The Performance Management Background

STUDY
PLAY

Terms in this set (...)

Contribution
1. Motivation to perform is increased
2. Self-esteem is increased
3. Managers gain insight about subordinates
4. The definitions of job and criteria are clarified
5. Self-insight and development are enhanced
6. Administrative actions are more fair and appropriate
7. Organizational goals are made more clear
8. Employees become more competent
9. Employee misconduct is minimized
10. There is better protection from lawsuits
11. There is better and more timely differentiation between good and poor performance
12. Supervisors' views of performance are communicated more clearly
13. Organizational change is facilitated
14. Motivation, commitment, and intentions to stay in org are enhanced
15. Voice behavior is encouraged (suggestions/improvements)
16. Employee engagement is enhanced
Disadvantages
1. Increased turnover (if not seen as fair)
2. Use of misleading info (is not standardized)
3. Lowered self-esteem (if feedback isn't provided in correct way)
4. Wasted time and money (if poorly designed/implemented)
5. Damaged relationships
6. Decreased motivation to perform (if not seen as fair)
7. Employee burnout and job dissatisfaction (when PA tool isn't valid)
8. Increased risk of litigation (if employees feel they were appraised unfairly)
9. Unjustified demands on managers' and employees' resources
10. Varying and unfair standards and ratings
11. Emerging biases (personal values/relationships)
12. Unclear rating systems
Aims and Role of PM Systems
1. Strategic purpose (help management achieve business objectives)
2. Administrative purpose (furnish valid and useful info for making admin decisions about employees)
3. Informational purpose (use as a communication device)
4. Developmental purpose (use feedback to coach employees and improve performance on an ongoing basis)
5. Organizational maintenance purpose (provide info to be used in workforce planning, assemble talent inventories)
6. Documentation purpose (validate newly proposed selection instruments, documentation of important admin decisions)
Characteristics of an ideal PM system
-Strategic congruence (indiv goals aligned with unit/org goals)
-Context congruence (system aligned with org/country/region culture)
-Thoroughness (employees and job responsibilities should be evaluated, eval should span entire performance period, feedback should be on good/poor performance)
-Practicality (not too expensive, time consuming, convoluted; must be good, easy to use, and available)
-Meaningfulness (standards must be important/relevant, PA must only emphasize what's under control of employee, evaluations must be at regular intervals/appropriate moments, results should be important for admin decisions)
-Specificity
-Identification of effective/ineffective performance
-Reliability
-Validity
-Acceptability and fairness (distributive, procedural, interpersonal, informational justice)
-Inclusiveness (represent concerns of all people who it will affect, info about PA should be collected by employees themselves)
-Openness (feedback; two-way communication process; communication on on-going basis; factual, open, and honest)
-Correctability (make as objective as possible)
-Standardization
-Ethicality
Integration with other HR and Development Activities
-Provides info and developmental needs for employees for training
-Provides key info for workforce planning (talent inventory creation), development plans provide info on what skills will be acquired in the future
-Also used for recruiting and hiring decisions
-PM & compensation systems
-PM is key for talent management. It allows for assessing the current talent and making predictions about future needs (indiv and org level)