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Chapter 9
Performance Management and Appraisal
1. Describe the performance appraisal process.
2. Discuss the pros and cons of at least eight performance appraisal methods.
3. Give examples of potential appraisal problems and how to deal with them.
4. List steps to take in the appraisal interview.
5. Explain key points in how to use the appraisal interview to boost employee
engagement.
6. Explain how you would take a performance management approach to appraisal.
1
Basic of Performance Appraisal
2
Performance Appraisal
Evaluating an employee’s current and/or past performance relative to his or her
performance standards.
The Appraisal Process
Setting work standards
Provide feedback Define the job
Comparing the Employees’
Performance to the standards
Basic of Performance Appraisal
3
Important Issues of Performance Appraisal
1 Why appraise performance?
2 What is realistic appraisal?
3 What is the supervisor’s role in appraisal?
Why it is important?
Base for pay, promotion, and retention
decisions
Important to performance management
process
Develop a plan for correcting any deficiencies,
and to reinforce the strength.
Review the employee’s career plans in light of
exhibited strengths and weaknesses
Identify if there is a training need, and the
remedial steps required
Continuously ensuring that each employee’s
performance makes sense in terms of the
company’s overall goals.
Basic of Performance Appraisal
4
The Appraisal Process
1Plan the performance and identify it’s
goals2
Establish performance goals and
standards
3 Identify appraisal data sources 4 Design appraisal method
5Provide feedback & performance
interview6 Allow appealing
When and how many times we need to appraise the performance of employees?
What basis can we consider to determine the appraisal period?
Basic of Performance Appraisal
5
Defining the Employee’s Goals and Performance Standards
Quantitative Qualitative Mix
Observable Non-observable
Traits and behavior
Performance, Competencies, and Achievements1
2
Why all quantitative and numeric criteria? What are the criteria development sources?
Basic of Performance Appraisal
6
How to Set Effective Goals and Objectives (Standards)?
1 Assign specific goals 2 Assign measurable goals
3 Assign challenging but doable goals 4 Encourage participation
Using MBO perspective – SMART goals and objectives
Specific – Measurable – Attainable – Relevant - Timely
Basic of Performance Appraisal
7
Who Should Do the Appraising?
1 The immediate supervisor
3 Rating committees
2 Peer appraisals
4 Self rating
5 Appraisal by subordinates 6 360 Degree feedback
What are the advantages of using multi sources?
Techniques of Performance Appraisal
8
Appraisal Methods
1 Graphic rating scale method
3 Paired comparison method
2 Alternation ranking method
4 Forced distribution method
5 Critical incident method 6 Narrative forms
7Behaviorally anchored rating scales
(BARS)8 Mixed standard scales
Techniques of Performance Appraisal
9
Appraisal Methods
9Management by objectives / Results
based systems10
Computerized and web based
performance appraisal
11 Electronic performance monitoring
What is the importance of conversation day “feedback”?
Why some times we need to use multiple methods “merging the methods”?
Dealing with Rater Error Appraisal
Problems
10
Potential Rating Problems
1 Unclear standards
3 Central tendency
2 Halo effect
4 Leniency or strictness
5 Bias (personal bias – stereotyping … etc.) 6 Initial impressions / Last impressions
7 Scattering error 8 Random evaluation
9 Manipulating the evaluation 10 … etc.
Dealing with Rater Error Appraisal
Problems
11
Guidelines for Effective Appraisals
“The Need for Fairness and Compliance with Legal Requirements”
1Know the performance appraisal
problems
3 Use the right appraisal tool
2Use job analysis to develop appraisal
criteria (job related criteria)
4Get agreement on a plan and
communicate the standards
5Use continuous open communication
(clarify performance expectations …etc.)6 Keep a diary
7 Train supervisors and others involved 8 Document the process
9Apply standardization for different
categories10 Use feedback
11 Use appealing 12 Use committees
Managing the Appraisal interview
12
Appraisal Interview
An interview in which the supervisors and subordinate review the appraisal and make plans
to remedy deficiencies and reinforce strengths
Types of Appraisal Interview
1 Satisfactory - Promotable
3 Unsatisfactory - Correctable
2 Satisfactory - Not promotable
4 Unsatisfactory - Uncorrectable
What are the objective of each type?
Managing the Appraisal interview
13
How to Conduct the Appraisal Interview
1 Talk in terms of objective work data
3 Encourage the person to talk
2 Don’t get personal
4 Get agreement
Preparation – Planning - Steps to take - Measures of success - Date to complete - Actual coaching
The interview main purpose is to lead to improved performance
Managing the Appraisal interview
14
How to Handle a Defensive Subordinate
1Recognize that defensive behavior is
normal
3 Postpone action
2 Never attack a person’s defenses
4 Recognize your own limitations
How to Criticize a Subordinate?
1 On time 2 In private
How to Handle a Formal Written Warning?
Performance Management
15
Total Quality Management v. Performance Appraisal
Performance Appraisal in Practice
Is total quality management and other similar approaches are an alternative for performance appraisal?
Why there is high failure in applying performance appraisal systems?
The New Philosophy of Performance Appraisal
Why more using electronic based appraisal systems? More using performance management approach?
More using continuous practice?
Performance Management
16
Performance Management
The continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning their performance with the organization’s goals.
Performance Management vs. Performance Appraisal
1 continuous, daily, or weekly interactions and feedback to ensure continuous improvement.
3 Performance management is always goal-directed.
5Continuously reevaluating and (if need be) modifying how the employee and team get their work
done.
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