1 Ngo Quy Nham, MBA Performance Management Performance Management „ Identify the major determinants of individual performance. Identify the major determinants of individual performance. „ Discuss the three general purposes of performance management. Discuss the three general purposes of performance management. „ Identify the five criteria for effective performance-management management systems. systems. „ Discuss the four approaches to performance management, Discuss the four approaches to performance management, „ Discuss the advantages and disadvantages of the different sources of performance information. of performance information. „ Conduct an effective perf Conduct an effective performance feedback session. ormance feedback session. „ Choose the most effective Choose the most effective source(s) for performance information ) for performance information for any situation. for any situation. „ Distinguish types of rating errors and explain how to minimize Distinguish types of rating errors and explain how to minimize each in a performance evaluation. each in a performance evaluation. Unit 8 Ngo Quy Nham, MBA Introduction Introduction „ Performance management Performance management is the process through is the process through which managers ensure that employee activities and which managers ensure that employee activities and outputs are congruent with outputs are congruent with the organization's goals. the organization's goals. „ Performance Appraisal Performance Appraisal is the process through is the process through which an organization gets which an organization gets information on how well an information on how well an employee is doing his or her job. employee is doing his or her job. „ Performance Feedback is the process of providing is the process of providing employees information rega employees information regarding their performance rding their performance effectiveness. effectiveness. 2 Ngo Quy Nham, MBA An Organizational Model of An Organizational Model of Performance Management Performance Management Individual Behaviors Situational Constraints Culture and economic conditions Individual Attributes (skills, abilities) Organizational Strategy Long and short term goals and values Objective Results Ngo Quy Nham, MBA Purposes of Performance Purposes of Performance Management Management Strategic Developmental Administrative 3 Ngo Quy Nham, MBA Performance Measures Criteria Performance Measures Criteria Strategic congruence Validity Acceptability Reliability Specificity Ngo Quy Nham, MBA The Comparative Approach The Comparative Approach „ Ranking Ranking – Simple ranking ranks from highest to lowest Simple ranking ranks from highest to lowest performer. performer. – Alternation ranking Alternation ranking - crossing off best and crossing off best and worst employees. worst employees. „ Forced distribution Forced distribution – Employees are ranked in groups. Employees are ranked in groups. „ Paired comparison Paired comparison – Managers compare every employee with Managers compare every employee with every other employee in the work group. every other employee in the work group.