perfor- mance management systemshould provide information thai allows for the identification of efiective and ineffective per- formance. That is, rhe slstem should allow for distinguish- ing between effective and ineffective trehaviors and resuhs, lhereby also allowing for the identification of employees dis- plafng larious levels of performance effecti,eness. In rerms of decision making, a q'stem that classifies or lank all le€ls ofperformaDce, and all employees,similarly is useless. RcliabiEry.A good sysrem should include measures of perfor- mance that are consistent and free of error. For examole. if iwo supervisors prorided ratings ol rhe same employe; and peformance dimensions, ratings should be similar. yd&diry.The measures of perforrnance should also be ralid. ln this context, lzlidity refers to the fact that the measures include all relel?nt performance facets and do not include irrelel?nt performance facets. ln other words, measures are releva.nt (include all criticil performance facets), not deficient (do nor leaveany important aspectsout), and are not contaminared (do not include factors outside of the contlol of the emDlovee or factorsunrelated to performance). In shorr- measurei include what is imporlanr and do not ass€sswhat is not important and ouaide of the control of the employee. For example, the gon- dolieri in dre City of Venice (Iraly) have had a perfomance
  • 34. 32 PnMoRtaNcr ![ANAGTMEN r' managemenl ststem lot about one rhousand vears {trhntton' :ZOOIrl,l-"ne'",h., relerant performanr^edimehions older rersions o[ thc p€tlorrnance manaSemcnl s]sFm lequlreo """lJi".i ," a.."""u-ale tieir level of rowing skillsand rhcir lbitiry ro rratt"pon people and goods salelv Thee are clearlr ,.1*" i ai-.Jt.i"tl. ot".u.t -'-ttt slslem was (onuminatrd because it included ahe following requirement "E!€ry btother shall be obliged to confess t*ice a yeif, or at least once and rt xi., u t.-lie, tt. t *ains impenitent, he shall be expelled ' I{iom the sondolieri guildl." a,it"tit;fr and @;". A good srstem is aceeptable and is p.r,'eirtd ,s lair bu ,ll ParticiPanls Per(ePtion' of faimessdre i"Oi..,it., ."0 the onlv wa1 lo know nhefier a ssrem is seen ^ i"l. l. ," ask the panicipana l!'e can ask about distribu- rive iustice, which includes pcrrepdons of the performaneP evalLiaLion receired rclatrve (o lhe work perlormed and Per ceptions of the rewards received relati€ to the elaluauon reieired, particularly when the s_tstemis imPlemented across ."r"-"..'f- example diflerencesin perreplions.mav be lound ln (omParing emPlore€sfrom more lnolrlouallsu' tfor examplc, the United Sates) lo more (ollectivistic (fol exumot., i.,rea) cullures(Chang& Hahn 2006l ll a dicretr ancv is perceived between $ork and elaluation or between "naiuarion and rewards, then the system is likely to be seen as unfai. In adaition, ,ne can ask about proceduraljustice' which inrludes per(eptions ol the Prorcdure usrd lo determrne ,'rr. r"J"n'. * tiar as r}re proctdutt' uttd lo linl mtings wirh i.*ora.. "g....t.. a good system is inherendy discriminatory *.. l-pf"v..t .ifi'receive Etings that are lower than those receired by other emPlovee' Howetrr' r'e should stnve (o a.r.t.,o .ri,"rrr" lhal are reFarded as fair from bo$ drstribu- tive and proceduraf perspectives becaus€ each ryP€ ol jltstrce DerceDtion leads to different oulcome' For examPle a ptr_ :;;;;;", fie srsrem is nor lair llom iddisrriburive poinr of "i.[i. iit fv ," f."a ,o a Poor relationship between emPloyee "rJ **rvi*. ""a f"*.red satisfaction of the employee with J. ."ir.^i*t on lhe other hand a percePtioi.thal,the srs(emis unfarr lrom a plo(edural poinl ol vie$ ls llkely to leao to decreasrd employei cr,mmitmenl lowwd lhe olganizdtron
  • 35. . Epi.'DEDvrF$ oI Ptr&oRttAcE NIANAG!:MFN'l ]3 and increased intentions to lea.€(Erdorgan, 2002). One rav !o improve both disEiburive and procedural justice is to set clear rules that are applied consistentlybv all supenisors. Inclusiomess.Good ststems include inpur from multiple sourceson an ongoing basis.Firsr,the evaluation processmust represent the concerns of all the people rvho will be affected bv thr urrlcome.(:onsequcnrl'. emploree mur parti(ipatein the processof creating the sr4itembv pro,iding input regard- ing what behaliors or results will be measured and ho*. Second, input about employee performance should be garh- ered from the emplovees rhems€h,es before rhe appraisal meeting (Canley, Keeping, & l-r},, 1998). In shorr, all parrici- pants musr be given a voice in the processof designing and implementing the wstem. Such inclusire s,vstems are likeh to lead to more successlirlsysrems,including less emplovee resistance,improved performance, and felrer legal challenges (Elicker, Levr, & Hall, 2006), Oy'?zrurs-Good systems have no s€crets. Firsr, perfomance is eEluated frequendy and performance feedback is protided on an ongoing basis. Therefore, employees are continually informed of the qualiry of their perfbmance. Second, the apprairal meeLingronsistso[ a iwel{?'communi( aLionprocess during which information is exchanged, not delivered from the supenisor to the employeewithout his or her inpur. Third, standardsshould be clear and communicated on an ongoing basis.Finall,r', communicarions are facrual,open, and honest. Caftdabilir. The processof assigningrarings should minimize subjectire asp€ct$ however, ir is virtually impossible to create a slslem that is completely objective becausehuman judgment is an important component of the evaluarion process.fhen employees p€rceive an error has been made, there should be a mechanism throueh which rhis error can be corrected. Establishing an appeals process, rhrough which emplolees can rhallenge what may be unjus( rle.isions. i dn imporran( asPectof a good perfornance management system. Standad;zalint. Good systems are standardized. This means that performance is eraluated consistendyacrosspeople and ljme. To achieve this goal, the ongoing rraining of rhe indi- vidualsin chargeofappraisals.usuallvmanagers. isa must.
  • 36. 34 Prrromrcrt"texrcwnu . t nt.art Good systems comply with ethical standards opera- *i*tig;*x,*1ffi trummffi i:fi,Hi fi#;;;;;; o'iv p"fo'"""" dimensionsfor which .iii* *m.i.", mr"rmadon'andtheprivacy oflh€ employee i, t .p..,"a 1.f naanStone'& Stone-Romero' 1999) ' Howdoweknowwheth€rdreperformance management system :i:*#*:;*ill]il:il:,-"f ff I:ffi,fr "'1i#! ni:k;l *.1;ll*ir',il,T'ff ::T:1";:T il'H?T, I; ';;';;;'.;,;;'-.rudingarr or'' :,1:ffi.:,?'$lU;i i.:.]:f; %"J,:J: ffi:'1ffi ttH*:sr;t*lit,'* pilot-tesr provide feedbackon any possi 'ili'lli,"ti;T,il;Iritor-rest mav revear rhar rhe srstem was nol n'***.:*:trlilil$h''il1'11 ;ll;.'#l l:"il] ;: :;;""fis**fil':l':lt d$i".sil W.-:l r: il:s,ilH'tr iff:':"ilfl#ffi #+itt1,rlil* :i,:;[:'J-::ji1*Liiil?"illllffi ;;:;;;;rJ..i"..*"i 5io."p'"- u.r."*. r,: t-o!l:lj:u"ffiXfriT-#f""; IXH: particular example,the insruments wo '"1r1'loli'.'ll**r..-9r._:'jlfl l*'ffi lr*T'.'.:ll; ffi"Jilil[*":i':"|i''#J:Ilft ",-i"i;".""J'*'"'i Ll;*JlLH,:*l;'"$:ff :H:f"ff fffl:iyJi !:L:1 l*lL::lir*n;TiT;Tll'ff ll.e'"?$:iff"* L ,. .*pr.' tlre United Statesfederalc*"t:1t T::.i:'.". :rsru ";sl:rmffi 5ffi:tr':.T J?.fi ;};l
  • 37. i . [rDrr] 'rr r o] t,] eroRr1..r hNA(,rNr!N| 35 ser€ral lails harc bcen passcd rlral r)andalc fcclerat agcncies lo developa stratesic plan. a perli)rnrance plan, anrl a pcrfornrancc reporr..{lthoush rheseinitiaries(oncern aqencies aDd nor incli riduals,Lrlrimarehthe perl()rmanceol an agen$ depeDdson the perlormanceof (he indiriduals$.r:rrkirg in rhat uDil. The ne( result ol sLLch larr'sas the (;.trcrnnlenr I'erlbnn:rnce and Results Act is an increaseirr ac.ouorabitirar)dlil|rding alto.arjonbascd on perlbnnancc. Thus. ladcral aecDci€sarc requifcd to ealuare the rclative efficien. c,f rheif ari(nrs nraDagemcnt re.hnjques, including pcrformance nranaserneDlsstems. Ealuation da|a should inclurte reacrionsto rhe vsren aDd assessmcnts o{ rhe svsrc t s opcr:ltir)Dal anci re.hnjcal requjre menrs.For exanrple,a .onfidenrial sune coutd bc adminisicrcd Io all . rpl,^c,. d.lin{ dL", r I!.rfpri,,r). :rnd:rrrirrrrl-s .rl,urrr the svstcnl.This surr$ can bc adminisrcred during the iDirial stagcsof implemenratiol and then al rhe end of the lil.sr reviet! c,vcle to lind our 'hether (here hac beeD anr chanscs. In adcli tron, regarding the s'srelris resultl. one can assess pcrf()rmance ratingsover tilrle k) seervhar positi.e ellccrs the implernenration ofthe slstemis haring. tinalh, iDterlic$scan bc cond .lcd i{irh key stakeholdcrs. inclrrding malagers ald emplor.eesrho hale beeninr'ohcd in decloping ancl irrptcrnenrire (he pertbrDraDce managements.r'stem (llarper & 'itkinas, 2(X),-,). Seieul additional nleasurescan be useclon a regular basisro monitor and evaluatethc s.stem: Numba of inttntituals h,alu(k.f. Oft of rhc Dx)sr basic meas ures is to assessthe n[n]ber of en)pbvccs $ho arc acrualh. pdI|iripdl"{ in rlrd{r, r. tt p.flo'rndn,( Fat Jriu . lrJ. not bccn completed for some ernploccs. r|e nccd to flnd out who thev are and r|lrr a pcrformancc review has not bcen conlplered. Dstibution oJpo|rna'r.? ,1rringr. An iDdica(or of .tnal;rv of rhe perioruunce asscssments i trhelhcr all ol. most s.orcs are too high, roo l()$,o[ clunrpcd around rhe cenlcroft]e disribudm. This m:rl indicare inrenrioral errors sn.h as lenien(1r selerin! and ccntl.alrendencil f)istribulior)s of perfonnancc raringscan be broken do$rr br rrnit and srrpenisor ro derernline r,he{her anl, ren.ls exisr rcsarding mling disrortion ancl{,hether these
  • 38. 36 PnRroRrANcE {NAGEMT,NT distortions are localized in Patlicular units Note that there may be exceDEonaiunil-sin which mo$ emPlovres are outsEnding DerformeN and units in which most emPlo,veesare poor p€r- ibrmers. This is the exception to the rule, however' and such distributions usually indicate inteniional errors on the part of ratels. Ouali' ol inlonntion. Atrother indicatol ot qualiiy of $e per- il.*un.. "*r.*...no is the qualirv ol thr information PrG vided in the opentnded sectionsol the lorms For example how mDch did the rater rrrite? What is the relevance of the examDlesprovided? o'al;k ot oatornanu di-l..asion n?ating A confidential survey .]n # ai"ttit rr"a t" ^ll employeeson a regular basisto gather informatron about how the supewisor is managing the PeF formance discussion meetings. For example' is the feedback useful? Has tbe supeftisor made resources atailable so the employee can accomPlish the development Plan objectives? Hoir reler'antl,r,as the Peformance reliew drscussion to one's job? To what degree have development objectives and plans been discussed? ir^ *rirlont r. n .ontidential survey could also be distrit} "J ," "it-* the perceptions of the ststem's users' both raters and mt€es. Thit ao*ay can include questions about satisfaction with equiry' us€fulness' and accuracy' A4rall costngnfil ntio. A fairly simple way to addressthe Per- ceived overall impact of the system is to ask particiPan6 to rate the overall c;st/bene6t r:atio for the performance man_ aeemenl svslem.This i a t'?e of boltomline quesuon lnal cln provide convin<ing evidince for t-heoverall worth of the """,.-. .Iittl" perceivei cost/benefit ratio question can be asked in reference to an individual (emPloyee or manager) ' her iob. and her orqani/ational unil Nole rat lhe Per(eived .orr7b.n.fit ratio muy n.,t be lhe samr as the aclual (osl/ benefit ratio. However, as is the cas€with most organuatronar interventions involving people (Farmer & Aguinis' 2005)' per- ceptions are crucial becaus€they will determine the amount ofsuppon and resources to be allocatedto the interventlon Irni;i rl and oryaniutkn+u?lpPrlomtnta Another indicalor that the systernii working well isprorided by the mealiurement
  • 39. E h r ) r | ' r r o r I } R l ( ) R n ( L M 1 . . , r { r N r l l of unir- x d orqanir:rrioD leel pclfonnan.c. Srrth per.tor.- nan.. iodicatofs nright be .Lrsronrersarisfa(tiorr rirh spc- citic Lrnits and irr(lic:rrols ol rhc Iinancialp(r fumaD.e of tLc rariou unirs or rhe org:rDiTatiur as a tholc. 'e De(d t() l)e arLare that il rnal rake ()rnerime lir thalges in in(lnidual anclgroup pcrlirrrnancclcrl r() be rrandaredinlo Lrlit an.l organizrtiorrlevel fcsul15.e shorrlclnor erpccl resnl|i as s(x)n:rsthc srstemis inrplementcd:horle'er.. 1vrhould slarl Io scc some ransible resullsr! rl)e uDil lclt.l a lerf morrrhs : r(r the svs(cm is in plac.. Conclusion In todavs globalized,{:st pace.t.rnd irterconnccrcti world. i( is relatileh cts k) f{ain irccessr() lh. cornperirioD s rcchnologl a d products. 'lhank r{) rhe Inrernrt a:rctrhc acconrpanrinqhigh speedof c(DrmLUric:Ltiorls. lcchnologi.al alld prorhr(r (liffer.en- tiationis n() longel a k. conrperirirt at]anraeeill nr()srin.tus, trics.For carnpie, most balks oller rhe sametprs ot prod{rc( (for examplc.diller.tlr tpes ol ai gsa..()rntlsand ir]crrDrrrr oppofruni(ies). Il a particul:rrbanl decidesro offer i ncLt]lod uctor scr!ice (lbf r.arnple.onlilrc baDking).it {itl rlor bc lo)g until rhlj competilors(tler prccisehrhe sarJrc prod .l. Ai,noted bv.lames Kellc, perlofmarrce manaqcrrenr projccl lrader ar IdahoPoler: Technolog ij,a lacilirillor,but nol a guaranror,()f effectilencss of elli.icncr of a companr's$orkJi).cc (GeDerali g buzz, 2006). Organirationswirh mdivalcd and |ale l((l enplovc(s oller ing outsurrrdingserlice &) . lorners are litclr to pnll tihcr,(l ol tjlecompetition.ijen il tht prrxiucrsollc|ed are sinrilarro thr)se oflercd br' (hr conrperilor!.(]Lrsromcr.s rranl ro ec( tlre righ( an${erirt rhr right rimc allcl rhev!alr t() receirc rjrcir.pl1rclLrcrs and serviccspronrplh aDd accLrrateh. ODh pcople can nrake thesethiflgs happtn and prtxlLrcea susrainablt competirirc adlan- tage.Pcrfi)rmance rnan:rgcnrcrrtsilsremare te' ft)ols rhat caDbe usedto tmnsfb. r people s trleDt aDd nrotilati{m inl(' l traregi. business advrnrage. Unlirrrunarelr allhougtr 1)6perccr)t 01 HRt profcssionals report thar pcrfirr.nanccrnanagemenr is their nunr berone concern, fccr than l2 pcrcenr ol HR erecutics lDCi
  • 40. 38 Prnroxv$tct l'hMctu*n rechnology managersbelievethat theirorganizdtions hae align(d :'.nn j.:ru"**. iJfi Tltt.;:fff:-::i::ili: :; *il*:i1.1[T-t$il: l*:'r'*9.ffiT6::#i i: i::*:trilT:n:g::: l",lH':::'n::ili:n* llrrnt.-'*:iiT$lff ::'Tlffi ..1ifi 11x"'":f :: i;;:#;i; ;;;e, fiRM tunctio"s {torexamPre s'^rlins L'.:'i'i j;uj".;"::11il,:".lJiil."iHll" *nt*fum**x;::}ff txli:;'#:'li"i',', References n*", ". t., * "-Ott'' K (1988) Performance management qstems: From strategic Planning to emp'ovec productiliry PasonntL 65' 55-€0. ,rguinis. H. (2m9). P"rlonwne na@eena l2tt'r Upper Saddl€ Riler. NJ:PearsonPrentice HalL ^*"'.Tlt :"t';;;;'a,,..*'-"li: :l^lT'li1'..il3"f ii,i',; *i';i,i;;,':;;;;;i.,-' "ry'";''i'* *d tu'renA"udr Rttitu oI Pr.hotog' 60' 451474' ^*'.Tfl iffi;;;#.., in,i.o".gg'"''-a. .:.i:Y:,::;X"f:, ";;)r;:;;;i;;;;;,;"'w"y:11't',";1'171'! :#':::'T'#;;;i:Y:*,,?^,y'-'.::o'^^2:: ^*,,illii..i i;'-i*..'e.i:ooe) Lnt''ncins f":::'"i:;;:$.T; ;',";;;' ;;h,""' b cmbra'ins Perrorman^((..manasement .""fvt**lmr :":l 3!:;n3: i',*,-,1,,,0 *,?:jf$t*X2 ffi:Ti':H, Hn :;';.TK;.';# """#H:"ti;;x'"h],,:y;"&y Larrence Erlbaum Assoc'aGs'
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  • 42. 40 rtrroronrcr Nrsrcutu inlo'madon ssrcm: An inkgradon ul prit"q.-'.and pro'cdrIal iuq ,,,.,.ill il:i:,'.:]'J; ". ?Hi1 fi Tr.;i"'"ri'"';r rcadr'I.me " " -'l-l n"-*l'"'"' *iormanr eappraisa! proce $ pundlvanns"v,! llll, iii*1;i::::tl- ::1,',:1,il^i''i:ll5 if:'i'l'5il "-*'' '-{iljtir'$j I ##l;lil;;'.m;l*: "i':'r;i '-'${{fr if*:rkrd}*;ii{fi *rf,".', '-fi#;ffi ''l:r[:1il]l:,ffr'i1 i,*il i;;3' -tff iilii"J:P..1,:i''* ;r*::riri iis* *,*#;ti''-S,'#: :::. ;::r,,HWH, ! '- f*i**,;r*il*T,t""rru,.:: n':r*': -11**n#*f-'p .****'$**W{##,J# ifie ):r:w,ir:;iir;x:r,s^ : *++;*i;.***,m,*i*s'r'r rr;'3 rtate Norember 7' XX)7
  • 43. , EXPA.'DFD vrnw o! PruoRMANcr MANacEMrr 4l Harpcr,S.,& Vilkinas,T. (2005).Determiningrhe impacl ofan organ istion's performancemanagemenr sysrem.AsiaPa.if. Jounal o1 Hunan Resoures, 43,i6-97. Johnston,J. (2005). Perfornance meBuremcnr uncertaintv on ihe Grand Canal: Ethical and producriib.-' conflicrsbebr€en social and economic agen ? In!?mational Joumal of Prottu.tifi.tj and Peiomane Managm , t4, 59'412. Kikoski.J. n (1999). f,ffecri€ communi(ation in the performancc appmisalintenier': Face,nface communication for public rnana|ers in the culturalfy dilelle lro(kpl: ce.PuNi. P?rsonnal Manryemt, 28, 301-322. laChance, S. (2006).,A.pphingrhe balancedscorecard.srrakSr.HR Rtuiru,5(2r,5. latham, G. P (2007). A spcculatile perspecrileon rhc transfer of behaiorrience findingsto rhesorkplace:-Thc timesrhevarea ch^n9;n." A.anenJoIManagemtJoururl 50. ro27-ro32. McAdam,R., H^zlett, S., & CaF', C. (2005). Pertormancemanage, ment in the UK public Fcror: Addressingnulriple srrkeholder .omptexirr. Intanational Jounal oI Publi. :*ttot ManLg?Nnr, 18, 256 213. McHenry,J. (2007, Aprit). t+baft thz IE) nol".l Presidenrial address deliveredat thc meeringofrhe Sociehfor Indusrrialand Organ; zationalPq,cholo$,NewYork. [{illiman,J..Na$n, S.,Zhu, C., & De cieri, H. (2m2). An explonron as!€ssment of the purpos€sof perfbmance appnisals in Norrh and Cenral America and rhe Pa.ific Rim. l' m, R?.rolrre ManaKtunt, 4L a7-t02. Moryeson, r P, Mumford, T. a, & Campion, M. A. (2005).coming li l circle: Using researchand pncrice ro addrc$ 27 quesrion! about 360{egree faedbackprog|ams. C/ruurtng Psrdnlop JournaL ha.tie and R?sear.h, 57, 196-2A). Muchinskv, P M. (2004). 4rhenthe psr-chomerrics of rest deieloF ment meetsorganiati(,nal realities:A concepttralfiamework for organizational change,examples,and recommenda6ons.Pa.somzl Prcholog, 57, ri->2W. Mubaney, R. R. H., Z$ahr, M., & Baranoski, L. (2006).The rrend roward accountabili9: What doesit meanfor HR manage$l Hwaan R2sourc? ManagMt Rtutha I 6. 43144:2. Mu-rphy, K R., & Sazl,F. E. (Eds.) (1990).Psrchrlopin organizations: Int sroting s.ia." onl p.ack4 Mah$ah, NJ: tnrence Erlbaum Nankenis,A. R., & Compron, R (2mG). Performanccmmagemenr: Thory in pmctice?,45tu Pa.ij.lunnl oIHu,tnn RMds, 4a3,101.
  • 44. 42 Proonurcrt"texecwtrr Pettiiohn, L. S., Parker,R S' Petijohn' C E' & Iknt' J L (2001)' ' 'p..i..rnance appraisals: I rsJge(rireria and obenations /olnzi otl4ous.nmr DwlalnvnL 2q'754-7at R h."i;.::';-;r,106r ' 'ertrua" or Malar$ian reachersro$ard a -- ;;".-,...-pp*i'^ ,ster,- ltunar oI At'Pti"n sodatP"hotog' .."lLT:t;#L".o,J. (rses)Perrormance apPraisar inteam ser' """,i.o i"t.Ws.ltii'rcat p-t*^"t' "WuoL statPotttu ar1in uiaie tip.2ar-277.sanFrdn( 'v o Josrv-Bass dniduatmanage- r.r'' j, u., a si-., R R {1995)A h-amet '--' -l'""ia*a"o-*( in th€publics€ctor. A'1ttic P*somzlManagm'llt' 24,5245. n"".r],, i frooel.Higr'Performance ismo'ethana dream-lt's acul- ture.I+A 6o(l)' l2' *",,*.];. ;,",il;:';- t s'""i', A (2006) reamwork behaviors: ^'"1;;; ;;;;' int€srationor rramewotkss*u cnup Rzseanh' i7.540-570. r.r"o. o. e.,* s."1.o f20o7)checkin8 rnwirnLhe r<ientisr-Pt a(uuonel ^""";;i,;;;;; * doi;n,1? rh. tndL'tnators'n"alio*t P'hobs6t .','."1'J]1.::1,L"' ^. E.'& Brown. K G (2002)HRProressionars ""- *ri.r"'.i"", .r..dre human rcsour(epractkes:LonesPond'nre beMeen rcsear(hand Pra(uce Hutun R"oltru Motuptn?nL1I' 149-174. **"' i. i, ii"n' r t., & Brown' K G' (2007)' rhe lery s€Parate worlds '--- J n .a.*i" una practitioner Periodicalsin human resource man- *.-..','irnoi-"I'"^ r"r eviien e+ard manage*.entA'dt'n oJ tion*n rt^n-I so gal-to0s' sd*.';i:,;i;:6. 4 t Fowrles l E t2006)Mcaiurins team Pertor' '*- mence'rnd'e$rld: " challenges andtiP6ln W Bcnnert.C E l-ance -i o. t w".t" ttAs t' Pnla1'utttt" ffiu|Ma: Cunnt p^pt'nt6 -i n i- a-u,i* 1pp 245-2?2) Mahrrah' NJ:l-awrenceErlbaum s.r'..*Ti. izi'o6'J"". r' sHRMan'*Pt4"Iattl'lAlexandria' vA:societv for Human Re$urce Managemenl s.r'"i"'i. Iu rzoozr' ru tud) oltumn am't? na^s'nnt L*sits - "' inti ** .i"a'* Alexand'ria vnuS'xierv forHuman Resour'e Manaqement Foundalron' *".,.;:f;;i;:.t;' 4'.o (20or)strategic perroTal:e.apl*is1f **"ii ,."--u*a ".s,"iations: one sizedoes not frt all A'adery 0l Manaseaott ExaattiLv,I 5' 10l'116'
  • 45. A ExpAr.'DEDYtEsoF PTEoRMNcE MlNAcnMrNl 43 Shippnrnn,J. S.,Ash,R.A, Banisra, M., C,an,L., Elde, L. D., Heskerh, 8.,Ikhoe,J.. Pedlnan, K, Prien,E. P, & Smchez,J.r (2000).The practice of competencymodelilg. Pe'som.lPr.halog, 53, 703-741. Shore,T. H., Adams,J. S., & Tashchian,A. (1998)-iifIects of self- appraisalinformation,appmisalpurpo*, and feedbackrargeron performance appnisl Erings. /@ruI of Bbiuss anA p$chotas, 12.243 294. Sohani, E. (2003).Towds a TqM{riven HR performanceevrluation: An empirical stud.vant '", Rcl4tiorc,25,347-370. Tht Bakimoft!tun (2003, December l4). The besrappini$ls of workert can b€ simplq objectiviry,feedback are important fearures,p. D6. Thomas, S. L., & Brerz,R. D. (lE)4). Res€arch and pracricein perfor, mance appmisal: Ealuaring ernployee perfomance in America's largestcompanies..MM Ahantul Managa@tJoumol 592),28-34. Work{orce perfomance isrop HR prioriq. (2005r.T+D, 59(7),16.