MGMT20004
Managing
People atWork
Topic 4 – Managing
Performance
(Performance
Management)
Agenda
Managing performance (i.e. performance
management) and performance appraisal
Performance appraisal
Setting objectives (goal setting)
Ways of measuring
Approaching the performance appraisal
interview
Giving feedback
Ways to improve performance appraisal in
organisations
Part 1
Part 2
Performance and Development
Performance management
and performance appraisal
Performance management
Aims to improve organisational, functional, unit
and individual performance by linking the
objectives of each.
Performance appraisal
Concerned with determining how well
employees are doing their job, communicating
that information to employees, agreeing on new
objectives and establishing a plan for
performance improvement.
A performance management process
The link between
performance
management and
an organisation’s
objectives
Appraisal = most contentious
and least popular of HRM
activities. Managers do not
seem to like doing it, and
employees see no point in it
(Heathfield, 2007).
Issues of control,
subjectivity/bias, ‘procedural
justice’, criticism
Dual purposes: appraisal and
development (tension)
Performance appraisal process – Three Steps
1. SETTING PERFORMANCE
OBJECTIVES.
2. MEASURING THE
PERFORMANCE.
3. PROVIDING
PERFORMANCE FEEDBACK.
Goal setting
Setting performance objectives: Goal setting
SETTING SPECIFIC GOALS IS
MORE LIKELY TO LEAD TO
HIGHER PERFORMANCE.
GOALS THAT ARE PERCEIVED TO
BE DIFFICULT TO ACHIEVE
RESULT IN BETTER
PERFORMANCE.
EMPLOYEE PARTICIPATION IN
GOAL SETTING TENDS TO LEAD
TO HIGHER GOALS BEING SET
THAN WHEN THE MANAGER
UNILATERALLY SETS THE GOALS.
FREQUENT PERFORMANCE
FEEDBACK RESULTS IN HIGHER
PERFORMANCE.
SMART Goals
Specific
Measurable
Achievable
Relevant
Time-bound
Is this a
SMART goal
Decrease cost of inventory management over next six months
Specific
Measurable
Achievable
Relevant
Time-bound
Ways of
measuring
performance
Management by objectives (goal setting).
Ranking.
Grading.
Critical incidents.
Behaviourally anchored rating scales.
Behaviour observation scales.
Behavioural
rating scales
· Behaviour-anchored rating scales (BARSs)
provide descriptions of important job
behaviour ‘anchored’ alongside a rating scale.
· Behavioural observation scales (BOSs) involve
the people doing the rating assessing the
frequency of specific job-related behaviours
that are observable.
Behavioural
Observation
Scale –
example
Measuring
performance
Raters of employee performance
Supervisors
Peers
Self
Subordinates
Multisource or 360 degree
– Involve colleagues, supervisors, customers
and subordinates
Team appraisals.
Some common
rater errors
– Halo effect
– Central tendency
– Leniency/strictness bias
– Prejudice
– Recency effect
– Relationship effect
Performance
appraisal
interview
The appraisal interview as a “conversation about
performance” (Gordon and Stewart, 2009, p. 473)
Efficiency and effectiveness
Effectiveness:
Does it impart “meaningful information that
promotes mutual understanding” (Gordon
and Stewart 2009, p. 476)
How satisfied are the participants (especially
ratees/employees) with the process
Performance
feedback
Three factors are important:
– The manager’s knowledge of the
employee’s job and performance
– The manager’s support of the employee
– The manager’s involvement of the
employee in the discussion.
Conduct of the
performance
review
discussion
Prepare for the discussion.
Makes notes of specific
examples of positive
behaviour/outcomes
Keep the objective in mind
(performance improvement)
The employee should be
encouraged to talk.
Specific performance
improvement objectives
should be set.
The employee should only
be evaluated on those things
they can change or are
within their control.
The
performance
appraisal
record
A document that is used to record the ratings and comments for
an employee.
Valuable tool for:
– goal setting
– defining performance levels
– facilitating job performance review discussion
– identifying training and development needs
– identifying low- and high-potential employees
– rewarding performance.
How to
improve
appraisal
interviews
‘Micro-skills’ (interpersonal skills and
emotional intelligence)
Communication training for both
managers and employees
Build receptivity to feedback – (Jackman
and Strober 2003)
Examples –
communication
training
Giving
feedback
Focus on the behaviour, not the person
Avoid ‘judging’ language – describe situations or
behaviour rather than evaluate
Invite and actively listen to the other person’s views
Focus on your higher objective or goal – what do you
want to happen as a result of giving this feedback Is
your approach likely to achieve this outcome
‘I’ messages –
Owning our
reactions
(assertive
communication)
‘I’ statements/messages are a way of sharing emotions
and letting others know how their behaviour is
perceived and how it affects you
Use the following two-part feedback formula:
1.describe the other person’s behaviour
2.describe your reaction to it
‘I’ statements/messages can have two, three or four
parts
‘I’ messages
I’ messages –
application
One of your colleagues frequently makes remarks about how
carefully and slowly you think before making a contribution at
staff meetings. Even though these comments appear to be a
joke, you feel that others hearing them are starting to label
you as ‘slow’.You’ve had enough of the comments.
A. Write a two-part ‘I’ message using the two-part formula
to state your feelings and describe the behaviour.
B. Change your two-part ‘I’ message into a three-part ‘I’
message using the three-part formula.
2-part
I understand you think it’s funny, but when you make
jokes about the time to reflect before speaking in a
staff meeting, it makes me feel like I am not accepted
and don’t belong in the group.
3-part
I am less inclined to contribute at all in the meetings
because of it.
‘I’ messages –
application
It is 3pm. You feel tense because you have two telephone calls to
make and a major piece of work to finish in the next two hours. A
colleague asks you to help him immediately with the agenda for next
week’s committee meeting. It has to be sent by email this afternoon.
Write a four-part assertive message in which you state that you
are unable to help with the agenda. Follow the four-part ‘I’
message formula.
When you ask me for help to meet one of your
deadlines urgently, I feel like you do not
recognize I have my own workload and
deadlines to meet. I end up helping you finish
by the deadline but then I have to complete my
own work after hours. Today I have an urgent
deadline as well, so I am not able to help you. I
would be willing to help out from time-to-time
but I need some notice, not the afternoon it is
due.
Applying these
skills to
performance
feedback
Timing of feedback – close in proximity to
the event
Don’t wait until the performance
appraisal to give feedback
How to start
Feedback –
Flag-Example-
Benefit
structure
Flag what you are about to comment on
Provide an example of what you are
actually commenting on
Outline the benefit of what you want to
see happen – this enables you to be
specific and constructive
Assertive, positive,
constructive
feedback: Example
Flag I liked your last monthly report
Example I thought the way you ordered the
information and used graphs was
professional
Benefit You highlighted progress to date and
detailed next month’s activities in a
way that made the contents easy to
understand
Assertive,
negative,
constructive
feedback:
Example
Flag I thought you began the negotiation well by
separating the people from the problem
Example I think you could have engaged more
positively by focusing on the interests and
finding common ground, rather than taking a
position. Once a position is taken, it is difficult
to generate different possibilities.
Benefit Focusing on interests would have let you and
the others in the negotiation work together to
generate a range of options. It is then possible
to choose together the option that best meets
the interests of the negotiators.
Balanced Build self esteem by being both positive and
constructive
Actionable Give examples and provide feedback about
something the other person is responsible for
Timely Provide feedback at an appropriate time/context
Meaningful Keep to the point, describe actions, required
standards & specific information about performance
‘I’ language Say ‘I’ rather than ‘you’ to minimise defensiveness,
resistance and arguments
Constructive Aim to be helpful, not hurtful, by using objective
neutral words when giving positive or negative
feedback
Empathic Keep your comments to the facts and be aware of the
other person’s point of view.
B.A.T.M.I.C.E.
Approach
Emotional intelligence competencies
Personal competence – managing
ourselves
Self-awareness
Self-regulation
Self-motivation
Social competence – managing
relationships (‘social intelligence’)
Social awareness
Social skills
Implementing a PA system
(Gordon and Stewart 2009)
Influence the context of Performance Appraisal
Framing (organisation-wide communication
about PA)
Agenda setting (pre-interview ‘homework’ and
planning)
Develop a common language to facilitate
shared understanding (involve line managers)
Suggestions
Think about the structure of the appraisal
interview
Limit the number of topics covered
Keep in mind the overall purpose of
performance appraisal
Greater potential – to create a ‘feedback
culture’, continuous learning (Jackman and
Strober 2003)
Performance
Appraisal
Serves multiple purposes
Widespread dissatisfaction
Tendency to switch from one system to another (see Gordon and
Stewart 2009)
Need to consider context of Performance Appraisal
Managers are often uncomfortable giving feedback to staff; avoid
direct confrontations
People avoid feedback (Jackman and Strober 2003)
