PERFORMANCE MANAGEMENT

AND FEEDBACK

Performance
Performance Management
Management &
&
Feedback
Feedback
Organizations
Organizations need
need broader
broader performance
performance
measures
measures to
to insure
insure
Performance
Performancedeficiencies
deficienciesaddressed
addressedinintimely
timely
manner
mannerthrough
throughemployee
employeedevelopment
developmentprograms
programs
Employee
Employeebehaviors
behaviorschanneled
channeledininappropriate
appropriate
direction
directiontoward
towardperformance
performanceofofspecific
specificobjectives
objectives
Employees
Employeesprovided
providedwith
withappropriate
appropriate&&specific
specific
feedback
feedbacktotoassist
assistwith
withcareer
careerdevelopment
development

Exhibit
Exhibit 10.1
10.1
Performance
Performance Feedback
Feedback versus
versus Performance
Performance
Appraisal
Appraisal

Exhibit
Exhibit10.3
10.3

Strategic
Strategic Choices
Choices in
in Performance
Performance
Management
Management

Exhibit
Exhibit10.4
10.4

Reciprocal
Reciprocal Relationship
Relationship Between
Between T&D
T&D &
&
Performance
Performance Management
Management

Who
Who Evaluates?
Evaluates?
Problems
Problems with
with immediate
immediate supervisors
supervisors conducting
conducting
performance
performance evaluations
evaluations
Lacking
Lackingappropriate
appropriateinformation
informationtotoprovide
provideinformed
informed
feedback
feedbackon
onemployee
employeeperformance
performance
Insufficient
Insufficientobservation
observationofofemployees
employeesday-to-day
day-to-daywork
worktoto
validly
validlyassess
assessperformance
performance
Lack
Lackofofknowledge
knowledgeabout
abouttechnical
technicaldimensions
dimensionsofof
subordinates
subordinateswork
work
Lack
Lackofoftraining
trainingororappreciation
appreciationfor
forevaluation
evaluationprocess
process
Perceptual
Perceptualerrors
errorsby
bysupervisors
supervisorsthat
thatcreate
createbias
biasororlack
lackofof
subjectivity
subjectivityininevaluations
evaluations

Perceptual
Perceptual Errors
Errors of
of Raters
Raters
Halo
Halo effect
effect

Rater
Raterallows
allowssingle
singletrait,
trait,outcome
outcomeororconsideration
considerationtoto
influence
influenceother
othermeasures
measuresofofperformance
performance

Stereotyping
Stereotyping

Rater
Ratermakes
makesperformance
performancejudgments
judgmentsbased
basedon
onemployees
employees
personal
personalcharacteristics
characteristicsrather
ratherthan
thanemployees
employeesactual
actual
performance
performance

Recency
Recency error
error

Recent
Recentevents
events&&behaviors
behaviorsofofemployee
employeebias
biasraters
raters
evaluation
evaluationofofemployees
employeesoverall
overallperformance
performance

Perceptual
Perceptual Errors
Errors of
of Raters
Raters
Central
Central tendency
tendency error
error

Evaluator
Evaluatoravoids
avoidshigher
higher&&lower
lowerends
endsofofrating
ratingininfavor
favorofof
placing
placingall
allemployees
employeesatatorornear
nearmiddle
middleofofscales
scales

Leniency
Leniency or
or strictness
strictness errors
errors

Evaluators
Evaluatorstendency
tendencytotorate
rateall
allemployees
employeesabove
above(leniency)
(leniency)
ororbelow
below(strictness)
(strictness)actual
actualperformance
performancelevel
level

Personal
Personal biases
biases &
&organizational
organizational politics
politics

Have
Havesignificant
significantimpact
impacton
onratings
ratingsemployees
employeesreceive
receivefrom
from
supervisors
supervisors

Purposes
Purposes of
of Performance
Performance
Management
Management Systems
Systems
Facilitate
Facilitate employee
employee development
development

Determine
Determinespecific
specifictraining
training&&development
developmentneeds
needs
Assess
Assessindividual
individual&&team
teamstrengths
strengths&&weaknesses
weaknesses

Determine
Determine appropriate
appropriate rewards
rewards &
& compensation
compensation
Salary,
Salary,promotion,
promotion,retention,
retention,&&bonus
bonusdecisions
decisions
Employees
Employeesmust
mustunderstand
understand&&accept
acceptperformance
performance
feedback
feedbacksystem
system

Enhance
Enhance employee
employee motivation
motivation

Employee
Employeeacknowledgment
acknowledgment&&praise
praisereinforces
reinforcesdesirable
desirable
behaviors
behaviors&&outcomes
outcomes

Purposes
Purposes of
of Performance
Performance
Management
Management Systems
Systems

Facilitate
Facilitate legal
legal compliance
compliance
Documentation
Documentation isis strong
strong defense
defense against
against
charges
charges ofof unlawful
unlawful bias
bias

Facilitate
Facilitate HR
HR planning
planning process
process
Alert
Alert organization
organization toto deficiencies
deficiencies inin overall
overall
level
level && focus
focus ofof employee
employee skills
skills

Other
Other Performance
Performance Feedback
Feedback
Systems
Systems
Peers
Peers

Only
Onlyeffective
effectivewhen
whenpolitical
politicalconsiderations
considerations&&consequences
consequences
are
areminimized,
minimized,&&employees
employeeshave
havesense
senseofoftrust
trust

Subordinates
Subordinates

Insights
Insightsinto
intointerpersonal
interpersonal&&managerial
managerialstyles
styles
Excellent
Excellentmeasures
measuresofofindividual
individualleadership
leadershipcapabilities
capabilities
Same
Samepolitical
politicalproblems
problemsas
aspeer
peerevaluations
evaluations

Customers
Customers

Feedback
Feedbackmost
mostfree
freefrom
frombias
bias

Other
Other Performance
Performance Feedback
Feedback
Systems
Systems
Self-evaluations
Self-evaluations

Allow
Allowemployees
employeestotoparticipate
participateinincritical
criticalemployment
employment
decisions
decisions
More
Moreholistic
holisticassessment
assessmentofofperformance
performance

Multi-rater
Multi-rater systems
systems or
or 360-degree
360-degree feedback
feedback
systems
systems

Can
Canbe
bevery
verytime-consuming
time-consuming
More
Moreperformance
performancedata
datacollected,
collected,greater
greateroverall
overallfacilitation
facilitation
ofofassessment
assessment&&development
developmentofofemployee
employee
Costly
Costlytotocollect
collect&&process
process
Consistent
Consistentview
viewofofeffective
effectiveperformance
performancerelative
relativetotostrategy
strategy

What
What to
to Evaluate?
Evaluate?

Traits
Traits measures
measures
Assessment
Assessment ofof how
how employee
employee fits
fits with
with
organizations
organizations culture,
culture, not
not what
what s/he
s/he actually
actually
does
does

Behavior-based
Behavior-based measures
measures
Focus
Focus on
on what
what employee
employee does
does correctly
correctly &&
what
what employee
employee should
should do
do differently
differently

What
What to
to Evaluate?
Evaluate?
Results-based
Results-basedmeasures
measures
Focus
Focuson
onaccomplishments
accomplishmentsororoutcomes
outcomesthat
thatcan
canbe
be
measured
measuredobjectively
objectively
Problems
Problemsoccur
occurwhen
whenresults
resultsmeasures
measuresare
aredifficult
difficulttotoobtain,
obtain,
outside
outsideemployee
employeecontrol,
control,ororignore
ignoremeans
meansby
bywhich
whichresults
results
were
wereobtained
obtained
Limitations
Limitations
Difficult
Difficulttotoobtain
obtainresults
resultsfor
forcertain
certainjob
jobresponsibilities
responsibilities
Results
Resultssometimes
sometimesbeyond
beyondemployees
employeescontrol
control
Ignores
Ignoresmeans
meansor
orprocesses
processes
Fails
Failstototap
tapsome
somecritical
criticalperformance
performanceareas
areas

Job
Job Performance
Performance Competencies
Competencies
Closely
Closely tied
tied to
to organizations
organizations strategic
strategic
objectives
objectives
Can
Can take
take tremendous
tremendous amount
amount of
of time
time to
to
establish
establish
Must
Must be
be communicated
communicated clearly
clearly to
to
employees
employees
Must
Must be
be tied
tied in
in with
with organizations
organizations reward
reward
structure
structure

Exhibit
Exhibit10.5
10.5

Multilevel
Multilevel Corporate
Corporate Competency
Competency
Model
Model

Capital
Capital One
One Success
Success Factors
Factors &
&
Competencies
Competencies
Builds
Buildsrelationships
relationships

Communicates
Communicatesclearly
clearly&&openly
openly
Treats
Treatsothers
otherswith
withrespect
respect
Collaborates
Collaborateswith
withothers
others

Applies
Appliesintegrative
integrativethinking
thinking

Analyzes
Analyzesinformation
information
Generates
Generates&&pursues
pursuesideas
ideas
Develops
Develops&&shapes
shapesstrategies
strategies
Identifies
Identifies&&solves
solvesproblems
problems
Applies
Appliesintegrated
integrateddecision
decisionmaking
making

Drives
Drivestoward
towardresults
results

Focuses
Focuseson
onstrategic
strategicpriorities
priorities
Organizes
Organizes&&manages
managesmultiple
multipletasks
tasks
Directs
Directs&&coordinates
coordinateswork
work
Gets
Getsjob
jobdone
done

Leads
Leadsin
inlearning
learning
environment
environment

Recruits
Recruitstalent
talent
Motivates
Motivates&&develops
develops
Builds
Builds&&leads
leadsteams
teams
Influences
Influencesothers
others
Promotes
Promotesculture
culture

Takes
Takesresponsibility
responsibility
Learns
Learnscontinuously
continuously
Embraces
Embraceschange
change
Initiates
Initiatesopportunities
opportunitiesfor
for
improvement
improvement
Shows
Showsintegrity
integrity
Maintains
Maintainsperspective
perspective

Takes
Takespersonal
personalownership
ownership

How
How to
to Evaluate?
Evaluate?
Absolute
Absolute measurement
measurement
Measured
Measuredstrictly
strictlyby
byabsolute
absoluteperformance
performance
requirements
requirementsor
orstandards
standardsofofjobs
jobs

Relative
Relative assessment
assessment
Measured
Measuredagainst
againstother
otheremployees
employees&&ranked
rankedon
on
distance
distancefrom
fromnext
nexthigher
highertotonext
nextlower
lowerperforming
performing
employee
employee
Ranking
Rankingallows
allowsfor
forcomparison
comparisonofofemployees
employeesbut
but
does
doesnot
notshed
shedlight
lighton
ondistribution
distributionofofperformance
performance

Forced
Forced Ranking/Distribution
Ranking/Distribution
Arguments
Arguments in
in favor
favor of
offorced
forced ranking
ranking

Best
Bestway
waytotoidentify
identifyhighest-performing
highest-performingemployees
employees
Data-driven
Data-drivenbases
basesfor
forcompensation
compensationdecisions
decisions
Forces
Forcesmanagers
managerstotomake
make&&justify
justifytough
toughdecisions
decisions

Arguments
Arguments critical
critical of
offorced
forced ranking
ranking

Can
Canbe
bearbitrary,
arbitrary,unfair,
unfair,&&expose
exposeorganization
organizationtotolawsuits
lawsuits
Inherent
Inherentsubjectivity
subjectivity

Forced
Forced rankings
rankings tend
tend to
to be
be more
more effective
effective in
in
organizations
organizations with
with high-pressure,
high-pressure, results-driven
results-driven
culture
culture

Measures
Measures of
of Evaluation
Evaluation
Graphic
Graphic rating
rating scales
scales
Weighted
Weighted checklists
checklists
Behaviorally
Behaviorally anchored
anchored rating
rating scales
scales
(BARS)
(BARS)
Behavioral
Behavioral observation
observation scales
scales (BOS)
(BOS)
Critical
Critical incident
incident method
method
Management
Management by
by objectives
objectives (MBO)
(MBO)

Exhibit
Exhibit10.7
10.7

Graphic
Graphic Rating
Rating Scales
Scales

Exhibit
Exhibit10.8
10.8

Weighted
Weighted Checklist
Checklist

Exhibit
Exhibit10.9
10.9

Behaviorally
Behaviorally
Anchored
Anchored Rating
Rating
Scale
Scale (BARS)
(BARS)

Exhibit
Exhibit10.10
10.10

Behavioral
Behavioral Observation
Observation Scale
Scale (BOS)
(BOS)

Objectives-Based
Objectives-Based Performance
Performance
Measurement
Measurement

Enhanced
Enhanced employee
employee motivation
motivation
Employees
Employees can
can far
far more
more committed
committed to
to
reaching
reaching performance
performance objectives
objectives they
they
have
have agreed
agreed to
to
When
When employee
employee participates,
participates, his/her
his/her
trust
trust &
& dependability
dependability placed
placed on
on line
line

Objectives-Based
Objectives-Based Performance
Performance
Measurement
Measurement
Three
Three common
common oversights
oversights
Setting
Settingvague
vagueobjectives
objectives
Setting
Settingunrealistically
unrealisticallydifficult
difficultobjectives
objectives
Not
Notclarifying
clarifyinghow
howperformance
performancewill
willbe
bemeasured
measured

Objectives
Objectives selected
selected must
must be
be valid
valid

Other
Other Considerations
Considerations
Ensure
Ensure link
link between
between performance
performance management,
management,
training
training &
&development,
development, &
&compensation
compensation
Assignments
Assignments &
&responsibilities
responsibilities
Traditional
Traditional performance
performance evaluation
evaluation may
may need
need
redesign
redesign due
due to
to changes
changes in
in contemporary
contemporary
organizations
organizations
Degree
Degree of
of standardization
standardization or
or flexibility
flexibility of
of
performance
performance management
management system
system
Standardization
Standardizationimportant
importanttotoprevent
preventjob
jobbias
bias
Flexibility
Flexibilityimportant
importantdiffering
differinglevels
levelsofofresponsibility
responsibility
&&accountability
accountability

Reasons
Reasons Managers
Managers Resist
Resist or
or Ignore
Ignore
Performance
Performance Management
Management

Process
Process isis too
too complicated
complicated
No
No impact
impact on
on job
job performance
performance
Possible
Possible legal
legal challenges
challenges
Lack
Lack of
of control
control over
over process
process
No
No connection
connection with
with rewards
rewards
Complexity
Complexity &
& length
length of
of forms
forms

Strategies
Strategies for
for Improving
Improving Performance
Performance
Management
Management System
System

Involve
Involve managers
managers in
in design
design of
of system
system
Hold
Hold managers
managers accountable
accountable for
for
performance
performance &
& development
development of
of
subordinates
subordinates
Set
Set clear
clear expectations
expectations for
for performance
performance
Set
Set specific
specific objectives
objectives for
for system
system
Tie
Tie performance
performance measures
measures to
to rewards
rewards
Gain
Gain commitment
commitment from
from senior
senior managers
managers

Reading
Reading10.1
10.1
Multisource
MultisourceFeedback:
Feedback:Lessons
LessonsLearned
Learnedand
andImplications
Implications
for
forPractice
Practice

Considerations
Considerationswhich
whichneed
needto
tobe
beaddressed
addressedbefore
beforean
an
organization
organizationimplements
implementsany
anykind
kindof
ofmulti-rater
multi-raterfeedback
feedback
system
system

Outcomes
Outcomesof
ofthe
thefeedback
feedbackprocess
process
Factors
Factorsto
toconsider
considerAFTER
AFTERfeedback
feedback
Factors
Factorsto
toconsider
considerABOUT
ABOUTfeedback
feedback
Factors
Factorsto
toconsider
considerBEFORE
BEFOREfeedback
feedback

Reading
Reading10.1
10.1
Multisource
MultisourceFeedback:
Feedback:Lessons
LessonsLearned
Learnedand
andImplications
Implications
for
forPractice
Practice
Factors
Factorstotoconsider
considerBEFORE
BEFOREfeedback
feedback
include
include

Organization
OrganizationContext
Context
Cynicism
Cynicism
Integrated
IntegratedWith
WithOther
OtherActivities
Activities
Purpose
Purposeand
andStrategy
Strategy
Communicated
Communicated
Perception
Perceptionof
ofProcess
Process
Confidentiality
Confidentiality
Anonymity
Anonymity
Trust
Trust
Honesty
Honesty

Actual
ActualProcess
Process
Time
Time
Source
Sourceof
ofRatings
Ratings(Internal
(Internalvs.
vs.
External)
External)
Individual
IndividualDifferences
Differences
Personality
Personality
Goal
GoalOrientation
Orientation

Reading
Reading10.1
10.1
Multisource
MultisourceFeedback:
Feedback:Lessons
LessonsLearned
Learnedand
andImplications
Implications
for
forPractice
Practice

Factors
Factors to
to consider
considerABOUT
ABOUTfeedback
feedback include
include
Feedback
Feedback format
format
Characteristics
Characteristics of
of Feedback
Feedback
Positive
Positive
Negative
Negative
Over/Under
Over/Under Ratings
Ratings
Reactions
Reactions to
to feedback
feedback

Reading
Reading10.1
10.1
Multisource
MultisourceFeedback:
Feedback:Lessons
LessonsLearned
Learnedand
andImplications
Implications
for
forPractice
Practice
Factors
Factorstotoconsider
considerAFTER
AFTERfeedback
feedbackinclude
include
Method
Methodof
ofFeedback
FeedbackDistribution
Distribution
Organizational
OrganizationalSupport
Support
Development
Development
Coaching
Coaching
Individual
IndividualAttitudes
Attitudesand
andBehaviors
Behaviors
Perceived
PerceivedNeed
Needfor
forChange
Change
Goal
GoalSetting
Setting
Meetings
Meetingswith
withRaters
Raters

Reading
Reading10.1
10.1
Multisource
MultisourceFeedback:
Feedback:Lessons
LessonsLearned
Learnedand
andImplications
Implications
for
forPractice
Practice

Outcomes
Outcomes of
of the
the feedback
feedback process
process include
include
Changes
Changes in
in Self
Self and
and Other
Other Ratings
Ratings
Relationship
Relationship to
toAssessment
Assessment Center
Center
Ratings
Ratings Relationship
Relationship to
to Performance
PerformanceAppraisal
Appraisal
Ratings
Ratings
Employee
Employee Satisfaction
Satisfaction
Employee
Employee Intent
Intent to
to Leave
Leave
Employee
Employee Engagement
Engagement

Reading
Reading 10.2
10.2
Managing
Managing the
the Life
Life Cycle
Cycle of
of Virtual
Virtual Teams
Teams

two
two traditional
traditional models
models of
of team
teamdevelopment
development
(Tuckman,
(Tuckman, Gersick)
Gersick) applied
applied to
to virtual
virtual teams,
teams,
explaining
explaining
typical
typical behaviors
behaviors seen
seen during
during each
each stage
stage
particular
particular challenges
challenges faced
faced by
by virtual
virtual teams
teams during
during
each
each stage
stage

Reading
Reading 10.2
10.2
Managing
Managing the
the Life
Life Cycle
Cycle of
of Virtual
Virtual Teams
Teams

Reading
Reading 10.2
10.2
Managing
Managing the
the Life
Life Cycle
Cycle of
of Virtual
Virtual Teams
Teams

Reading
Reading10.3
10.3
Performance
PerformanceLeadership:
Leadership:11
11Better
BetterPractice
Practicethat
thatCan
Can
Ratchet
RatchetUp
UpPerformance
Performance

Strategies
Strategies which
which leaders
leaders can
can use
use to
to enhance
enhance
performance
performance in
in organizations
organizations based
based on
on three
three step
step
process
process of
of
Creating
Creating the
the performance
performance framework
framework
Driving
Driving performance
performance management
management
Learning
Learning to
to enhance
enhance performance
performance

Reading
Reading10.3
10.3
Performance
PerformanceLeadership:
Leadership:11
11Better
BetterPractice
Practicethat
thatCan
Can
Ratchet
RatchetUp
UpPerformance
Performance

Creating
Creatingthe
thePerformance
PerformanceFramework
Framework
Practice
Practice1:
1:Articulate
Articulatethe
theorganizations
organizationsmission
mission(reiterate
(reiterate
its
itsfundamental
fundamentalpoints
pointsatatevery
everyopportunity)
opportunity)
Practice
Practice2:
2:Identify
Identifythe
theorganizations
organizationsmost
mostconsequential
consequential
performance
performancedeficit
deficit(remembering
(rememberingthat
thatthis
thisassessment
assessmentisis
subjective)
subjective)
Practice
Practice3:
3:Establish
Establishaaspecific
specificperformance
performancetarget
target
(addressing
(addressingperformance
performancedeficit
deficitabove)
above)
Practice
Practice4:
4:Clarify
Clarifyyour
yourtheoretical
theoreticallink
linkbetween
betweentarget
targetand
and
mission
mission(make
(makeconnection
connectionvery
veryclear)
clear)

Reading
Reading10.3
10.3
Performance
PerformanceLeadership:
Leadership:11
11Better
BetterPractice
Practicethat
thatCan
Can
Ratchet
RatchetUp
UpPerformance
Performance

Driving
DrivingPerformance
PerformanceImprovement
Improvement
Practice
Practice5:
5:Monitor
Monitorand
andreport
reportprogress
progressfrequently,
frequently,
personally,
personally,and
andpublicly
publicly(shows
(showsleaders
leadersare
arepaying
paying
attention)
attention)
Practice
Practice6:
6:Build
Buildoperational
operationalcapacity
capacity(give
(giveteams
teams
resources
resourcesand
andcapabilities
capabilitiesnecessary
necessaryto
tomeet
meettargets)
targets)
Practice
Practice7:
7:Take
Takeadvantage
advantageof
ofsmall
smallwins
winsto
toreward
reward
success
success(shows
(showsappreciation
appreciationand
andreinforces
reinforcesbehavior)
behavior)
Practice
Practice8:
8:Create
Createesteem
esteemopportunities
opportunities(identifies
(identifiesrole
role
models)
models)

Reading
Reading10.3
10.3
Performance
PerformanceLeadership:
Leadership:11
11Better
BetterPractice
Practicethat
thatCan
Can
Ratchet
RatchetUp
UpPerformance
Performance

Learning
Learningto
toEnhance
EnhancePerformance
Performance
Practice
Practice9:
9:Check
Checkfor
fordistortions
distortionsand
andmission
mission
accomplishment
accomplishment(ensures
(ensuresthat
thatperformance
performancetargets
targetsadvance
advance
mission)
mission)
Practice
Practice10:
10:Analyze
Analyzeaalarge
largenumber
numberand
andaawide
widevariety
varietyof
of
indicators
indicators(ensure
(ensurethat
thatboth
bothoutcomes
outcomesand
andprocesses
processesare
arein
in
synch
synchwith
withmission)
mission)
Practice
Practice11:
11:Adjust
Adjustmission,
mission,target,
target,theory,
theory,monitoring
monitoringand
and
reporting,
reporting,operational
operationalcapacity,
capacity,rewards,
rewards,esteem
esteem
opportunities,
opportunities,and/or
and/oranalysis
analysis(feedback,
(feedback,organizational
organizational
learning
learningand
andcontinuous
continuousimprovement)
improvement)