中国经济管理大学 《心理学与人力资源管理》 （MBA研究生课程班）Chapter 5 – Performance Management

      韦恩.F.卡西欧（Wayne F. Cascio）美国科罗拉多大学（丹佛校区）商学院Robert H. Reynolds全球领导与管理讲座教授，拥有罗切斯特大学工业与组织心理学博士学位。担任美国心理学会工业／组织心理学分会、美国管理学会、全美人力资源学会等多个组织会士。
　　赫尔曼·阿吉斯（Herman Aguinis）美国科罗拉多大学（丹佛校区）商学院Mehalchin管理讲座教授。曾担任美国管理学会研究方法分会会长。

Chapter 5 – Performance Management

Chapter 5 – Performance Management

Overview 
 This chapter presents research on performance management systems and discusses the practical applications and some of the challenges surrounding performance management systems.  The chapter begins by defining the differences between performance appraisals and performance management systems. From here, the underlying and stated purposes for performance management systems are summarized. Some of the challenges for and barriers to effective performance management systems are presented. Discussions include the perspectives of those being rated and those who complete the ratings. Varying sources for rating information and when each source should provide rating information are summarized.  The chapter also clarifies the differences between objective and subjective ratings and the differences between relative and absolute ratings. Particular attention is given to the performance of teams. The chapter concludes with recommendations for maximizing the effectiveness of performance feedback through goal-setting interviews. 
Annotated Outline
I. At a Glance
1. Performance Management Systems (PMS) – continuous process
a. Identify, measure, develop
b. Individual & group organization performance
c. Both strategic & operational
2. Performance appraisal – one aspect of PMS
a. Description and evaluation
b. Individual &/or group strengths and weaknesses 
c. Based on observations & judgments
d. Bias is inherent to the process
i. True with objective data
ii. True with subjective data
e. Can reduce bias through training
i. Technical & human
ii. Role incompatibilities
iii. Effective feedback process  
II.  Introduction
 1.  Performance management
  a.  Continuous process
   i.   Identifying
   ii.  Measuring
   iii. Developing
  b.  an employee or groups of employees               
 2.  Performance Management includes reviews (appraisals)
   a.  occur regular intervals
   b.  observations & judgments
   c.  include feedback
   3.  Annual Performance Appraisals - adult report cards
   a.  Earn employees rewards
    i.   Increases in hourly wages
    ii.  Increases in salary
    iii. Renewal of contracts
    iv. Increases in vacation time
    v.  Recognition awards
    vi. Profit sharing
 4.  To minimize observation and judgments bias

  a.  Collect multiple observations
  b.  Collect multiple judgments
  c.  Train the raters
  d.  Standardize the methods
  e.  Rate the raters
II. Purposes Served - 8
 1.  Strategic – links employee functions to organizations’ mission and goals
 2.  Communication – employees know how well they are performing
 3.  Employment decisions / predictions –
  a.  promotions,
  b.  transfers,
  c.  training,  
  d.  terminations,
  e.  discipline,
  f.  merit recognition
 4.  Results can be used in test validation criteria as in Human Resources  research
 5.  Developmental for identifying organizational training needs – help establish  goals/objectives for training programs
 6.  Developmental for employees – provides a way to give & receive feedback
 7.  Developmental for the organization - diagnoses, maintains, and develops 
 8.  Document & record HR decisions & legal requirements (Chapter 2)
III. Realities of Performance Management Systems - 5
 1.  Appraisals happen in all organizations
  a.  large and small,
  b.  public and private,
  c.  local and multinational
 2.  Appraisals have personal and organizational consequences
 3.  As job complexity increases, accuracy with ratings becomes more difficult
 4.  Appraisals are inherently political
 5.  With regard to implementation & administration
  a.  require time and effort
  b.  must be believed in
   i.   by employees &
   ii.  by supervision
IV. Barriers to Implementing Effective Performance Management Systems - 3
 1.  Organizational Barriers 
  a.  Common: 
   i.   prior decisions,  
   ii.  material defects,  
   iii. design flaws

  b.  May be overcome through group cohesiveness
  c.  Special or unique barriers may include 
   i.   person,
   ii.  event,
   iii. subgroup may cause barriers

  d.  May be overcome by adapting & compensating
 2.  Political Barriers
 
  a.  Accuracy – how important
  b.  Motivation – how important
  c.  Reward – how important
  d.  Managers may use system to make themselves look good
  3.  Interpersonal Barriers

   a.  Misperception about actual standards
   b.  Accurate ratings may intimidate rater
   c.  Objection to superior - subordinate relationship
   d.  Preference for continuous coaching
V. Fundamental Requirements of Successful Performance Management Systems - 9
 1.  Congruence with organizational goals
  a.  PMS should measure those behaviors that help the organization
  meet its goals.
 2.  Thoroughness
  a.  PMS should apply to
   i.   All employees
   ii.  All organizational behaviors
   iii. For entire time period under review
 3.  Practicality
  a.  PMS should be
   i.   Available
   ii.  Plausible
   iii. Acceptable
   iv. Easy to use
   v.  More beneficial than costly
 4.  Meaningfulness
  a.  PMS should
   i.   Measure behaviors that an employee controls
   ii.  Occur at predictable intervals
   iii. Add to employee and evaluator skills
   iv. Be used to determine specific decisions
   iv. Be perceived organizationally as important
 5.  Specificity
  a.  For the PMS participants, rater & ratee must know
   i.   what is expected
   ii.  how expectations are measured
  6.  Discriminability
   a.  An effective PMS makes it clear what the differences are between
    i.   good performance
    ii.  acceptable performance
    iii. unacceptable performance
 7.  Reliability & Validity
  a.  PMS must produce consistent results over time & raters
  b.  PMS must provide accurate measurement
   i.   of past performance and
   ii.  of  future expectations
 8.  Inclusiveness
  a.  Effective PMS allow raters & ratees to design the system
  b.  Effective PMS allow ratees to rate their own performance
  c.  Effective PMS encourage rater & ratee to participate actively 
 9.  Fair & Acceptable

  a.  Effective PMS result in raters & ratees beliefs that
   i.   processes are 
    1)  just and
    2)  equitable
   ii.  outcomes are
    1)  just and
    2) equitable
VI. Behavioral Basis for Performance Appraisal 
 1.  Performance appraisals are the end result of 3 part process
  a.  Job Analysis – work descriptions
  b.  Performance Standards - acceptable & unacceptable behaviors 
  c.  Performance Appraisals – reviews of strengths and weaknesses 
 2.  Performance Appraisals include 2 equally important processes
 3.  Observations of behaviors
   a.  detection
   b.  perception
   c.  recall
   d.  recognition
 4.  Judgments about the value of behaviors
   a.  categorize
   b.  integrate
   c.  evaluate
VII. Who Shall Rate?  What about 360-degree feedback?
 1.  Generally … the supervisor
  a.  control consequences (rewards / punishments)
 2.  360 degree systems increase information but
  b.  supervisor makes ultimate decision
 3.  Teams require different style
  a.  For teams or infrequent supervisor interactions 
   i.   Peer process
    1)  Peer nominations –
     good for high & low performances
    2)  Peer ratings –
     good for giving feedback
    3)  Peer rankings –
     good for  discriminating performance levels
   ii.  Other Peer advantages
    1)  Reliable
    2)  Valid
    3)  Relatively free from various biases 
   iii.  Peer disadvantages
    1)  Friendship bias
    2)  Impacts cohesiveness,
     satisfaction & future ratings  (revenge ratings)
   iv.  Common method variance
 4.  What is Common Method Variance?

  a.  Variation in performance ratings due to method rather than actual
  performance.

  b.  Can minimize by improving:
   i.   Procedures
   ii.  Statistical manipulations
 5.  When subordinates rate managers,
  a.  Quality information is gained for
   i.   Delegation
   ii.  Planning & organizing
   iii. Communication
   iv.  Leadership style
  b.  Can add strength to ratings by averaging
   i.   anonymity very important
    ii.  purpose of ratings important
    iii. salary & promotions
    iv.  accurate for development
 6.  Self ratings
  a.  Improve motivation & acceptance of process
  b.  May show more bias, leniency
  c.  May show less variability, less agreement with other rating sources
  d.  Cultural influence may be present
  e.  To strengthen self ratings
   i.   Rate relative to others in their position
   ii.  Allow practice with self ratings
   iii. Assure confidentiality
   iv. Focus on the future
 7.  Clients as raters
  a.  Can rate service
  b.  Can determine promotions, training, transfers
  c.  Assist with HR research
  d.  Assist with development planning

 8.  When other sources or groups rate, ratings may

  a.  Influence supervisory ratings
  b.  Raise high ratings higher
  c.   Lower a good rating
  d.  Remembering specifics better
  e.  Show more response bias
  f.   Remember, when groups rate groups, ratings influenced by

   i.   the purpose of the group and
   ii.  the purpose of the rating
 
 9.  Agreement & Equivalence of Ratings across Sources
  a.   Validity statistics are not high (.14 to .22)
  b.   Important to note that the definition of what is to be measured will    increase the agreement of ratings
VIII. Judgmental Biases in Rating – the challenge to human objectivity
 1.  Leniency versus severity
  a.  Stable behavior pattern for raters
  b.  Concern is over concept of normal distribution for performance
  c.  Leniency may occur due to perception of reason for ratings
   i.   Real consequences lead to more leniencies than
   ii.  Consequences tied to research efforts 
  d.  Can control leniency tendencies by
   i.   Forcing normal distribution of ratings
   ii.  Requiring rank ordering of ratees
   iii. Encouraging frequent feedback
   iv. Holding raters accountable for results
 2.  Central Tendency
  a.  Occur when highs and lows are avoided
  b.  Considering all ratees as average
  c.  Can minimize by
   i.   Making sure raters know what anchors mean
   ii.  Convincing raters of value of differential ratings

 3.  Halo
  a.  Assigning ratings based on general impression rather than specifics
  b.  Recent research findings show haloing
   i.   May not be as common as thought
   ii.  May not detract from quality of ratings
   iii. Impossible to separate true from illusory haloing
   iv.  May not be important to rating process
   v.   And rater error halo are independent
IX. Types of Performance Measures  - Objective and Subjective
  1.  Objective
  a.  Production Data – performance outcomes
  b.  Employment Data – may not exist

 2.  Weaknesses with objective data
  a.  Performance variations
  b.  Situational influences
 3.  Subjective
  a.  May reflect judgment biases
  b.  May classify as relative or absolute

X. Rating Systems: Relative and Absolute 
 1.  Relative – compared to others, employee comparisons
  a.  Simple rankings – first to last, entire list
  b.  Alternation rankings – best, worst – next best, next worst - etc.
  c.  Paired comparisons – best of each pair for all possible pairings
  d.  Forced distributions – forcing a normal distribution of ratings
 2.  Absolute – compared to self
  a.  Narrative essay written by rater about ratee, detailed, qualitative
  b.  Behavioral checklist – behaviors described, scaled, summated  
  c.  Forced choice system – behaviors grouped, grouping scores tallied 
   i.   Discriminability shown – differences clear
   ii.  Preferences shown – valued behaviors
 3.  Critical incidents – anecdotal, based on experience and effectiveness
 4.  Graphic rating scale – most widely used, varying degrees of structure
  a.  Response category definitions
  b.  Intended response recognition
  c.  Definition clarity for behaviors
  d.  Dependence on anchoring – continuum of behaviors
  e.  Strengths
   i.   Less time consuming to develop
   ii.  Provide quantitative data
   iii. Promote consideration of more than one behavior
   iv. Standardized and comparable
 5.  Behaviorally anchored scale – job translations and retranslations
  a.  Group meets to identify and define job performance dimensions
  b.  Second group meets to develop critical incidents for each dimension
  c.  Third group sorts & places the critical incidents on performance scale 
  d.  Strength – powerful results
  e.  Weakness – time consuming and expensive 
XI. Summary Comments Rating Formats and Processes 
 1.  Sources and uses appraisal data
  a.  Employment decision
   i.   Supervisor
   ii.  Subordinates
   iii. Clients served
  b.  Self-development
   i.   Supervisor
   ii.  Peers
   iii. Subordinates
   iv. Self
   v.  Clients Served
  c.  HR research
   i.   Supervisor
   ii.  Peers
   iii. Clients
 2.  To improve outcomes
  a.  Build as much structure as possible into the PMS
  b.  Allow raters to consider only those areas where qualified to rate
  c.  Remember that process is as important as the mechanics 
XII. Factors Affecting Subjective Appraisals
 1.  Process is complex
  a.  Organizational barriers
  b.  Political barriers
  c.  Interpersonal barriers
  d.  Raters’ idiosyncrasies
 2.  Need to know more about the cognitive processes of raters & ratees
XIII. Evaluating the Performance of Teams
 1.  Types of Team important
  a.  Work or service – routine
  b.  Project – specific work
  c.  Network – technology dependent
 2.  If social loafing exists,
  a.  commitment to team disappears
  b.  usefulness of team evaluations disappear
XIV. Rater Training
 1. Rater Training goals
  a.  Improve observational skills
  b.  Reduce judgmental biases
  c.  Improve communication skills

 2.  One of best Rater Training Methods - Frame of Reference (FOR)
  a.  Participants told will evaluate 3 ratees’ performance, 3 dimensions
  b.  Participants receive rating scales & listen while trainer reads scales
  c.  Trainer describes performance levels per dimension
  d.  Participants shown vignettes of performances
  e.  Ratings collected and discussed
  f.  Trainer provides feedback

XV. The Social and Interpersonal Context of Performance Management Systems
 1.  PMS includes aspects of
  a.  Measurement
   i.   Psychometric scales
   ii.  Assessments
   iii. Statistical analyses
  b.  Attitudes
   i.   Satisfaction
   ii.  Acceptance
   iii. Beliefs
   iv.  Perceptions
    1)  Justice
    2)  Fairness
  c.  Behaviors
   i.   Observable
   ii.  Effective, ineffective
XVI. Performance Feedback: Appraisal and Goal-setting Interviews
 1.  Personal Development –one of primary objectives for PMS
 2.  PMS should strive to avoid pressures associated with stereotype threat
 3.  Effective goal setting involves

  a.   Communicate Frequently
  b.   Get Training in Appraisal
  c.   Judge Self First Encourage  
  d.   Allow Subordinate Participation
  e.   Use Priming Information
  f.   Be warm & encouraging
  g.   Judge Performance, not personality or self-concept
  h.   Be specific about behaviors expected and required
  i.   Avoid destructive criticisms
  j.   Avoid threats to employee’s ego
  k.   Set mutually agreeable, formal, challenging goals
  l.   Continue to communicate and assess progress regularly
  m. Tie Rewards to Performance
Discussion Questions
1. Why do performance management systems often fail?  Pages 75, 76
 Performance management systems often fail for several reasons. One of the primary reasons for failure is the mistrust of those being rated and of those who provide the ratings.  Another reason for failure is that ratees and raters often feel ill at ease during the process but will intentionally try to downplay the emotional aspects of the performance appraisal process.  Additionally, various systems may have built in technical problems, rating inconsistencies, and poorly understood performance goals.  Finally, performance management systems may fail because the system does not tie into the organization’s vision, mission, and strategic priorities.
2. What is the difference between performance management and performance appraisal?    Pages 75, 77
 Performance appraisal is a systematic evaluation of the strengths and weaknesses of individuals and groups with regard to their job specifications. In the United States, performance appraisals usually occur once a year and may be tied to increases in pay.  In other countries, appraisals may occur every 5 to 10 years.  Performance management occurs continuously as a process which identifies, measures, and develops individual and group performances toward organizational goals.  Both performance appraisals and performance management need to be behaviorally based and exhibit relevancy with regard to organizational strategy.  However, a basic difference exists in that performance appraisals occur at one time and performance management occurs continuously.  Performance appraisal processes are generally understood and accepted within organizations by employees and managers. Performance management is not as readily understood and, if not implemented correctly, may lead to an overall distrust within organizations and may serve to undermine employee performance at all organizational levels.
3. What are the three most important purposes of performance management systems and why? Pages 74, 75
 The three most important purposes of performance management systems may be categorized as strategy, communication, and employment decision based.  Strategically, performance management systems serve to link organizational missions to employee behaviors and responsibilities. Performance management systems serve to as communicate how well an employee is doing and what the organization expects from an employee.  Employment decisions based on performance management include whether to train, promote, transfer, discipline, or terminate employees. Performance management systems may serve additional purposes, too. These include providing criteria data, training development information, organizational development information, personal development information, a source for feedback information, and human resources record keeping. 
4. Under what circumstances can performance management systems be said to “work”?      Pages 76, 77
 Performance management systems may be said to work when they address and include nine requirements. These requirements include congruence with strategy, thoroughness, practicality, meaningfulness, specificity, discriminability, reliability/validity, inclusiveness, and fairness/acceptability.  Taken in order -
Congruency means that the performance management system ties behaviors and expectations to organizational goals.
Thoroughness means that the performance management system includes all job related behaviors for the entire time covered by the review.
Practicality refers to an organization’s ability to administer the systems with the benefits outweighing any associated costs. 
Meaningfulness refers to the perceptions that employees and managers have with regard to the usefulness of the information gathered for everyone involved.
Specificity is accomplished when the system provides clearly understood guidance for employees and management. 
Discriminability is exhibited when the system clearly distinguishes between effective and ineffective employees. 
Reliable and valid performance management systems produce consistent ratings over time that accurately measure and predict performances.
Inclusiveness is demonstrated when raters and ratees actively participate in the review process. 
Fairness/acceptability means that raters and ratees perceive the performance management system as conducted with justice and equitability.
5. What kinds of unique information about performance can each of the following provide: immediate supervisors, peers, self, subordinates, and clients served? Pages 79 - 82
 Immediate supervisors provide unique information with regard to a subordinate’s behavioral contribution to an organization’s goals. Supervisors must also distinguish between effective and ineffective performances as related to the distribution of rewards and disciplinary actions.  This relationship works well when supervisors interact frequently with their subordinates but does not perform as well when subordinates function with more autonomy.  For these employees, other sources need to contribute to performance information. 
 Peers provide valuable performance information when members of groups work with each other consistently. Peer ratings may be gathered by using nominations (high and low knowledge, skills, abilities, or others), ratings (for feedback), and rankings (highest to lowest performers).  Peer ratings research demonstrates reliability, validity, and ratee acceptance. Ratings usefulness may suffer when group friendship bias exists or when the group members rate behaviors unrelated to the work (common method variance). 
  Subordinates provide unique and extremely valuable performance information with regard to a manager’s or a supervisor’s administrative effectiveness, planning, delegation, communications, and leadership.  These ratings appear to be both reliable and valid. However, some caution is warranted as subordinate ratings tend to show more leniencies with regard to salary and promotion decisions compared to decisions for managerial development. 
 Self ratings contribute significantly to effective goal-setting, personal development, and acceptance of the overall performance management system. Self ratings do exhibit some weakness or challenge with regard to leniency, variability, bias, and agreement with other raters.  These challenges may be explained by differences in perspectives or on the focus of the rated behaviors and actions.  The effectiveness of self ratings can be improved by following four steps. These steps include the use of absolute and relative performance scales, collection of multiple self ratings, assurance of confidentiality, and focus on the future.
  Client ratings offer unique perspectives for an employee’s performance as seen through individuals outside of an organization.  While these perceptions may not reflect an accurate assessment of an organization’s goals, the perceptions can contribute to organizational decisions regarding promotion, transfer, training, development, and criterion measurement.  
6. What are some of the interpersonal/social interaction dimensions that should be considered in implementing a performance management system? Pages 75, 76, 102, 103
 Interpersonal and social interaction dimensions should be considered when implementing performance management systems. Interpersonal dimensions to consider include communication effectiveness and beliefs in the performance management systems process. Social interaction dimensions to consider include measurement characteristics, behavioral observations, and attitudinal issues.  Measurement characteristics refer to the use of objective versus subjective data and relative versus absolute. Additional measurement characteristics to consider are the types of scales (behavioral, graphic, forced choice, rank ordering) and the frequencies and repetitions of the measurement.  Behavioral observation characteristics to consider are the sources (supervisor, subordinate, self, client) of observations and the verifiability of the observations.  Attitudinal interactions include the perceived fairness and the perceived procedural justice of the performance management system. These attitudinal perceptions are influenced by contextual performance and the assertiveness of the ratee. 
7. Under what circumstances would you recommend that the measurement of performance be conducted as a group task? Pages 82, 83, 99
 I would recommend that performance management be conducted as a group task when three conditions are present. The first condition indicating group rating effectiveness is when individuals interact often with members of a work group. Research supports the effectiveness of group ratings when group members work with each other consistently over time. Second, group ratings are indicated when specific behaviors over time are of interest. Groups are better at remembering definite, unique, and combined group member effectiveness and effort.  Finally, group ratings are appropriate when the magnitude of the individual performance is not too large.  In summary, group ratings offer a more complete picture of the effects individuals have on group and organizational performance.
8. What key elements would you design into a rater-training program? Pages 85 – 95, 101, 102
 Three key elements to design into a rater-training program (aka train the trainer) are improving observational skills, reducing judgmental biases, and improving rater communications with ratees.  To improve observational skills, I would teach the raters what behaviors to attend to. For example, having the rater play the role or complete the job of the person they are to rate will assist the rater’s ability to focus on necessary and effective behaviors and to screen out the unnecessary or irrelevant behaviors. To reduce judgmental biases, I would teach the raters about the types of biases and allow them to experience the recognition of these biases through case studies, video demonstrations, and rating practice. I would make sure that the training program also offered occasional re-training to assist the rater to develop long term rating skills. The specific approach with each of these training efforts will include a focus on the most appropriate Frames of Reference for the jobs’ performances.
 This training will include six specific steps. First, trainees receive instructions to evaluate three ratees on three dimensions. Next, trainees read the dimensions while hearing the dimensions read aloud. Then, the trainer discusses the appropriate ratings per ratee per dimension. Videos are shown demonstrating the behaviors.  Ratings are collected from the raters, written on a board, and discussed as a group.  Finally, the trainer will provide the preferred ratings per ratee per dimension allowing questions and answers to occur as the presentation is given.  
9. Assume an organization is structured around teams. What role, if any, would a performance management system based on individual behaviors and results play with respect to a team-based performance management system?  Pages 72 – 82, 99
 As organizational interests continue to increase with regard to team based management and performance, it is necessary to understand how each individual contributes to a team’s successful performance. As individual contributions to team performance is understood, overall team performance should increase leading to increases in individual performance in a repetitive and iterative process.  The critical nature of performance will be a function of the type of team involved. For example, project teams may not work together long enough for an individual to need a team based performance appraisal. Work or service teams may have members needing specific behavioral training and evaluation to increase the overall team’s performance.  Network team members will need to receive individual training and performance evaluation to make sure that all of the members have equivalent or the necessary specific technological skills. 
10. Discuss three “dos” and three “don’ts” with respect to appraisal interviews.  Pages 104 - 108
 Three “dos” for performance appraisal interviews are to communicate frequently with the ratee(s), stay current with appraisal training, and to judge your own performance first Appraisals receive more acceptance when they occur often and are specific rather than long term and general. Frequent communications come across more as a coaching encounter than as a potentially threatening or possibly embarrassing appraisal. Just as jobs are becoming more and more technologically dependent and experiencing frequent changes, appraisal methodologies and purposes change. This requires effective appraisers to stay current with their own training, too.  Learning how to evaluate your own performance effectively also helps you to rate others more effectively. Becoming an effective self evaluator requires time and intentional awareness but does lead to better appraisals for others, as well. Other “dos” for performance appraisal interviewers include encouraging subordinate participation, use of priming information, being warm and encouraging, judging performance not personality, being specific, listening actively, avoiding criticisms, setting effective goals, assessing goals regularly, and tying organizational rewards to performance. With these “dos” in mind, several “don’ts” include limiting subordinate participation,  avoiding priming information, being cold and discouraging, attacking the ratee’s personality, being vague, failing to listen, threatening a ratee’s self-esteem,  setting rigid goals, communicating infrequently and inconsistently, failing to tie organizational rewards to performance.

给自信 更公益
中国经济管理大学《公益教育宣言》
中国经济管理大学——每个人都有受教育的权利和义务，不分民族、性别、宗教、语言、社会出身、财产或其它身份等任何区别。　
中国经济管理大学——MBA/EMBA培训不应该仅仅属于富人的专属特权，更不应该让天价学费阻碍为那些有管理潜力普通大众的求学之路。
中国经济管理大学——中国经济管理大学EMBA公益研究生院（免费学堂）勇当教育公益事业先行者，2015继续让公益培训遍结硕果。每月2-4次免费专题培训。
中国经济管理大学——为有潜力的管理人才、培训合格人才免费颁发合格证书，筹建高端管理人才库，让每一位学员享有金牌猎头服务。
中国经济管理大学
中国经济管理大学|中国经济管理大学培训