Hra 310 chapter 10

1. Chapter Ten
Performance
Assessment and
Management

2. Copyright © Houghton Mifflin Company. All rights reserved. 10–2
Chapter Outline
• The Performance Assessment and Management
Process
• Strategic Importance of Performance Appraisal
• Functions of Performance Appraisal
• Criteria for a Good Assessment System
• Deciding What Types of Performance to Measure
• Methods of Appraising Performance
• Raters of Employee Performance
• Enhancing the Measurement of Employee
Performance
• Feedback of Results: The Performance Appraisal
Interview

3. Copyright © Houghton Mifflin Company. All rights reserved. 10–3
Figure 10.1 Performance Management
Cycle

4. Copyright © Houghton Mifflin Company. All rights reserved. 10–4
Strategic Importance of Performance
Assessment
• Consistency Between Organizational
Strategy and Job Behavior
• Consistency Between Organizational
Values and Job Behavior

5. Copyright © Houghton Mifflin Company. All rights reserved. 10–5
Table 10.1 Multiple Organizational Uses for
Performance Appraisal Information
Source: J.N. Cleveland, K.R. Murphy, and R.E. Williams, “Multiple Uses of Performance Appraisal: Prevalence and Correlates,” Journal of Applied
Psychology, Vol. 74. 1989, pp. 130-135. Copyright © 1989 by the American Psychological Association. Adapted with permission.

6. Copyright © Houghton Mifflin Company. All rights reserved. 10–6
Functions of Performance Assessment
• Performance Assessment as an
Employee Development Tool
– Goal Setting
– Reinforcing and Sustaining Performance
– Improving Performance
– Determining Career Progression Goals
– Determining Training Needs

7. Copyright © Houghton Mifflin Company. All rights reserved. 10–7
Functions of Performance Assessment
(cont’d)
• Performance Assessment as an
Administrative Tool
– Linking Rewards to Performance
– Evaluation of HRM Policies
and Programs
• Summary

8. Copyright © Houghton Mifflin Company. All rights reserved. 10–8
Criteria for a Good Appraisal System
• Validity
• Reliability

9. Copyright © Houghton Mifflin Company. All rights reserved. 10–9
Figure 10.2 The Relationship Between
Relevance, Deficiency, and Contamination

10. Copyright © Houghton Mifflin Company. All rights reserved. 10–10
Criteria for a Good Appraisal System
(cont’d)
• Freedom from Bias
– Legal Issues of Fairness
• Race Differences
• Age Differences
– Freedom from Rating Errors
• Leniency Errors
• Severity Errors
• Central Tendency Errors
• Halo Errors
– Why Do Rating Errors Occur?
• Unintentional Errors
– Cognitive Information Processing (CIP)
– Schemas
• Practicality

11. Copyright © Houghton Mifflin Company. All rights reserved. 10–11
Figure 10.3 How Information
Processing Causes Rating Errors

12. Copyright © Houghton Mifflin Company. All rights reserved. 10–12
Table 10.2 Why Supervisors Inflate and
Deflate Ratings
Source: Based on C.O. Longnecker, H.P. Sims, and D.A. Gioia, “Behind the Mask: The Politics of Employee Appraisal,” Academy of Management
Executive, Vol. 1, 1987, pp. 183-193.

13. Copyright © Houghton Mifflin Company. All rights reserved. 10–13
Deciding What Types of Performance
to Measure
• Trait-Based Appraisals
• Behavior-Based Appraisals
• Results-Based Appraisals

14. Copyright © Houghton Mifflin Company. All rights reserved. 10–14
Methods of Appraising Performance
• Objective Measures
– Production Measures
– Dollar Sales
• Opportunity Bias
– Personnel Data
• Personnel Measures
• Contamination
– Performance Tests
– Business Unit Performance Measures
– Overall Value

15. Copyright © Houghton Mifflin Company. All rights reserved. 10–15
Methods of Appraising Performance
(cont’d)
• Subjective Measures
– Comparative Procedures
• Ranking
– Straight Ranking
– Alternate Ranking
– Paired-Comparison Ranking
• Forced Distribution
• Advantages and Disadvantages of Comparative
Procedures
– Absolute Standards
• Graphic Rating Scales
• Mixed Standard Scales

16. Copyright © Houghton Mifflin Company. All rights reserved. 10–16
Figure 10.6 Examples of Typical
Graphic Rating Scales

17. Copyright © Houghton Mifflin Company. All rights reserved. 10–17
Methods of Appraising Performance
(cont’d)
• Subjective Measures (cont’d)
– Weighted Checklists
• Critical-Incident Technique
• Behaviorally Anchored Rating Scales (BARS)
– Behavioral Observation Scales (BOS)
• Management by Objectives

18. Copyright © Houghton Mifflin Company. All rights reserved. 10–18
Raters of Employee Performance
• Self-Evaluation
• Peer Evaluation
• Subordinate Evaluation
• Customer Evaluation
• 360-Degree Assessment
• Self Managed Teams

19. Copyright © Houghton Mifflin Company. All rights reserved. 10–19
Enhancing the Measurement of
Employee Performance
• Training Evaluators
– Rater Error Training (RET)
– Frame-of-Reference (FOR) Training
– Information-Processing Approaches
• Observation Training
• Decision-Making Training
– Which Training Method is Best?
• Feedback to Evaluators

20. Copyright © Houghton Mifflin Company. All rights reserved. 10–20
Feedback of Results: The
Performance Appraisal Interview
• Types of Feedback Interviews
– Tell and Sell
– Tell and Listen
– Problem Solving
• Problems with the Appraisal Interview
– Disagreement and Defensiveness
– Multiple Purposes
– Impression Management in the Feedback Process

21. Copyright © Houghton Mifflin Company. All rights reserved. 10–21
Feedback of Results: The
Performance Appraisal Interview (cont’d)
• Improving the Performance Appraisal
Interview
– Feedback Specificity
– Subordinate Acceptance
– Setting Clear Goals

22. Copyright © Houghton Mifflin Company. All rights reserved. 10–22
Review
• The Performance Assessment and Management
Process
• Strategic Importance of Performance Assessment
• Functions of Performance Assessment
• Criteria for a Good Appraisal System
• Deciding What Types of Performance to Measure
• Methods of Appraising Performance
• Raters of Employee Performance
• Contemporary Assessment Challenges
• Enhancing the Measurement of Employee
Performance
• Feedback of Results: The Performance
Assessment Interview