In most performance measurement systems, the employee’s primary evaluator is her supervisor.

1. Ch 1: What is a performance management system? What’s its purpose? What are the key characteristics?

Performance management system is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goal of the organization.

2. Ch 1: What are the benefits of a PM system?

ADVANTAGES:
1.Self-insight and development are enhanced.

2. Self-esteem is increased – receiving feedback about performance fulfills needs to be recognized at work.

3.Motivation to perform is increased
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4.Employee engagement is enhanced. – feel involved, committed, passionate and empowered
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5. Employee become more competent – successful with development plan
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6. Voice behavior is encouraged – suggest for changes and improvement that are innovative, challenge status quo and constructive
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7. Definition of job and criteria are clarified
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8. Employee misconduct is minimized
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9. Decline in performance can be addressed early on.

10. Motivation, commitment, and intentions to stay in the organization are enhanced.

11. Manager gains insight about direct reports.

12. Better and more timely differentiation between good and poor performers.

13. Supervisor view of performance are communicated more clearly.

14. Administrative actions are more fair and appropriate.

15. Organizational goals are made clear.

16. Better protection from lawsuits

17. Organizational change is facilitated.

What are the dangers of a poorly implemented PM system?

DISADVANTAGES:
1. Lowered self- esteem
2.Increased turnover
3.Damaged relationships
4.Decreased motivation to perform
5.Employee burnout and job dissatisfaction
6.Use of misleading information
7.Wasted time and money
8.Emerging biases
9.Unclear rating system
10.Varying and unfair standard and rating
11.Unjustified demand on manager and employee resources
12.Increased risk of litigation – expensive lawsuit by individual who feel they have been appraised unfairly.

3. Ch 2: Describe the steps in the PM process?

1.PRE-REQUSITES: Strategic planning and work(job) analysis

2.PLANNING: Results, behavior, and development plan

3.EXECUTION: Employee and manager responsibilities

4.ASSESMENT: Manger and employee evaluate results and behavior

5.REVIEW: past, present and future.

4. Ch 2: Describe the prerequisites for PM systems?

1.Strategic Planning: organization mission and strategic goal is result of strategic planning.
Takes place after mission and vision statement are created.
Clearly define its purpose and reason for existing and goals it wants to achieve.

2. Work (Job)Analysis: process of determining the key components of a job, including activities, tasks, products, service and process. Without its difficult to understand what constitutes the required duties for position.

5. Ch 2: Define and explain KSAOs.

Knowledge: having the information needed to perform the work, but not necessarily having done it earlier.

Skills: required attributes that are usually acquired by having done the work in the past.

Ability: having the physical, emotional, intellectual, and psychological aptitude to perform the work, through neither having done the job nor having been trained to do the work is required.

6. Ch 3: Discuss the importance of strategic alignment in PM systems.

Organizations Strategic Plan: Mission, vision, objective, strategies

Unit Strategic Plan: Mission, vision, objective, strategies

Job Description: Tasks, Knowledge, Skills, Abilities

1.Define their identity
2.Help organization prepare for the future because it clarifies their desired destination.
3.Allow organizations to analyze their external and internal environment and doing so enhance their ability to adapt to environmental change and even anticipate future changes.
4.Provide organization with focus and allow them to allocate resource to what matters most.
5.Help produce common perspective and culture of cooperation within the organization given that common set of objectives is created.
6.Good eye-opener because it generates new options and opportunities to be considered.
7.powerful tool to guide employee activities and behavior and results directly linked to organization objective and what really matters.

7. Ch 4: Define and explain the determinants of performance.

1. ABILITIES & OTHER TRAITS:
Cognitive abilities (intelligence), personality, stable motivational dispositions, physical characteristics and abilities.

2. KNOWLEDGE & SKILLS:
Declarative knowledge (information about facts and things, including information regarding a given task requirement, label, principle, and goals), procedural knowledge (knowing what to do and how to do it).

3.CONTEXT:
HR policies and procedures (compensation system), managerial and peer leadership, organizational and national culture, timing and time of performance, resources and opportunities given to employees to perform.

8. Ch 4: Define and explain task vs contextual performance.

Task performance is defined as:
• Activities that transform raw material into the good and service that are produced by the organization.
• Activities that help with the transformation process by replenishing the supply or raw materials, distributing finished goods, providing important planning, coordination, supervising, or staff function that enable the organization to function effectively and efficiently.

Contextual performance – those behaviors that contribute to the organization effectiveness by providing a good environment in which performance occur.
• Persisting with enthusiasm and exerting extra effort as necessary to complete one own task activities successfully.
• Volunteering to carry out task activities that are not formally part of their job
• Helping and cooperating with others
• Follow company rules and procedures
• Endorsing, supporting, and defending organizational objective.

9. Ch 4: Describe the trait, behavioral, and results approaches to measuring performance?

Behavior Approach – emphasize what employee do on their job and does not consider the outcome or products resulting from their behaviors. Best when:
• The link between behavior and result is not obvious
• Outcome occurs in the distant future
• Poor results are due to causes beyond performer control

Result Approach: outcome produced by the employee
• Workers are skilled in the needed behavior
• Behaviors and results are obviously related
• Results show consistent improvement over time
• There are many ways to do the job right

10. Ch 5: Explain how to measure results including determining accountabilities

Determine Accountabilities:

1. determining accountabilities is to collect information about the job.
The job description that has resulted from the work analysis and consideration of unit- and organizational level strategic priorities. The job description provides information on the tasks performed.
2. Determine relative degree of importance
a. What % of the employee time is spent performing each accountability ?
b. If the accountability were performed inadequately, would there be a significant impact on the work unit mission?
c. Is there a significant consequence of error?

Consequences of making errors, and %of time spent in each follows
1. Process leadership
2. Supervision of non exempt staff
3. Coaching
4. Team-building consolation
5. Assessment instrument feedback
Product improvement

10. Ch 5: Explain how to measure results including determining objectives

Determine Objectives:

Statements of an important and measurable outcome that when accomplished will help ensure success for the accountability.
After objectives are set, employees should receive feedback on their progress toward attaining the objective.

To serve useful function, objectives must have the following characteristics:
1. Specific and clear
2. Challenging
3. Agreed upon
4. Signficant
5. Prioritized
6. Bound by time
7. Achievable
8. Fully communicated
9. Flexible
10. Limited in #

4 four main reasons why goals setting leads to better performance:
1. Setting a goal establishes clear priority and clear focus over other less important tasks.
2. Specific and difficult goals increase effort over and above an easy, vague or nonexistent goal
3. Improves persistence because their clear target in sight
4. Specific and difficult goal forces people to create and implement specific reasons, specific and difficult goals force people to create and implement specific strategies such as how to allocate time and resources to reach the goal.

10. Ch 5: Explain how to measure results including characteristics of performance standards (i.e., yardsticks). 

Determine performance standards

Yardstick designed to help people understand to what extent the objective has been achieved.

Standards can refer to various aspects of specific objective:
Quality: how well the objective has been achieved
Quantity: how much has been produced, and how many units, how often and at what cost
Time: due date

Good performance Standards:
1. Related to the position
2. Concrete, specific , measurable
3. Practical to measure
4. Meaningful
5. Realistic and achievable
6. Reviewed regularly

11. Ch 5: Explain how to measure behaviors including the assessment of competencies, specifically addressing comparative vs absolute systems.

Measure behavior:
• Measure performance include the assessment of competencies. Competencies are measurable cluster of (KSA) knowledge, skills, abilities that are critical in determining how results will be achieved.

• 2 types of competencies:
• Differentiating competencies: distinguish between average and superior performers.
• Threshold competencies: everyone needs to display to do the job to minimally adequate standard.
• The change management competency include knowledge of behavior science, operational and relation skill, and sensitivity to motivators.
• Consideration structure: is the degree to which the leader looks, after the well-being of his followers.
• Initiating structure: degree to which leader lays out task responsibilities.
• 5 indicators whose presence would indicate existence of consideration competency:
1. Support direct report project
2. Ask about well-being of employee live outside of work
3. Encourage direct report to reach established goal
4. Get to know employee personally
5. Show respect for employee work and personal lives

Comparative System: employee are evaluated relative to 1 another
Simple rank order: employee ranked from best to worst performer.
Alternation rank order: result is list of all employees
Paired comparison: made between all pairs of employee evaluated

Absolute System: employee performance without making direct reference to other employees.
Get detailed feedback to employee regarding performance
Behavioral checklist: form listing behavioral statement that are indicator of various competencies to be measured.
Critical incidents: measurement approach involve gathering report of situation in which employee exhibited behavior that were especially effective or ineffective in accomplishing their job.

Graphic rating scale: popular tool used to measure performance. Clearly defined that interpretation of rating by outside party is clear and rater that employee understand rating.
BARS improve on graphic rating scale by first having group of employee identify all of the important dimension of the job.
The meaning of each response category is clear
Individual who is interpreting rating (HR) can tell clearly what response was intended.
Performance dimension being rated is defined clearly for rater.

COMPARATIVE
ABSOLUTE
1. Simple rank order
Essays
2. Alternation rank order
Behavior checklist
3. Paired comparison
Critical incident
4. Relative percentile
Graphic rating scale
5. Forced distribution

Comparative System: employee are evaluated relative to 1 another
Simple rank order: employee ranked from best to worst performer.
Alternation rank order: result is list of all employees
Paired comparison: made between all pairs of employee evaluated

Absolute System: employee performance without making direct reference to other employees.
Get detailed feedback to employee regarding performance
Behavioral checklist: form listing behavioral statement that are indicator of various competencies to be measured.
Critical incidents: measurement approach involve gathering report of situation in which employee exhibited behavior that were especially effective or ineffective in accomplishing their job.

Graphic rating scale: popular tool used to measure performance. Clearly defined that interpretation of rating by outside party is clear and rater that employee understand rating.
BARS improve on graphic rating scale by first having group of employee identify all of the important dimension of the job.
The meaning of each response category is clear
Individual who is interpreting rating (HR) can tell clearly what response was intended.
Performance dimension being rated is defined clearly for rater.

COMPARATIVE ABSOLUTE
1. Simple rank order Essays
2. Alternation rank order Behavior checklist
3. Paired comparison Critical incident
4. Relative percentile Graphic rating scale
5. Forced distribution

12. Ch 6: What’s contained on an appraisal form?

A. Basic employee information
B. Accountabilities, objective, standard
C. Competencies and behavior indicator
D. Major achievement and contribution
E. Developmental achievements
F. Developmental need, plan, goals
G. Multiple performance touchpoint
H. Employee comments
I. Signatures

13. Ch 6: Define and describe the key characteristics of appraisal forms.

1. Simplicity: forms must be easy to understand, easy to administer, quick to complete, clear and concise.
2. Relevancy: good forms include information related directly to the tasks and responsibilities to the job
3. Descriptiveness: raters provide evidence of performance regardless of the performance level. The form should be sufficiently descriptive that an outside party has a clear understanding of the performance
4. Adaptability: Allow managers in different functions and departments to adapt them to their particular needs and situations.
5. Comprehensiveness: major area of performance for particular position for entire review period.
6. Definitional clarity: Desirable competencies and results are clearly defined for all raters so that everyone evaluates the same attributes. Enhances consistency of ratings across raters and level of organization.
7. Communication: component of form must be clearly and successfully communicated to all people participating in the evaluation process.
8. Time orientation: help clarify expectations about performance. They are not only the past but also the future.

JUDGEMENTAL PROCEDURE: consist of considering every aspect of performance, and then arriving at a defensible summary. Procedure relies on the ability of the rater to arrive at a fair and accurate overall score.

MECHANICAL PROCEDURE: first consider the score assigned to each section of the appraisal form, and then combining them up to obtain overall score. When adding scores from each section, weights are typically based on relative importance of each performance dimension measured.

15. Ch 6: Who should provide performance information?

1. Supervisor: best position to evaluate performance in relation to strategic organizational goals.Also because have knowledge about strategic issues, understand performance, and usually in charge of managing employee performance.
2. Peers: use of peers as a source of performance data is often described as a “breakthrough” or “new” feature in many performance management system.
a. However peer evaluation suffers from 3 problems
i. Friendship bias at work - if an employee believes that ratings provided by his peers will be lower than those provided for another employee because the other employee has more friends than he does, then the evaluation is not taken seriously.
ii. Peers are less discriminating among performance dimensions compared to supervisors (“HALO EFFECT”) - 1 is rated high on 1 dimension, 1 is also likely to be rated high on all the other dimensions, even though the performance dimension rated may not be related to one another and may require very different knowledge, skills, and abilities.
iii. Context issues- resulting peer evaluation can be quite different based on whether the peer providing the rating is thinking about 1 specific situation versus another one, or communication behavior across situation is general.
3. DIRECT REPORTS: good source of information regarding the performance of their managers.
a. Good position to evaluate leadership competencies, including delegation, organization, and communication.
b. Asked to their manager ability to:
i. Remove barriers that employee face
ii. Shield employee from politics
iii. Raise employee competence
4. SELF:
a. When employee are given the opportunity to particpate in the performance management process, their acceptance of the resulting decision is likely to increase and their defensiveness during the appraisals is likely to decrease.
b. Good position to keep track of activities during the review period, whereas a supervisor may have to keep track of the performance of several employee.
c. Improve quality of self-appraisal:
i. Use comparative as opposed to absolute measure system
ii. Allow employee to practice their self-rating skills
iii. Assure confidentiality
iv. Emphasize the future
5. CUSTOMERS:
a. Participate in performance touchpoint in many types of industries, occupations, and jobs.
b. High degree of interaction with public
6. EMPLOYEE PERFORMANCE MONITORING AND BIG DATA
a. Electronic performance monitoring (EPM)- includes surveillance camera system and computer and phone monitoring system.
b. EPM includes wearable technologies , smartphones, like Fitbit and GPS
c. BIG DATA - analytics mindset means that we collect, compile , and analyze data with the goal of gaining insight that can be used to enhance individual, team, and organization performance as well as individual well-being.
d. Improve chances that EPM will lead to positive results:
i. Be transparent
ii. Be aware of all potential employee reactions
iii. Use EPM for learning and development
Restrict EPM to job-related behavior and behaviors.

INFLATE ( LENIENCY ERROR):

NFLATE ( LENIENCY ERROR): when raters assign high lenient ratings to most or all employees. Provide inflated ratings to:
1. Maximize the merit raise and rewards
2. Encourage employees
3. Avoid creating a written record
4. Avoid confrontation with employees
5. Promote undesired employee out of unit
Make manager look good to his own supervisor

DEFLATION (SEVERITY ERROR)

DEFLATION (SEVERITY ERROR): raters assign low ratings to most or all employee. Provided deflated ratings to:
1. Shock an employee
2. Teach a rebellious employee a lesson
3. Send a message to employee that he should consider leaving
4. Build a strongly documented, written record of poor performance

INFLATION DEFLATION
1. Maximize the merit and reward Shock employees
2. Encourage employees Teach a rebellious employee a lesson
3. Avoid creating a written record Send a message that employee should consider leaving
4. Promote undesired employee out of unit Build a record of poor performance
5. Make manager look good to his or her supervisor

17. Ch 7: Define possible rater errors.

Make raters aware of what rating error they are likely to make and to help them develop strategies to minimize those errors. Include definition of the most typical errors and a description of possible causes for those errors.
Exposes raters to range of possible errors:
1. Similar to me errors - favor those similar to us
2. Contrast error- raters compare individual with 1another instead of against predetermined standards.
3. Halo error- raters fail to distinguish between different aspects of performance being rated.
4. Primacy error - influenced mainly by information collected during initial phases of review period.
5. Recency error - influenced mainly by information gathered during last portion of review period.
6. Negativity error- rater place more weight on negative information than on positive or neutral information
7. First impression error- rater make initial favorable or unfavorable judgement about an employee and then ignore subsequent information that does not support initial impression
8. Spillover error - scores from previous review period unjustly influence current ratings
9. Stereotype error- rater has oversimplified view of individual based on group membership
Attribution error- rater attributes poor performance to an employees dispositional tendencies instead of features of the situation (malfunction equipment

Ch 7: What are the benefits of rater training? How is it done?

Frame of reference (FOR) helps improve rater accuracy by thoroughly familiarizing the raters with the various performance dimension to be assessed. The overall goal is to give raters skill so that they can minimize unintentional errors and provide accurate rating on each performance dimension by developing FOR.
Typical FOR training include:
1. Raters are told they will evaluate the performance of 3 employees on 3 separate performance dimension
2. Raters are given appraisal form and instructed to read it as the trainer reads aloud the definition for each of the dimensions and scale anchor.
3. Trainer discusses various employee behaviors that illustrate various performance levels for each rating scale included the form.
4. Participants are shown a video clip of practice vignettes, including behaviors related to the performance dimension being rated and are asked to evaluate employees performance using the scale provided.
5. Rating provided by each participants are shared with the rest of the group and discussed.
6. Provides feedback to participants explaining why employees should receive a certain rating on each dimension and shows discrepancies between the target score and score given by each trainee.

19. Ch 7: Describe the characteristics of a good communication plan.

Communication plan to ensure that information regarding the performance management system is disseminated widely in the organization

A good communication plan answers the following questions:
1. What is performance management?
2. How does the performance management fit into our strategy?
3. What is it in for me?
4. What are my responsibilities?
5. How is performance management related to other initiatives?
Even if a communication plan answers all or most of the important questions, the fact that the information has been made available does not necessarily mean the communication plan will be successful in gaining acceptance of the system.

20. Ch 8: What are the objectives of personal development plans?

development plans?
Personal developmental plans specify course of action to be taken to improve performance.
Achieving these goals stated in the developmental plan allow employee to keep abreast changes in their field or profession.

Developmental plans focus on short-term and on specific roles and positions, but also on the knowledge and skills needed for more long-term career aspirations and career development.

Good developmental plans focus on developing career competencies - 3 set of competencies:

1. Reflective career competencies
a. Be aware of one’s career and combing personal reflections with professional career.
i. Reflection on motivation- reflect on value, passion, and motivation with regard to career
ii. Reflection on qualities - reflection on strength, shortcoming, and skills regarded to one career.
2. Communication with career competencies
a. Effectively communicate with others to improve one chance of career success.
i. Networking:
ii. Self-profiling
3. Behavioral career competencies
a. Shape ones career by taking action and being proactive.
i. Exploration
ii. Career control
4. Succession planning :
Gather information for important aspect of personal developmental plan.

21. Ch 8: Describe sample developmental activities. 

Developmental activities are dependent on organizations strategic goals and objectives and also on resource that may or may not be available.
Employees can reach the objective stated in their development plans:
1. On the job training
2. Courses
3. Self-guided studying
4. Mentoring
5. Attending conference trade show
6. Mixing with best
7. Getting a degree
8. Job rotation
9. Temporary assignments
Membership or leadership role in professional, trade or nonprofit organizations

22. Ch 8: Describe a 360 degree feedback system?

Multisource feedback system has become a preferred tool for helping employees, particularly those in supervisory role, improve performance by gathering information on their performance from different sources.
“360-degree” - gather information and sources from employees; and is usually collected anonymously to minimize rating inflation.

Most helpful for developmental purpose only not administrative purpose.
Feedback reports usually include graphs showing area in which employee perception differ most from the perception of other source of performance data.

1. Communication (listen to others, process information, communicate effectively)
2. Leadership (provide direction, delegate responsibility)
3. Adaptability - (think creatively, adjust to circumstances)
4. Relationships - (build personal relationship, facilitates team success)
5. Tasks management - (work efficiently, work competently)
6. Production - (take action, achieve results)
7. Development of others) - (motivate successfully)
8. Personal development - (display commitment, seek improvement)

23. Ch 9: What are the guiding principles of coaching?

Coaching is a collaborative, ongoing process in which the manager interact with their direct reports and take an active role and interest in their performance. Coaching involves:
1. Directing
2. Motivating
3. Reward employee behavior
Coaching is a day-to-day and ongoing function that involve observing performance when it does not meet expectation and standards.
Cultural transvergence: means that cultural differences are discussed openly, and alternative practices which enhance individual and team performance are implemented.

Framework for understanding successful coaching:

1. Good coaching relationship is essential
a. Coach needs to try to walk in the employee shoe and view the job and organization from employee perspective
b. Search for positive aspect of employee because this is likely to to lead to better understanding and acceptance of employee.
c. Coach needs to understand that coaching is not something done to employee but done with the employee.
2. Employee is the source and director of change
a. The coach must understand that the employee is the source of change and self-growth.
3. Employee is whole and unique
a. Coach must understand that each employee is a unique individual with several job- related and job-unrelated identities (computer network specialist, father, skier) and a unique personal history.
4. Coach is the facilitator of employee growth
a. Coach main role is 1 of facilitation. Coach must direct the process and help with content (developmental plan) but not take control of these issues. Help employee awareness of strength, resource, challenge and facilitate goal setting.
5. Giving advice
a. Help employee improve their performance. Involve what needs to be done and how things need to be done.
6. Providing employee with guidance
a. Employee can develop their skill and knowledge appropriately. Provide information both about skill and knowledge that are required to do the work correctly and information about how the employee can acquire these skill and knowledge.
7. Providing employee support
a. Coaching involve being available when employee need help, but it also involve being available when employee need help and employee every move.
8. Giving employee confidence
a. Give positive feedback that allow employee to feel confident about what they do but it also involves giving feedback on things that can be improved (constructive feedback).
9. Helping employee gain greater competence
Guide them toward acquiring knowledge and sharpening the skill than can prepare them for more complex tasks and high-level positions

24. Ch 9: Explain the steps in the coaching process.

1. Setting Developmental Goals
a. Goals are reasonable, attainable, and based on employee and organizational needs and short-term and long-term objectives
2. Identifying Developmental Activities and Needed Resource
a. Possibilities include on-the-job training, course, self-guided studying, mentoring, attending a conference or trade show, mixing with the best, getting a degree, job rotation, temporary assignment, and membership or leadership role in professional, trade or non-profit organizations.
3. Implementing Developmental Activities
a. Begin developmental activities
4. Observing and Documenting Developmental Behaviors and Results
a. Gather data to assess the extent to which each developmental goal has been achieved
5. Giving feedback:
a. Based on the extent to which each of the goals has been achieved, developmental goals are revised and the entire process begins again.

25. Ch 9: What are general recommendations for providing constructive feedback?

Sometimes referred to as “negative feedback” - use constructive feedback because this label has a more positive and future-oriented connotation.
The goal is to help employee improve their performance in the future: its not to punish, embarrass or chastise Constructive feedback is most useful when early coaching has been instrumental in identifying warning signs and performance problem is still manageable.
Also useful when its clarified unwanted behavior and consequence and focuses on behavior that can be changed.
Also when useful when accepted when it is given by source who uses straight talk and not subtle pressure and when it is supported by hard data.

“Actionable Feedback” - such feedback will allow employee to respond in constructive ways and will lead to learning and performance improvement.

“Strength-base approach” - weakness- based approach involve identifying employee weakness, providing negative feedback on what employee are doing wrong and did not accomplish, and finally ask them to improve their behavior or results by overcoming their weakness.

In spite of the need to address poor performance, managers are usually not very comfortable providing constructive feedback. Consider this :

1. Negative reaction and consequences
2. Negative experience in the past
3. Playing “God”
4. Need for irrefutable and conclusive evidence

26. Ch 9: Describe best practices for a performance review meeting.

1. Explain purpose of meeting
2. Share performance data and explain rationale
3. Discuss development
4. Ask employee to summarize
5. Discuss rewards
6. Schedule follow-up meeting
7. Discuss approval and appeal process
8. Conduct final recap

27. Ch 10: Describe traditional vs contingent pay plans and explain their advantages/disadvantages

Traditional approach - approach in implementing reward system is to reward employee for the position they fill as indicted by their job description and not necessarily by how they do their work. Employee are rewarded for filling a specific slot in organizational hierarchy.

Contingent Pay (pay for performance)

Contingent Pay (pay for performance) - individuals are rewarded based on how well they perform on the job. Employee receive increase in pay based wholly or partly on job performance.

• CP plans showed that performance management systems are MORE effective when results are directly tied to the reward system.
• CP plan forces organization to define effective performance more clearly and determine what factors are likely to lead to effective performance.

• When CP is implemented organizations need to make CLEAR what is expected of employees, what specific behaviors or results will be rewarded and how employees can achieve these behaviors or results.

• Sorting- effect: high- achieving performers are attracted to organizations that reward high-level performance are typically of CP plans. They are likely to be attracted to and remain with organizations that have implemented CP plans.

• Overall CP plans enhance employee motivation to accomplish goals that match organizational needs.

• CP plans have the potential to help change people behavior and improve performance.

• CP plans can help improve the motivation of employee when each of the following conditions is present:
• Employee see a clear link between their effort and resulting performance (expectancy)
• Employee see a clear link between their performance level and rewards received (instrumentality)
• Employee value the rewards available (valence)

• MOTIVATION: EXPECTANCY * INSTRUMENTALITY* VALENCE

• Employee may value the rewards available and may want to get them (valence)
• Employee may also see that if they exert sufficient effort, they will be able to achieve the desired performance level ( expectancy)
• Rewards received are not necessarily related to performance level (no instrumentality) - In this situation employees are not likely to choose to exert effort because this will not get them the desired rewards.

DISADVANTAGE OF CP PLAN :

1. Poor performance management system is in place
a. Happens when a CP plan is paired with a poorly designed, implemented performance management system, 1 includes biased ratings and the measure of unrelated performance dimension
b. Rewarding behavior and result that are not job-related is likely to cause good performance to leave the organization.
c. Those who stay are not likely to be motivated to perform well.
2. There is the folly of rewarding A while hoping for B
a. Employee are likely to engage in counterproductive behavior when this is what will earn them the desired rewards.
b. Organizations that would like its employee to be more entrepreneurial and innovate but it does not reward employee who think creatively. What are employees likely to do?
c. Employee to focus on teamwork and a one-for-all spirit, but it rewards employee based on individual results.
3. Rewards are not considered significant
4. Managers are not accountable
5. There exists an extrinsic motivation at the expense of intrinsic motivation
a. What happens when there is so much, almost exclusive emphasis on rewards?
b. Employee who have jobs that require a great deal of absorption and personal investment may start to lose interest in their job, which in turn can decrease motivation.
c. Extrinsic value of doing one job (reward) can supersede intrinsic value (doing the work because it is interesting and challenging )
6. Rewards for executives are disproportionately large compared to rewards for everyone else.
a. Organizations , executive rewards received by everyone else in the organization.
b. CEO should be compensated according to their performance and an important indicator of CEO performance is overall firm performance (e.g. stock price in the case of publicly traded organizations).

28. Ch 10: Explain expectancy theory of motivation.

People want more out of a job than a paycheck. People seek environment based on trust and respect, where they can have fun and develop relationships with others and engage in meaningful and interesting work.
Rewards system focus on pay and other monetary rewards exclusively at expense of non financial reward are basically bribing their employee and eventually will pay a high price in lack of employee loyalty and commitment.

29. Ch 10: Describe the recommendations for making rewards work

1. Define and measure performance first and then allocate rewards
a. Before rewards are allocated there must be a good performance management system in place
i. Define performance and performance expectations
ii. Measure performance well
b. Organizations believe that they have a reward problem in fact, the problem is with the definition and measurement of performance.
2. Use only rewards that are available
a. If organization doesn’t have financial reward available, then the employee expectation should be adjusted accordingly and focus should be on intangible rewards.
b. Makes No sense to discuss pay raise as an important component of CP plan if existing budget constraints mean meager raises.
3. Make sure all employee are eligible
a. Top executives receive benefits such as profit sharing, stock options, executive life and liability insurance, invitation to meeting in attractive locations, and permission to fly first-class. Are these benefits truly rewards as we have defined them here? Do these incentives enhance motivation? They seem to do so because they motivate lower-level employees to strive to become executives ; however what would happen if these type of incentives were extended to lower rank of organizations?
4. Make rewards contingent
a. Rewards should be visible to those who receive them.
b. Rewards should also be visible to others, together with information about what needs to happen for an employee to receive the reward in the future. - Both tangible & intangible rewards.
c. Non financial rewards are more effective if made in public.
5. Make rewards timely
a. Rewards should be tied to performance directly and exclusively.
6. Make rewards reversible
a. Rewards should be given soon after the occurrence of the result or behavior being rewarded.
7. Use recognition and other non financial rewards
a. Increasing employee base pay creates an annuity for employee tenure with organizations.
b. If mistakes are made in allocation of increase in base pay (especially upwards) they are usually irreversible and can be very costly over time.
c. Variable pay is not added to employee base salary, has been attractive option for many organizations.
d. Variable pay is consistent with recommendations that reward be contingent and reversible. If high-quality performance occurs again, then the employee receives additional compensation again. If high-quality performance does not occur, additional compensation is not given.

30. Ch 10: Explain the six legal concepts that affect PM systems

1. Employee at will
a. Employer or employee can end the employment relationship at any time.
2. Negligence
a. Many organizations outline a performance management system in their employee manual, employee contract or other documents.
b. When the system is described in such documents, and not implemented as described, legal problem can arise.
3. Defamation
a. Disclosure of untrue, unfavorable performance information that damage an employee reputation.
b. Employee can argue that organizations defamed her if employer states false information during courses of performance evaluation or negligently or intentionally communicates these statements to third party like potential future employer thus subjecting the employee to harm or lose of reputation.
c. Can occur when not job-related and doesn’t include information that would explain or justify poor performance or when evaluator revises a prior evaluation in an attempt to justify subsequent adverse action taken against the employee.
4. Misrepresentation
a. Disclosing untrue favorable performance and this information cause risk or harm to others.
5. .Adverse impact (“unintentional discrimination”)
a. Performance management system has an unintentional impact on members of a protected class, such as sex or race.
b. Protected class is a group of people with a common characteristic who are legally protected form discrimination on the basis of that characteristic.
6. Illegal discrimination (“disparate treatment”)
a. Raters assign scores differently to various employee based on factor that are not performance related such as race, nationality, color or ethnic and national origin.

Help top management achieve strategic business objective. If for some reason individual goal are not achieved, linking individual and team goal with organizational goals serve as way to communicate most crucial business strategic initiatives.

Salary adjustment, promotion, employee retention, termination ,identification of poor performance, layoff and merit increase

3. INFORMATIONAL PURPOSE:

Inform employee about how they are doing and provide them with information on specific area that may need improvement.
Provide information regarding expectation of peer, supervisor, customer, and the organization and what aspects of work are most important.

Manager can use feedback to coach employee and improve performance on an ongoing basis.
Feedback for strength and weakness of employee
“Feedback culture” - reflect support for feedback, including feedback that is not threatening and is focused on behavior and coaching to help interpret feedback provided.

ORGANIZATIONAL MAINTENANCE PURPOSE

Workforce planning comprise set of systems that allow organizations to anticipate and respond to need emerging within and outside the organization to determine priorities , allocate human resource where they can do most good.

Collect useful information that can be used for legal and documentation purpose

Characteristics of Ideal PM System

1. Strategic congruence
2.context congruence
3. Thoroughness
4.practical
5.meaningful
6.specific
7.identification of effective and ineffective
8. Reliable
9.valid
10.acceptable and fair
11. Inclusive
12. Open
13. Correct
14. Standardization
15.ethical

Execution stage must present

1. Commitment to goal achievement
2. Check-in and performance touchpoint
3. Collect and share performance data
4. Prepare for performance review

Supervisor have primary responsibilities over following issues:

1. Observation and documentation
2. Updates
3. Feedback
4.resources
5. Reinforcement

Set of mechanism for distributing both tangible and intangible returns as part of an employment relationship.

Imply the same % increase for all employee.

Regardless of individual performance.

(MERIT PAY) : compensation depends on an employee level of performance.

Star performers are likely to be attracted to and remain with organization that have implemented Contingent pay plan.

Contingent pay plan help improve motivation of employee when each of the following condition is present.

1. Employee see a clear link between their effort and resulting performance (expectancy)

2. Employee see clear link between their performance level and reward received (instrumentality)

3. Employee value reward available (valence)

Motivation = expectancy * instrumentality * valence

What happens when a poor performance management system is in place

Some employee will challenge the system. Also rewarding behavior and results that are not job-related is likely to cause good performers to leave the organization.

Those who stay will be demotivated to perform well.

REASONS WHY CONTINGENT PAY PLAN FAIL

1. Poor performance management system is in place.

2. There is folly of rewarding A while hoping for B.

3. Rewards are considered significant

4. Managers are not accountable

5. There exists an extrinsic motivation at the expense of intrinsic motivation.

6. Rewards for executives are too large compared to everyone else.

1. DRIVER
2. PERSUADER
3. AMIABLE
4. ANALYZER

Documenting developmental performance activities and performance in general : some recommendations

1. Be specific
2. Use adjectives and adverbs sparingly
3. Balance positive with negative
4. Focus on job related information
5. Be comprehensive
6. Standardize procedures
7. Describe observable behavior and results.

Discuss how the performance management system works and which requirements and responsibilities rest primarily on the employee and which rest on supervisor.

Classical performance review

Discuss employee performance including perspective of both supervisor and employee.

Discuss if compensation changes will result as consequence of employee performance during this period.

Discuss employee developmental need and what steps will be taken so that performance will be improved during the following period.

Set performance goals both behavioral and result-oriented regarding the following review period.

What term refers to the fit between an individual and her coworkers and supervisor quizlet?

What is the likely impact of perquisites on the employees who receive them?

What term refers to the fit between an individual's values beliefs?

What are the organizational consequences associated with stress?