Performance Management


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Performance Management

  1. 1. Performance Management: Appraisal and Coaching
  2. 2. Performance Appraisal In this session we’ll cover • Purposes of appraisal • Methods of appraisal • Overcoming rater biases and legal issues • Improving performance appraisals
  3. 3. Purposes for Appraisal • Appraisal of employees’ performance is used for – Salary decisions – Promotion decisions – Correcting performance deficits – Career development plans
  4. 4. Methods of Appraisal • Graphic or Trait Rating Scales – Ratings are based on traits or characteristics of the job incumbent – Examples: “Dependability,” “Honesty,” “Team Player,” “Job Knowledge,” etc. – Ratings are usually on a Likert-type scale (1-5) – Usually the least helpful or accurate
  5. 5. Methods of Appraisal • Forced Distribution Method – Just like a “bell curve” in academia – Categories are just like in Trait Scales – Difficult for supervisors to use and VERY difficult to justify to employees – Standards for ratings have to be crystal clear in order to work properly
  6. 6. Methods of Appraisal • Behaviorally Anchored Rating Scales (BARS) – Provides concrete examples for the desirable, acceptable, and unacceptable behaviors – Very easy to use for supervisors, and valid to employees – Legally defensible – Expensive and time-consuming to develop
  7. 7. Methods of Appraisal • Management By Objectives (MBO) – Based on achievement of goals/objectives – Feedback is given frequently over the goal- setting period – Adjustments are made to the goals and time tables as feedback is given – Rewards are typically given for meeting goals – Problem: setting low, unchallenging goals
  8. 8. Methods of Appraisal • 360 Feedback – Method uses multiple raters (e.g., supervisor, peers, subordinates, customers) to gather feedback on those aspects of performance well-known to the rater – All information is compiled into one feedback report that is presented to the employee – A self-improvement plan is developed to overcome weaknesses and capitalize on strengths – Usually used for development; generally not used for salary increases because of political reasons
  9. 9. Rater Biases • Unclear standards • Halo Error • Central Tendency Error • Leniency/Strictness Errors • Stereotyping Error • Recency/Primacy Errors
  10. 10. Improving Appraisals • Train supervisors/raters on the biases • Develop job-specific appraisals • Use both objective and subjective information • Give frequent performance feedback, rather than just an annual review • Always put formal appraisals in writing
  11. 11. Performance is NOT Just A Person Issue • Organizations have to realize that some of the responsibility for employees’ performance lies in system issues: – Information – Resources – Incentives • Individual employees are held responsible for – Skills and knowledge – Capacity – Motivation
  12. 12. Next Time…. • We’ll practice using information about an employee to appraise his performance • We’ll discuss problems, concerns, and issues you might have in conducting such an appraisal