1.1.1.1.1.1.1.1.1 VII. Choosing a Source for Performance Information
A. Managers are the most frequently used source.
1. Supervisors usually have extensive knowledge of the job and have had the
opportunity to observe their employees.
2. Because supervisors have something to gain from employees’ high
performance and something to lose by low performance, they have the
motivation to make accurate ratings. Also, feedback from supervisors is
strongly related to performance.
3. However, in some instances, supervisors do not observe employees, and
supervisors may be biased against a particular employee. In addition,
favoritism must be minimized as much as possible in performance
management.
Competing Through Sustainability:
Connecticut Health Foundation Evaluates Performance from Different Perspectives to
Insure It Meets Its Mission and Goals
Discussion Question
1. What source(s) for performance information do you think it is best to use to determine
whether employees are working toward the organization’s long-term goals and mission,
and ultimately its future?
Student answers will vary, but should express their appreciation for strategic alignment.
2. What performance outcomes (attributes, behaviors, competencies, objective results)
would you assess??
Again, the answers here will vary and need to be in line with the idea of being able to
1.1.1.1.1.1.1.2 B. Peers
1. Peers, or coworkers, are excellent sources of information when the
supervisor does not always observe the employee.
2. Peers may be biased and may be uncomfortable with being the rater when
the ratings are used for administrative decisions.
1.1.1.1.1.1.1.3
1.1.1.1.1.1.1.4 C. Subordinates
1. Subordinates are a valuable source of performance information when
managers are evaluated. They often have the best opportunity to evaluate
how well a manager treats employees.
2. Upward feedback refers to an appraisal that involves subordinates’
evaluations of the manager’s behavior or skills (see Table 8.10).
3. Allowing subordinates to rate managers gives subordinates power over
their managers, thus putting the manager in a difficult situation. This can
lead to managers’ emphasizing employee satisfaction over productivity.
Also, subordinates may fear retribution from their managers if the
evaluations are not anonymous.
1.1.1.1.1.1.1.5 D. Self
1. Self-ratings can be valuable but are not usually used as the sole source of
performance information.
2. One problem with self-ratings is a tendency toward inflated assessments,
especially if ratings are used for administrative decisions.
3. The best use of self-ratings is as a prelude to the performance feedback
session to make employees think about their performance and to focus
discussion on areas of disagreement.
1.1.1.1.1.1.1.6 E. Customers
1. In some instances, the customer is often the only person present to observe
the employee’s performance.
2. The main weakness of customer surveys is that they are somewhat
expensive.
1.1.1.1.1.1.1.7 F. The best source of performance information
1. One should choose the sources that provide the best opportunity to
observe employee behavior and results. (Table 8.10 summarizes this
information.)
2. One popular trend in organizations is called 360-degree appraisals. This
technique consists of having multiple raters (boss, peers, subordinates,
customers) provide input into a manager’s evaluation. (This technique is
discussed in Chapter 9.)
Evidence-Based HR
Fallon Clinic is a group medical practice with over 1700 employees. Of these, 350 are doctors
and advanced practitioners and the remaining employees are nurses, therapists, lab technicians,
and administrative and clerical support. Fallon Clinic recognizes that there are specific staff and
clinical behaviors that are critical for patient satisfaction. Fallon Clinic created the “Patient
Shadowing Program” which involves staff members “shadowing” consenting patients on their
appointments to observe the patient experience. Volunteers were selected based upon their strong
interpersonal, communications, and feedback skills and were trained how to use rating templates.
There has been a six percent average increase in patient satisfaction scores.
Exercise
1. Break the class into four small groups. Have one group discuss their observations about
the behaviors and competencies that they feel would be optimal for doctors to have and to
exhibit; have another group discussion Have one group discuss their observations about
the behaviors and competencies that they feel would be optimal for nurses to have and to
exhibit; Have one group discuss their observations about the behaviors and competencies
that they feel would be optimal for lab techs to have and to exhibit; and then have one
group discuss their observations about the behaviors and competencies that they feel
would be optimal for front office staff to have and to exhibit. Have each small group
appoint a scribe, to report the discussions of each small group back to the large group. On
four separate whiteboards, list the behaviors and competencies of each of these employee
groups (doctors, nurses, etc.). Facilitate a large group discussion where you compare and
contrast the lists. Then, have the group discuss what the implications for a program such
as “Patient Shadowing Program.”
1.1.1.1.1.1.1.7.1 VIII. Use of Technology in Performance Management- Technology is influencing
performance management systems in three ways:
1.1.1.1.1.1.1.7.2
A. As we have seen in the chapter many companies are moving to web-based online paperless
performance management systems.
B. Second, social media tools such as Facebook and Twitter are increasingly being used to deliver
timely feedback.
C. Third, companies are relying on electronic tracking and monitoring systems and software to
ensure that employees are working when and how they should be and to block access to
visiting certain websites (such as those containing pornographic images).
1.1.1.1.1.1.1.7.3
Competing Through Technology:
Social Media Tools Help Make Performance Management a Daily Event
Many employees are no longer waiting fro a formal performance appraisal to receive feedback or
help them understand how to improve. Employees are increasingly relying on social networking
for performance feedback whether on not the organization is using Facebook, Twitter, or My
Space as part of its performance management process. Recognizing the potential use of social
networking for performance management and capitalizing on the employees needs for feedback
from peers as well as their managers, forwarding-thinking companies are developing websites or
purchasing software to help make performance management more of an ongoing dynamic
process.
Discussion Question
1. Consider the performance management process shown in Figure 8.1. On which step(s) in the
process do you think social media tools can have the greatest positive influence?
The advantages for employees receiving feedback through social networking tools are
that they can receive feedback in a timely way, and they can obtain feedback from a
2. What are the potential disadvantages of using social media tools in performance management?
Drawbacks could include an employee’s discomfort with social networking technologies,
A. Reducing Rater Errors, Politics, and Increasing Reliability and Validity of Ratings
1. Rater error training attempts to make managers aware of rating errors and
helps them develop strategies for minimizing those errors.
2. Rater accuracy training, also called frame-of-reference training, attempts
to emphasize the multidimensional nature of performance and thoroughly
familiarizes raters with the actual content of various performance
dimensions.
3. Typical Rater Errors are shown in Table 8.11
4. Appraisal politics refers to evaluators purposefully distorting ratings to achieve
personal or company goals. An important way to help ensure that performance is
evaluated consistently across managers and to reduce the influence of rating
errors and politics on appraisals is to hold calibration meetings. Calibration
meetings provide a way to discuss employees’ performance with the goal of
ensuring that similar standards are applied to their evaluations.
5. To reduce appraisal politics, companies can do many things to keep
evaluators from distorting results. See Table 8.2 in the Text. Managers can
also:
• Build top management support for the appraisal system and actively
discourage distortion.
• Give raters some latitude to customize performance objectives and
criteria for their ratees.
• Recognize employee accomplishments that are not self-promoted.
• Provide employees with access to information regarding which behaviors
are desired and acceptable at work.
• Encourage employees to actively seek and use feedback to improve
performance.
• Make sure constraints such as budget do not drive the process.
• Make sure appraisal processes are consistent across the company.
• Foster a climate of openness to encourage employees to be honest about
weaknesses.
1.1.1.1.1.1.1.7.4 IX. Performance Feedback – Performance Feedback is a process that is complex and
provokes anxiety for both the manager and the employee.
1.1.1.1.1.1.1.7.5 The Manager’s Role in an Effective Performance Feedback Process: Ways
to Improve Performance Feedback Process
1. Feedback should be given every day, not once a year.
a. Managers have a responsibility to correct performance deficiencies
immediately upon becoming aware of them.
b. A major determinant of how effectively a feedback session goes is
the extent to which the subordinate is not surprised by the
evaluation.
2. Create the right context for the discussion
a. Managers should choose a neutral location for feedback.
b. Managers should describe the meeting as an opportunity for the
employee.
c. Manager should also encourage open dialogue.
3. Ask the employee to rate his or her performance before the session.
a. Self-ratings require employees to think about their performance,
including their weaknesses.
b. The feedback session can go more smoothly by focusing
discussion on areas of disagreement.
c. Employees will be more likely to participate fully in the feedback
session.
4. Encourage the subordinate to participate in the session.
a. Even though the problem-solving approach is the superior
approach, most managers still use the tell-and-sell or the
tell-and-listen approach.
b. When employees participate in the feedback session, they are
consistently satisfied with the process.
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.
Evidence-Based HR:
Google
Google put its ability to analyze vast amounts of data to work to learn a little about itself. First,
for a company who previously operated without managers, they discovered that teams with good
managers outperformed teams with bad managers. Second, they were able to distill 10,000
observations about managers into a list of 8 behaviors exhibited by managers that get good
results. These were used to develop training programs for its poorest performing managers that
resulted in improvements in manager quality for 75% of them.
Exercise
Break students into small groups and ask them to analyze the list of 8 behaviors identified by
Google. Ask the groups to create themes from those behaviors that might serve as guidelines for
any manager in leading their team.
X. What Managers Can Do to Diagnose Performance Problems and Manage Employees’
Performance
A. Diagnosing the Causes of Poor Performance: Many different reasons can cause an
employee’s poor performance. The different factors that should be considered in
analyzing poor performance are shown in Figure 8.8.
B. Actions for Managing Employees’ Performance: Table 8.12 shows actions for the
manager to take with for different types of employees.
2 XI. Developing and Implementing a System That Follows Legal Guidelines
A. In discrimination suits, the plaintiff often claims that the performance ratings were
subjective and that the rater was biased and influenced by gender or racial
stereotypes
1. Research has shown that both white and black raters give higher ratings to
members of their own race, even after rater training.
2. Discriminatory biases in ratings are worse when one group makes up a
small percentage of the work group.
B. In unjust dismissal suits, the plaintiff often claims that the dismissal was for
reasons other than those the employer claims. The court case will likely focus on
the performance system that was used as the basis for claiming the employee’s
performance was poor.
There are certain characteristics of a system that will withstand legal scrutiny.
1. A valid job analysis that ascertains the important aspects of job
performance.
2. A system based on either behaviors or results.
3. Raters trained in how to use the system.
4. Some form of review by upper-level managers and a system for employee
appeal.
5. Some form of performance counseling or corrective guidance to help poor
performers.
6. Multiple raters should be used.
7. Performance evaluations need to be documented.
2.1.1.1.1.1 A Look Back
The chapter opener on VivaKi Nerve Center and Eastern Idaho Regional Medical Center
discussed how values should play an important role in a successful performance
management system and how there has to be emphasis on more than just financial
performance.
Questions
1. Why might peer or coworker evaluations be necessary to evaluate values?
The reason these types of evaluations might be needed in assessing values is that
2. Do you think evaluations of values should receive equal, more, or less weight
than evaluation of objectives (or what the employee accomplishes) in employees’
performance evaluation? Why?
It is good practice to include both objective measures, as well as behaviors,
because the two are linked. It would be hard to imagine, for example, an
2.2
3. Are values only important for organizations that have a sales force or provide
some type of customer service? Explain your answer.