Performance Management Performance Appraisal is a systematic ...
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  • 1. Performance Management
    • Performance Appraisal is a systematic description of job relevant strengths and development needs of an employee’s actual performance relative to established standards.
  • 2. Performance Management …
    • is a process to control employee work behaviors and outputs through providing feedback on performance.
  • 3. Performance Management …
    • Benefits: An Employee Perspective
      • Improved Performance requires Assessment and Feedback
      • Fairness results when performance is measured o bjectively and outcomes are equitable
      • Recognition of performance can motivate employee improvement
  • 4. Performance Management …
    • Administrative/Evaluative
      • pay, promotions, layoffs
    • Developmental
      • training, career development, HR research
    • Legal (minimize exposure to EEO)
      • Job related appraisal
      • Avoid vague/subjective performance criteria
      • Implement a review and appeals process
      • Respect employee privacy and confidentiality
  • 5. Performance Management
    • Uses of Performance Appraisal Systems
      • Rewards
      • Staffing/Career Decisions
      • Training/Development Assessment
      • Motivation
      • Validate HR Research
  • 6. Performance Management
    • Requirements for an Effective Performance Appraisals
      • Relevant
      • Acceptable (Evaluators and Employees)
      • Practical (Organization and Evaluators)
      • Reliable
      • Sensitive to Employee Issues and Needs
  • 7.  
  • 8. Performance Management
    • Performance Appraisal Criteria
    • Traits (focus on the Person)
      • Observable personality dimensions
        • Reliable, decisive, loyal
      • Ambiguous and open to bias
    • Behavioral (focus on worker behaviors)
      • Behaviors required to accomplish the job
      • More legally defensive (than Traits), expensive, time consuming and limits application across jobs (more job specific)
    • Outcomes
      • Clear, Unambiguous Criteria
      • Eliminates subjective rater error ~ subject to criteria contamination and deficiency
  • 9. Performance Management
    • Comparative Methods
      • Ranking, Forced Distribution, Essay
    • Advantage
      • Differentiates employees
    • Disadvantages
      • Degree of differences unclear
      • Difficult to compare across groups
      • May cause conflict among workers
      • Vague feedback-difficult to defend
  • 10. Performance Management
    • Adjective Descriptor Methods
      • Behavioral Checklist, Graphic Rating Scale
    • Advantages
      • Avoids conflict
      • Allows comparison across work groups
      • Feedback of Specific performance dimensions
    • Disadvantages
      • Open to Rater Error
      • Inconsistency Across Raters
  • 11. Sample Trait Scales Using Absolute Standards Fig. 7-4 Rate each worker using the scales below. Decisiveness: 1 2 3 4 5 6 7 Very low Moderate Very high Reliability: 1 2 3 4 5 6 7 Very low Moderate Very high Energy: 1 2 3 4 5 6 7 Very low Moderate Very high Loyalty: 1 2 3 4 5 6 7 Very low Moderate Very high © 1998 by Prentice Hall
  • 12.  
  • 13. Performance Management
    • Expected Outcome Methods
      • Management by Objectives, Behavioral Anchored Rating Scales (BARS)
    • BARS measures actual performance behaviors exhibited by an employee relative to pre-defined behaviors of a critical performance dimension.
    • MBO is a mutual goal setting process comparing actual performance to agreed upon performance objectives.
  • 14.  
  • 15. Performance Management
    • Effective Performance Evaluators should be
      • Knowledgeable of job requirements
      • Able to observe performance
      • Accurate, unbiased, able to differentiate performance levels
  • 16. Performance Management
    • Sources of Evaluators
      • Peers
      • Self appraisals (Employee)
      • Subordinates
      • Outside personnel
      • Computer monitoring
    • The 360 degree method
    • Choice Depends on Objectives
  • 17. Performance Management
    • Evaluator Error (Bias)
      • Halo/horn
      • Harshness/strictness
      • Leniency
      • Central Tendency
      • Recency
      • Contrast- similar or dissimilar to me
      • Anchoring- biased by prior appraisal
  • 18. Performance Management
    • Scheduling (Timing) of Performance Appraisal
      • Intermittent v. Continuous (Formal v. Informal)
      • Purpose: Developmental v. Pay Adjustment
    • Intermittent v. Continuous
      • Formal ~ usually intermittent (monthly, semi-annual, annual)
      • Informal ~ should be continuous (daily if necessary)
      • Communicate when required – support positive results or correct developmental (deficient) performance areas
    • Development v. Pay ( Two separate Appraisal Interviews )
      • First discuss performance strengths and developmental needs
      • Second discuss pay issues
  • 19. Performance Management
    • Improving Performance Appraisal Process
    • Give daily not once a year
    • Have employee’s rate their performance
    • Encourage the employee to participate
    • Emphasize Constructive criticism
    • Provide constant Feedback
    • Focus on behavior (performance) not the person
    • Mutually agree on specific goals, timelines, and developmental programs/assignments