Bài giảng Fundamentals of human resource management - Chapter 8 Managing employees’ performance

CHAPTER 8 MANAGING EMPLOYEES’ PERFORMANCEFUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT 5TH EDITIONBY R.A. NOE, J.R. HOLLENBECK, B. GERHART, AND P.M. WRIGHTIntroductionPerformance management: process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires:Knowing what activities and outputs are desiredObserving whether they occurProviding feedback to help employees meet expectationsPurposes of Performance ManagementStrategic Purpose - effective performance management helps the organization achieve its business objectives.Administrative Purpose –ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.Developmental Purpose – serves as a basis for developing employees’ knowledge and skills.Criteria for Effective Performance ManagementMethods for Measuring PerformanceMeasuring Performance:Making ComparisonsSources of Performance Information360-Degree Performance Appraisal: performance measurement that combines information from the employees’:ManagersPeersSubordinatesSelfCustomersTypes of Performance MeasurementRating ErrorsContrast errors: rater compares an individual, not against an objective standard, but against other employees.Distributional errors: rater tends to use only one part of a rating scale.Leniency: the reviewer rates everyone near the topStrictness: the rater favors lower rankingsCentral tendency: the rater puts everyone near the middle of the scaleTypes of Performance MeasurementRating ErrorsRater bias: raters often let their opinion of one quality color their opinion of others.Halo error: when bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area.Horns error: when bias involves negative ratings. This can cause employees to feel frustrated and defensive.Political Behavior in Performance AppraisalsDistorting a performance evaluation to advance one’s personal goals A technique to minimize appraisal politics is a calibration meeting:Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating influence of rating errors