MGT 520 Saudi Electronic University Managing Performance Discussion

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Business Finance

MGT 520

Saudi electronic university

MGT

Description

Module 09: Critical Thinking

Managers must monitor and help improve the performance of employees to meet organizational objectives, goals, and response to unforeseen circumstances such as an increase or decrease in sales demand.  A manager will often help improve business processes, including the performance management plan. 

Scenario

Malek is a member of a three-person management team for a small business merging with another organization. Both companies have experienced poor performance from staff, a decline in sales, and low morale. The newly appointed Chief Operations Officer (COO) has asked Malek to create a performance management appraisal system to improve poor performance, issues with decreased sales, and low employee morale.

Although Malek knows the other managers on his team, he is not familiar with how the managers in the other organization have approached performance management. Malek is also unsure about the experiences of his new co-managers with recording performance management and what their attitudes to collecting this kind of data might be.

Putting yourself in the place of Malek, and based upon the information provided in this scenario, address the following:

What are ways that Malek can ensure alignment from managers in both organizations about data collection for the purposes of performance management?

How can Malek set goals and reinforce those goals with employees, specifically since individuals are coming together from two organizations?

What are some potential approaches that Malek could take to ensure that performance appraisals are reliable and consistent across the new organization?

What are key performance indicators (KPIs), or methods of measurement will you use to track performance?



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Chapter 6 Performance Analytics Copyright © 2019 Chicago Business Press 6-1 Overview ◼ Components of Appraisal Forms ◼ Features of Appraisal Forms ◼ Determining Overall Rating ◼ Appraisal Period and Number of Meetings Copyright © 2019 Chicago Business Press 6-2 Overview (Continued) ◼ ◼ Who Should Provide Performance Information? Understanding Intentional Rating Distortion: A Model of Rater Motivation Copyright © 2019 Chicago Business Press 6-3 Appraisal Forms: Eight Desirable Features Copyright © 2019 Chicago Business Press 6-4 Determining Overall Rating ◼ Judgmental strategy • Consider every aspect of performance • Arrive at defensible summary ◼ Mechanical strategy • Consider scores assigned to each section • Add weighted scores to obtain overall scores Copyright © 2019 Chicago Business Press 6-5 Open-Ended (Comments) Sections ◼ Challenges • Difficult to systematically categorize and analyze • Quality, length, and content vary ◼ Tools to overcome challenges • Computer-aided text analysis (CATA) software • Establish goals of information provided • Training in systematic and standardized rating skills Copyright © 2019 Chicago Business Press 6-6 Appraisal Period Number of Meetings ◼ Annual • May not provide sufficient opportunity for supervisor/employee discussion ◼ Semi-annual ◼ Quarterly Copyright © 2019 Chicago Business Press 6-7 Six Types of Formal Meetings (Can Be Combined) 1. System Inauguration 2. Self-Appraisal 3. Classical Performance Review 4. Merit/Salary Review 5. Development Plan 6. Objective Setting Copyright © 2019 Chicago Business Press 6-8 Who Should Provide Performance Information? ◼ Employees should be involved in selecting • Which sources evaluate • Which performance dimensions ◼ When employees are actively involved • Higher acceptance of results • Perception that system is fair Copyright © 2019 Chicago Business Press 6-9 Who Should Provide Performance Information? Direct knowledge of employee performance ◼ Supervisors ◼ Peers ◼ Direct reports ◼ Self ◼ Customers ◼ Employee Performance Monitoring and Big Data Copyright © 2019 Chicago Business Press 6-10 Company Spotlight ◼ ◼ ◼ ◼ ◼ Intermex required employees to download a mobile application to track client-related employee communication and travel The app had to be active 24 hours a day, 7 days a week to function effectively When an employee deactivated the app, she fired for noncompliance Employee sued Intermex for $500,000 Lesson: • Critical to consider employee reactions before implementing employee performance monitoring systems Copyright © 2019 Chicago Business Press 6-11 Intermex and the lawsuit ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=e7VZ yEXQH_c Why was Intermex subjected to a lawsuit? What could have Intermex done differently? What are other some of the advantages and disadvantages of using employee performance monitoring? Copyright © 2019 Chicago Business Press 6-12 Recommendations to increase chances of effective employee performance monitoring ◼ ◼ ◼ ◼ Be Transparent Be aware of all potential employee reactions Use it for learning and development Restrict use to job-related behaviors and results Copyright © 2019 Chicago Business Press 6-13 Employee Performance Monitoring ◼ ◼ ◼ ◼ https://www.youtube.com/watch?v=yBmAtU WxCXU Reflect on the different reactions to employee performance monitoring in this video. Why do they exist? Are they justified? What are some of the recommendations for employee performance monitoring explained here? What are some of the advantages? What are some of the disadvantages? Copyright © 2019 Chicago Business Press 6-14 Disagreement Across Sources of Performance Data ◼ ◼ ◼ ◼ Expect disagreements Ensure employee receives feedback by source Assign differential weights to scores by source, depending on importance Ensure employees take active role in selecting which sources will rate which dimensions Copyright © 2019 Chicago Business Press 6-15 Understanding Intentional Rating Distortions: A Model of Rater Motivation Types of Rating Errors ◼ Intentional errors • Rating inflation • Rating deflation ◼ Unintentional errors • Due to complexity of task Copyright © 2019 Chicago Business Press 6-16 Intentional Rating Errors Influenced by ◼ Motivation to provide accurate ratings ◼ Motivation to distort ratings Motivation is determined by ◼ Whether rater expects consequences of accurate ratings Whether probability of receiving rewards or punishments will be high if accurate ratings are provided ◼ Copyright © 2019 Chicago Business Press 6-17 Rating Inflation and Deflation ◼ Rating Inflation (also called leniency error) • When raters assign high lenient ratings to most or all employees ◼ Rating Deflations (also called severity error) • When raters assign low ratings to most or all employees Copyright © 2019 Chicago Business Press 6-18 Motivation for Rating Distortion Copyright © 2019 Chicago Business Press 6-19 Reducing Intentional Rating Distortion Recommendations: ◼ ◼ Provide incentives for providing accurate ratings Increase accountabilities • Have raters justify their ratings • Have raters justify their ratings in a face-toface meeting Copyright © 2019 Chicago Business Press 6-20 Motivation—What’s in It for Me? ◼ Benefits of providing accurate ratings need to outweigh costs • Assessing the performance of the supervisor in implementing and communicating performance management • Tools for providing accurate ratings (e.g., training on how to conduct appraisal interview) Copyright © 2019 Chicago Business Press 6-21 Quick Review ◼ Appraisal Forms ◼ Characteristics of Appraisal Forms ◼ Determining Overall Rating ◼ Appraisal Period and Number of Meetings ◼ Who Should Provide Performance Information? ◼ Understanding Intentional Rating Distortion: A Model of Rater Motivation Copyright © 2019 Chicago Business Press 6-22 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2019 Chicago Business Press Copyright © 2019 Chicago Business Press 1-23
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OUTLINE
Topic: Performance Management 520
Thesis Statement: this paper addresses a case study on Malek, who is tasked with making a
performance management assessment scheme to enhance the poor outputs, reduced
transactions, and decreased employee drives of two merging firms.
1. Introduction
2. How Malek can ensure alignment from managers in both organizations about data
collection for the purposes of performance management
3. How Malek can set goals and reinforce them with employees, mostly because people
are converging from two organizations
4. Some potential approaches that Malek could take to ensure that performance
appraisals are reliable and consistent across the new organization
5. Key performance indicators (KPIs), or methods of measurement that Malek could use
to track performance
6. Conclusion


Running head: PERFORMANCE MANAGEMENT 520

Performance Management 520
Name
Institution

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PERFORMANCE MANAGEMENT 520

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Performance Management 520
Introduction
Typically, mergers generate a lot of corporate tension regarding the times ahead, as the
working culture of one or both of the merging firms tends to transform radically. In particular,
these changes are usually quite critical as they affect the basis of the uniqueness, objectives, and
daily operations of the company. Subsequently, the pertinent managers are mandated to envision
and deal with these concerns beforehand, in order to prevent weak business outputs, a loss of key
employees, and the outflow of collaborations (Kaetzler, et al. 2019). As such, this paper
addresses a case study on Malek, who is tasked with making a performance management
assessment scheme to enhance the poor outputs, reduced transactions, and decreased employee
drives of two merging firms.
How Malek can ensure alignment from managers in both organizations about data
collection for the purposes of performance management
To guarantee alignment from the leaders in the two companies, Malek could first focus
on ensuring tra...


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