Chapter 7-Performance Management

Performance
CHAPTER 7 Management
Today’s Class
 Define performance management and explain the five

steps in the performance management process.
 Describe the most commonly used performance

appraisal methods and the pros and cons of each
 Discuss the major problems inhibiting effective

performance appraisals
Performance Appraisals-Limitations
 A recent survey of 746 Human Resource Professional

Association members
 11% - performance appraisals were not mandatory in
their organization
 42% - no consequences for non-completion of
appraisals
 65% - somewhat to very satisfied with information
obtained from performance reports
Performance Management
The process encompassing all activities related to

improving employee performance, productivity,
and effectiveness.
 includes goal setting, pay for performance,

training and development, career
management, and disciplinary action
Performance Management Process
Performance Appraisals
 Performance appraisals in Canada are legal

documents.
 should
be used for planning promotions, career
development, training and performance
improvement plans,
 butcan also be required in courts when
assessing wrongful termination cases.
Case Incident Application
 Read the case incident
 Develop your answers to questions 1 and 2 and be

prepared to present your answer
Step 1: Defining Performance
Expectations
Task performance
 direct contribution to job-related processes
Contextual performance
 indirect contribution to the organization’s effectiveness,
beyond those specified for the job
Step 2: Providing Ongoing Coaching
and Feedback
 Performance improvement plan (PIP)
 PIP highlights expectations of

employer/employee, with timeline (often 30-90
days) required to bring performance to
acceptable levels
Step 3: Performance Appraisal and
Evaluation Discussion
 Many formal appraisal methods to choose from
 Comparative
 Non-comparative
 Past performance
 Future performance
 Job-related
 Practical
 Clear performance standards
 Clear performance measures
Past Performance: Noncomparative
Graphic Rating
scale
• Oldest and most widely used method

• Lists most important traits related to job and
range of performance for each from high to
low
Working in groups develop a graphic rating scale for
the following by completing 3 steps:
 a retail sales associate
 a fast-food restaurant manager
1) Identify the main duties and responsibilities for each job.

2) Identify the 3 most important traits associated with these duties
and responsibilities (ie. Job knowledge; Punctuality;
Accuracy).
3) Identify a range of performance for each trait.
4) Develop your graphic rating scale for each of the 3 traits you
identified.
Past Performance: Noncomparative
BARS
• Descriptions of effective/ineffective
performance—examples placed along a
scale
• Job-related, practical, and standardized
Past Performance: Comparative
• Employees ranked from best to

Ranking
worst
method • Subject to halo and recency effects
• Employees sorted into categories

Forced • Usually a certain proportion must be
distributions put into each category
Future Performance Methods
 Management-by-Objectives Approach
 Employee and supervisor jointly establish

performance goals for the future
 Starts at organization level  department  individual
 Goals should be mutually agreed upon and

objectively measurable
Advantages/Disadvantages of Each
Method
Appraisal Interviews
 Evaluationinterviews are performance

review sessions that give employees
feedback
 Theinterview should be a positive,

performance-improving dialogue
How to Conduct the Interview
1. Be direct and specific

 use objective work data
2. Do not get personal

 compare against standard
3. Encourage the person to talk

 use open-ended questions, listen
4. Develop an action plan

 agree on future steps
Step 4: Determine Performance
Rewards/Consequences
 Provide performance awards: merit pay, extra
pay
 Important aspects used to determine the

appropriate reward/consequence:
 achievement of goals
 how the employee meets the defined
standards
Step 5: Career Development
Discussion
 Manager and employee discuss opportunities for

development
 Based on current job requirements or future

development
 Business needs must be balanced with the

employee’s preferences
Legal Aspects of Performance Appraisals
 A performance appraisal form is a legal document

 Raters must use only performance criteria that are relevant to
the job
 Avoid non-relevant criteria
 A reasonable time must be set for performance
improvement
 Well-documented performance shortcomings and use of
feedback interviews have been viewed favourably in court
and with arbitrators
Review of Concepts
 Performance management
 Five steps in the performance management process
 Performance appraisal methods – advantages and

disadvantages
 The performance appraisal interview
 Performance management and legal considerations

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Performance

 Define performance management and explain the five

 Describe the most commonly used performance

 Discuss the major problems inhibiting effective

 A recent survey of 746 Human Resource Professional

The process encompassing all activities related to

 includes goal setting, pay for performance,

 Performance appraisals in Canada are legal

 Read the case incident

 Develop your answers to questions 1 and 2 and be

 Performance improvement plan (PIP)

 PIP highlights expectations of

• Oldest and most widely used method

 a retail sales associate

 a fast-food restaurant manager

1) Identify the main duties and responsibilities for each job.

• Employees ranked from best to

• Employees sorted into categories

 Employee and supervisor jointly establish

 Goals should be mutually agreed upon and

 Evaluationinterviews are performance

 Theinterview should be a positive,

1. Be direct and specific

2. Do not get personal

3. Encourage the person to talk

4. Develop an action plan

 Important aspects used to determine the

 Manager and employee discuss opportunities for

 Based on current job requirements or future

 Business needs must be balanced with the

 A performance appraisal form is a legal document

 Five steps in the performance management process

 Performance appraisal methods – advantages and

 The performance appraisal interview

 Performance management and legal considerations

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