Performance Management: A New Approach for Driving Business Results »

Elaine D.Pulakos, Ph.D.Chief Operating Officer of Personnel Decisions Research Institutes, is a Past President of the Society for Industrial and Organizational Psychology, a Fellow of APA and SIOP, and a recognized contributor to the field of industrial and organizational psychology in the areas of staffing and performance management, having published numerous articles, chapters, and books on these topics.

Series Editor

Steven G. Rogelberg, Ph.D., is Professor and Director of Organizational Science, at the University of North Carolina Charlotte. His research has been profiled on Public Television, Radio (e.g., NPR, CBS), Newspapers (e.g., Chicago Tribune; LA Times, Wall Street Journal) and Magazines (e.g., National Geographic).

Performance Management presents an end-to-end practical model of effective performance management that shows how to develop and implement performance management systems that drive results. It goes beyond prescribing typical best practices – instead focusing on what it really takes to implement performance management effectively.

Series Editor's Preface ix

Preface xi

Part I A Primer on Performance Management 1

Chapter 1 The Truth about Performance Management 3

What Makes Performance Management So Hard? 4

The Goal of This Book 6

Chapter 2 How Did We Arrive at Today's Best Practices? 9

Part II How to Design and Implement a Successful Performance Management Process 17

Chapter 3 Getting Started 19

What Is the Purpose of the System? 20

What Type of Rating Will Be Made? 23

Will Managers Provide Narratives to Support Ratings? 25

Will Information Come from Multiple Rating Sources or Only the Manager? 26

Will Processes Be Included for Managers to Calibrate Their Ratings? 26

What Performance to Measure? 27

Ensure Support for the New System 30

Provide Guidance Representing their Constituency 32

Share Information 33

Serve as a Conduit for Convincing Others about the Merits of the New System 33

Pilot Test the System Components 33

Realistically Assess the Organization's Appetite for Performance Management 34

Plan the Communication Strategy 35

Chapter 4 A Model Performance Management Process 37

Step 1 Leaders Set Organization, Division, and Department Goals 40

Step 2 Managers and Employees Set Objectives and Discuss Behavioral Expectations 43

Step 3 Managers and Employees Hold Ongoing Performance Discussions 44

Step 4 Employees Provide Input on Own Perceptions of Performance 53

Step 5 Knowledgeable Rating Sources Provide Input on Employee Performance 58

Step 6 Managers Rate Performance 62

Common Rating Errors Managers Make When Evaluating Performance 66

Addressing Rating Leniency 67

Narratives to Support Ratings 73

Step 7 Managers and Employees Hold Formal ReviewSessions 75

Step 8 HR Decisions are Made - Pay, Promotion, Termination 83

Practical Training Exercises 86

Chapter 5 Performance Management System Implementation 103

Automation of Performance Management Processes 104

Functionality Provided by Automated Systems 105

Buy versus Build Decision 108

Potential Consequences of Automation 109

Implement an Appeals Process 111

Pilot Test 111

Train Employees and Managers 112

Evaluate and Continually Improve the System 116

Assess Quality Using a Formal Performance Management Review 116

Assess Alignment with Related HR Decisions 116

Evaluate User Reactions 117

Practical Exercise 120

Part III How to Develop Solid Performance Measures 121

Chapter 6 Legal Requirements 123

Adverse Impact 128

Validity 130

Chapter 7 Developing Objectives and Measuring Results 133

Linking Individual Objectives to Higher-Level Goals 133

Identifying Individual Objectives 135

Ensuring Expected Results of Objectives are Measurable 137

Overcoming Challenges in Using Individual Objectives for Performance Management 141

Setting Objectives Collaboratively with Staff 145

The Bottom Line 147

Practical Exercises 148

Chapter 8 Developing Behavioral Performance Standards 153

How Many Competencies? 155

How Customized Should Performance Standards Be? 157

How Much Customization for Different Jobs? 157

How Many Effectiveness Levels? 159

How Many Job Levels? 162

An Efficient Approach to Developing Competencies and Performance Standards 168

Step 1 Develop Competencies Defined by Important Work Behaviors 168

Step 2 Validate Competency Model 170

Step 3 Develop and Confirm Appropriateness of Performance Standards 176

Weighting Competencies 180

The Bottom Line 181

Chapter 9 Conclusion 183

Notes 185

Author Index 191

Subject Index 193