tailieunhanh - Lecture Personnel economics in practice - Chapter 9: Performance evaluation

After today’s lecture, you will be able to address the following questions: Should a firm use only quantifiable metrics to support employee evaluations? Are subjective measures ever appropriate? What are (un)controllable events in this context and why is the concept important? How much information should a firm include in its evaluations? Is ranking a useful form of evaluation? | Chapter 9: Performance Evaluation 4/8/2013 Chapter 9: Performance Evaluation Purposes of Performance Evaluation Ways to Evaluate Performance Quantitative Performance Measurement Risk Profile Distortion Common Distortions in Performance Measures Intangibles Opportunity costs Group size Time horizon Manipulation Match of the Performance Measure to Job Design Subjective Evaluation Why Use Subjective Evaluations? Improve Consideration of Risk in the Evaluation Reduce Distortion of Manipulation Improve Incentives for Risk Taking Improve Decision Making Give the Incentive System More Flexibility Expand Communication Improve Training Practical Considerations Who Should Evaluation Whom? Fairness, Bias, and Influence Costs Giving and Receiving Subjective Evaluations Different Roles of Evaluation How Frequently Should Evaluations Be Made? Summary 4/8/2013 Chapter 9 – Performance Evaluation After Today’s Lecture, you will be able to address the following questions: Should a firm use only . | Chapter 9: Performance Evaluation 4/8/2013 Chapter 9: Performance Evaluation Purposes of Performance Evaluation Ways to Evaluate Performance Quantitative Performance Measurement Risk Profile Distortion Common Distortions in Performance Measures Intangibles Opportunity costs Group size Time horizon Manipulation Match of the Performance Measure to Job Design Subjective Evaluation Why Use Subjective Evaluations? Improve Consideration of Risk in the Evaluation Reduce Distortion of Manipulation Improve Incentives for Risk Taking Improve Decision Making Give the Incentive System More Flexibility Expand Communication Improve Training Practical Considerations Who Should Evaluation Whom? Fairness, Bias, and Influence Costs Giving and Receiving Subjective Evaluations Different Roles of Evaluation How Frequently Should Evaluations Be Made? Summary 4/8/2013 Chapter 9 – Performance Evaluation After Today’s Lecture, you will be able to address the following questions: Should a firm use only quantifiable metrics to support employee evaluations? Are subjective measures ever appropriate? What are (un)controllable events in this context and why is the concept important? How much information should a firm include in its evaluations? Is ranking a useful form of evaluation? 4/8/2013 3 Performance Evaluation Design Objective is to fully capture all of the employee’s effect on firm value When such a measure can be established, further measurement is not advisable Evaluations can include either subjective, quantitative and/or qualitative measures Five dimensions for designing measures: Risk; Distortion; Scope; Manipulation; Job Design 4/8/2013 4 2. Quantitative Performance Measures (QPMs) Quantifying performance is clearly preferred to subjective evaluation if possible Start by choosing one or more performance measures What should you look for? General properties of QPMs risk profile distortion potential for manipulation 4/8/2013 Risk Profile It is important to distinguish 2 kinds of .

• Kinh tế học
• Personnel economics
• Kinh tế học
• Personnel economics in practice
• Performance evaluation
• Performance evaluation design
• Quantitative performance measures
• Setting hiring standards
• Making decisions
• Imperfect information
• Screening job applicants
• Worker’s productivity
• Signaling more formally
• Investment in skills
• Investments in education
• On the job training
• Rent sharing
• Managing turnover
• Retention strategies
• Bidding for employees
• Decision making
• Benefits of centralization
• Benefits of decentralization
• Organizational structure
• Network structures
• Coordination mechanisms
• Job design
• Optimal job design
• Intrinsic motivation
• Advanced job design
• Group decision making
• Implementation of teams
• Rewarding performance
• Pay performance shape
• Performance pay methods
• Career based incentives
• Outside hiring
• Promotion probability
• Employee stock options
• Incentive pay
• Executive pay
• Improving employee sorting
• Implementation of benefits
• Cafeteria plans
• Human capital investment
• Internal markets
• Motivating creativity
• Employment relationship
• Perfect competition
• Imperfect competition
• Complex contracting
• school administration
• personnel administration
• business management
• production management
• personnel management
• Political economy