Introduction to

Human Resource

Management

Class 11

Class Overview

In order to ensure that an employee is

performing at the correct level, managing

and appraising performance is necessary.

This class, we will discuss the topic of

performance appraisals, including

advantages and disadvantages, emotions in

performance appraisal, legal requirements

for appraisals, and much more.

Performance Appraisals

“Performance appraisal may be defined as a

structured formal interaction between a

subordinate and supervisor, that usually takes the

form of a periodic interview (annual or semi-

annual), in which the work performance of the

subordinate is examined and discussed, with a

view to identifying weaknesses and strengths as

well as opportunities for improvement and skills

development.”

Benefits of Performance Appraisals

• Motivate employees

• Encourage communication and conversation

• Enhance performance

• Target areas of improvement

• Chart progress

Video - Performance Appraisals

Please click on the image above for a video about performance appraisals.

Performance Dimensions

While there are a number of dimensions of performance appraisals, some of the most popular dimensions to examine include:

– Quantity of work

– Timeliness of work

– Quality of work

– Use of resources

– Customer impact

– Self-reliance

– Departmental contribution

– Productive work habits

– Skills and capabilities

– Alignment and compliance

Advantages of Performance

Appraisal

For employees and employers-

– Record performance

– Provide opportunity for conversation

– Provide feedback

– Provide opportunity for clarification

– Define goals for future

– Motivate employees

Disadvantages of Performance

Appraisal

For employees and employers -

– Can be a negative experience if not done

properly or if confrontation arises.

– Very time consuming

– Based upon human assessment, which

involves error.

– Without a solid purpose, they are useless.

– Can be extremely stressful.

Challenges to Effective

Performance Appraisal

• Rater Error Bias

• Influence of Liking

• Precautions

• Organizational Politics

• Individual or Group Focus

• Legal Issues

Additional Performance Appraisal Challenges

Rater Error Bias

Allowing one’s personal biases against the

individual or an individual’s characteristics to

determine the review.

Influence of Liking

Allowing one’s personal liking,

relationship, friendship, etc., to

determine the quality, detail, and

honesty of the appraisal.

Precautions

Being too nervous to speak honestly and

candidly about the employees performance

due to fear, insecurity, etc.

Organizational Politics

Allowing organization politics, such as

friendships, relationships, need to “look

good,” etc., affect the appraisal process.

Individual or Group Focus

Focusing too much on the individual or

group, instead of the interconnectivity

between these two components and an

individual’s performance.

Legal Issues

Not understanding or overthinking the legal

aspects surrounding performance

appraisals.

Preventing Legal Issues Through

Using Performance Reviews

Before you conduct a performance review, be certain to use the following tips to prevent potential legal issues from arising:

– Develop an Appraisal Form that Relates to the Employee's Job

– Train the Evaluators

– Develop a Rating Scale

– Safeguard against Inaccuracy

– Ensure against Bias of the Evaluator

– Provide for Cross-Checks on the Evaluators

– Require Employees to Sign Their Evaluations after Giving Them an Opportunity to Review the Evaluation

– Allow for Employee Comments

– Provide for Appeals on Grievances

– Timing of Evaluations

Additional Performance Review Tips

Managing Performance

• Performance Improvement

• Development of Action Plan

• Empowering Workers

• Directing Communication

Performance Improvement

• Develop a list of expectations

• Evaluate those expectations on a regular

basis

• Set goals that are SMART goals

Additional Performance Improvement Ideas

Developing a Performance

Action Plan

1. Define the issue

2. Establish expectations

3. Establish timelines

4. Develop a plan

5. Decide on evaluation method

6. Review the Performance Action Plan

Performance Action Plan Example

Video - Developing a Performance

Action Plan

Please click on the image above regarding developing a Performance Action Plan.

Empowering Workers

• Foster communication

• Reward self-improvement

• Encourage safe failure

• Provide plenty of feedback / context

• Define roles

• Require accountability

• Support growth and independence

• Appreciate efforts

Video - Empowering Workers

Please click on the image above regarding empowering workers.

Expectations After Performance

Reviews

• Improved knowledge

• Improved skills

• Improved abilities

• Improved attitude

• Improved competencies

Measuring Future Performance

• Schedule and conduct meetings to ensure

improved performance.

– If performance has not improved, determine

consequences.

• Set goals for the future.

– Ensure that those goals are achieved.

• Offer support to struggling employees.

– Empower employees to be their best.