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Chapter3 slide 1


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  • 1. The Appraisal System. Concepts of Appraisal & Appraisal Methods M21 : Assessment in the Workplace
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  • 2. Performance Appraisal
    • Aims of Appraisal
    • Content of Appraisal
    • Implementation
    • Maintenance and Evaluation of Appraisal
    • Appraisal and Performance Management (PRP)
  • 3. Perspectives on Appraisal : The Organisation
    • ‘ to enable some kind of assessment to be made on an employee - either against pre-set objectives or job competencies… as a basis for…’
    • making equitable reward decisions
    • improving performance
    • motivating employees
    • succession planning and identifying potential
    • promoting manager-subordinate dialogue
    • formal assessment of unsatisfactory performance
  • 4. Perspectives on Appraisal : The Appraisee (Employee)
      • Want fair distribution of reward
      • Want performance feedback
      • Want constructive dialogue with ‘the organisation’
      • BUT, conditional on the extent to which -
      • the appraisal is perceived as fair
      • has a good working (social?) relationship with the appraiser
      • impact of the assessment on their rewards and well-being
  • 5. Perspectives on Appraisal : The Appraiser (Immediate Superior)
      • Napier & Latham (1986) ‘Reluctance’
      • why…
      • lack of agreement with target (appraisee)
      • lack of confidence in own ability to appraise
      • very high administrative workload
      • office politics
      • all leads to...
      • bias in appraisal ratings
  • 6. Common Practice : Aims of the Appraisal
      • Performance appraisal generally thought up by Personnel and/or senior management
      • NB1. Importance of setting realistic aims - conflicting perspectives on aims of appraisal (assessment vs motivation & development)
      • NB2. The aims of the appraisal will affect the nature and content of the scheme
        • assessment : common dimensions
        • motivate & develop : emphasis on the individual
  • 7. Content of Appraisal (for Assessment & Comparison) DESIGNING THE QUESTIONNAIRE
      • ‘ Identify abilities that are central to good performance AND can discriminate between staff with varying levels of performance’.
      • How can we identify these job-related activities ?
  • 8. Identification of Job-Related Abilities (Assessment & Comparison) Techniques (I)
      • 1 . Committee Method
      • Personnel and Snr Mgr/Exec. determine by discussion of ‘key’ abilities.
      • 2. Diary Method
      • Job-holder keeps an hour-by-hour record
      • 3. Direct Observation
      • HR and/or Occupational Psychologist observes job holder at work
  • 9. Identification of Job-Related Abilities (Assessment & Comparison) Techniques (II)
      • 4. Questionnaire Methods (e.g. Position Analysis Questionnaire) : 187 items, 6 dimensions
        • Information Input
        • Mental Processes
        • Work Output
        • Relationships with Others
        • Job Context
        • Other Characteristics
      • 5. Interviews with job holders & stakeholders (e.g.Critical Incident Technique) : Incidents of ‘very effective’ and ‘very ineffective’ performance.
  • 10. Rating Scale Format (Assessment and Comparison)
      • 4 common formats for ratings scales :
      • 1. Scales with verbally described intervals
      • 2. Numerical/Alphabetical, with ‘low’-’high’ (intervals specified, but not described)
      • 3. Graphic rating scales : extremes and mid-point specified, with detailed description of dimension of behaviour
      • 4. Comparative scales : behaviour described relative to others.
  • 11. Why Use Rating Scales ?
    • Advantages
      • easily understood
      • encourage an analytic view of behaviour
      • provide quantitative data, so facilitates comparison
    • Disadvantages
      • idiosyncratic rating errors (halo, restriction of range, leniency, central tendency, acquiesence)
  • 12. How to reduce idiosyncratic rating errors
    • Train appraisers
    • Use forced distributions
    • Increase the number of raters
    • Use behaviourally based rating scales (e.g. BOS and BARS)
  • 13. Content of Appraisal (to Motivate & Develop : Management By Objectives, ‘MBO’) DESIGNING THE QUESTIONNAIRE
    • 6 - 12 months, detailing :
    • key objectives
    • priority ranking
    • action needed (who and when)
    • extent to which objectives achieved
    • NB.
    • Very difficult to make any comparisons between people
    • not all jobs can be framed in terms of individual objectives
    • doesn’t help identify development needs
  • 14. Content of Appraisal (Motivate & Develop : Competency Based) DESIGNING THE QUESTIONNAIRE
    • ‘ an underlying characteristic of a person which could be a motive, trait, skills, aspect of one’s self-image or social role or a body of knowledge which he/she uses .’ Boyatzis, 1982.
    • How to identify competencies :
    • (i) Traditional job analysis techniques, (ii) Rep Grid
    • (iii) Questionnaire methods (e.g. Generic Competency Questionnaire)
    • NB. Fletcher (1997). ‘competencies should not be equated with ratings of single job-related abilities - they are much more broader and complex. They should allow for progression and development’
  • 15. Training and the Implementation of Appraisal
    • Fletcher & Williams (1982) : the effectiveness of performance appraisal is related to the training effort put into it
    • Traditionally, introduced ‘top-down’
    • Background briefing - history of appraisal in the org., ‘selling’ the system, familiarise with the process
    • Train the Appraisers - train on Assessment Skills, Appraisal Interview Skills, offer an appraisal clinic.
      • N.B. train for appraisal of diverse workforce
    • Train the Appraisees - e.g. aims of scheme, how to prepare, reassure, how to respond.
  • 16. Monitoring and Maintenance of Appraisals
    • Short-Term Criteria
    • completion rate
    • action generated
    • quality of appraisal reports
    • attitudes and perceived value of the appraisal
    • equity
    • Long-Term Criteria
    • organisational performance
    • quality of staff
    • retention of staff
    • levels of employee commitment
  • 17. Appraisal and Performance Management
    • ‘ a shared vision of the direction of the organisation, in which each individual employee recognises and accepts their contribution’
    • The Process of PM
    • develop org. mission statement and objectives
    • develop a business plan
    • enhance communication within the organisation
    • clarify individuals’ responsibilities
    • define and measure individual performance
    • implement appropriate reward strategies
    • develop staff to improve performance further
  • 18. How does Appraisal fit in to PM ?
    • Appraisal is the vehicle by which :
    • org. goals and objectives are translated to individuals
    • individual needs are identified, and objectives agreed
    • NB
    • Individual vs team achievement
    • line driven appraisal
    • appraisal as part of a feedback loop
    • excessive bottom-line emphasis
  • 19. Appraisal & Pay
    • Merit Pay (PRP) :
    • 3% -10% of salary (+ cost of living rises)
    • Issues
    • Meyer (1980 : on average, employees felt they performed better than 75% of their peers.
    • High performing individual, poor org. performance
    • Bevan & Thompson (1991) : PRP is not related to higher levels of org. performance.
    • Implications for appraisers (leniency in ratings)
  • 20. Appraisal and Pay
    • Alternatives
    • Direct and indirect links with merit pay
    • Wider (financial and non-financial) reward policies
      • e.g. promotions, office décor, more holidays/flexible working practices, technology, ‘better’ work, conferences and training