HRM107 Lecture Notes - Lecture 9: Stress Management, Stereotype, Central Tendency

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Week 9 Managing Performance
Performance Management
- The process through which managers ensure that employee activities and
outputs are congruent with the organization's goals
- Includes defining, facilitating and encouraging performance, measuring
performance, providing feedback and managing poor performance
- Processes of workplace counselling, discipline and performance reviews
Who does the assessing?
- Supervisor review
- Self-review
- Peer review
- Subordinate review
- 360 degree review
Establishing performance standards
- Relevance to job
- Freedom from contamination
- Reliability
- Quality and quantity of output
- Quantifiable and measurable
- Able to identify individual contributions
How is it assessed?
1. Individual rating scales and comparison
- e.g. ratingforms, mixed standard scales
2. Outcome oriented approaches
- e.g. management by objectives (MBO)
Behaviourally Anchored Rating Scales (BARS)
- Descriptions of behaviour placed on a scale
- Identification of performance in terms of behaviour
- - five to ten vertical scales
- Critical incidents
- Reduction of rating error
Management by Objectives (MBO)
- Performance judged by success in achieving objectives established in
consultation with superiors
- Focus on goals rather than activities or traits
- Individuals understand how their role contributes to success
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Advantages
- Motivating to see how your
contributes to the bigger picture
- Clarity of goals
- Managers can ensure goals are
linked to objectives
Disadvantages
- Lengthy and costly
- Short-term measurement
- Lack of mutual goal setting
- Encourages goal-oriented
behaviour
Balanced Scorecard
- Translates mission and strategy into performance measures as framework for
a strategic measurement and management system
- Four balanced perspectives of financial customers, internal business
processes and learning/innovation
Errors in Performance Reviews
- Halo error
- Leniency or strictness error
- Error of central tendency
- Recency error
- Stereotyping
Effective Performance Appraisal
- Top management support
- Valid technique and fairness
- Effort made to minimise errors
- Not simply a judgement but also emphasis on employee growth and
development of goals
- A constructive not destructive approach
- Focus on problem solving and behaviour not the person
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Document Summary

The process through which managers ensure that employee activities and outputs are congruent with the organization"s goals. Includes defining, facilitating and encouraging performance, measuring performance, providing feedback and managing poor performance. Processes of workplace counselling, discipline and performance reviews. How is it assessed: individual rating scales and comparison. E. g. ratingforms, mixed standard scales: outcome oriented approaches. Descriptions of behaviour placed on a scale. Performance judged by success in achieving objectives established in consultation with superiors. Focus on goals rather than activities or traits. Individuals understand how their role contributes to success. Motivating to see how your contributes to the bigger picture. Translates mission and strategy into performance measures as framework for a strategic measurement and management system. Four balanced perspectives of financial customers, internal business processes and learning/innovation. Not simply a judgement but also emphasis on employee growth and development of goals. Focus on problem solving and behaviour not the person. Have their own goals linked to advancement.

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