HRM REPORTING

Chapter 8:
Performance
Management
GROUP 1

GROUP MEMBERS:
ABARQUEZ l ANDAL l DE CASTRO
ESTANCIA l MARAHAY l PEPITO
ENERGIZER!
 4 Pics 1 Word

_E__O__A___
4 Pics 1 Word

PERFORMANCE
4 Pics 1 Word

__E_B__K
4 Pics 1 Word

FEEDBACK
4 Pics 1 Word

___A_E_E__
4 Pics 1 Word

MANAGEMENT
4 Pics 1 Word

R__I___E
4 Pics 1 Word

RELIABLE
 4 Pics 1 Word

_D___I__R__I_E
 4 Pics 1 Word

ADMINISTRATIVE
 LEARNING OBJECTIVES
1. Identify the major parts of an effective performance 6. Discuss the advantages and disadvantages of the
management process. different sources of performance information.

2. Discuss the three general

performance management.
purposes of
7. Choose the most effective source(s) for
performance information for any situation.

3. Identify the five criteria for effective performance

management systems.
8. Discuss the potential advantages of performance
management, gamification, social performance
management, and electronic monitoring.

4. Discuss the five approaches to performance

9. Distinguish types of rating errors, and explain how
management, the specific techniques used in each to minimize each in a performance evaluation.
approach, and the way these approaches compare
with the criteria for effective performance
management systems. 10. Conduct an effective performance feedback
session.

5. Choose the most effective approach to performance

measurement for a given situation. 11. Identify the cause of a performance problem.
 process of identifying, measuring,
What is Performance managing, and developing the performance
of the human resources in an organization.
Management? process through which managers ensure
that employees’ activities and outputs are
congruent with the organization’s goals.
Defining Performance
central to gaining competitive advantage.
Management
 Parts of the
Performace Management

Defining Performance
a performance management system specifies which
aspects of performance are relevant to the
organization, primarily through job analysis .

Measuring Performance
it measures those aspects of performance through
performance appraisal, which is only one method
for managing employee performance.

Feeding back performance

Information
it provides feedback to employees through
performance feedback sessions so they can adjust
their performance to the organization’s goals.
Process of the Performance Management
 Purposes of
Performance Management System

Strategic Administrative Developmental

Purpose Purpose Purpose
QUESTION:

Why does performance management

important in an organization?
FIVE CRITERIA
for effevtive performance management systems

Strategic Congruence

Validity

Realiability

Acceptability

Specificity
 Criteria for Effective Performance
Management Systems

Strategic congruence Validity Reliability

the extent to which a performance the extent to which a performance the consistency of a performance
management system elicits job measure assesses all the relevant— measure; the degree to which a
performance that is congruent and only the relevant—aspects of job performance measure is free from
with the organization’s strategy, performance. random error.
goals, and culture.

Acceptability Specificity
the extent to which a performance the extent to which a performance measure
measure is deemed to be satisfactory gives detailed guidance to employees about
or adequate by those who use it. what is expected of them and how they can
meet these expectations.
QUESTION:
What skills do you think are needed
for an effective performance
management?
Approaches to
Measuring Performance

Comparative Attribute Behavioral

Approach Approach Approach

Result Approach Quality Approach

Comparative
Approach
> requires the rater to compare an individual’s
performance with that of the other.

Techniques include the ff.

Ranking - can be simple or alternation ranking
Forced distribution - employees are ranked in
groups.
Paired comparison - compare every
employee with every other employee in the
work group, giving an employee a score of 1
every time he or she is considered the higher
performer.
Attribute
Approach
> focuses on the extent to which individuals
have certain attributes (characteristics or
traits) believed desirable for the company’s
success.

Techniques include the ff.

Graphic rating scales- list of traits is
evaluated by a five-point rating scale.
Mixed-standard scales- define the relevant
performance dimensions and then develop
statements representing good, average, and
poor performance along each dimension.
 Behavioral
Approach
> attempts to define the behaviors an
employee must exhibit to be effective in the
job.
Techniques include the ff.
Behaviorally Anchored Rating Scales (BARS)-
performance dimension has a number of examples of
behaviors that indicate specific levels of performance along
the dimension.
Behavioral Observation Scales (BOS) - developed from
critical incidents.
Competency Model - identifies and provides descriptions
of competencies that are common for an entire occupation,
organization, job family, or a specific job.
 Result Approach
> focuses on managing the objective,
measurable results of a job or work group.

Approaches used are the ff.

1. Balance Scorecard - to measure performance; effective
balanced scorecards allow employees to understand the
business strategy by looking only at the scorecard and the
strategy map.
Four perspectives of performance
Financial Perfective
Customer Perspective
Internal or Operations Perspective
Learning and Growth Perfective
2. Productivity Measurement and Evaluation System
(ProMES) -
the main goal is to motivate employees to improve team or
company-level productivity.
 Quality Approach
> Fundamental characteristics of the quality approach
include a customer orientation, a prevention approach to
errors, and continuous improvement.
> Improving customer satisfaction is the primary goal of
the quality approach.

Techniques include the ff.

Process-flow analysis - is useful for identifying redundancy
in processes that increase manufacturing or service time.
Cause-and-Effect diagrams - events or causes that result in
undesirable outcomes are identified.
Pareto chart - highlights the most important cause of a
problem.
Control charts - involve collecting data at multiple points in
time.
Histograms - display distributions of large sets of data.
Scattergrams - show the relationship between two
variables, events, or different pieces of data.
Use of Technology in
Perforemance
Management
Technology in performance management
could make a big difference in the process,
implementation, cost, and appraisal.

Four ways in performance management systems:

Web-based online Social media

e-tracking & monitoring

Gamification
systems
 Four ways in
Performance Management
Systems

Web-based Social Media Gamification E-tracking and

monitoring systems
online game-based strategies
tools are Companies are relying
help companies that are applied to make on this to ensure that
ensure that increasingly being it a fun, effective, employees are working
performance goals used to deliver transparent, and when and how they
across all levels of timely feedback inclusive process for should be and to block
the organization are employees and access to visiting
aligned managers certain websites
QUESTION:
How do you think technology
is used in performance
management?
 Reducing Rater Errors, Politics, and
Increasing Reliabity and Validity of Ratings
Appraisal politics - refer to evaluators purposefully distorting a rating to achieve
personal or company goals.

Three approaches to reducing rating errors:

Rater error training Frame-of-reference Calibration meetings

training
attempts to make provide a way to discuss
attempts to emphasize the
managers aware of multidimensional nature of employees’ performance
rating errors and helps performance and to get with the goal of ensuring
them develop strategies raters to understand and use that similar standards
for minimizing those the same idea of high, are applied to their
errors. medium, and low evaluations.
performance when making
evaluations.
Performance Feedback
1. Feedback Should Be Given Frequently, Not Once a
Year
2. Create the Right Context for the Discussion
3. Ask the Employee to Rate His or Her Performance
before the Session
4. Encourage the Employee to Participate in the
Session
5. Recognize Effective Performance through Praise
6. Focus on Solving Problems
7. Focus Feedback on Behavior or Results, Not on the
Person
8. Minimize Criticism
9. Agree to Specific Goals and Set a Date to Review
Progress
Diagnosing the Causes of Poor
Performance
Diagnosing the Causes of Poor
Performance
Actions for Managing Employees’
Performace
QUESTION:
Why is feedback important in
an organization?
HRM Reporting

Thank
You!