Download - Performance Appraisals Systems
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Strategies for Effective
Performance AppraisalSystems
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Performance Appraisals
Performance appraisals are useful
tool not only for evaluating the
work of employees but also for
developing and motivatingemployees.
Performance appraisals can be
thought of as means to verify that
individuals are meetingperformance standards that have
been set.
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Strategic Choices
Managers should decide on the
objectives and purpose for the
performance appraisal.
Managers can choose between formaland informal procedures for the
performance appraisal.
Performance appraisal formats can
emphasize more objectivity versus
subjectivity. Managers must decide on the frequency
of the performance appraisals.
Managers must decide who conducts the
performance appraisal.
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Performance Appraisal
Objectives
To determine who should be promoted,
demoted, transferred, or terminated.
To determine who needs formal trainingand development opportunities.
To motivate and improve performance.
Encourage individuals to work together asa team.
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Who Conducts The Performance
Appraisal ?
The most common evaluator is theemployees immediate supervisor.
More than 90 percent of all performanceappraisals are completed only by theimmediate supervisor.
Co workers may evaluate their peers
performance. If the contact betweensupervisor and employee is limitedorganizations may chose to encouragePeer evaluation.
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Who Conducts The Performance
Appraisal ?
Employees are given the opportunity toassess their own performance. This isalso called Self Rating orSelf evaluation.
Subordinates are valuable sources ofinformation when examining theperformance supervisory employees.
Computers-aided management involves theuse of computer to monitor , superviseand evaluate employee performanceelectronically.
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Formal Versus Informal
Performance Appraisal
Formal performance appraisals usuallyoccur at specified time periods once or
twice a year to evaluate employeesperformance.
Informal performance appraisals canoccur whenever the supervisor feelscommunication is needed.
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Other Performance
Feedback Systems
Peers
Only effective when political considerationsand consequences are minimized, and
employees have sense of trust Subordinates
Insights into interpersonal and managerialstyles
Excellent measures of individual leadership
capabilities
Same political problems as peer evaluations
Customers
Feedback most free from bias
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Other Performance
Feedback Systems
Self-evaluations
Allow employees to participate in critical employment
decisions
More holistic assessment of performance Multi-rater systems or 360-degree feedback systems
Can be very time-consuming
More performance data collected, greater overall
facilitation of assessment and development of employee
Costly to collect and process
Consistent view of effective performance relative to
strategy
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Types Of Performance
Appraisal Methods
Behavioral Performance Appraisal Methods.
Check lists
Weighted Check list
Graphic Rating Scale
Mixed-Standard Scale
Critical Incident Method Behaviorally Anchored Rating Scale
(BARS)
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Checklists
Checklist is a list of descriptive statements
describing job related behavior.
If Evaluator perceives the employee as
possessing this trait, the item is checked.
If Evaluator does not perceive the employee as
possessing this trait the item is left blank.
Each item listed reflects either a positive or
negative quality that an employee could possess.
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Example Of A Checklist
Appraisal Form
Asks for assistance when encounteringproblems.
Maintains good relations with otherworkers.
Take initiatives when faced with a newsituation.
Requires an excessive amount ofinstructions when confronted with a newsituation.
Continually meets deadlines.
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Weighted Checklists
A checklist used for performance
evaluation that places weighted values on
each response the weighted response arethen summed up to provide an overall
rating.
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Example Of A Weighted
Checklist
Is asked for advise by others 3.0
Follows directions well 2.0
Does not work well in groups -1.0 Works well without supervision 2.5
Continually misses deadlines -2.0
Treats others fairly 1.0
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Graphic Rating Scale
Most widely used performance evaluation
formats.
Evaluators can rate a large number ofindividuals in a short amount of time.
Simple to develop and change when
needed.
Easy to understand and explain to ratees.
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Example of Graphic Rating
Scales
1----2----3----4----5----6----7----8----9
Poor Exceptional
----------------------------------------------Needs Improvement Outstanding
1----------------2-------------------3------------------4--------------------5
Inadequate Below Average Average Above Average OS
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Mixed Standard Scale
Variation of a graphic rating scale.
Instead of rating a behavior such as
attendance the evaluator is given threeconceptually compatible statements
describing the behavior at High Medium
and Low levels.
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Example Of A Mixed
Standard Format
+ This employees performance is better
than the behavior described.
0 This employees performance is asgood as the behavior described.
- This employees performance is worse
than the behavior described.
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Statements
Always at work unless a critical emergency has arisen. Always volunteers for difficult assignments. Misses work less than twice a month. Mistakes are present in virtually all work completed by
this individual. Requests only assignments he or she has performed in
the past. While rare, corrections sometimes must be made to
work submitted. Will take on challenging assignments if required to do
so. Has more than two absences a week. Assignments are always accurate.
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Critical Incident Method
It is a written description of a highlyeffective or highly ineffective
performance. The evaluator keeps a journal of critical
incidents for each individual beingevaluated.
Incidents to be recorded as soon as theyhappens.
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Behaviorally Anchored
Rating Scale (BARS)
BARS is a sophisticated method of
evaluating employee performance based
on employee behavior rather thanattitudes or assumptions about motivation
or potential.
BARS is a difficult and time consuming
scale to develop. Each job must be analyzed and a list of
critical incidents developed by experts in
the job.
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Behavioral Observation Scale (BOS)
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Types Of Performance Review
Closed Reporting. A method of performancereview in which the appraisee has very littleinput into the discussion.
Open Reporting. A method of performancereview in which after the reporting is completethe appraiser listens to the reactions of theappraisee.
Coaching. A method of performance review inwhich the appraisee evaluates his or her ownperformance which the appraiser serves ascoach not a critic.
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Tips for a Successful
Performance Review
Give the employee fair notice about when thereview is to take place.
Ask the employee to think and evaluate his or her
own performance prior to the review session. Prepare for the review by examining information
and seek additional information if needed.
Begin the session on a positive tone to set the
employee at ease. Explain the format of the performance review
session.
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Tips for a Successful Performance
Review
Make the employee aware of the uses ofperformance appraisal results.
If needed set a second meeting to discussnon-performance related issues.
Encourage the employee to participate.
Review the standards to which the
employee will be compared. Make sure to praise the employee for his
or her accomplishments during theevaluation period.
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Tips for a Successful Performance
Review
High light but do not dwell on areas inwhich performance did not meet the
standards. Discuss ways to improve performance in
the areas in which the employee wasweak.
Make sure that the employee fullyunderstands the appraisal.
End the discussion on a positive note.
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Perceptual Errors In
Evaluation
Halo Effect
Stereotyping
Attributions Recency Effects
Leniency/StrictnessErrors
Central TendencyErrors
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Halo Effect
The halo effect occurs when the rater
allows one trait or characteristic either
positive or negative of the employee tooverride a realistic appraisal of other traits
or characteristics.
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Stereotyping
Stereotyping occurs when the rater places
an employee into a class or category
based on one or a few traits orcharacteristics.
For example an old worker may be
stereotyped as being slower, more difficult
to train and unwilling to learn approaches.
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Attributions
Another perceptual error that can effect
the validity of the performance appraisal
involves the attributions the rater makesabout employee behavior.
Making an attribution means to assign
causation for another's behavior.
For example attribute an employees goodperformance to external or internal causes
such as luck. Holding an easy job, or
receiving help from co workers.
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Recency Effects
Recency errors occur when performance
is evaluated based on performance
information that occurred most recently. Recency errors are most likely to occur
when there is a long period of time
between performance evaluations (such
as a year).
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Leniency/Strictness Error
These errors occurs when the ratertends to use one of the extremes of a
rating scale. In Leniency most of the employees
receive very favorable ratings.
Strictness error occurs when the rater
erroneously evaluates most employeesunfavorably as raters simply wants toappear tough or they may haveunrealistic expectations of performance.
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Central Tendency Errors
Central tendencyerror occurs when the rater
avoids the extremes of the performance
scale and evaluates most employeessomewhere near the middle of the scale.
This error results in most employees
being rated asAverage.
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Common Problems With Unsuccessful
Performance Appraisal Systems
A poorly defined appraisal system
A poorly communicated appraisal system
An inappropriate appraisal systemA poorly supported appraisal system
An unmonitored appraisal system
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Management Guidelines
Performance appraisals should be based on athorough job analysis that is current regardingboth JD & JS
Performance appraisals should be developedfrom the job analysis as input into theperformance appraisal.
The performance appraisals should evaluate a
number of specific behaviors. The performance review discussion should be a
two way communication between theevaluator and the employee.
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Management Guidelines
The performance appraisal should be used notonly as a means of evaluating performance butalso as a means of motivating and developing the
employee. The purpose of the performance appraisal and
the objectives of the organization must beconsidered carefully before deciding on aperformance appraisal method.
Training programs should be implemented tohelp raters avoid common perceptual errors inevaluation and help raters with their performancereview/feedback skills.
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QUESTIONS