5 Criteria of Performance
Measures

8-1


Measuring Performance
 Comparative approach compares performance
with that of others.

 Ranking
 Simple ranking ranks employees from highest to lowest performer.
 Alternation ranking is crossing off the best and worst employees.

 Forced distribution is employees ranked in groups.
 Paired comparison
 Managers compare every employee with every other employee in
work group.

8-2


Attribute Approach
 Graphic rating scales
 list of traits evaluated by 5-point rating scale.
 legally questionable.
 Mixed-standard scales
 define relevant performance dimensions
 develop statements representing good, average, and poor
performance along each dimension.


higher levels of productivity.

Hierarchy

8-5


5 Performance Information
Sources

8-6


Reducing Rater Errors and Politics
 Approaches to Reducing Rater Error:

 Rater error training
 Rater accuracy training
 Calibration Meetings- attended by managers to discuss employee
performance ratings.

8-7


Typical Rater Errors
1.

Similar to Me

2.

2. Create right context for discussion.
3. Ask employees to rate performance before the session.
4. Encourage employee to participate.
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 progress review date.

8-9


8-10


Ways to Manage Performance
 Solid performers
 High ability and motivation; provide development

 Misdirected effort
 Lack of ability but high motivation; focus on training

 Underutilizers
 High ability but lack motivation; focus on interpersonal abilities

 Deadwood
 Low ability and motivation; managerial action, outplacement,
demotion, firing

8-11

 be aware of the issues involved in determining best methods.
 feed performance information back to employees
 take action based on causes for poor performance: ability,
motivation or both
 be sure that PMS can meet legal scrutiny

8-13