This chapter covers the various aspects of performance measurement process. Performance management is the process through which managers ensure employees’ activities and outputs contribute to the organization’s goals. In the chapter, topics like identification of the activities involved in performance management are covered.
It discusses the purposes of performance management systems, defines five criteria for measuring the effectiveness of a performance management system, compares the major methods for measuring performance like ranking simple ranking, forced distribution, and paired comparison, rating graphic rating scale, behavior rating and others.
This chapter has also covered Total Quality Management (TQM) process. TQM differs from traditional performance measurement in that it assesses both individual performance and the system within which the individual works.
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This chapter describes major sources of performance information in terms of their advantages and disadvantages, defines types of rating errors and explains how to minimize them, explains how to provide performance feedback effectively. The sources of performance information are include managers, peers, subordinates, self, and customers. It summarizes ways to produce improvement in unsatisfactory performance and discusses legal and ethical issues that affect performance management.
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