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Module 9-1
Performance
Management and
Appraisal
9
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Module 9-2
Learning Objectives
1. Define performance management
and discuss how it differs from
performance appraisal.
2. Describe the appraisal process.
3. Set effective performance appraisal
standards.
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Module 9-3
Learning Objectives
4. Develop, evaluate, and administer
at least four performance appraisal
tools.
5. Explain and illustrate the problems
to avoid in appraising performance.
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Module 9-4
Learning Objectives
6. Discuss the pros and cons of using
different raters to appraise a
person’s performance.
7. Perform an effective appraisal
interview.
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Module 9-5
Define performance
management and discuss
how it
differs from performance
appraisal.
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Module 9-6
Basic Concepts In Performance
Management and Appraisal
• The performance appraisal process
• Why appraise performance?
• The importance of continuous
feedback
• Performance management
oDefinition
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Module 9-7
Review
• The process
• Why do it?
• Continuous feedback
• Performance management
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Module 9-8
Describe the appraisal
process.
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Module 9-9
The Performance Appraisal
Process
• Why appraise performance?
• Continuous feedback
• Performance management
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Module 9-10
Review
• Pay and promotions
• Planning
• Career planning
• Training and development
• Ongoing feedback
• Teamwork and change
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Module 9-11
Set effective performance
appraisal standards.
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Module 9-12
Employee’s Goals and
Performance Standards
• HR in practice: how to set effective
goals
oAssign specific goals
oAssign measurable goals
oAssign challenging but doable goals
oEncourage participation
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Module 9-13
Employee’s Goals and
Performance Standards
• Basing appraisal standards on required competencies
• The role of job descriptions
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Module 9-14
Who Should Do the Appraising?
• Peer appraisals
• Rating committees
• Self-ratings
• Appraisal by subordinates
• 360-degree feedback
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Module 9-15
Techniques for Appraising
Performance
• Graphic rating
scale method
• What to rate?
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Module 9-16
Review
• Effective goals
• Competencies
• Job descriptions
• Appraisers
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Module 9-17
Develop, evaluate, and
administer at least four
performance appraisal tools.
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Module 9-18
Performance Appraisal
Tools • Alternation ranking
• Paired comparison
• Forced distribution
• Critical incident
• Narrative forms
• Behaviorally Anchored Rating Scales (BARS)
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Module 9-19
Performance Appraisal
Tools
• Mixed standard scales
• Management by objectives (MBO)
• Computerized and web-based
performance appraisal
• Electronic performance monitoring
(EPM)
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Module 9-20
Review
• BARS
• Scales
• MBO
• Computerized
• EPM
• Alternation
• Pairs
• Distribution
• Incidents
• Narratives
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Module 9-21
Explain and illustrate the
problems to avoid in
appraising performance.
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Module 9-22
Dealing with Appraisal
Problems and Interviews
• Potential appraisal problems
oUnclear standards
oHalo effect
oCentral tendency
oLeniency or strictness
oRecency effects
oBias
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Module 9-23
Review
Unclear Standards
Central Tendency
Halo Effect
Recency Effect
Bias
Leniency/
Strictness
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Module 9-24
Discuss the pros and
cons of using different
raters to appraise a
person’s performance.
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Module 9-25
Guidelines for Effective
Appraisals • Know the problems
• Use the right tool
• Keep a diary
• Get agreement on a plan
• Ensure fairness
• Appraisals and the law
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Module 9-26
Review
• Problems
• Tools
• Records
• Fairness
• Legal
• Ethics
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Module 9-27
Perform an effective
appraisal interview.
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Module 9-28
Managing the Appraisal
Interview
• Types of appraisal interviews
• How to conduct the appraisal
interview
oObjective data
oDon’t get personal
oEncouragement
oAgreement
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Module 9-29
Managing the Appraisal
Interview
• Handling a defensive subordinate
• Criticizing a subordinate
• The formal written warning
• Realistic appraisals
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Module 9-30
Performance Management
• Performance management vs.
appraisals
• Information technology
• Talent management
• Appraisal and active management
• Segmenting employees
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Module 9-31
Performance Management
Summary
• Direction sharing
• Goal alignment
• Ongoing performance monitoring
• Ongoing feedback
• Coaching and developmental
• Recognition and rewards
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Module 9-32
Review
• Type of interviews
• Defensiveness
• Criticism
• Warnings
• Realism
• Performance management vs. appraisals
• Talent management