The table below summarizes the key characteristics of an ideal performance management system as discussed in Chapter 1. Think about two performance management systems you know and compare them on the characteristics described in the table below. One of such performance management systems could be the one implemented at your current (or most recent) job. If you do not have information about such a system, talk to a friend or acquaintance who is currently working and gather information about the system used in his or her organization. Take notes on the degree to which each system can be characterized by these aspects of ideal performance management systems.

Characteristics

Definition

Strategic congruence

Individual goals are aligned with unit and organizational goals.

Contextual congruence

The system is congruent with norms based on the organization's culture.

The system is congruent with norms based on the culture of the region and country where the organization is located.

Thoroughness

All employees are evaluated.

Evaluations include performance spanning the entire review period.

All major job responsibilities are evaluated.

Feedback is provided on both positive and negative performance.

Practicality

It is readily available for use.

It is easy to use.

It is acceptable to those who use it for decisions.

Benefits of the system outweigh the costs.

Standards and evaluations for each job function are important and relevant.

Only the functions that are under the control of the employee are measured.

Meaningfulness

Evaluations take place at regular intervals and at appropriate moments.

System provides for continuing skill development of evaluators.

Results are used for important administrative decisions.

Specificity

Detailed guidance is provided to employees about what is expected of them and how they can meet these expectations.

Identification of effective and ineffective performance

The system distinguishes between effective and ineffective behaviors and results, thereby also identifying employees displaying various levels of performance effectiveness.

Reliability

Measures of performance are consistent.

Measures of performance are free of error.

Validity

Measures include all critical performance facets.

Measures do not leave out any important performance facets.

Measures do not include factors outside employee control.

Acceptability and fairness

Employees perceive the performance evaluation and rewards received relative to the work performed as fair (distributive justice).

Employees perceive the procedures used to determine the ratings and subsequent rewards as fair (procedural justice).

Employees perceive the way they are treated while designing and implementing the system as fair (interpersonal justice).

Employees perceive the information and explanations they receive as part of the performance management system as fair (informational justice).

Inclusiveness

Employees' input about their performance is gathered from the employees before the appraisal meeting.

Employees participate in the process of creating the system by providing input on how performance should be measured.

Openness

Performance is evaluated frequently, and feedback is provided on an ongoing basis.

Appraisal meeting is a two-way communication process and not one-way communication delivered from the supervisor to the employee.

Standards are clear and communicated on an ongoing basis.

Communications are factual, open, and honest.

Correctability

There is an appeal process through which employees can challenge any unjust or incorrect decisions.

Standardization

Performance is evaluated consistently across people and time.

Ethicality

Supervisors suppress their personal self-interest in providing evaluations.

Supervisors evaluate performance dimensions only for which they have sufficient information.

Employee privacy is respected.

1. Summarize each of the performance management systems in terms of their strengths and weakness, based on the characteristics described in the table above.
2. Describe how the characteristics of the system can enhance or diminish the effectiveness of performance management system, in terms of:

employee attitudes (e.g., job satisfaction and organizational commitment)

motivation, and

future job performance

C. For each performance management system, identify one area for improvement and briefly describe how you would recommend those improvements be implemented.