Performance management-performance-appraisal-is-a-system

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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 objectively 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. 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
  • 8. 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
  • 9. 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
  • 10. Sample Trait Scales Using Absolute Standards 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 highFig. 7-4 © 1998 by Prentice Hall
  • 11. 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.
  • 12. Performance Management Effective Performance Evaluators should be Knowledgeable of job requirements Able to observe performance Accurate, unbiased, able to differentiate performance levels
  • 13. Performance ManagementSources of Evaluators Peers Self appraisals (Employee) Subordinates Outside personnel Computer monitoring§The 360 degree method§Choice Depends on Objectives
  • 14. Performance Management Evaluator Error (Bias) Halo/horn Harshness/strictness Leniency Central Tendency Recency Contrast- similar or dissimilar to me Anchoring- biased by prior appraisal
  • 15. 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
  • 16. 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