4.- Performance Management
Performance Appraisal

Organizations usually carry out appraisals for administrative and developmental purposes. They are used as administrative basis for for decision making such as work conditions, promotions, termination, and rewards. If it is used for development it is geared toward improving employees performance and strengthening their skills. It includes feedback, counseling employees and offering training.
It is very important to do appraisal well, because it will let you see what is going well and was is not.
Performance Dimensions
Performance dimensions are aspects of performance that determine effective job performance.
Performance dimensions should be identified by a mechanism called JOB ANALYSIS.
Measuring Performance
There are two classifications of the methods used to measure employee performance:
- whether the type of judgement called for is relative or absolute
- whether the measure focuses on traits, behavior, or outcomes.
Theres advantages and disadvantages to both measures, however it is clear that the overall quality of ratings is more of a function of rater motivation and abilities rather than the type of instrument used.
Managers may face 5 challenges while measuring performance:
- rater erros and bias
- influence of liking
- organizational politics
- individual or group focus
- legal issues (discrimination, employment at will, etc)
Managing Performance
Because the main goal of any appraisal system is performance management, in order to manage and improve employee performance, it is really important that managers look for and explore why there are performance problems then develop action plans and using performance-focused communication they empower workers to find solutions.
