Comprehensive study notes for the performance section of Bus2022s
Includes summaries of chapters 1-8. my lecture notes have been integrated into these summaries.
textbook
Aguinis, H. (2012). Performance management (3rd ed.). Upper Saddle River, New Jersey: Pearson Education International.ISBN13: ...
Content Overview: Section B Performance
Content
Chapters 1,2,3,4,5,6,7,8
Locke & Lathams goal setting theory
, Chapter 1:
Performance
Management & Rewards
Systems in Context
Study Locke & Latham notes with this. Found at end of this
chapter summary
,Introduction
General PM
Definition
A continuous process of
o Identifying
o Measuring
o Developing
The performance of
o Individuals
o teams
And then
o Aligning performance
o with the strategic goals of the organisation
Continuous Process
Ongoing, never ending process
What it involves
o Setting goals and objectives
o Observing performance
o Coaching and feedback
Giving and receiving
Alignment with Strategic Goals
Requires managers to ensure that
o Employee’s activities and outputs
o Are congruent with
The organisations goals
If it achieves this
o Creates link between
Employee performance
Organisational goals
o Helps org gain a competitive advantage
Aim
Transform a person’s
o Talents
o Motivation
Into a strategic business advantage
Usage
Few companies have aligned the strategic organisational priorities with
employee performance
,Effect of a PM System
Well implemented PM System
Who benefits
Employees
Managers
Organization
What are the benefits
Increase in motivation to perform
Caused by receiving feedback about one’s performance
Increased self esteem
Feedback fulfills the need to be recognized
This then increased self esteem
Manager gain insight about subordinates
Supervisors and managers in charge of appraisal
o Are the ones who gain insight
o Gain insight on employees being appraised
Importance of knowing your employees
o Help build a better relationship with the employee
o Manager will have better understanding of employee’s
contribution
Job definitions and criteria are clarified
Job of person appraised
o Is more clearly defined
Employees gain better understanding of what is required
o Specific behaviours
o Specific results
Enhanced self insight and development
Participants likely to develop better understanding of
o Themselves, helping to guide their career path
Strengths
Weaknesses
o The kind of development activities
That are of value to them
As they progress through the org
,Fair and appropriate administrative actions
Provide valid info
o That can be used to make administrative decisions
Examples of decisions
o Merit increases
o Bonuses
o Promotions
o Transfer
o Termination
Decisions based on this sound info lead to
o Improved interpersonal relationships
o Enhanced supervisor-subordinate trust
Organisational goals are made clear
Employee now understands link between
o What she does
o Organisational success
Improves acceptance of orgs wider goals
Employees become more competent
Employee performance is improved
Creates solid foundation for success
o With developmental plans
Minimizes employee misconduct
Clearly defines and labels misconduct
o Allows it to be identified early on
Preventing it from leading to irreversible consequences
Some people still more likely to engage in misconduct
o Personality
o Personal attributes
Examples of misconduct
o Irregularities
o Churning customer accounts
o Abusing overtime policies
o Giving inappropriate gifts
o Using company resources for personal use
Better protection from law suits
Helps document compliance with regulations
o Through data collection
Rather than arbitrary PM
o More likely to result in
Litigation
Law suits
,Better & timelier differentiation between good and poor performance
Quicker identification of the level of performance
o Good performance
o Bad performance
Forces supervisors to address performance problems timeously
o Before it becomes entrenched and cant be easily remedied
Supervisor’s views of performance are more clearly communicated
Managers can communicate their performance judgement
o More easily
Result
o Greater accountability in how managers
Discuss performance expectations
Provide feedback
Facilitates organisational change
Can help drive the organization
o Towards the changes
How it does this
o Changes PM systems to consider the new skills needed
This motivates employees to make these changes
Want a good performance review
Result
o Employees change performance
o This in turn changes the organisational culture
Decreases employee turnover
Applies to
Employees who are satisfied with their performance management system
Effect
More likely to
o Be motivated
To perform well
o Be committed to the org
o Not try leave the org
Encourages voice behaviour
Allows employees to engage in voice behaviour
o Leads to improved organisational process
What voice behaviour involves
o Constructive communication
o Making innovative suggestions
For improvements
o Challenging the status quo
,Enhances employee engagement
Employee engagement leads to grater
o Involvement
o Commitment
o Passion
o Empowerment
Result in behaviours that
o Are innovative
o Demonstrate good organisational citizenship
o Take action in support of the org
, Poorly implemented PM systems
Situation
When you feel that your performance in a course is not
o going well
o being measured fairly
Result
Increased turnover
If process is unfair
o Employees become upset
o Leave the organization
Ways employees leave the org
o Leave physically
Quit
o Withdraw psychologically
Minimize effort
Until able to find job elsewhere
Misleading information
If standardized system not in place
o Multiple opportunities
o To fabricate information
o About employee’s performance
Lowered self esteem
Lowered if feedback is
o Provided in an inappropriate way
o Inaccurate
This then can result in
o Employee resentment
Wasted time and money
PM systems cost
o Time
o Money
If poorly designed and implemented
o The resources spent are wasted
Damaged relationships
Consequence of a deficient PM system
Can lead to
o Permanent damage
o Temporary damage
That can be fixed
Decreased motivation to perform
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