Three broad purposes include: Strategic purposes: helps the organization achieve its business objectives Administrative purposes: the ways in which the organization uses the system to provide information for day-to-day decisions about salary, benefits, and recognition programs Developmental purposes: serves as a basis for developing employees’ knowledge and skills
Performance appraisal: the measurement of specified areas of an employee’s performance. Stages of the performance management process include: Defining performance – How is performance defined? Using information from the job analysis Measuring performance Providing feedback on performance – this involves solving problems the employee may be facing on their job and by rewarding employees through raises, bonuses, etc to communicate information about their performance. Using this type of performance management process in place of the traditional performance appraisal routine helps managers and employees focus on the organization’s goals.
Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively. Leniency; Horn Strictness; Halo Similar-to-me; Central Tendency Horn; Strictness Answer: B
A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
Key MBO ideas
Employee involvement creates higher levels of commitment and performance.
Encourages employees to work effectively toward achieving desired results.
Performance measures should be measurable and should define results.
Summary of Appraisal Methods ADVANTAGES DISADVANTAGES TRAITS Inexpensive Meaningful Easy to use Potential for error Poor for counseling Poor for allocating rewards Poor for promotional decisions BEHAVIOR Specific dimensions Accepted by employees Useful for feedback OK for reward/promotion Time consuming Costly Some rating error RESULTS Less subjectivity bias Accepted by employees Performance-reward link Encourages goal setting Good for promotion decisions Time consuming Focus on short term
Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively.