performance appraisal. what is performance appraisal? uses of performance reviews; types of...
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Performance Appraisal
What is performance appraisal? Uses of performance reviews; Types of performance appraisals; performing performance appraisal.
Performance Appraisal Programs
Performance Appraisal– The process of evaluating how well employees
perform their jobs when compared to a set of standards, and then communicating the information to employees.
– A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
Performance Appraisal and Other HRM Functions
Performance appraisal Performance appraisal validates selection functionvalidates selection function
Performance appraisal Performance appraisal validates selection functionvalidates selection function SelectionSelectionSelectionSelection
Selection should produce Selection should produce workers best able to meet workers best able to meet job requirementsjob requirements
Selection should produce Selection should produce workers best able to meet workers best able to meet job requirementsjob requirements
Performance appraisal Performance appraisal determines training needsdetermines training needs
Performance appraisal Performance appraisal determines training needsdetermines training needs
Training and Training and DevelopmentDevelopment
Training and Training and DevelopmentDevelopment
Training and development Training and development aids achievement of aids achievement of performance standardsperformance standards
Training and development Training and development aids achievement of aids achievement of performance standardsperformance standards
Performance appraisal is a Performance appraisal is a factor in determining payfactor in determining pay
Performance appraisal is a Performance appraisal is a factor in determining payfactor in determining pay
Compensation Compensation ManagementManagement
Compensation Compensation ManagementManagement
Compensation can affect Compensation can affect appraisal of performanceappraisal of performance
Compensation can affect Compensation can affect appraisal of performanceappraisal of performance
Performance appraisal judges Performance appraisal judges effectiveness of recruitment effectiveness of recruitment effortsefforts
Performance appraisal judges Performance appraisal judges effectiveness of recruitment effectiveness of recruitment effortsefforts
RecruitmentRecruitmentRecruitmentRecruitmentQuality of applicants Quality of applicants determines feasible determines feasible performance standardsperformance standards
Quality of applicants Quality of applicants determines feasible determines feasible performance standardsperformance standards
Performance appraisal justifies Performance appraisal justifies personnel actionspersonnel actions
Performance appraisal justifies Performance appraisal justifies personnel actionspersonnel actions Labor RelationsLabor RelationsLabor RelationsLabor Relations
Appraisal standards and Appraisal standards and methods may be subject to methods may be subject to negotiationnegotiation
Appraisal standards and Appraisal standards and methods may be subject to methods may be subject to negotiationnegotiation
Performance management– The process of creating a work environment in
which people can perform to the best of their abilities.
Uses of Performance Appraisal
PerformancePerformanceAppraisalAppraisal
PerformancePerformanceAppraisalAppraisal
Giving Performance Giving Performance FeedbackFeedback
Giving Performance Giving Performance FeedbackFeedback
Administering Wages Administering Wages and Salariesand Salaries
Administering Wages Administering Wages and Salariesand Salaries
Identifying Strengths Identifying Strengths and Weaknessesand Weaknesses
Identifying Strengths Identifying Strengths and Weaknessesand Weaknesses
Performance AppraisalAppraisal ProgramsAppraisal ProgramsAppraisal ProgramsAppraisal Programs
AdministrativeAdministrativeAdministrativeAdministrative DevelopmentalDevelopmentalDevelopmentalDevelopmental
CompensationCompensationCompensationCompensation Ind. EvaluationInd. EvaluationInd. EvaluationInd. Evaluation
Job EvaluationJob EvaluationJob EvaluationJob Evaluation
EEO/AA SupportEEO/AA SupportEEO/AA SupportEEO/AA Support
Training Training Training Training
Career PlanningCareer PlanningCareer PlanningCareer Planning
Purposes for Performance AppraisalPurposes for Performance Appraisal
Who Conducts Appraisals
Supervisors who rate their subordinates Employees who rate their supervisors Team members who rate each other Outside sources Employees’ self-appraisal Multisource (360° feedback) appraisal
Performance Appraisal Process
Establish performance standards Communicate the standards Measure actual performance Compare actual performance with standards
and discuss the appraisal Taking corrective action, if necessary
Traditional Performance Appraisal:Logic and Process
Figure 11–5
Reasons Appraisal Programs Sometimes Fail
Lack of top-management information and support
Unclear performance standards Rater bias Too many forms to complete Use of the appraisal program
for conflicting (political) purposes.
Figure 8Figure 8–2 –2 Let Me Count the Ways . . .Let Me Count the Ways . . .
There are many reasons why performance appraisal systems might not be effective. Some of the most common problems include the following:
Sources: Patricia Evres, “Problems to Avoid during Performance Evaluations,” Air Conditioning, Heating & Refrigeration News 216, no. 16 (August 19, 2002): 24–26; Clinton Longnecker and Dennis Gioia, “The Politics of Executive Appraisals,” Journal of Compensation and Benefits 10, no. 2 (1994): 5–11; “Seven Deadly Sins of Performance Appraisals,” Supervisory Management 39, no. 1 (1994): 7–8.
• Inadequate preparation on the part of the manager.
• Employee is not given clear objectives at the beginning of performance period.
• Manager may not be able to observe performance or have all the information.
• Performance standards may not be clear.
• Inconsistency in ratings among supervisors or other raters.
• Rating personality rather than performance.
• The halo effect, contrast effect, or some other perceptual bias.
Figure 8Figure 8–2 –2 Let Me Count the Ways Let Me Count the Ways (cont’d) . . .(cont’d) . . .
• Inappropriate time span (either too short or too long).
• Overemphasis on uncharacteristic performance.
• Inflated ratings because managers do not want to deal with “bad news.”
• Subjective or vague language in written appraisals.
• Organizational politics or personal relationships cloud judgments.
• No thorough discussion of causes of performance problems.
• Manager may not be trained at evaluation or giving feedback.
• No follow-up and coaching after the evaluation.Sources: Patricia Evres, “Problems to Avoid during Performance Evaluations,” Air Conditioning, Heating & Refrigeration News 216, no. 16 (August 19, 2002): 24–26; Clinton Longnecker and Dennis Gioia, “The Politics of Executive Appraisals,” Journal of Compensation and Benefits 10, no. 2 (1994): 5–11; “Seven Deadly Sins of Performance Appraisals,” Supervisory Management 39, no. 1 (1994): 7–8.
There are many reasons why performance appraisal systems might not be effective. Some of the most common problems include the following:
Performance Appraisal Methods
Performance Appraisal Methods
Trait Trait MethodsMethods
Trait Trait MethodsMethods
Graphic Rating Graphic Rating ScaleScale
Graphic Rating Graphic Rating ScaleScale
Mixed Standard Mixed Standard ScaleScale
Mixed Standard Mixed Standard ScaleScale
Forced-ChoiceForced-ChoiceForced-ChoiceForced-Choice
EssayEssayEssayEssay
Trait Methods
Graphic Rating-Scale Method– A trait approach to performance appraisal
whereby each employee is rated according to a scale of individual characteristics.
Mixed-Standard Scale Method– An approach to performance appraisal similar to
other scale methods but based on comparison with (better than, equal to, or worse than) a standard.
Highlights in HRM 2
Graphic Rating Scale with Provision for Comments
Highlights in HRM 3
Example of a Mixed-Standard Scale
Trait Methods
Forced-Choice Method– Requires the rater to choose from statements designed to
distinguish between successful and unsuccessful performance.
– 1. ______ a) Works hard _____ b) Works quickly– 2. ______ a) Shows initiative _____ b) Is responsive to
customers– 3. ______ a) Produces poor quality _____ b) Lacks good work habits
Essay Method– Requires the rater to compose a statement describing
employee behavior.
Behavioral Methods
Behavioral Behavioral MethodsMethods
Behavioral Behavioral MethodsMethods
Critical IncidentCritical IncidentCritical IncidentCritical Incident
Behavioral ChecklistBehavioral ChecklistBehavioral ChecklistBehavioral Checklist
Behaviorally Anchored Behaviorally Anchored Rating Scale (BARS)Rating Scale (BARS)
Behaviorally Anchored Behaviorally Anchored Rating Scale (BARS)Rating Scale (BARS)
Behavior Observation Behavior Observation Scale (BOS)Scale (BOS)
Behavior Observation Behavior Observation Scale (BOS)Scale (BOS)
Behavioral Methods
Critical Incident Method– Critical incident
An unusual event that denotes superior or inferior employee performance in some part of the job
– The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform.
Behavioral Checklist Method– The rater checks statements on a list that the rater believes
are characteristic of the employee’s performance or behavior.
Behavioral Methods
Behaviorally Anchored Rating Scale (BARS)– Consists of a series of vertical scales, one for
each dimension of job performance; typically developed by a committee that includes both subordinates and managers.
Highlights in HRM 4
Example of a BARS for Municipal Fire Companies
FIREFIGHTING STRATEGY: Knowledge of Fire Characteristics.
Source: Adapted from Landy, Jacobs, and Associates. Reprinted with permission.
Summary of Appraisal Methods
Trait Methods– Advantages
Are inexpensive to develop Use meaningful dimensions Are easy to use
– Disadvantages Have high potential for rating errors Are not useful for employee counseling Are not useful for allocating rewards Are not useful for promotion decisions
Summary of Appraisal Methods (cont’d)
Behavioral Methods– Advantages
Use specific performance dimensions Are acceptable to employees and superiors Are useful for providing feedback Are fair for reward and promotion decisions
– Disadvantages Can be time-consuming to develop/use Can be costly to develop Have some potential for rating error
Figure 8Figure 8–8 –8 Factors That Influence Factors That Influence PerformancePerformance
Highlights in HRM 9
Performance Diagnosis
Source: Scott Snell, Cornell University.