Tyas Ayu Widiarini 1606851711

Wakhidatun Nisak 1606938965

Yunita Sulistyani 1606939002

Performance Management Process

 Setting goals or objectives is the
most important activity during
the performance planning and
agreement stages of
performance management.
GOAL SETTING It is covered in this chapter under
the headings:
1. Principles of goal setting;
2. Goals and feedback;
3. Types of goals or objectives;
4. How to set goals
 Goal theory by Latham and Locke
(1979)
Stated that people perform
better when they have specific
and challenging but reachable

Principles of goals.
Acceptance of goals is achieved
when:
Goal Setting People perceive the goals as
fair & reasonable
Individuals participate in goal
setting
Support is provided by the
supervisor
Resources requires to achieve
their goals
Success is achieved in
reaching goals that reinforces
Benefits & Problems
of Goal Setting
 Goals and feedback work

Goals & Feedback together to affect goal

accomplishment
The combination of goals plis
feedback is more effective
than goals alone (Locke and
Latham, 2002)
 On-going role or work goals
Targets
Task/projects

Types of goals

Performance standards
Behaviour
Values
Performance improvement
Developmental/learning
 Integrating goals

A defining characteristic of
performance management is the
importance attached to the
integration or alignment of
individual goals with
organizational objectives.
 Goals are set by reference to an
agreed role profile that should
set out key result areas.

How to set goals Role profiles should be amended

at the time any changes are
made to these areas.

They should reviewed and

updates at the planning and
agreement stage of the
performance management cycle.
 1. Predicting what is achievable
Specific goals should be set

Two Issues with

based on knowledge of the
means that will be used to
achieve them

Goal Setting 2. Participation on goal setting

It must be accompanied by
an understanding of
organizational goals, information
about translating them into
action, and support for meeting
goals.
FEEDBACK
Feedback
defined
Feedback is the provision of information to people on
how they have performed in terms of results, events,
critical incidents and significant behaviours.
The nature of
feedback
Feedback can be positive when it recognizes success or
constructive when it identifies areas of improvement
that can lead to positive action.
Regarded as negative feedback when perceived failings
are dwelt on as matters for blame.
Use of feedback
The use of feedback in reviewing and developing performance
(Lee, 2005)
Performance conversation should include a two-way exchange
to ensure that the employee fully understands what is good,
what is bad, and why the good performance is good and the
bad is bad.
How effective is feedback?
Research on performance appraisal feedback suggests that
when individuals receive negative feedback they are often
discouraged rather than motivated to improve.
What makes feedback effective?
DeNisi and Kluger (2002) :
Feedback interventions are more likely to be effective if they
keep the employees attention focused on goals at the task
performance level, and least likely to be effective if they cause a
shift of focus to a personal level.
Guidelines on providing
feedback
Build feedback into the job
Provide feedback on actual events
Describe, dont judge
Refer to and define specific behaviours
Define good work or behaviour
Ask questions
Select key issues
Focus
Provide positive feedback
Provide constructive feedback
Ensure feedback leads to action
Feedback expert systems

Performance feedback expert systems provide guidelines to

managers on how to deal with the different types of people and
situations they will meet when conducting performance reviews.
ntages & Disadvantages of Feedback Expert Sys
Advantages Disadvantages
1. The advice may be too
generalized to be
1. Provide immediate expert applicable;
practical advice on providing
feedback; 2. They rely on inputs from
users on such factors as the
2. Facilitate learning by doing; personality of the individual;
3. Enable inexperienced 3. Over-formalize what is
managers to become effective essentially an informal
rapidly; process
4. Time & frequency of use can 4. Difficult to locate an
be controlled by the user; appropriate package from a
5. Methods of using them can be supplier
360 DEGREE FEEDBACK
360 Degree Feedback
defined
Appraisal or assesment process
Multi Source Feedback
The rationale for 360 degree
fedback
It recognizes that the performance of people is
best seen from different viewpoints.

Benefits of 360- degree

Feedback
 Increase employee self- awareness
Enhance understanding of behaviours needed to
increase individual and organizational performance
The creation of development activities that are
more specific to the employee
Increased involvement of employees at all level in
the hierarchy
Increased devolution of self- development and
learning to employee
Use of 360 Degree
Feedback
To support learning and development
HR Process (appraisal, resourcing, succession
planning)
To support pay decisions.
360-Degree Feed:
Methodology

Data
Feedba
Ratings Process Action
ck
ing
360 Degree Feedback &
Appraisal
Can be attractive;
It makes the maximum use of
the data it provide, so that they
get their moneys worth
It widens the base of opinion
It offers a broader assessment
of performance
 Consequently
In theory,
Multiple levels & Source Lead
to more objective picture of an The Fact,
individuals contribution,
Strengths and Development
Needs.
There is no guarantee
that assesments by
It should consequently subordinates and peers will
promote higher levels of be free of bias.
trust in the fairness of the
process
Effectiveness of 360- degree
Feedback
Research has produced varied conclusions.
Baley & Improvements in competencies
Flecther
No guarantee the scores will be free of bias
2002
Short Term, resistance to acceptance
Ainsworth
Long term, The result of feedback -> development,
1999
increase system
Had not been effective in changing behaviour,
Silverman performance
Caused more harm than good
2005
Taken action on the basis of the feedback ->
changes in behaviour
Morgan Failed to develop the awareness anticipated
2005

Frisch Anonymous feedback is not necessarily a good

2001 things
Feedback rating had only very weak relationships
Maurer
with subsequent involvement in development
2002
activity
 Advantages Disadvantages

Get a broader People do not always

perspective of how give frank or honest
they are perceived feedback
by others People may be put
A more rounded view under stress in
of their performance receiving or giving
Increase awareness feedback
and relevance of Lack of action
competencies following feedback
Increase awareness Over reliance on
by senior technology
management that Too much
they too have bureaucracy
development needs Can be time
Feedback is consuming and
perceived as more resource intensive
valid and objective,
Introducing 360 degree
Feedback
Is not an easy option
As an operational procedure in the day to day activities
of the organization, on employee involvement at every
stage including development of job studies,
identification and definition of areas for feedback and
the design of feedback mechanism.
 Steps
Required
Define Objective
Decide on recipients who are to be at the receiving end
of feedback
Decide on who will give the feedback
Decide on the areas of work and behaviour on which
feedback will be given
Decide on the method of collecting the data

Decide on data analysis and presentation

Plan the initial implementation programme.

Analyse the outcome of the pilot sceme

Plan and Implementation the full programme

Monitoring and evaluate

Criteria for success
The active support of top
management
Commitment everywhere
Real determination
Questioner items fit
Communication and training
programme
No one feels threatened
Feedback questioner are easy to
complete
Bureaucracy is minimized.
Performance Review
The process of reviewing
performance
Comparing what happened with should have
happened

Expecta
Plans Results
tion
Informal review meeting

Can occur whenever the

supervisor feels communication
 The Formal
Performance
Review Process
Analysed more sistematically
Occur at specified time organization to evaluate
employee performance
The means through which the five primary performance
management elements:
- Agreement The True Role
- Measurement of
- Feedback Performance
Management
- Reinforcement
- Dialogue
Objective of performance
reviews
Planning
Motivation
Learning and development
Communication
Goal

SMA
RT

R IA OB
TE DAR JE
I CT
CR AN E IV
ST D
Problems with Formal Performance Reviews

Three main sources of difficulty in conducting

performance reviews by Beer and Ruh (1976):
The quality of the relationship between the manager
and the individual;
The manner and the skill with which the interview is
conducted;
The review process itself its purpose methodology and
documentation.
Why have performance
reviews?
The answer to this question is, of course, that
managers have no choice. Reviewing performance is an
inherent part of their role.
The question should be rephrased as: Are formal
reviews necessary as a performance management
activity to supplement the continous informal process
of monitoring performance?
Formal reviews do not supplement informal or
interim progress reviews but they can complement and
enhance them and therefore have an important part to
Objective of performance
reviews
Planning
Motivation
Learning and development
Communication
Organizational Issues
When introducing performance management you
cannot work against the culture of the organization. You
have to work within it, but you can still aspire to
develop a performance culture, and performance
management provides you with a means of doing so.
On whom should performance
reviews focus?
Many performance management and review systems
seem to focus almost exclusively on the upper and
lower extremes of the performance distribution,
neglecting the core of middle-of-the-road performers on
whom the organization relies to function effectively to
sustain in the future.
On what should the performance
review meeting focus?
Two focus issues in performance reviews meetings:
1. The emphasis that should be placed on performance
improvement as distinct from broader
developmental needs;
2. The degree to which the meeting should be forward
rather than backward looking.
What criteria should be
used?
The criteria for assessing performance should be
balanced between:
1. Achievement in relation to goals;
2. The level of knowledge and skills possessed and
applied (competences)
3. Behaviour in the job as it affects performance
(competencies);
4. The degree to which behaviour upholds the core
values of the organization;
The impact of
management style
Guidance and coaching will be required if managers are
to handle successfully the potential dilemma of
inconsistency between their normal behaviour and how
they are expected to behave when conducting
performance reviews.
Performance review skills
Conducting an effective performance review, have to be
discussed, demands considerable skill on the part of
the reviewer in such areas as giving feedback, agreeing
objectives, assessing performance and development
needs, planning for performance improvement and
carrying on a dialogue.
Outcome Issues
Reviewers need to be certain that they do not over
commit themselves or the organization.
They also need to be sure about their own commitment,
as well as that of the individual, to agreed outputs.
Dealing with positive and
negative elements
The aim is not to blame people but to take a positive
view based on obtaining answers to questions such as
these:
Why do you think has been happening?
What do you think you can do about it?
How can I help?
Using reviews as a
communications channel
A well-conducted review meeting provides quality time
in which individuals and their managers can discuss
matters affecting work and future developments.
The opportunity a review meeting gives to people to
stand back from everyday pressures and consider
matters that concern them with a sense of perspective
is an important benefit.
When should reviews be
held?
The timing of the review can be linked to the corporate
business or operational planning programme.
Corporate guidelines to managers on performance
management often suggest that they should hold
interim formal progress reviews during the year.
Performance review
problems
Main problems that arise in conducting performance
reviews:
Identifying performance measures and criteria for
evaluating performance;
Collecting factual evidence about performance;
The existence of bias on the part of managers;
Resolving conflict between reviewers and people they
review;
Defensive behaviour exhibited by individuals in
Evaluating formal performance
reviews
How can their effectiveness as performance reviewers
be evaluated as a basis for further training or guidance
when necessary?
Conduct an attitude survey following performance
reviews asking individuals in confidence to answer
question about their review meeting.
Preparing for formal review
meetings
Preparations should be concerned with:
The purpose and points to be covered at the meeting;
What evidence on performance the manager should
get ready for the meeting;
What the individual should do in the way of self-
assessment.
SELF-ASSESSMENT
Advantages of self-
assessment
Reduces defensiveness by allowing individuals to take
the lead in reviewing their own performance rather than
having their managers judgements thrust upon them.
Problems of self-
assessment
Aim of the review meeting remains that of achieving an
agreed joint assessment and a development plan.
Managers should be prepared to allow employees in
effect to criticize them.
Requirements for success
Incorporating self-assessment as part of performance
management/review process is most likely to be
successful when all concerned fully understand their
respective roles in the review meeting and how they
should be carried out.
 Conducting a formal
performance review meeting

Be prepared Ask questions such as: how

Work to a clear structure well do you feel you have
done? Etc
Create the right atmosphere
Discuss performance not
Provide good feedback personality
Use time productively Encourage analysis of
Use praise performance
Let individuals do most of the Dont deliver unexpected
talking criticism
Invite self-assessment Agree measurable objectives
Analyzing and
Assessing Performance
Evidence-based performance
management
Reference to factual evidence on performance
and the outcomes of behaviour
Analyzing performance

Shifted from appraisal to analysis

Focus on the future rather than past
Problems of Performance Analysis

Poor interpretation
Jump to conclusion
Poor perception
Different standards
Make snap judgement
Selectivity
Approach to Performance Analysis

Encourag Provide
Ensure
Encourag e and practices
that the Adopt an
e to train to to
concept evidence-
define avoid improve
of based
and jumping performa
performa managem
agree to nce
nce is ent
standard conclusio analysis
understo approach
s ns too techniqu
od
quickly es
 The process of rating

A theory of the rating process

(Wherry and Bartlett, 1982)
Raters vary in the accuracy of rating given in direct proportion to the relevancy of their previous contacts
with the person being rated.

Rating items that refer to frequently performed acts are rated more accurately than those that refer
to acts performed more rarely.

The rater makes more accurate ratings when forewarned of the behaviour to be rated because this
focuses attention on the particular behaviours

Deliberate direction to the behaviours to be assessed reduces rating bias.

Keeping a written record between rating periods of specifically observed critical incidents improves the
accuracy of recall
 Rating Scale

Can be defined:
Indicate the level of
performance or competency
alphabeti numerical
achieved or displayed by cally ly
employee
Describ
ed
adjectiv
ally or
verbally
 Positive-negative Positive definition
definitions
Outstanding performance Very effective
in all respects Effective
Superior performance Developing
Good Basic
Performance not fully up
to requirements
Unacceptable
 Number of rating levels

Thre
Four Five Six
e
level level level
level

A matter of
choice and
judgement
 Forced Distribution

raters have to conform

to a laid-down distribution
of rating at different
level.
Behaviour
Behaviour
ally
al
Anchored
Observati
Rating
on Scales
Scales
(BOS)
(BARS)
 Arguments for and against rating

Arguments for rating Arguments against

It satisfies a natural wish to Contrast effect

know where they stand. First impression error
High or low performances can Halo or horns effect
easily be identified Similar to me effect
Motivates people by giving them Central tendency
something to strive for Negative and positive skew
It is not possible to have Attribution bias
performance related pay without
an overall rating
Recency effect
It can provide basis for Stereotyping
identifiying high flyers for a
talent management programme
Achieving accuracy in ratings
Good and poor performance are clearly
defined

The principle of distinguishing among workers

in terms of their levels of performance is
widely accepted

There is a high degree of trust in the system

Low ratings do not automatically results in

the loss of valued rewards

Valued rewards are clearly linked to accuracy

in performance appraisal
Achieving consistency in ratings

Training

Peer monitori
reviews ng
 Alternatives to rating

The critical incident technique

Visual methods of assessment
Overall analysis of performance
Chapter 12
Coaching
defined
coaching is a personal (usually one to one) on the job
approach to helping people to develop their skills and
levels of competence.
The process of
coaching
Making people aware of how well they
are performing by

Controlled delegation

Using whatever situations may arise as

opportunities to promote learning

Encouraging people to look at higher

level problems and how they would
tackle them.
Approach to coaching

Review
Action and
Plan recom
Discov mit
ery
Techniques of coaching
G Goal of coaching

R Reality check

Option generation
O
Wrapping up/ Will
W do
 list ana
eni lyti
ng cal

Creat
e
int supp

Coaching skill ervi

ew
ortiv
e
envir
onme
nt
Giv
e ques
fee tioni
ng
dba
ck
Developing a coaching culture
coaching is the essential
feature of effective management
Managers must have skill &
commitment to coach

guidanc encourage
training ment example
e