Chapter 7

Implementing a
Performance
Management System
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 Overview
■ Preparation
■ Communication Plan
■ Appeals Process
■ Rater Training Programs
■ Pilot Testing
■ Ongoing Monitoring and Evaluation
■ Online Implementation

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 PREPARATION
■ Need to gain system buy-in through:
• Communication plan regarding
performance management system
■ Including appeals process

• Training programs for raters

• Pilot testing system

■ Ongoing monitoring and evaluation

to show benefits
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 COMMUNICATION PLAN
ANSWERS:
■ What is Performance Management (PM)?
■ How does PM fit into our strategy?
■ What’s in it for me?
■ How does it work?
■ What are our roles and responsibilities?
■ How does PM relate to other initiatives?

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 Cognitive Biases That Affect
Communications Effectiveness
■ People have cognitive biases affect what
information is taken in and how it is processed.
■ There are 3 types of biases:
1. Selective exposure
❑ Tendency to expose our minds only to ideas
with which we already agree
2. Selective perception
❑ Tendency to perceive a piece of information
as meaning what we would like it
3. Selective retention
❑ Tendency to remember only those pieces of
7-5
information with which we already agree
To Minimize Effects of Cognitive
Biases:

A. Consider employees
■ Involve employees in system design

■ Show how employee needs are met

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To Minimize Effects of Cognitive
Biases (Continued):
B. Emphasize the positive
■ Use credible communicators

■ Strike first—create positive attitude

■ Provide facts and consequences

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To Minimize Effects of Cognitive
Biases (Continued):

C. Repeat, document, be consistent

■ Put it in writing
■ Use multiple channels of communication
■ Say it, and then say it again

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 APPEALS PROCESS
■ Promote employee buy-in to PM
system
• Amicable/Non-retaliatory

• Resolution of disagreements

■ Increases perception of the

system’s fairness

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 Appeals Process
(continued)
■ Employees can question two types of issues:
• Judgmental issues
■ Validity of evaluation

■ E.g. employee believe the ratings do not

reflect his actual performance
• Administrative issues
■ Whether policies and procedures were
followed
■ E.g. employee may argue sv did not meet
her frequently as compared to other
coworkers and the feedback received are
not thorough as compared to other
coworkers
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 Recommended Appeals Process
■ Level 1
• HR reviews facts, policies, and
procedures
• HR reports to supervisor/employee
• HR attempts to negotiate a settlement

■ Level 2
• Arbitrator (panel of peers and
managers) review case, ask Q,
interview witnesses, researches
precedents and review policy. Then
simply take a vote to make the
decision, or forwarded to…
• High-level manager—final decision 7-11
 TRAINING PROGRAMS FOR THE
ACQUISITION OF REQUIRED SKILLS
■ Content Areas to Include:
• Information
• Identifying, observing, recording, and evaluating
• How to interact with employees

■ Choices of Training Programs to Implement

• Rater Error Training
• Frame of Reference Training
• Behavioral Observation
• Self-Leadership Training

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 Content
A. Information—how the system works

• Reasons for implementing the

performance management system

• Information on the:

■ The appraisal form

■ System mechanics

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 Content
(continued)

B. Identifying, observing, recording, and

evaluating performance

• How to identify and rank job activities

• How to observe, record, and measure

performance

• How to minimize rating errors

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 Content
(continued)

C. How to interact with employees

when they receive performance
information
• How to conduct an appraisal interview

• How to train, counsel, and coach

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 Choices of Training Programs
■ Rater Error Training (RET)

■ Frame of Reference Training (FOR)

■ Behavioral Observation Training (BO)

■ Self-Leadership Training (SL)

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 Rater Error Training (RET)
■ Goals of RET
• Make raters aware of types of rating
errors they are likely to make

• Help raters minimize errors

• Increase rating accuracy

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 Intentional Rating Errors
■ Leniency (inflation)
■ Severity (deflation)
■ Central tendency

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 Unintentional Rating Errors
■ Similar to Me ■ Stereotype
■ Halo ■ Negativity
■ Primacy ■ Recency
■ First ■ Spillover
Impression
■ Attribution
■ Contrast

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 Possible Solutions for
Types of Rating Errors
■ Intentional
• Focus on motivation
• Demonstrate benefits of providing
accurate ratings

■ Unintentional
• Alert raters to different errors and
their causes

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Frame of Reference Training (FOR)
■ Goal of FOR*
• Raters develop common frame of reference
■ Observing performance
■ Evaluating performance

■ Expected results of FOR

• Raters provide consistent, more accurate ratings
• Raters help employees design effective
development plans

*Most appropriate when PM appraisal system focuses on behaviors

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Behavioral Observation Training (BO)
■ Goals of BO
• Minimize unintentional rating errors

• Improve rater skills by focusing on how

raters:
■ Observe performance

■ Store information about performance

■ Recall information about performance

■ Use information about performance

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 Self-Leadership Training (SL)
■ Goals of SL
• Improve rater’s confidence in ability to
manage performance

• Enhance mental processes

• Increase self-efficacy

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 PILOT TESTING
■ Pilot testing is done before the
system is implemented.
• Provides ability to:
■ Discover potential problems

■ Fix them

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 Pilot Testing—Benefits
■ Gain information from potential participants

■ Learn about difficulties/obstacles

■ Collect recommendations on how to improve

system

■ Understand personal reactions

■ Get early buy-in from some participants

■ Get higher rate of acceptance

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 Implementing a Pilot Test
■ Roll out test version with sample group
• Staff and jobs generalizable to the
organization
■ Fully implement planned system
• All participants keep records of issues
encountered
• Do not record appraisal scores
• Collect input from all participants
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 ONGOING MONITORING AND
EVALUATION
■ When system is implemented, decide:
• How to evaluate system effectiveness
• How to measure implementation
• How to measure results

■ Evaluation data to collect:

• Reactions to the system
• Assessments of operational and technical
requirements
• Effectiveness of performance ratings
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 Indicators to Consider
■ Number of individuals evaluated
■ Distribution of performance ratings
■ Quality of information
■ Quality of follow-up actions
■ Quality of performance discussion meetings
■ System satisfaction
■ Cost-benefit ratio or return on investment (ROI)
■ Unit-level and organization-level performance

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 ONLINE IMPLEMENTATION
■ Online tools to facilitate implementation
• E-mails
• Electronic newsletters
• Web sites
• Appeal filing
• Training programs
• Pop-up reminders

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Online Implementation—Advantages
■ Automation
■ Speed up processes
■ Lower cost
■ Gather and disseminate information faster
and more effectively
■ System can be linked to other HR functions
■ Easier to monitor unit-level and
organizational-level trends over time

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Online Implementation—Limitations
■ PM systems that are not implemented
following best practices will not
necessarily improve from the use of online
components.
■ In fact, online implementation may create
a more complicated system that is a big
waste of time and resources for all
involved.

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 Quick Review
■ Preparation
■ Communication Plan
■ Appeals Process
■ Training Programs
■ Pilot Testing
■ Ongoing Monitoring and Evaluation
■ Online Implementation
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photocopying, recording, or otherwise, without the prior
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States of America.

Copyright © 2013 Pearson Education, Inc.

publishing as Prentice Hall
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