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Performance Management and Appraisal 9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 6-1

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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Performance Management and Appraisal

9

Chapter 6-1

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

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.

Chapter 9-2

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives4. Develop, evaluate, and administer

at least four performance appraisal tools.

5. Explain and illustrate the problems to avoid in appraising performance.

Chapter 9-3

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives6. Discuss the pros and cons of using

different raters to appraise a person’s performance.

7. Perform an effective appraisal interview.

Chapter 9-4

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Define performance management and discuss

how itdiffers from performance

appraisal.

Chapter 9-5

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Basic Concepts In Performance

Management and Appraisal• The performance appraisal process• Why appraise performance?• The importance of continuous

feedback• Performance managementoDefinition

Chapter 9-6

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review

• The process • Why do it?• Continuous feedback• Performance management

Chapter 9-7

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Describe the appraisal process.

Chapter 9-8

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

The Performance Appraisal Process

• Why appraise performance?• Continuous feedback• Performance management

Chapter 9-9

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Pay and promotions• Planning• Career planning• Training and development• Ongoing feedback• Teamwork and change

Chapter 9-10

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Set effective performance appraisal standards.

Chapter 9-11

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Employee’s Goals and

Performance Standards• HR in practice: how to set effective

goalsoAssign specific goalsoAssign measurable goalsoAssign challenging but doable goalsoEncourage participation

Chapter 9-12

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Employee’s Goals and

Performance Standards

• Basing appraisal standards on required competencies

• The role of job descriptions

Chapter 9-13

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Who Should Do the Appraising?

• Peer appraisals• Rating committees• Self-ratings• Appraisal by subordinates• 360-degree feedback

Chapter 9-14

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Techniques for Appraising Performance

• Graphic rating scale method

• What to rate?

Chapter 9-15

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review

• Effective goals• Competencies• Job descriptions• Appraisers

Chapter 9-16

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Develop, evaluate, and administer at least four

performance appraisal tools.

Chapter 9-17

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Performance Appraisal Tools

• Alternation ranking • Paired comparison • Forced distribution • Critical incident • Narrative forms• Behaviorally Anchored Rating Scales

(BARS)Chapter 9-18

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Performance Appraisal Tools

• Mixed standard scales• Management by objectives (MBO)• Computerized and web-based

performance appraisal• Electronic performance monitoring

(EPM)

Chapter 9-19

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review

• BARS• Scales• MBO• Computerized• EPM

Chapter 9-20

• Alternation• Pairs• Distribution• Incidents• Narratives

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Explain and illustrate the problems to avoid in

appraising performance.

Chapter 9-21

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Dealing with Appraisal Problems and Interviews

• Potential appraisal problemsoUnclear standardsoHalo effectoCentral tendencyoLeniency or strictnessoRecency effectsoBias

Chapter 9-22

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review

Chapter 9-23

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Discuss the pros and cons of using different

raters to appraise a person’s performance.

Chapter 9-24

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

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

Chapter 9-25

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review• Problems• Tools• Records• Fairness• Legal• Ethics

Chapter 9-26

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Perform an effective appraisal interview.

Chapter 9-27

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Managing the Appraisal Interview

• Types of appraisal interviews• How to conduct the appraisal

interviewoObjective dataoDon’t get personaloEncouragementoAgreement

Chapter 9-28

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Managing the Appraisal Interview

• Handling a defensive subordinate• Criticizing a subordinate• The formal written warning• Realistic appraisals

Chapter 9-29

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Performance Management

• Performance management vs. appraisals

• Information technology • Talent management • Appraisal and active management• Segmenting employees

Chapter 9-30

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Performance Management Summary

• Direction sharing• Goal alignment• Ongoing performance monitoring• Ongoing feedback• Coaching and developmental• Recognition and rewards

Chapter 9-31

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

Review

• Type of interviews• Defensiveness• Criticism• Warnings• Realism• Performance management vs.

appraisals• Talent management

Chapter 9-32

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Chapter 9-33