Performance management systems are critical to individual and organizational success. Consider the scenario below and share your responses to the four questions asked.
Scenario
Onboarding programs must set the stage for successful employee performance. You understand the importance of linking organizational and individual goals.
You are the Sales Director for Hammads Auto Detailing Shop, specializing in custom automobile detailing services for business fleet automobiles. Recently, you offered the position of Customer Sales Associate to Osama. He is reporting to work next week for onboarding. Based upon the information provided, answer the following questions:
1. In your own words, explain how you will use the onboarding process to connect Osamas individual goals to the organizations overall strategy.
2. Explain the implications associated with not linking Osamas individual goals to the overall organizational strategy.
3. Address components you believe an effective onboarding program should include, as well as exclude.
4. How will an effective on-boarding program ensure Osama understands expectations of his role, as well as ensure that Osama is set up for performance success at Hammads Auto Detailing Shop?
part one
Strategic
and General
Considerations
Copyright © 2019 Chicago Business Press
1-1
Part I: Strategic And General
Considerations
Chapter 1: Performance Management
in Context
? Chapter 2: Performance Management
Process
? Chapter 3: Performance Management
and Strategic Planning
?
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Chapter 1
Performance Management
in Context
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Overview
?
Definition of Performance
Management (PM)
?
Purposes of PM
?
Contributions of PM
?
Disadvantages/Dangers of Poorly
Implemented PM Systems
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Overview (continued)
?
?
?
Characteristics of an Ideal PM
System
Integration with Other Human
Resources and Development
Activities
The Changing Nature of PM
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Definition of PM
1. Continuous process of
Identifying
Measuring
Developing
the performance of individuals and
teams
2. Aligning performance with the
strategic goals of the organization
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Definition of PM (continued)
?
Performance management (PM)
is NOT
performance appraisal (PA)
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Definition of PM (continued)
PM
?
?
?
PA
Strategic business
considerations
?
Driven by HR
?
Assesses employee
Driven by line
manager
Ongoing feedback
So employee can
improve performance
Strengths
Weaknesses
?
?
Once a year
Lacks ongoing
feedback
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Performance Appraisal vs.
Performance Management
?
Performance Appraisal vs. Performance
Management
What did you see?
? What is wrong with the interaction
between the supervisor and her direct
report?
? Is this performance appraisal? Is this
performance management? Why?
?
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Purposes of PM Systems
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Purposes of PM Systems
Strategic Purpose
?
?
Link individual goals with
organizations goals
Communicate most crucial business
strategic initiatives
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Company Spotlight
?
?
Sears, one of the largest U.S. retailers,
is using PM to reinvigorate the
companys culture
Steps include:
Revising duties and objectives
More frequent communication between
supervisors and employees
Using PM to identify future leaders
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Purposes of PM Systems
Administrative Purpose
?
Provide information for making
decisions regarding:
Salary adjustments
Promotions
Retention or termination
Recognition of individual performance
Layoffs
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Purposes of PM Systems
Informational Purpose
?
Communicate to employees:
Expectations
What is important
How they are doing
How to improve
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Purposes of PM Systems
Developmental Purpose
?
?
?
?
Performance feedback/coaching
Identification of individual strengths
and weaknesses
Identification of causes of
performance deficiencies
Tailor development of individual
career path
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Purposes of PM Systems
Organizational Maintenance Purpose
?
Plan effective workforce
?
Assess future training needs
?
?
Evaluate performance at
organizational level
Evaluate effectiveness of HR
interventions
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Purposes of PM Systems
Documentation Purpose
?
Validate selection instruments
?
Document administrative decisions
?
Help meet legal requirements
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Contributions of
Performance Management
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Contributions of
Performance Management
?
For Employees
?
For Managers
?
For Organization/HR Function
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Contributions of Performance
Management for Employees
?
Enhance self-insight and development
?
Increase self-esteem
?
Increase motivation to perform
?
Increase employee competence
?
Clarify definitions of
Job
Success criteria
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Contributions of Performance
Management for Managers
?
Increase employee engagement
?
Encourage voice behavior
?
Minimize employee misconduct
?
Address declines in performance early
?
Increase employee motivation,
commitment, and intentions to stay in
organization
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Contributions of Performance
Management for Managers (continued)
?
?
?
?
Communicate supervisors views of
performance more clearly
Managers gain insight about
subordinates
Better and more timely differentiation
between good and poor performers
Employees become more competent
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Contributions of Performance
Management for Organization /
HR Function
?
Clarify organizational goals
?
Facilitate organizational change
?
?
Fairer, more appropriate
administrative actions
Better protection from lawsuits
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Disadvantages/Dangers of
Poorly Implemented
PM Systems
?
For Employees
?
For Managers
?
For Organization/HR Function
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Disadvantages/Dangers of
Poorly Implemented
PM Systems
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Disadvantages/Dangers of Poorly
Implemented PM Systems for
Employees
?
?
Lowered self-esteem
Employee burnout and job
dissatisfaction
?
Damaged relationships
?
Use of false or misleading information
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Disadvantages/Dangers of Poorly
Implemented PM Systems for
Managers
?
Increased turnover
?
Decreased motivation to perform
?
?
Unjustified demands on managers
resources
Varying and unfair standards and
ratings
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Disadvantages/Dangers of Poorly
Implemented PM Systems for
Organization/HR Function
?
Wasted time and money
?
Unclear ratings system
?
Emerging biases
?
Increased risk of litigation
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Disadvantages/Dangers of Poorly
Implemented PM Systems for
Organization/HR Function
?
Wasted time and money
?
Unclear ratings system
?
Emerging biases
?
Increased risk of litigation
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Company Spotlight
?
?
Yahoo was subject to a lawsuit due to a
poorly implemented performance
management system
Missteps include:
Forced ranking of employees
Unclear ratings and lack of openness
Biases including gender discrimination
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Company Spotlight
?
?
Adobe implemented a state-ofthe-science performance
management system
Benefits included:
Time savings (80,000 hours)
Increased morale
Decreased turnover
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Characteristics of an Ideal PM System
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An Ideal PM System:
15 Characteristics
Strategically Congruent
?
?
Consistent with organizations
strategy
Aligned with unit and
organizational goals
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An Ideal PM System:
15 Characteristics
Contextually Congruent
?
Congruent with the organizations
culture as well as the broader
cultural context of the region or
country
Example: A 360-degree feedback is
not effective where communication is
not fluid and hierarchies are rigid
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An Ideal PM System:
15 Characteristics
Thorough
?
?
?
?
All employees are evaluated
All major job responsibilities are
evaluated
Evaluations cover performance for
entire review period
Feedback is given on both positive
and negative performance
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An Ideal PM System:
15 Characteristics
Practical
?
Available
?
Easy to use
?
Acceptable to decision makers
?
Benefits outweigh costs
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An Ideal PM System:
15 Characteristics
Meaningful
?
?
?
?
?
Standards are important and relevant
System measures ONLY what employee
can control
Results have consequences
Evaluations occur regularly and at
appropriate times
System provides for continuing skill
development of evaluators
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An Ideal PM System:
15 Characteristics
Specific
? Concrete and detailed guidance
to employees
Whats expected
How to meet the expectations
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An Ideal PM System:
15 Characteristics
Identifies effective and ineffective
performance
?
Distinguish between effective and
ineffective:
Behaviors
Results
?
Provide ability to identify employees
with various levels of performance.
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An Ideal PM System:
15 Characteristics
Reliable
?
Consistent
?
Free of error
?
Inter-rater reliability
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An Ideal PM System:
15 Characteristics
Valid
?
?
?
Relevant (i.e., measures what is
important)
Not deficient (i.e., doesnt measure
unimportant facets of job)
Not contaminated (i.e., only
measures what the employee can
control)
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An Ideal PM System:
15 Characteristics
Acceptable and Fair
?
Perception of Distributive Justice
Work performed ? Evaluation received ?
Reward
?
Perception of Procedural Justice
Fairness of procedures used to:
Determine ratings
? Link ratings to rewards
?
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An Ideal PM System:
15 Characteristics
Acceptable and Fair
?
Perception of Interpersonal Justice
Perceptions of quality of the design and
implementation of the PM system
?
Perception of Informational Justice
Performance expectations and goals
Feedback received
Information given to justify administrative
decisions
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An Ideal PM System:
15 Characteristics
Inclusive
?
Represents concerns of all involved
When system is created, employees
should help with deciding:
?
What should be measured
?
How it should be measured
Employee should provide input on
performance prior to evaluation meeting.
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An Ideal PM System:
15 Characteristics
Open (No Secrets)
?
?
?
?
Frequent, ongoing evaluations and
feedback
Two-way communications in appraisal
meeting
Clear standards and ongoing
communication
Communications are factual, open,
and honest
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An Ideal PM System:
15 Characteristics
Correctable
?
?
Recognizes that human judgment
is fallible
Appeals process provided
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An Ideal PM System:
15 Characteristics
Standardized
?
Ongoing training of managers to
provide consistent evaluations
across:
People
Time
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An Ideal PM System:
15 Characteristics
Ethical
?
?
?
Supervisor suppresses self-interest
Supervisor rates only where (s)he
has sufficient information about the
performance dimension
Supervisor respects employee
privacy
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Integration with other Human
Resources and Development
Activities
?
PM provides information for:
Development of training to meet
organizational needs
Workforce planning
Recruitment and hiring decisions
Development of compensation systems
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Changing Nature of PM
?
PM is changing rapidly due to:
?
Technological Advancements
?
Globalization
?
Demographic Changes
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Changing Nature of PM
Technological Advancements
?
Use of cloud computing for real-time
and constant feedback
?
Availability of Big Data and use of
Electronic Performance Monitoring
(EPM)
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Changing Nature of PM
Globalization
?
Increasing prevalence of virtual teams
located across the world
?
Need to consider local norms
including societal and organizational
cultural issues
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Changing Nature of PM
Demographic Changes
?
Retirement of baby boomers and
influx of Gen X and Gen Y (Millennials)
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Millennials in the Workforce
?
?
?
Millennials in the Workforce
What are some of the stereotypes
associated with Millennials and how
would you manage them?
Which of these stereotypes have been
particularly exaggerated?
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Quick Review
Definition of Performance Management
(PM)
? Purposes of PM Systems
? Contributions of PM
? Disadvantages/Dangers of Poorly
Implemented PM Systems
? Characteristics of an Ideal PM System
? Integration with Other Human
Resources and Development Activities
? Changing Nature of PM
?
1-55
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All rights reserved. No part of this publication may be
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any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
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