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Human Resource Management,
Arab World Edition
Gary Dessler, Akram Al Ariss
Chapter 9: Performance Management and Appraisal
Lecturer:
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Basic Concepts in Performance Management
and Appraisal
Performance Appraisal:
Setting work standards, assessing
performance, and providing
feedback to employees to
motivate, correct, and continue
their performance.
Performance Management:
An integrated approach to
ensuring that an employee’s
performance supports and
contributes to the organization’s
strategic aims.
Comparing
Performance Appraisal
and
Performance Management
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An Introduction to Appraising Performance
1
Is useful in career planning
Plays an integral role in performance management
Why Appraise Performance?
Is the basis for pay and promotion decisions
Helps in correcting deficiencies and reinforcing good
performance
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3
4
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Performance Appraisal Roles
• Supervisors
- Usually do the actual appraising
- Must be familiar with basic appraisal techniques
- Must understand and avoid problems that can cripple
appraisals
- Must know how to conduct appraisals fairly
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Performance Appraisal Roles (cont)
• The HR Department
- Serves a policy-making and advisory role
- Provides advice and assistance regarding the appraisal
tool to use
- Trains supervisors to improve their appraisal skills
- Monitors the appraisal system’s effectiveness
- Corrects any deviations from procedures
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(Un)Realistic Appraisals
• Motivations for Soft Appraisals
- The fear of having to hire and train someone new
- The unpleasant reaction of the appraised
- A company appraisal process that does not promote
honesty
• Hazards of Soft Appraisals
- Employee loses the chance to improve by self-correction
- Employee is forced to work at dead-end jobs or change
jobs
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An Introduction to Appraising Performance
1
Appraising performance
Steps in Appraising Performance
Defining the job
Providing feedback
2
3
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Designing the Appraisal Tool
• What to Measure?
- Generic dimensions – quality, quantity, and timeliness
of work
- Developing one’s competencies, or achieving one’s
goals
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Performance Appraisal Methods
1
2
3
4
5
Alternation Ranking Method
Graphic Rating Scale Method
Paired Comparison Method
Forced Distribution Method
Critical Incident Method
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7
8
9
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Behaviorally Anchored Rating
Scales (BARS)
Narrative Forms
Management by Objectives
(MBO)
Computerized and Internet-
Based Performance Appraisal
Merged Methods
Appraisal Methodologies
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FIGURE 9-4 Portion of an Administrative Secretary’s Performance Appraisal
Form Showing Task(s) to Appraise
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FIGURE 9-6 Ranking Employees by the Paired Comparison Method
Note: + means ‘better than’, – means ‘worse than’. For each chart, add up the number of +s in each
column to get the highest-ranked employee.
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TABLE 9-4 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; the
halo effect, central tendency,
leniency, and bias can also be
problems
BARS Provides behavioral ‘anchors’;
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 percentage of people in
each group
Employee 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
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Appraising Performance: Problems and
Solutions
Unclear
Standards
Leniency or
Strictness
Halo
Effect
Potential
Rating-Scale
Appraisal
Problems
Central
Tendency
Bias
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Who Should Do the Appraising?
Self-Rating
Subordinates
360-Degree
Feedback
Potential
Appraisers
Immediate
Supervisor
Peers
Rating
Committee
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How to Ensure the Interview Leads to
Improved Performance
1
2
3
Clear job-related problems with the employee.
Set measurable performance targets.
Set an action plan and schedule toward the target.
The Appraisal Interview (cont)
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1
Recognize your own limitations.
Never attack a person’s defenses.
How to Handle a Defensive Subordinate
Recognize that defensive behavior is normal.
Postpone action.
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3
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The Appraisal Interview (cont)
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1
2
3
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How to Criticize a Subordinate
Criticize in private, and do it constructively.
Do it in a manner that lets the person maintain
his or her dignity.
Give daily feedback so that there are no surprises.
Never say the person is ‘always’ wrong.
Criticism should be objective and free of bias.
The Appraisal Interview (cont)
Editor's Notes Source: Adapted from Elaine Pulakos, Performance Management, SHRM Foundation, 2004, pp. 16–17. Source: Adapted from Elaine Pulakos, Performance Management, SHRM Foundation, 2004, pp. 16–17. Source: Janes Boford Jr., Bebby Borkhalter, and Grover Jacobs, “Link Job Description to Performance Appraisals,” Personnel Journal, June 1988, pp. 135–136. Workforce, June 1988. Copyright Crain Communications, Inc.