Performance Management

by Aguinis, Herman

• ISBN13: 9780136151753
• ISBN10: 0136151752
• Edition: 2nd
• Format: Paperback
• Copyright: 2008-01-17
• Publisher: Prentice Hall

Summary

This text addresses the topic of performance management, a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. Performance management systems are described as key tools to transform people's talent and motivation into a strategic organizational advantage, Topics include the design and implementation of individual and team performance management systems, performance management and organization- and unit-level goals and strategies, performance management and employee development, performance management and coaching and feedback, performance and rewards, the measurement of performance, and legal issues, Performance management is discussed as an integral part of all organizational units and not the domain of the HR function only, Numerous examples of how performance management systems are implemented in publicly-traded, private, government, domestic, and global organizations, including organizations outside of the United States, Over 30 integrative cases addressing the design and implementation of various aspects of performance management systems in a diverse set of organizations and industries, Scholarly and practitioner-oriented bibliographic sources from a broad set of disciplines including auditing, cognitive psychology, communication, education, human performance, human resources management, industrial and organizational psychology, information systems, international business, management, marketing, organizational behavior, public administration, social psychology, sociology, and strategy. Book jacket.

Author Biography

Dr. Herman Aguinis (http://www.cudenver.edu/~haguinis) is the Mehalchin Term Professor of Management in the Business School at the University of Colorado at Denver and Health Sciences Center. He has been a visiting scholar at universities in the People’s Republic of China (Beijing and Hong Kong), Malaysia, Singapore, Australia, Argentina, France, South Africa, and Spain. His teaching, research, and consulting activities are in the areas of human resources management, organizational behavior, and research methodology.
Dr. Aguinis wrote Applied Psychology in Human Resource Management (with Wayne F. Cascio, 6th ed., 2005, Prentice Hall) and Regression Analysis for Categorical Moderators (2004), and edited Test-Score Banding in Human Resource Selection (2004). In addition, he has written over 50 refereed journal articles in Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Personnel Psychology, Organizational Behavior and Human Decision Processes, and elsewhere. Dr. Aguinis is a Fellow of the American Psychological Association, the Society for Industrial and Organizational Psychology, and the Association for Psychological Science. He served as Division Chair for the Research Methods Division of the Academy of Management and editor-in-chief for the journal Organizational Research Methods. He has delivered more than 150 presentations at professional conferences and consulted with organizations in the United States, Europe, and South America.

Table of Contents

Preface	p. xi
Acknowledgments	p. xvi
About the Author	p. xvi
Strategic and General Considerations	p. 1
Performance Management and Reward Systems in Context	p. 1
Definition of Performance Management (PM)	p. 2
The Performance Management Contribution	p. 4
Disadvantages/Dangers of Poorly Implemented PM Systems	p. 7
Definition of Reward Systems	p. 9
Base Pay	p. 10
Cost-of-Living Adjustments and Contingent Pay	p. 10
Short-Term Incentives	p. 10
Long-Term Incentives	p. 10
Income Protection	p. 11
Work/Life Focus	p. 12
Allowances	p. 12
Relational Returns	p. 12
Aims and Role of PM Systems	p. 13
Strategic Purpose	p. 14
Administrative Purpose	p. 15
Informational Purpose	p. 15
Developmental Purpose	p. 15
Organizational Maintenance Purpose	p. 15
Documentational Purpose	p. 16
Characteristics of an Ideal PM System	p. 17
Integration with Other Human Resources and Development Activities	p. 21
Reality Check: Ideal Versus Actual Performance Management System	p. 24
Performance Management at Network Solutions, Inc.	p. 26
Performance Management Process	p. 30
Prerequisites	p. 31
Performance Planning	p. 38
Results	p. 38
Behaviors	p. 39
Development Plan	p. 39
Performance Execution	p. 40
Performance Assessment	p. 41
Performance Review	p. 42
Performance Renewal and Recontracting	p. 44
Job Analysis Exercise	p. 47
Disrupted Links in the Performance Management Process at "Omega, Inc."	p. 47
Performance Management at the University of Ghana	p. 48
Performance Management and Strategic Planning	p. 50
Definition and Purposes of Strategic Planning	p. 51
Process of Linking Performance Management to the Strategic Plan	p. 52
Strategic Planning	p. 54
Developing Strategic Plans at the Unit Level	p. 65
Job Descriptions	p. 66
Individual and Team Performance	p. 67
Building Support	p. 69
Evaluating Vision and Mission Statements at Harley-Davidson	p. 73
Dilbert's Mission Statement Generator	p. 74
Linking Individual with Unit and Organizational Priorities	p. 74
System Implementation	p. 77
Defining Performance and Choosing a Measurement Approach	p. 77
Defining Performance	p. 78
Determinants of Performance	p. 78
Implications for Addressing Performance Problems	p. 80
Factors Influencing Determinants of Performance	p. 80
Performance Dimensions	p. 81
Approaches to Measuring Performance	p. 83
Trait Approach	p. 84
Behavior Approach	p. 85
Results Approach	p. 87
Diagnosing the Causes of Poor Performance	p. 91
Differentiating Task from Contextual Performance	p. 91
Choosing a Performance Measurement Approach at Paychex, Inc.	p. 92
Measuring Results and Behaviors	p. 94
Measuring Results	p. 95
Determining Accountabilities	p. 95
Determining Objectives	p. 97
Determining Performance Standards	p. 98
Measuring Behaviors	p. 100
Comparative Systems	p. 103
Absolute Systems	p. 106
Accountabilities, Objectives, and Standards	p. 113
Evaluating Objectives and Standards	p. 114
Measuring Competencies at the Department of Transportation	p. 114
Creating BARS-Based Graphic Rating Scales for Evaluating Business Student Performance in Team Projects	p. 115
Gathering Performance Information	p. 118
Appraisal Forms	p. 119
Characteristics of Appraisal Forms	p. 125
Determining Overall Rating	p. 128
Appraisal Period and Number of Meetings	p. 131
Who Should Provide Performance Information?	p. 134
Supervisors	p. 134
Peers	p. 135
Subordinates	p. 136
Self	p. 136
Customers	p. 137
Disagreement Across Sources: Is This a Problem?	p. 137
A Model of Rater Motivation	p. 138
Preventing Rating Distortion Through Rater Training Programs	p. 141
Evaluating the Appraisal Form Used by a Grocery Retailer	p. 145
Judgmental and Mechanical Methods of Assigning Overall Performance Score at The Daily Planet	p. 147
Minimizing Intentional and Unintentional Rating Errors	p. 149
Implementing a Performance Management System	p. 153
Preparation: Communication, Appeals Process, Training Programs, and Pilot Testing	p. 154
Communication Plan	p. 155
Appeals Process	p. 159
Training Programs for the Acquisition of Required Skills	p. 161
Rater Error Training	p. 162
Frame of Reference Training	p. 165
Behavioral Observation Training	p. 166
Self-Leadership Training	p. 167
Pilot Testing	p. 168
Ongoing Monitoring and Evaluation	p. 170
Implementing a Performance Management Communication Plan at Accounting, Inc.	p. 175
Implementing an Appeals Process at Accounting, Inc.	p. 175
Evaluation of Performance Management System at Accounting, Inc.	p. 176
Employee Development	p. 179
Performance Management and Employee Development	p. 179
Personal Developmental Plans	p. 180
Developmental Plan Objectives	p. 180
Content of Developmental Plan	p. 183
Developmental Activities	p. 184
Direct Supervisor's Role	p. 186
360-Degree Feedback Systems	p. 188
Advantages of 360-Degree Feedback Systems	p. 196
Risks of Implementing 360-Degree Feedback Systems	p. 198
Characteristics of a Good System	p. 198
Developmental Plan Form at Old Dominion University	p. 203
Evaluation of a 360-Degree Feedback System Demo	p. 203
Implementation of 360-Degree Feedback System at Ridge Intellectual	p. 204
Performance Management Skills	p. 206
Coaching	p. 207
Coaching Styles	p. 212
Coaching Process	p. 213
Observation and Documentation of Developmental Behavior and Outcomes	p. 215
Giving Feedback	p. 218
Performance Review Meetings	p. 226
Was Robert Eaton a Good Coach?	p. 233
What Is Your Coaching Style?	p. 234
Preventing Defensiveness	p. 236
Reward Systems, Legal Issues, and Team Performance Management	p. 239
Reward Systems and Legal Issues	p. 239
Traditional and Contingent Pay Plans	p. 240
Reasons for Introducing Contingent Pay Plans	p. 241
Possible Problems Associated with Contingent Pay Plans	p. 243
Selecting a Contingent Pay Plan	p. 245
Putting Pay in Context	p. 248
Pay Structures	p. 252
Job Evaluation	p. 252
Broad Banding	p. 255
Performance Management and the Law	p. 255
Some Legal Principles Affecting Performance Management	p. 256
Laws Affecting Performance Management	p. 259
Making the Case for a CP Plan at Architects, Inc.	p. 264
Selecting a CP Plan at Dow AgroSciences	p. 264
Possible Illegal Discrimination at Tractors, Inc.	p. 265
Managing Team Performance	p. 268
Definition and Importance of Teams	p. 268
Types of Teams and Implications for Performance Management	p. 270
Purposes and Challenges of Team Performance Management	p. 272
Including Team Performance in the Performance Management System	p. 272
Prerequisites	p. 273
Performance Planning	p. 275
Performance Execution	p. 276
Performance Assessment	p. 276
Performance Review	p. 278
Performance Renewal and Recontracting	p. 279
Rewarding Team Performance	p. 280
Not All Teams Are Created Equal	p. 282
Team Performance Management at Duke University Health Systems	p. 283
Team-Based Rewards for the State of Georgia	p. 285
Name Index	p. 288
Subject Index	p. 290
Author Index	p. 294
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