MGT464Chapter7-Rob.ppt

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  • Evaluating an employee’s performance on the job is called a performance appraisal. Shown here are the essential steps of this process, but there are many specific variations in the way these steps are accomplished.
  • Though there is generally a lot of dissatisfaction with the way appraisals are conducted, these next two illustrations highlight some of the benefits of performance appraisal; from the perspective of the employer and the employee.
  • Numerous techniques for measuring performance have been developed over the years, and managers have a wide array of appraisal formats from which to choose. The most common and legally defensible of these formats are shown here.
  • In measuring an employee’s performance, judgments must be made. These judgments are classified as either relative or absolute. The characteristics of these type of judgments are shown here.
  • Most HR specialists recognize many disadvantages in relative rating systems. Such systems do not provide any absolute information, so managers cannot determine how good or poor employees at the extreme rankings are. Relative ratings do not reveal whether the top-rated worker in one work team is better or worse than an average worker in another team. This graphic illustrates this problem. Marcos, Jill, and Frank are the highest-ranked performers in their respective work teams. However, Jill, Frank, and Julien are actually the best overall performers.
  • In addition to relative and absolute judgments, performance measurement systems can be classified by the type of performance data on which they focus. Shown here are the three types of performance data and a brief description of each.
  • Trait appraisal instruments ask the supervisor to make judgments about traits. Shown here are four traits that are typically found on trait-based rating scales. Trait ratings have been criticized for being much too ambiguous, and leaving the door open for conscious or unconscious bias, In addition, trait ratings are less defensible in court than other types of ratings.
  • There is no single best appraisal format. Each approach has positive and negative aspects. This illustration summarizes the strengths and weaknesses of each approach in the areas of administration, development, and legal defensibility. The choice of appraisal system should rest largely on the appraisal’s primary purpose.
  • Each appraisal format has both positive and negative aspects. Most appraisal systems were developed on the premise that companies could reduce or eliminate rater errors by using the right appraisal format. However, rating formats make little difference in the actual ratings that are obtained. So, how can managers ensure accurate measurement of worker performance? The primary means is to understand the barriers that stand in the way. Shown here are five of the most important challenges in this area.
  • The legal implications of an employee’s performance appraisal have become a major concern for managers. Shown here are five factors that have been shown to help defend the results of an appraisal in court.
  • Situational or system factors are a wide array of organizational characteristics that can positively or negatively influence performance. Shown here are a sampling of the kinds of system factors that managers should consider in determining the causes of performance problems.
  • Depending on whether the cause of a performance problem is related to ability, effort, or situational characteristics, very different tactics are called for. As this illustration makes clear, different remedies are required for different categories of performance shortfalls. Leaping to a remedy like training will not fix a problem that is not ability caused and will be a waste of the organization’s resources.
  • 360 ° feedback is rapidly becoming important and may someday be the rule rather than the exception. One reason for the rise of 360 ° feedback is the trend to fewer management layers. The shift to a 360 ° system can be major change that requires careful planning to be successful. Shown here are some key steps in implementing a 360 ° appraisal system.
  • MGT464Chapter7-Rob.ppt

    1. 1. Chapter 7 Appraising and Managing Performance
    2. 2. In-the-News <ul><li>Click here to Evaluate 1st In-the-News Assignment </li></ul><ul><li>Click here to Evaluate 2nd In-the-News Assignment </li></ul>
    3. 3. Performance Appraisal The identification, measurement, and management of human performance in organizations.
    4. 4. A Model of Performance Appraisal Identification Measurement Management
    5. 5. Dimension An aspect of performance that determines effective job performance.
    6. 6. The Benefits of Performance Appraisal <ul><li>Employer Perspective: </li></ul><ul><li>Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance. </li></ul><ul><li>Documentation of performance appraisal and feedback may be needed for legal defense. </li></ul><ul><li>Appraisal provides a rational basis for constructing a bonus or merit system. </li></ul><ul><li>Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. </li></ul><ul><li>Providing individual feedback is part of the performance management process. </li></ul><ul><li>Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of the appraisal. </li></ul>
    7. 7. The Benefits of Performance Appraisal (cont.) <ul><li>Employee Perspective: </li></ul><ul><li>Performance feedback is needed and desired. </li></ul><ul><li>Improvement in performance requires assessment. </li></ul><ul><li>Fairness required that differences in performance levels across workers be measured and have an effect on outcomes. </li></ul><ul><li>Assessment and recognition of performance levels can motivate workers to improve their performance. </li></ul>
    8. 8. Measurement Tools <ul><li>The type of judgment that is required </li></ul><ul><ul><li>Relative or absolute </li></ul></ul><ul><li>The focus of the measure </li></ul><ul><ul><li>Trait, behavior, or outcome </li></ul></ul>
    9. 9. Relative and Absolute Judgment An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job. Relative Judgment An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. Absolute Judgment
    10. 10. Rankings and Performance Levels Across Work Teams Actual Ranked Work 10 (High) 9 8 7 6 5 4 3 2 1 (Low) Ranked Work Ranked Work Marcos (1) Uma (2) Joyce (3) Bill (4) Richard (5) Jill (1) Tom (2) Sue (3) Greg (4) Ken (5) Frank (1) Julien (2) Lisa (3) Jolie (4) Steve (5)
    11. 11. Trait Appraisal, Behavioral Appraisal, and Outcome Appraisal Instruments An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. An appraisal tool that asks managers to assess a worker’s behaviors. An appraisal tool that asks managers to assess the results achieved by workers. Trait Appraisal Behavioral Appraisal Outcome Appraisal
    12. 12. Sample Trait Scales 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 high
    13. 13. Evaluation of Major Appraisal Formats Legal Defensibility Absolute Relative Trait Behavior Outcome 0 ++ + 0 0 + - - + 0 0 - -- ++ + Appraisal Format Administrative Use Developmental Use -- Very Poor - Poor + Good ++ Very good 0 Unclear or mixed
    14. 14. Challenges to Effective Performance Measurement <ul><li>Rater errors and bias </li></ul><ul><li>The influence of liking </li></ul><ul><li>Organizational politics </li></ul><ul><li>Whether to focus on the individual or the group </li></ul><ul><li>Legal issues </li></ul>
    15. 15. Legal Issues <ul><li>A recent analysis of 295 court cases involving performance appraisal found judges’ decisions to be favorably influenced by the following additional factors: </li></ul><ul><ul><li>Use of job analysis </li></ul></ul><ul><ul><li>Providing written instructions </li></ul></ul><ul><ul><li>Allowing employees to review appraisal results </li></ul></ul><ul><ul><li>Agreement among multiple raters (if more than one was used) </li></ul></ul><ul><ul><li>The presence of rater training </li></ul></ul>
    16. 16. Situational (System) Factors to Consider in Determining the Causes of Performance Problems <ul><li>Poor coordination of work activities among workers. </li></ul><ul><li>Inadequate information or instructions needed to perform a job. </li></ul><ul><li>Low-quality materials. </li></ul><ul><li>Lack of necessary equipment. </li></ul><ul><li>Inability to obtain raw materials, parts, or supplies. </li></ul><ul><li>Inadequate financial resources. </li></ul><ul><li>Poor supervision. </li></ul><ul><li>Uncooperative coworkers and/or poor relations among people. </li></ul><ul><li>Inadequate training. </li></ul><ul><li>Insufficient time to produce the quantity or quality of work required. </li></ul><ul><li>A poor work environment (for example, cold, hot, noisy, frequent </li></ul><ul><li>interruptions.) </li></ul><ul><li>Equipment breakdown. </li></ul>
    17. 17. How to Determine and Remedy Performance Shortfalls Cause Questions to Ask Ability Effort Situation Possible Remedies <ul><li>Has the worker ever been </li></ul><ul><li>able to perform adequately? </li></ul><ul><li>Can others perform the job </li></ul><ul><li>adequately, but not this worker? </li></ul><ul><li>Is the worker’s performance </li></ul><ul><li>level declining? </li></ul><ul><li>Is performance lower on all </li></ul><ul><li>tasks? </li></ul><ul><li>Is performance erratic? </li></ul><ul><li>Are performance problems </li></ul><ul><li>showing up in all workers, </li></ul><ul><li>even those who have adequate </li></ul><ul><li>supplies and equipment? </li></ul><ul><li>Train </li></ul><ul><li>Transfer </li></ul><ul><li>Redesign job </li></ul><ul><li>Terminate </li></ul><ul><li>Clarify linkage between </li></ul><ul><li>performance and rewards </li></ul><ul><li>Recognize good performance </li></ul><ul><li>Streamline work process </li></ul><ul><li>Clarify needs to suppliers </li></ul><ul><li>Change suppliers </li></ul><ul><li>Eliminate conflicting </li></ul><ul><li>signals or demands </li></ul><ul><li>Provide adequate tools </li></ul>
    18. 18. 360 ° Feedback The combination of peer, subordinate, and self-review
    19. 19. Key Steps in Implementing 360° Appraisal <ul><li>Top management communicates the goals of and need for 360 ° appraisal. </li></ul><ul><li>Employees and managers are involved in the development of the appraisal criteria and appraisal process. </li></ul><ul><li>Employees are trained in how to give and receive feedback. </li></ul><ul><li>Employees are informed of the nature of the 360 ° appraisal instrument and process. </li></ul><ul><li>The 360 ° system undergoes pilot testing in one part of the organization. </li></ul><ul><li>Management continuously reinforces the goals of the 360 ° appraisal and is ready to change the process when necessary. </li></ul>
    20. 20. Shortcuts-4 easy steps to Effective Performance Appraisal <ul><li>Encourage Discussion </li></ul><ul><li>Constructive Intention </li></ul><ul><li>Set Performance GOALS </li></ul><ul><li>Appraiser Credibility </li></ul>
    21. 21. QUIZ #6 <ul><li>Click here to take the quiz </li></ul><ul><li>We will go over the answers after everyone finishes! </li></ul>

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