CHAPTER 10

PERFORMANCE MANAGEMENT

10.1 Explain the strategic value and importance of performance management. 10.2 Differentiate between performance management and performance appraisals.

10.3 Discuss the five steps in the performance management process.

10.4 Define contextual and task-based performance and how they differ.

10.5 Describe five performance appraisal methods and the pros and cons of each.

10.6 Discuss the major problems inhibiting effective performance appraisals.

10.7 Discuss the various sources of performance appraisal including the 360-degree appraisal.

10.8 Describe guidelines for legal and ethical performance management.

CHAPTER 10

Carter Cleaning Centres - Continuing Case Part 10

The Performance Appraisal

After spending several weeks on the job, Jennifer was surprised to discover that her father had not formally evaluated any employees performance for all the years that he had owned the business. Jacks position was that he had a hundred higher-priority things to attend to, such as boosting sales and lowering costs, and, in any case, many employees didnt stick around long enough to be appraisable anyway.

Furthermore, contended Jack, manual workers such as those doing the pressing and the cleaning did periodically get positive feedback in terms of praise from Jack for a job well done, or criticism, also from Jack, if things did not look right during one of his visits through the stores. Similarly, Jack was never shy about telling his managers about store problems so that they, too, got some feedback on where they stood.

This informal feedback notwithstanding, Jennifer believes that a more formal appraisal approach is required. She believes that there are criteria such as quality, quantity, attendance, and punctuality that should be evaluated periodically even if a worker is paid on piece rate. Furthermore, she feels quite strongly that the managers need to have a list of quality standards for matters such as store cleanliness, efficiency, safety, and adherence to budget on which they know they are to be formally evaluated.

Questions

10-1. Is Jennifer right about the need to evaluate the workers formally? The managers? Why or why not?

10-2. Develop a performance appraisal method for the workers and managers in each store.