Ch 07 performance appraisal


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Ch 07 performance appraisal

  1. 1. LOGOPERFORMANCE APPRAISAL Uses of performances appraisal Who conducts appraisals Common appraisals methods Rater error or biases The appraisals interviews
  2. 2. Definitions PERFORMANCE APPRAISAL is a process of evaluating how well employees perform their jobs when compared to as et of standard and then communicating that information to those employees PERFORMANCE APPRAISAL is a formal system of periodic review and evaluation of an individual’s or team’s job performances PERFORMANCE APPRAISAL is the process by which organization evaluate employee job performance 2
  3. 3. Different between PM and PA Performance  Performance Management Appraisal  Processes used to identify,  The process of evaluating encourage, measure, how well employees evaluate, improve, and perform their jobs and then reward employee communicating that performance. information to the employees. 3
  4. 4.  Performance management should do the following: a) Provide information to employees about their performances b) Clarify what the organization expects c) Identify development needs d) Document performance for personnel records Elements of employee performance: a) Quantity of output d) Presence of work b) Quality of output e) Cooperativeness c) Timeliness of output Types of Performance Information: a) Trait-based (character/attitude) c) Result-based (accomplishment) b) Behavior-based (behavior) Potential performances criteria problems: a) Deficient c) Objective/Subjective b) Contaminates 4
  5. 5. Uses of Performance Appraisals 5
  6. 6. Criticisms of Performance Appraisal: a) focus on the individual b) receive generally rate c) inconsistent, short-term oriented, subjective & valuableTwo ways of Performance Appraisal: a) informal appraisal b) systematic appraisalTiming of appraisal: a) once/twice a year/annually b) new employees c) probationary employees 6
  7. 7. Who Conduct Appraisals? Supervisory rating of subordinates Employee rating of managers Team/Peer ratings Self-ratings Outside raters Multisource rating/360 feedback a) manager b) co-workers/peers c) subordinates d) self-evaluation e) customers 7
  8. 8. Who Advantages Disadvantages conductEmployee Helps in identifying competent Negative reactions by managersrating of managers to employee ratingsmanagers Serves to make managers more Subordinates’ fear of reprisals responsive to employees may inhibit them from giving Can contribute to the career realistic (negative) ratings development of managers Ratings are useful only for self- improvement purposesTeam/Peer Helps improve the Can negatively affect workingrating performance of lower-rated relationships. individuals Can create difficulties for Peers have opportunity to managers in determining observe other peers. individual performance. Peer appraisals focus on Organizational use of individual individual contributions to performance appraisals can teamwork and team hinder the development of performance. teamwork 8
  9. 9. Performances Appraisals Process1. Determining specific performances appraisals goals2. Choose appropriate appraisal method3. Train supervisors4. Discuss the method used with employees5. Appraise according to the goals set earlier6. Discuss appraisals with employees7. Determine future performance goals 9
  10. 10. Method of Appraising Performance 10
  11. 11. 1. Category Scaling Methods Graphic Rating Scale  A scale that allows the rater to indicate an employee’s performance on a continuum of job behaviors.  Aspects of performance measured: • Descriptive categories, job duties, and behavioral dimensions • Behavioral rating scales (e.g., BARS)  Drawbacks • Restrictions on the range of possible rater responses • Differences in the interpretations of the meanings of scale items and scale ranges by raters • Poorly designed scales that encourage rater errors • Rating form deficiencies limit effectiveness of the appraisal 11
  12. 12. Category Rating Methods (cont’d) Checklists  A performance appraisal tool that uses a list of statements or work behaviors that are checked by raters. • Can be quantified by applying weights to individual checklist items.  Drawbacks • Interpretation of item meanings by raters • Weighting creates problems in appraisal interpretation • Assignment of weights to items by persons other than the raters 12
  13. 13. 2. Comparative Methods Ranking  A listing of all employees from highest to lowest in performance.  Drawbacks • Does not show size of differences in performance between employees • Implies that lowest-ranked employees are unsatisfactory performers. • Becomes an unwieldy process if the group to be ranked is large. 13
  14. 14. Comparative Methods (cont’d) Forced Distribution  Performance appraisal method in which ratings of employees are distributed along a bell-shaped curve.  Drawbacks • Assumes a normal distribution of performance. • Resistance by managers to placing individuals in the lowest or highest groups. • Providing explanation for placement in a higher or lower grouping can be difficult. • Is not readily applicable to small groups of employees. 14
  15. 15. Forced Distribution on a Bell-Shaped Curve Figure 11–11 15
  16. 16. 3. Narrative Methods Critical Incident  Manager keeps a written record of highly favorable and unfavorable employee actions.  Drawbacks • Variations in how managers define a “critical incident” • Time involved in documenting employee actions • Most employee actions are not observed and may become different if observed • Employee concerns about manager’s “black books” Essay  Manager writes a short essay describing an employee’s performance.  Drawback • Depends on the managers’ writing skills and their ability to express themselves. 16
  17. 17. 4. Behavioral/Objective Methods Behavioral Rating Approach  Assesses employees’ behaviors instead of other characteristics  Consists of a series of scales created by: • Identifying important job dimensions • Creating statements describing a range of desired and undesirable behaviors (anchors)  Types of behavioral scales • Behaviorally anchored rating scales (BARS) • Behavioral observation scales (BOS) • Behavioral expectation scales (BES) 17
  18. 18. Behaviorally-Anchored Rating Scale for Customer Service Skills Figure 11–10 18
  19. 19. Management by Objectives (MBO) Management by Objectives  Specifying the performance goals that an individual and his or her manager agree the employee will to try to attain within an appropriate length of time. 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. 19
  20. 20. The MBO Process Job Review and Agreement Job Review and Agreement Development of Performance Standards Development of Performance Standards Objective Setting Objective Setting Continuing Performance Discussions Continuing Performance Discussions 20
  21. 21. Sample Performance Appraisal Form Figure 11–821
  22. 22. Problems in PA (Rater Error)Recency/Primary Effect- Recency effect – the rater gives greater weight to recent events when appraising an individual’s performance.- Primary effect – info. received first gets the most weight. Central tendency- rating all employees in a narrow range in the middle of the rating scale Leniency/Strictness- Leniency – rating all employees fall at the high end of the scale.- Strictness – a manager uses only the lower part of the scale to rate employees. Rater Bias- when a rater’s values or prejudices distort the rating. 22
  23. 23. Halo Effect- rating a person high on all items because of performance in one area.Contrast Error- tendency to rate people relative to others rather than against performance standards.Similar to/Different from Me Error- raters are influenced by whether people show the same or different characteristics from the rater. 23
  24. 24. Common Rater Biases 24
  25. 25. Appraisal Interview Hints Figure 11–12 25
  26. 26. Characteristics of An Effective PA Performance expectationsJob related criteria Standardization Effective PA Employee access Qualified to results appraisals Open communication 26
  27. 27. Effective of Performances Appraisals Consistent with the  Performance expectations strategic of mission of the  Standardization organization  Qualified appraisers Beneficial as a  Open communication development tool Useful as an administrative  Employee access to results tool  Unbiased Legal & job related  Acceptable & Viewed as generally fair by understandable employee  Regularity Effective in documenting  Feedback employee performance 27