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Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2015-16
MAIN PURPOSES OF PERFORMANCE MANAGEMENT
• Individual Rewards (Base and Incentive): Compensation "Pay for Performance"
• Feedback for Sub-Ordinate (Plus and Minus)
• Recognition of Superior Performance
• Documentation of Weak Performance
• Personnel Decision-Making: Documentation for Decisions
• Future Goal Commitments (Planned Achievements)
• Job Performance Improvements
• Promotion Decisions
• Identify Training Needs
• HR Planning
PURPOSE OF PERFORMANCE REVIEWS
GIVING
Feedback
RECEIVING
Feedback
Engagement
Regarding
performance &
development
PERFORMANCE CHARACTERISTICS
IDENTIFYING PERFORMANCE DIMENSIONS
Examples of Performance Dimensions:
• Strong Interpersonal Skills
• Customer Service Orientation
• Teamwork
• Effective Communication
• Valuing Diversity
• Analysis and Problem-Solving
• Decision-Making and Results Orientation
• Adaptability
• Fostering a Safe and Secure Environment
PERFORMANCE LEVELS
• TOP
 Exceeds expectations in most aspects of the job frequently.
 Goes above and beyond what is asked.
 Thinks ahead. Is proactive. Seeks improvement.
 Solves problems independently.
 VALUED
 Meets expectations in all major aspects of the position and exceeds
some.
 Sometimes goes beyond what is asked.
 Takes initiative to solve problems.
 Seeks learning and improvement.
 DEVELOPING
 New to the position or some duties are new.
 More training/learning is needed to be fully performing all aspects of
the job at the desired level.
 Performance does not meet expectations for fully experienced person.
 REQUIRES IMPROVEMENT
 Regularly fails to meet established standards/goals.
 Lacks required skills, knowledge, willingness or capability to perform.
 Fails to recognize effect on others and or does not make necessary
 changes when advised of the need. Not consistent with Core values.
 Immediate and sustained improvement required.
Performance Appraisal
• The evaluation of employees’ job performance and contributions to their organization relative to
his or her performance standards.
• The identification, measurement, and management of human performance in organizations.
• Periodic (usually annual) event.
• Formal review.
• Last step in performance management process.
Performance Feedback
• The process through which managers share performance appraisal information, give subordinates
an opportunity to reflect on their own performance, and develop with subordinates, plans for the
future.
Performance Management
• The process employers use to make sure employees are working toward organizational goals.
• Dynamic, continuous process.
• Improves organizational effectiveness.
• Strategic goals.
A SIMPLIFIED MODEL OF JOB PERFORMANCE
MOTIVATION
• Benefits
• Job design
• Leadership style
• Recruitment and
selection
• Employee goals
/needs / abilities
ABILITY
• Responsibilities
• Education: Basic/
advanced
• CNE
• Skills/abilities
EMPLOYEE
PERFORMANCE
•Daily performance
•Attendance
•Punctuality
•Adherence to
Policies/procedures
•Absence of incidents/
errors/accidents
•Honesty
•Trustworthiness
TYPES OF PERFORMANCE APPRAISAL
• Trait Appraisals
• Assessing subordinates on personal characteristics that are relevant to job performance.
• Disadvantages of trait appraisals
• Employees with a particular trait may choose not to use that particular trait on the job.
• Traits and performance are not always obviously linked
• It is difficult to give feedback on traits.
• Behavior Appraisals
• Assesses how workers perform their jobs—the actual actions and behaviors that exhibit on
the job.
• Focuses on what a worker does right and wrong and provides good feedback for employees to
change their behaviors.
• Results appraisals
• Managers appraise performance by the results or the actual outcomes of work behaviors
• Objective appraisals
• Assesses performance based on facts (e.g., sales figures).
• Subjective appraisals
• Assessments based on a manager’s perceptions of traits, behavior, or results.
• Graphic rating scales
• Behaviorally anchored rating scales (BARS)
• Behavior observation scales (BOS)
• Forced ranking systems
WRITING SMART PERFORMANCE OBJECTIVES
Practice writing SMART performance objectives:
• S – Specific.
• M – Measurable.
• A – Attainable.
• R – Realistic.
• T – Timely.
DESIGNING THE APPRAISAL TOOL
What to Measure?
• Work output (quality and quantity)
• Personal competencies
• Goal (objective) achievement
How to Measure?
• Generic dimensions
• Actual job duties
• Behavioral competencies
Who Performs the Appraisal?
• Immediate Supervisor
• Higher Management
• Self-Appraisals
• Peers (Co-Workers)
• Evaluation Teams
• Customers
• “360° Appraisals”
EFFECTIVE PERFORMANCE FEEDBACK
• Formal appraisals
• An appraisal conducted at a set time during the year and based on performance dimensions
that were specified in advance
• Informal appraisals
• An unscheduled appraisal of ongoing progress and areas for improvement
EFFECTIVE FEEDBACK TIPS
• Be specific and focus on behaviors or outcomes that are correctable and within a worker’s
ability to improve.
• Approach performance appraisal as an exercise in problem solving and solution finding,
not criticizing.
• Express confidence in a subordinate ability to improve.
• Provide performance feedback both formally and informally.
• Praise instances of high performance and areas of a job in which a worker excels.
• Avoid personal criticisms and treat subordinates with respect.
• Agree to a timetable for performance improvements.
RANKING METHODS VERSUS RATING METHODS
• The simple ranking method involves having the manager rank-order, from top to bottom or
from best to worst, each member of a particular work group or department.
• The paired comparison method of performance appraisal involves comparing each
individual employee with every other individual employee, one at a time.
• The forced distribution method involves grouping employees into predefined frequencies of
performance ratings.
• A graphic rating scale consists of a statement or question about some aspect of an
individual’s job performance.
• The critical incident method relies on instances of especially good or poor performance on
the part of the employee.
• Behaviorally Anchored Rating Scales (BARS) are appraisal systems that represent a
combination of the graphic rating scale and the critical incident method.
• Behavioral Observation Scales (BOS) are developed from critical incidents like BARS, but use
substantially more critical incidents to specifically define all the measures necessary for
effective performance.
• A goal-based or management-by-objectives (MBO) system is based largely on the extent to
which individuals meet their personal performance objectives.
RANKING EMPLOYEES BY THE
PAIRED COMPARISON METHOD
Note: + means “better than.” − means “worse than.” For each chart, add up the number of
1’s in each column to get the highest-ranked employee.
GRAPHIC
RATING SCALE
WITH SPACE
FOR
COMMENTS
© 2005 Prentice Hall Inc. All rights reserved.
Excellent Good Average Poor
Quantity of
work
Works Fast, completes
Assignments in shortest
possible time. Often over
reaches the target.
Work is reasonably good.
Assignments are
completed in time. Put in
a little more than a full
days work.
Just meets the target Take long time to do work
or puts off doing it.
Output is below average.
Needs to be reminded
often.
Quality of
Work
Very Accurate in work, neat &
quite careful about standards.
Continuously looks for
measures to improve quality.
Show thoroughness of
work in producing desired
output. Tries to maintain
standards.
Few mistakes are noticed
in the quality of output,
otherwise generally neat
& careful.
Makes mistakes, is
careless in maintaining
quality, makes no attempt
to improve his standard of
output.
Job
Knowledge
Shows clear understanding of
the knowledge. Keep himself
updated & well informed
successfully tries out new idea
Has good working
knowledge but can
perform better, reads
relevant literature but not
regularly, responsive to
new ideas & willing to
learn and experiment.
Knows job enough to get
by, makes little attempt to
keep himself update,
shows little willingness to
apply himself.
Lacks adequate
knowledge or job skills,
makes no attempt to
improve himself.
Dependability Completely reliable,
understands his assignments
well, keeps good schedule of
work, often completes it before
time, no reminding &
Supervision required. Shows
high sense of responsibility
Takes assignments
seriously & completes
them in time. Acts with
good sense of
responsibility &
consciousness
Work is generally done
within the specified
period of time , shows
some slacking & once in a
while needs reminding.
Not reliable, wastes time
in gossiping, skirts work,
and need constant
reminding, cannot depend
on and require very close
supervision.
Attitude Identify himself with the
company, takes initiatives &
makes useful suggestion in the
improvement of the job.
Identifies with the
company generally &
feels happy and satisfied
with the job.
Generally satisfied &
performs just about
enough, has little
incentive for working in
the organization
Has no interest in
organization &
profession, careless in his
work makes mistakes, fails
to meet deadlines &
targets.
A GRAPHIC RATING SCALE WITH UNCLEAR
STANDARDS
Note: For example, what exactly is meant by “good,”
“quantity of work,” and so forth?
BEHAVIORAL OBSERVATION SCALE
BEHAVIORALLY ANCHORED RATING SCALE
(BARS)
• A behavioral approach to performance appraisal that consists of a series of vertical scales,
one for each important dimension of job performance.
FORCED-CHOICE METHOD
• A trait approach to performance appraisal that requires the rater to choose from
statements designed to distinguish between successful and unsuccessful performance.
ESSAY METHOD
• A trait approach to performance appraisal that requires the rater to compose a statement
describing employee behavior.
• Write a Behavioral Statement
• Strengths versus Weaknesses
• Describe Selected Traits
• Evaluate Performance
CRITICAL INCIDENT
• Unusual event that denotes superior or inferior
employee performance in some part of the job.
DISADVANTAGES OF MBO
• Success Not Validates by Research Studies
• Easy to Set Unrealistic Goals
• Hard to Get Full Commitment to Process
• Difficult to Define Some Goals
ADVANTAGES OF MBO
• Employees Can Measure Performance
• Quantifiable Goals
• Joint Effort
• Employee Satisfaction in Participation
MANAGEMENT BY OBJECTIVE (MBO)
• Given by Peter Drucker in 1954.
• Known by various names: Management By Results, Accountability Management., Performance Results And
Individual Development Evaluation [PRIDE]
• Philosophy of management that rates performance on the basis of employee achievement of goals set by
mutual agreement of employee and manager.
• Integrates performance and goal setting
• Frequent intervals
• Record maintenance
• Objective review jointly
• Mutual buy-in
COMPUTERIZED AND WEB-BASED
PERFORMANCE APPRAISAL SYSTEMS
• Allow managers to keep notes on subordinates.
• Notes can be merged with employee ratings.
• Software generates written text to support appraisals.
• Allows for employee self-monitoring and self-evaluation.
• Electronic Performance Monitoring (EPM) Systems
• Use computer network technology to allow managers access to their employees’
computers and telephones.
• Managers can monitor the employees’ rate, accuracy, and time spent working online.
Important Advantages and Disadvantages of Appraisal Tools
Tool Advantages Disadvantages
Graphic rating scale Simple to use; provides a quantitative
rating for each employee.
Standards may be unclear; halo
effect, central tendency, leniency,
bias can also be problems.
BARS Provides behavioral “anchors.” BARS
is very accurate.
Difficult to develop.
Alternation ranking Simple to use (but not as simple as
graphic rating scales). Avoids central
tendency and other problems of rating
scales.
Can cause disagreements among
employees and may be unfair if all
employees are, in fact, excellent.
Forced distribution
method
End up with a predetermined number
or % of people in each group.
Employees’ appraisal results
depend on your choice of cutoff
points.
Critical incident
method
Helps specify what is “right” and
“wrong” about the employee’s
performance; forces supervisor to
evaluate subordinates on an ongoing
basis.
Difficult to rate or rank employees
relative to one another.
MBO Tied to jointly agreed-upon
performance objectives.
Time-consuming.
RATING SCALE METHODS
(MOST POPULAR)
(Check each trait being evaluated)
1. Global Scale (Total Performance)
2. Mixed Standard Scale (Choose from Different
Statements)
3. Behaviorally Anchored Rating Scale (Descriptions along
the scale to define)
CHOOSING THE RIGHT APPRAISAL TOOL
Accessibility AccuracyEase-of-use
Employee
acceptance
Criteria for Choosing an
Appraisal Tool
COMMON RATER ERRORS
RATING ERRORS EXAMPLE
Halo
Job Rating Scale
EXCELLENT
on all factors
Leniency
Job Rating Scale
Employee A
EXCELLENT
Job Rating Scale
Employee B
EXCELLENT
Job Rating Scale
Employee C
SUPERIOR
Job Rating Scale
Employee D
EXCELLENT
Central
Tendency
Job Rating Scale
Employee A
AVERAGE
Job Rating Scale
Employee B
AVERAGE
Job Rating Scale
Employee C
AVERAGE
Job Rating Scale
Employee D
AVERAGE
Recency
Bias
Job rating scale behavior during the
last month has been POOR.
RATING ERRORS
• Contrast errors occur when the rater compares people against
one another instead of against an objective standard.
• Distributional errors occur when the rater tends to use only
one part of the rating scale.
• A halo error occurs when one positive performance
characteristic causes the manager to rate all other aspects of
performance positively.
• A horns error occurs when the
manager downgrades other aspects
of an employee’s performance because
of a single performance dimension.
THE APPRAISAL OUTCOME
Satisfactory—Promotable
Satisfactory—Not Promotable
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
Types of Appraisal
Why PA May Fail
Unclear
Language
Manager not
taking PA
seriously
Manager not
prepared
No on-going
feedback
Manager not
honest or
sincere
Ineffective
discussion
Lack
appraisal
skills
Manager
Lacks Infor.
Insufficient
Rewards
360◦ FEEDBACK
• This is an approach to performance appraisal that involves gathering performance
information from people on all sides of the manager: above, beside, below, and so forth.
• This approach is potentially helpful, especially when used for feedback purposes only.
• Multi-rater evaluation
• Input from multiple levels with firm and external sources
• Focuses on skills needed across organizational boundaries
• More objective measure of performance
• Process more legally defensible
Individual
Staff
Self-Assessment
Supervisor
Other Superiors
Peers
Teams
Sub-Ordinates
Teams
Customers
Other Superiors
Performance Appraisal

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Performance Appraisal

  • 1. Ms. Anubha Rastogi Astt. Prof, Vidya School Of Business 2015-16
  • 2. MAIN PURPOSES OF PERFORMANCE MANAGEMENT • Individual Rewards (Base and Incentive): Compensation "Pay for Performance" • Feedback for Sub-Ordinate (Plus and Minus) • Recognition of Superior Performance • Documentation of Weak Performance • Personnel Decision-Making: Documentation for Decisions • Future Goal Commitments (Planned Achievements) • Job Performance Improvements • Promotion Decisions • Identify Training Needs • HR Planning
  • 3. PURPOSE OF PERFORMANCE REVIEWS GIVING Feedback RECEIVING Feedback Engagement Regarding performance & development
  • 5. IDENTIFYING PERFORMANCE DIMENSIONS Examples of Performance Dimensions: • Strong Interpersonal Skills • Customer Service Orientation • Teamwork • Effective Communication • Valuing Diversity • Analysis and Problem-Solving • Decision-Making and Results Orientation • Adaptability • Fostering a Safe and Secure Environment
  • 6. PERFORMANCE LEVELS • TOP  Exceeds expectations in most aspects of the job frequently.  Goes above and beyond what is asked.  Thinks ahead. Is proactive. Seeks improvement.  Solves problems independently.  VALUED  Meets expectations in all major aspects of the position and exceeds some.  Sometimes goes beyond what is asked.  Takes initiative to solve problems.  Seeks learning and improvement.  DEVELOPING  New to the position or some duties are new.  More training/learning is needed to be fully performing all aspects of the job at the desired level.  Performance does not meet expectations for fully experienced person.  REQUIRES IMPROVEMENT  Regularly fails to meet established standards/goals.  Lacks required skills, knowledge, willingness or capability to perform.  Fails to recognize effect on others and or does not make necessary  changes when advised of the need. Not consistent with Core values.  Immediate and sustained improvement required.
  • 7. Performance Appraisal • The evaluation of employees’ job performance and contributions to their organization relative to his or her performance standards. • The identification, measurement, and management of human performance in organizations. • Periodic (usually annual) event. • Formal review. • Last step in performance management process. Performance Feedback • The process through which managers share performance appraisal information, give subordinates an opportunity to reflect on their own performance, and develop with subordinates, plans for the future. Performance Management • The process employers use to make sure employees are working toward organizational goals. • Dynamic, continuous process. • Improves organizational effectiveness. • Strategic goals.
  • 8. A SIMPLIFIED MODEL OF JOB PERFORMANCE MOTIVATION • Benefits • Job design • Leadership style • Recruitment and selection • Employee goals /needs / abilities ABILITY • Responsibilities • Education: Basic/ advanced • CNE • Skills/abilities EMPLOYEE PERFORMANCE •Daily performance •Attendance •Punctuality •Adherence to Policies/procedures •Absence of incidents/ errors/accidents •Honesty •Trustworthiness
  • 9. TYPES OF PERFORMANCE APPRAISAL • Trait Appraisals • Assessing subordinates on personal characteristics that are relevant to job performance. • Disadvantages of trait appraisals • Employees with a particular trait may choose not to use that particular trait on the job. • Traits and performance are not always obviously linked • It is difficult to give feedback on traits. • Behavior Appraisals • Assesses how workers perform their jobs—the actual actions and behaviors that exhibit on the job. • Focuses on what a worker does right and wrong and provides good feedback for employees to change their behaviors. • Results appraisals • Managers appraise performance by the results or the actual outcomes of work behaviors
  • 10. • Objective appraisals • Assesses performance based on facts (e.g., sales figures). • Subjective appraisals • Assessments based on a manager’s perceptions of traits, behavior, or results. • Graphic rating scales • Behaviorally anchored rating scales (BARS) • Behavior observation scales (BOS) • Forced ranking systems WRITING SMART PERFORMANCE OBJECTIVES Practice writing SMART performance objectives: • S – Specific. • M – Measurable. • A – Attainable. • R – Realistic. • T – Timely.
  • 11. DESIGNING THE APPRAISAL TOOL What to Measure? • Work output (quality and quantity) • Personal competencies • Goal (objective) achievement How to Measure? • Generic dimensions • Actual job duties • Behavioral competencies Who Performs the Appraisal? • Immediate Supervisor • Higher Management • Self-Appraisals • Peers (Co-Workers) • Evaluation Teams • Customers • “360° Appraisals”
  • 12. EFFECTIVE PERFORMANCE FEEDBACK • Formal appraisals • An appraisal conducted at a set time during the year and based on performance dimensions that were specified in advance • Informal appraisals • An unscheduled appraisal of ongoing progress and areas for improvement EFFECTIVE FEEDBACK TIPS • Be specific and focus on behaviors or outcomes that are correctable and within a worker’s ability to improve. • Approach performance appraisal as an exercise in problem solving and solution finding, not criticizing. • Express confidence in a subordinate ability to improve. • Provide performance feedback both formally and informally. • Praise instances of high performance and areas of a job in which a worker excels. • Avoid personal criticisms and treat subordinates with respect. • Agree to a timetable for performance improvements.
  • 13. RANKING METHODS VERSUS RATING METHODS • The simple ranking method involves having the manager rank-order, from top to bottom or from best to worst, each member of a particular work group or department. • The paired comparison method of performance appraisal involves comparing each individual employee with every other individual employee, one at a time. • The forced distribution method involves grouping employees into predefined frequencies of performance ratings. • A graphic rating scale consists of a statement or question about some aspect of an individual’s job performance. • The critical incident method relies on instances of especially good or poor performance on the part of the employee. • Behaviorally Anchored Rating Scales (BARS) are appraisal systems that represent a combination of the graphic rating scale and the critical incident method. • Behavioral Observation Scales (BOS) are developed from critical incidents like BARS, but use substantially more critical incidents to specifically define all the measures necessary for effective performance. • A goal-based or management-by-objectives (MBO) system is based largely on the extent to which individuals meet their personal performance objectives.
  • 14. RANKING EMPLOYEES BY THE PAIRED COMPARISON METHOD Note: + means “better than.” − means “worse than.” For each chart, add up the number of 1’s in each column to get the highest-ranked employee.
  • 15. GRAPHIC RATING SCALE WITH SPACE FOR COMMENTS © 2005 Prentice Hall Inc. All rights reserved.
  • 16. Excellent Good Average Poor Quantity of work Works Fast, completes Assignments in shortest possible time. Often over reaches the target. Work is reasonably good. Assignments are completed in time. Put in a little more than a full days work. Just meets the target Take long time to do work or puts off doing it. Output is below average. Needs to be reminded often. Quality of Work Very Accurate in work, neat & quite careful about standards. Continuously looks for measures to improve quality. Show thoroughness of work in producing desired output. Tries to maintain standards. Few mistakes are noticed in the quality of output, otherwise generally neat & careful. Makes mistakes, is careless in maintaining quality, makes no attempt to improve his standard of output. Job Knowledge Shows clear understanding of the knowledge. Keep himself updated & well informed successfully tries out new idea Has good working knowledge but can perform better, reads relevant literature but not regularly, responsive to new ideas & willing to learn and experiment. Knows job enough to get by, makes little attempt to keep himself update, shows little willingness to apply himself. Lacks adequate knowledge or job skills, makes no attempt to improve himself. Dependability Completely reliable, understands his assignments well, keeps good schedule of work, often completes it before time, no reminding & Supervision required. Shows high sense of responsibility Takes assignments seriously & completes them in time. Acts with good sense of responsibility & consciousness Work is generally done within the specified period of time , shows some slacking & once in a while needs reminding. Not reliable, wastes time in gossiping, skirts work, and need constant reminding, cannot depend on and require very close supervision. Attitude Identify himself with the company, takes initiatives & makes useful suggestion in the improvement of the job. Identifies with the company generally & feels happy and satisfied with the job. Generally satisfied & performs just about enough, has little incentive for working in the organization Has no interest in organization & profession, careless in his work makes mistakes, fails to meet deadlines & targets.
  • 17. A GRAPHIC RATING SCALE WITH UNCLEAR STANDARDS Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth?
  • 19. BEHAVIORALLY ANCHORED RATING SCALE (BARS) • A behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance.
  • 20. FORCED-CHOICE METHOD • A trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. ESSAY METHOD • A trait approach to performance appraisal that requires the rater to compose a statement describing employee behavior. • Write a Behavioral Statement • Strengths versus Weaknesses • Describe Selected Traits • Evaluate Performance CRITICAL INCIDENT • Unusual event that denotes superior or inferior employee performance in some part of the job.
  • 21. DISADVANTAGES OF MBO • Success Not Validates by Research Studies • Easy to Set Unrealistic Goals • Hard to Get Full Commitment to Process • Difficult to Define Some Goals ADVANTAGES OF MBO • Employees Can Measure Performance • Quantifiable Goals • Joint Effort • Employee Satisfaction in Participation MANAGEMENT BY OBJECTIVE (MBO) • Given by Peter Drucker in 1954. • Known by various names: Management By Results, Accountability Management., Performance Results And Individual Development Evaluation [PRIDE] • Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. • Integrates performance and goal setting • Frequent intervals • Record maintenance • Objective review jointly • Mutual buy-in
  • 22. COMPUTERIZED AND WEB-BASED PERFORMANCE APPRAISAL SYSTEMS • Allow managers to keep notes on subordinates. • Notes can be merged with employee ratings. • Software generates written text to support appraisals. • Allows for employee self-monitoring and self-evaluation. • Electronic Performance Monitoring (EPM) Systems • Use computer network technology to allow managers access to their employees’ computers and telephones. • Managers can monitor the employees’ rate, accuracy, and time spent working online.
  • 23. Important Advantages and Disadvantages of Appraisal Tools Tool Advantages Disadvantages Graphic rating scale Simple to use; provides a quantitative rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. BARS Provides behavioral “anchors.” BARS is very accurate. Difficult to develop. Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent. Forced distribution method End up with a predetermined number or % of people in each group. Employees’ appraisal results depend on your choice of cutoff points. Critical incident method Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis. Difficult to rate or rank employees relative to one another. MBO Tied to jointly agreed-upon performance objectives. Time-consuming.
  • 24. RATING SCALE METHODS (MOST POPULAR) (Check each trait being evaluated) 1. Global Scale (Total Performance) 2. Mixed Standard Scale (Choose from Different Statements) 3. Behaviorally Anchored Rating Scale (Descriptions along the scale to define)
  • 25.
  • 26.
  • 27. CHOOSING THE RIGHT APPRAISAL TOOL Accessibility AccuracyEase-of-use Employee acceptance Criteria for Choosing an Appraisal Tool
  • 29. RATING ERRORS EXAMPLE Halo Job Rating Scale EXCELLENT on all factors Leniency Job Rating Scale Employee A EXCELLENT Job Rating Scale Employee B EXCELLENT Job Rating Scale Employee C SUPERIOR Job Rating Scale Employee D EXCELLENT Central Tendency Job Rating Scale Employee A AVERAGE Job Rating Scale Employee B AVERAGE Job Rating Scale Employee C AVERAGE Job Rating Scale Employee D AVERAGE Recency Bias Job rating scale behavior during the last month has been POOR.
  • 30. RATING ERRORS • Contrast errors occur when the rater compares people against one another instead of against an objective standard. • Distributional errors occur when the rater tends to use only one part of the rating scale. • A halo error occurs when one positive performance characteristic causes the manager to rate all other aspects of performance positively. • A horns error occurs when the manager downgrades other aspects of an employee’s performance because of a single performance dimension.
  • 31. THE APPRAISAL OUTCOME Satisfactory—Promotable Satisfactory—Not Promotable Unsatisfactory—Correctable Unsatisfactory—Uncorrectable Types of Appraisal
  • 32. Why PA May Fail Unclear Language Manager not taking PA seriously Manager not prepared No on-going feedback Manager not honest or sincere Ineffective discussion Lack appraisal skills Manager Lacks Infor. Insufficient Rewards
  • 33. 360◦ FEEDBACK • This is an approach to performance appraisal that involves gathering performance information from people on all sides of the manager: above, beside, below, and so forth. • This approach is potentially helpful, especially when used for feedback purposes only. • Multi-rater evaluation • Input from multiple levels with firm and external sources • Focuses on skills needed across organizational boundaries • More objective measure of performance • Process more legally defensible Individual Staff Self-Assessment Supervisor Other Superiors Peers Teams Sub-Ordinates Teams Customers Other Superiors