PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT

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PERFORMANCE APPRAISAL VS PERFORMANCE MANAGEMENT

• Performance appraisal -- setting standards,
  informing employees, ratings and feedback.
• Performance management -- all of those processes
  led by managers to help employees perform as
  effectively as they can.

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GOALS OF PERFORMANCE MANAGEMENT

• Improve employee performance
• Develop people for promotional opportunities
• Meet employee need for feedback
• Ensure that employees are working toward
  organizational goals
• Provide the data needed to make and defend
  important human resources decisions

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THE PERFORMANCE MANAGEMENT CYCLE
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3 PARTS OF PERFORMANCE SYSTEM

• DEFINING PERFORMANCE
• MEASURING PERFORMANCE
• FEEDBACK INFORMATION OF PERFORMANCE

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An Organizational Model of Performance Management
Organizational Strategy Long Short Term Goals
Values
Individual behaviors
Individual Attributes (e.g. skills abilities)
Objective results
Situational Constraintsa Organizatioanl
Culture Economic Conditions
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3 Purposes of Performance Management

• Strategic Purpose
• Administrative Purpose
• Developmental Purpose

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Recommendations for designing an Effective
Performance System

• Aim for Precision in defining and measuring
  performance.
• Link Performance dimensions to meeting internal
  and external customer requirements.
• Measure and correct for the impact of situational
  constraints.

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CURRENT ISSUES IN PERFORMANCE MANAGEMENT

• The focus on ratings and rewards
• Too much for one rater to appraise
• The system is too top down
• Team-based work systems
• Total Quality Management

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PERFORMANCE MANAGEMENT INNOVATIONS

• Increased employee involvement
• Less focus on ratings and rewards
• Multi-rater systems (i.e., 360 degree feedback,
  peer reviews)

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IMPLEMENTATION ISSUES AND STRATEGIES

• Involvement of users in development
• Pilot programs
• Implementation in one unit
• Staggered implementation

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OBSTACLES TO SUCCESSFUL IMPLEMENTATION

• Lack of commitment from the top
• Overselling the program
• A program excessive in paperwork and
  administrative requirements
• Failing to train and retrain appraisers
• Changing the system
• Failing to monitor the program and deal with
  non-compliance