Performance Measures Criteria
A. Strategic congruence is the extent to which the performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture.
Example: If a regional bank decides to become known as the hallmark of customer service, then the branch managers and tellers should have performance measurements focused on customer relations.
. Validity is the extent to which the performance measure assesses all the relevant—and only the relevant—aspects of job performance. It is also called "content validity."
1. Validity is concerned with maximizing the overlap between actual job ...view middle of the document...
The measure should be reliable over time (test-retest reliability).
D. Acceptability refers to whether the people who use the performance measure accept it. It is affected by the extent to which employees believe the performance management system is fair (Table 8.3).
E. Specificity is the extent to which a performance measure gives specific guidance to employees about what is expected of them and how they can meet these expectations.
Example: Paula, a sales representative for a brokerage firm, is expected to record 25 cold calls per day and call each client on her books every two weeks. She is also expected to make sales of at least $30,000 per month to remain in her position.
V. Approaches to Measuring Performance
A. The Comparative Approach—The comparative approach to performance requires the rater to compare an individual’s performance with that of others.
1. Ranking is one of the techniques that arrive at an overall assessment of the individual's performance.
a. Simple ranking requires managers to rank employees within their departments from highest performer to poorest performer.
b. Alternation ranking consists of a manager looking at a list of employees, deciding who is the best employee, and crossing that person’s name off the list.
c. In the courts, the ranking system has not been looked at favorably.
The Behavioral Approach—The behavioral approach to performance management attempts to define the behaviors an employee must exhibit to be effective in the job.
1. Critical Incidents—The critical incident approach requires managers to keep a record of specific examples of effective and ineffective performance for each employee.
Example: On May 5, the marketing manager did not attend the executive committee meeting and did not send a replacement or notify the chairman that he would not be attending.
a. This approach gives specific feedback to employees about what they do well and what they do poorly, and they can be tied to corporate strategy by focusing on incidents that support that strategy.
b. Managers may resent having to keep a daily or weekly log of their employees' behavior, and it is often difficult to compare employees, since each incident is specific to that individual.
2. Behaviorally anchored rating scales (BARS) specifically define performance dimensions by developing behavioral anchors associated with different levels of performance (text Figure 8.4).
a. BARS can increase interrater reliability by providing a precise and complete definition of the performance dimension.
b. BARS can bias information recall—that is, behavior that closely approximates the anchor is more easily recalled than other behaviors. Also, research has demonstrated that managers and...