INDUSTRIAL PSYCHOLOGY REVIEWER LESSON 7: PERFORMANCE MANAGEMENT Refers to the record of the outcomes produced on a specified job function during a specified time period. ✓ PERFORMANCE Refers to employee behaviors that contribute to task performance in the workplace ✓ JOB PERFORMANCE This refers to the procedures and system designed to improve employee outputs and performance, often through the use of an economic incentive system ✓ PERFORMANCE MANAGEMENT Process of providing capable and motivated people to carry out the organization’s mission and strategy ✓ HR STRATEGIC PLANNING Organizations need to provide mechanisms to ensure training and developments ✓ Training and Development Refers to assisting employees to perform better in their current role ✓ Performance Coaching Assisting employees in identifying and preparing for their desired career or role ✓ Career Coaching Process in which leaders assist highpotential employees in developing certain competencies for higher roles ✓ Developmental Coaching Fundamental skills in coaching ✓ ✓ ✓ ✓ ✓ ✓ Empathic listening Giving feedback Questioning Providing information Linkages and resources Developmental planning Important in motivating and sustaining performance ✓ Performance Rewards Type of rewards such as cash, travel, food items, appliances, gadgets, gift certificates ✓ External Rewards Type of rewards is self-satisfaction, selffulfillment, choice, autonomy ✓ Internal Rewards Measurement of job individual performance; tangible and easy quantified (SALES) SMART ✓ Objective Performance criteria / Targets Measurement of job individual performance; behavioral in nature (competencies) ✓ Subjective Performance Criteria This refers to a regular review of an employee’s job performance and overall contribution to the company ✓ Performance Appraisal Performance appraisal; given by a coworker or coworkers ✓ Peer rating Performance appraisal; given by the subordinate him/herself ✓ Self-appraisal Performance appraisal; given by a subordinate when rating a supervisor or manager ✓ Subordinate rating Performance appraisal; given by customers (may be internal or external clients) ✓ Customer rating Performance appraisal; inputs from an individual, her supervisor, and her peers ✓ 360-degree feedback The performance appraisal process Step.1: Purpose of Performance Appraisal ✓ ✓ ✓ ✓ Decision about salary Promotion Termination Bonus or salary The work environment must be in line with the nature of the workforce ✓ Step 2: identify the environmental and cultural limitations Step 3: Determine who will evaluate Step 4: Select the best PA method Concentrates on such employee attributes as dependability, honesty and courtesy. ✓ Trait focus Concentrates on employee’s knowledge, skills and abilities ✓ Competency-focused Organized by the similarity of tasks performed ✓ Task-focused Organize the appraisal on the basis of goals to be accomplished by the employee ✓ Goal-focused focus on the technical aspects of performing a job ✓ Contextual performance Easily observable and quantifiable such as quantity of output, quality of output, accidents, absenteeism ✓ Objective Includes ratings by supervisors, peers, subordinates, or even self-ratings. It can be comparative or Individual. ✓ Subjective SUBJECTIVE MEASURES COMPARATIVE listing of workers from best to worst. ✓ Straight rankings Ranked to fit a distribution ✓ Forced Distribution Each employee is compared to every other employee in pairs ✓ Paired comparison OBJECTIVE MEASURES Measures include quantity of work, quality of work, attendance, and safety ✓ Objective measures Involve ratings on several aspects of the job ✓ Graphic rating scales Behaviorally Anchored Rating Scale, based on critical incidents. ✓ BARS Rating to the extent to which a person engages in every behavior ✓ BOS (Behavioral Observation Scale) The rater must choose between two seemingly equally desirable or undesirable. It controls halo effect as well as leniency and strictness ✓ Forced choice A rater using a behavioral checklist checks off all the adjectives or descriptors that apply to the employee being rated. ✓ Behavioral checklist STEP 5: FRAME-OF-REFERENCE THE RATERS a method of training in which rater is provided with job-related information, a chance to practice ratings. ✓ Frame of reference training Step 6: Observe and document the performance A method of performance appraisal in which the supervisor records employee behaviors that were observed on the job and rates the employee on the basis of that record. ✓ Critical incidents STEP 7: EVALUATING PERFORMANCE Obtain and review first the objective data relevant to the employee’s behavior to avoid errors of evaluation. INSTRUMENT ERRORS involve excluding important aspects of the job from evaluations. ✓ Deficiency rating an employee on non-important aspects of the job. ✓ Contamination ERRORS IN EVALUATION when the rater adopts an evaluative set based on the task ✓ Task-Based Rater Biases the rater is overly strict and gives everyone low ratings ✓ Strictness error the rater is overly lenient and gives everyone high ratings. ✓ Leniency error the rater tends to rate everyone as about average. ✓ Central tendency error a rater allows either a single attribute or an overall impression of an individual to affect the ratings that she makes on each relevant job dimension. ✓ Halo Error the performance rating one person receives can be influenced by the performance of a previously evaluated person ✓ Contrast errors RATEE-BASED BIASES occurs when the employee’s performance rating is based on one positive or negative aspect ✓ Halo error STEP 9: MAKING PERSONAL DECISIONS Psychological Principles of Learning Legal Reasons for Terminating Employees Individual Differences in Ability employees can be terminated more easily during probationary period than at any other time ✓ 1. The rule against a particular behavior actually exist 2. The company must prove that the employee knew the rule 3. The ability of the employer to prove that an employee actually violated the rule (witnesses, videos etc) 4. The courts is the extent to which the rule has been equally enforced (consistency of implementation) 5. extent which the punishment fits the crime Progressive discipline: providing employees with punishments of increasing severity, as needed, in order to change behavior STEP 10: Monitor the legality and fairness of the process STRATEGIES TO IMPROVE RATINGS ✓ ✓ ✓ ✓ Training raters with instruments to be used Multiple raters Rates on ongoing basis rather than once or twice a year Basing performance on clear and specific performance standards. Recency effect Not observing representative sample of employee behavior ✓ Infrequent Observation Amount of stress under which a supervisor operates ✓ Emotional state Raters who like the employees being rated maybe more lenient and less accurate in their ratings than would raters who neither like nor dislike their employees ✓ Bias STEP 8: COMMUNICATING ✓ ✓ ✓ Allocating Time Scheduling the Interview Preparing for the Interview Learning will not take place unless the person really wants to learn - Motivation The practice must be guided so that trainees perform the task in the most efficient and safest materials - Active Practice of the materials The discrepancy between the training and job environment must be bridged. The training program must ensure that there will be a transfer or carryover of the skills learned during training to the job itself - Transfer of training feedback or knowledge of results indicates to learners the level of progress being made and can be very important in terms of maintaining motivation - Knowledge results It refers to the consequences of behavior. The use of reward or reinforcement is a much more positive aid to learning - Reinforcement Process of Training in an Organization A. DETERMINING TRAINING NEEDS - SAMPLING PROBLEMS/ERRORS ✓ Training staff will have some advances indication of the individual differences in ability The ability to predict individual differences in training can be serve a great deal of money by weeding out those with insufficient ability to profit from the training process of determining the training needs of an organization Personal Biases Recent behaviors are given more weight in the performance evaluation than behaviors that occurred during the first few months of evaluation period ➢ 5 factors to determine legality of termination: such as prejudices against certain ethnicities, can influence the evaluation of employees. ✓ Probationary period ➢ LESSON 8: TRAINING It is the systematic acquisition of skills, rules, concepts, or attitudes that result in improved performance ✓ THREE TYPES OF TRAINING NEEDS ANALYSIS To determine those organizational factors that either facilitates or inhibit training effectiveness Training - DIFFERENCES BETWEEN TRAINING, EDUCATION & DEVELOPMENT short term, task oriented and targeted on achieving a change of attitude, skills and knowledge in a specific area. It is usually job related ✓ Training a lifetime investment. It tends to be initiated by a person in the area of his/her interest ✓ Organizational analysis Identify the task performed by each employee, the conditions under which this task are performed and the competencies (knowledge, skills, and abilities) - Task Analysis Determining which employees need training and in which area Based on the recognition that not every employee needs further training for every task performed Education - a long- term investment in human resources. It should go hand-in-hand with training. Training without development is pointless ✓ Needs analysis Development Person Analysis B. ESTABLISHING GOALS AND OBJECTIVES It is important to first determine what the organization wants to accomplish given the time and resources that will be allocated to the training C. CHOOSING THE BEST TRAINING METHODS Refers to the methods in which trainees are passive recipients of information. It includes traditional instruction, distance learning, audiovisual techniques, and mobile technology such as Ipods and PDAs (Personal Digital Assistant). - Presentation This is a classroom instruction compose of the trainer and the trainees - Instructor-Led Classroom Instruction instruction and delivery training by computers through the internet or company intranet. - E-Learning it is used geographically dispersed companies to provide information about new products, policies, or procedures as well as skills training and expert lectures to field locations - Distance learning It requires the trainee to be actively involved in learning. Hands-on methods include on-the-job training, simulations, business games and case studies, behavior modeling, interactive video, and Webbased training. - Hands-on it refers to new or inexperienced employees learning through observing peers or managers performing the job and trying to imitate their behavior. - On the job it is a training method that represents a real-life situation, allowing trainees to see the outcomes of their decisions in an artificial environment. - Simulation situations that trainee’s study and discuss (case studies) and business games in which trainees must gather information, analyze it, and make decisions are used primarily for management skill development. - Business Games and Case Studies one of the most effective techniques for teaching interpersonal skills. Each session presents the rationale behind key behaviors, a videotape of a model performing key behaviors, practice opportunities using role-playing, evaluation of a model’s performance and planning session. - Behavior modeling TYPES OF TRAINING Employee training and development may be given while employees are on the job or away from the job CONDUCTING TRAINING THROUGH DISTANCE LEARNING distance learning programs in which employees can complete the training at their own pace and at a time of their choosing. - Asynchronous Technologies Distance learning programs that requires employees to complete the training at the same time and at the same pace although they may be in different physical locations - Synchronous Technologies ASYNCHRONOUS DISTANCE LEARNING Training technique in which an employee is presented with a videotaped situation and is asked to respond to the situation and then receives feedback based on the response. - Interactive video A training method in which employees learn information at their own pace (active involvement in learning and small chunks) - Programmed interactions SYNCHRONOUS DISTANCE LEARNING Short for“websimenar”an interactive training in which training is transmitted over the internet. - Webinar A non-interactive training method in which the trainer transmits training information over the internet - Webcast A website in which the host regularly post commentaries on a topic that readers can respond to - Blog A collection of webpages in which users can create webpages on a topic and readers can freely edit those pages - Wiki A program that automatically distributes email messages to a group of people who have a common interest. - Listserv learning through watching and imitating the behavior of others - Modeling A system in which employees are given the opportunity to perform several different jobs in an organization - Job rotation Teaching employee show to perform task traditionaly performed by other employees - Cross training A training program, usually found in the craft and building trades in which employees combine formal course work with formal on-the-job training - Apprentice training can be in a form : experienced employees working with new employees and professional coaches who work with all employees - Coaching PASS THROUGH PROGRAMS (a formal method of coaching in which excellent employees spend a period of time in the training department learning training techniques and training employees) - Experienced employees as coaches hired to coach a particular employee usually a manager - Professional coaches MENTOR-an experienced employee who advises and looks out for a new employee - Mentoring refresher training for induction of new methods and techniques - Orientation of Induction of New Employees Learning while actually working on the job makes the workers acquire skills and learn new technique - On-the-job Training to equip supervisor or foreman with the needed skills to better perform his duties and to help improve the performance of his workers - Supervisory Training It is a training given in a classroom simulating a real plant or office - Vestibule training D. MOTIVATE EMPLOYEES TO ATTEND TRAINING Employees have the personal characteristics ( ability, attitudes, beliefs, and motivation) necessary to learn program content and apply it on the job - Ensuring employees’ readiness for training Motivating Employees to Attend Training - Require them to attend Make the training interesting Provide incentives Provide food Reduce the stress associated with attending Providing Incentives for Training compensating an employee who participates in a training program designed to increase a particular jobrelated skill - Skill-based pay providing employees with specific information about how well they are performing a task or series of task - Feedback telling employees what they are doing incorrectly in order to improve their performance of task -should be accompanied by specific suggestions for how the employee can improve performance - Negative Feedback the extent to which behavior learned in training will be performed on the job - Transfer of Training Practicing a task even after it has been mastered in order to retain learning - Overlearning Factors Affecting training ➢ ➢ ➢ employee must have the skills and abilities to complete the training successfully There should be minimal outside Factors (work or family problems) that might distract the employee and keep him from concentrating on the training program Employee must be motivated to learn. (perceived that training is important, training meets expectations, ability to complete training , reward) EVALUATING TRAINING PROGRAMS • • Examining the outcomes of a program helps in evaluating its effectiveness. These outcomes should be in lined to the program objectives in order for the trainees to understand the program. Can be categorized as cognitive outcomes, skill-based outcomes, affective outcomes, results, and return on investment. - Training outcomes WHY SHOULD A TRAINING PROGRAM BE EVALUATED? ➢ ➢ ➢ ➢ To identify the program’s strengths and weaknesses To assess whether content, organization, and administration of the program contribute to learning and the use of training content on the job To identify which trainees benefited most or least from the program To gather data to assist in marketing training programs THREE LEVELS OF EVALUATION Survey or interview directly after training - Immediate Feedback Trainee applying learned tasks in workplace - Post-Training Test Conducted by immediate supervisor of trainees - Post-Training Appraisals Training can be evaluated by comparing training content with the knowledge, skills, and abilities required to perform a job - Content Validity A method of evaluating training in which employees are asked their opinions of a training programs (enjoyed and learned from the training) - Employee Reactions Evaluating the effectiveness of a training how much employees learned from it - Employee Learning Measurement of the effectiveness of training by determining the extent to which employees apply the material taught in a training program - Application of training A method of evaluating the effectiveness of training by determining whether the goals of the training were met - Business impact The amount of money an organization makes after subtracting the cost of training or other interventions - Return of investment
