Lesson 5 Performance Evaluation

3 Functions of Goal Setting 1.

Increasing Work Motivation and Task Performance  Goals are often used to increase employee effort and motivation, which in turn improve task performance.

3 Functions of Goal Setting 2.

Reducing Role Stress of Conflicting and Confusing Expectation

 Improved role clarity leads to improved communication between Managers and employees  Important to reduce role stress connected with conflicting and confusing expectations.

3 Functions of Goal Setting 3.

Improving the accuracy and validity of performance evaluation

 Improve the planning through developing operational plans in support of the corporate goals and assessment on how employees or departments perform their expected job.

3 Functions of Goal Setting 3.

Improving the accuracy and validity of performance evaluation

 The best method is Management by Objectives (MBO)  MBO involves joint goal setting between employees and managers

Management By Objective

 Clarifies what is expected of employees, provides knowledge of results and provides opportunity for coaching and counseling by the managers

Performance : A key construct

Goal setting is designed to improve work performance, an important organizational behavior directly related to production of goods or delivery of services Outcomes and effort are important for good performance

Defining Performance Performance must be clearly defined and understood by the employees who are expected to perform well at work. It is a prerequisite to measuring and evaluating performance on the job. Each specific job requires definition of skills and behaviors necessary to superior performance.

Performance Appraisal  A process of evaluating the performance of workers in relation to the objectives of the organization.  Provides basis for rewards, promotions, transfers and basis for training and development opportunity.

Major Uses of Performance Appraisal 1. Feedback to employee  Response or informing employee on how well they are performing. 2. Self-development  Employees learn about their strengths and weaknesses thus begin self-improvement programs 3. Reward Systems  Form as bases for incentives. 4. Personnel decisions  Employers/ managers can evaluate the employees’ talents, ability and weaknesses 5. Timing and development  Managers can measure the skills that is lacking so that new or revised training programs can be develop

Performance Feedback: A Communication Challenge

A response or informing employee on how well they are performing. PEOPLE ARE NOT PERFECT and there is always an opportunity for them to learn and grow through performance feedback session Feedback can be positive or negative

Developing People and Enhancing Career

A key function of a good performance appraisal system is to develop people and enhance career. Emphasis should be in individual growth needs and future performance Supervisors must coach and develop employees effectively, there must be a mutual trust and must be an concerned listener to encourage employees to talk about hopes and aspirations

Rewarding Performance  To provide input for reward decision  Reward decision are among the most difficult, complicated and important decisions made in organizations  If organization wants good performance, then it must reward good performance  Leaders should know the myth that “people work for money” because trust, fun and meaningful work are performance value.

Key Organizational Decision Process Rewards and punishment decisions in organizations affect many people throughout the system These decisions shape the behavior of everyone in the organization.

Individual versus Team Reward System Strength of Individual Reward System: Promote autonomous and independent behavior that may lead to creativity and distinctive contributions to the organization Directly affect individual behavior and may encourage competitive striving within a work team Disadvantage: Too much competition within a work environment may be dysfunctional

Individual versus Team Reward System Strength of Team Reward System: Team reward system solve the problems caused by individual competitive behavior Emphasis: Cooperation, joint efforts, sharing of information, knowledge and expertise

Correcting Poor Performance Poor performance may result from different causes: poorly designed work system, poor selection process, inadequate training and skills development, lack of personal motivation and employees anger, conflict with the organization or Supervisor Treat poor performance as symptom with a deeper cause.

3 Step Process in Correcting Poor Performance 1. Primary cause for the poor performance must be identified; 2. Determine the source of the personal problem if the primary responsible is the person; 3. Develop a plan of action to correct the poor performance