Chapter 5 Evaluating-Employee-Performance.pptx

1. EVALUATING
EMPLOYEE
PERFORMANCE
INDUSTRIAL/ORGANIZATIONAL PSYCHOLOGY
1

2. 2
Steps in
Employee
Appraisal
1. Determine the Reason for Evaluating
Employee Performance
2. Identify Environmental & Cultural
Limitations
3. Determine who will evaluate performance
4. Select the best Appraisal methods
5. Train Raters
6. Observe and document performance
7. Evaluate Performance
8. Communicate Appraisal Results to
Employees
9. Terminate Employees
10. Monitor the legality and fairness of the
appraisal system

3. 3
1. Determine the
reason for evaluating
employee
Goals for performance appraisal:
Providing employee feedback and
training
Determining salary increases
Make promotion decisions
Making termination decisions
Conducting personnel research.

4. 4
Performance appraisal review- meeting
between a supervisor and a subordinate
for the purpose of discussing
performance appraisal results
Peter principle- organizations tend to
promote the good employees until they
reach the highest level of incompetence
1. Determine the
reason for
evaluating employee

5. 5
Identify the environmental and cultural
factors that could affect the system. 2:Identify
environmental
and cultural
limitations

6. 6
360 degree feedback- feedback is obtained from
multiple sources such as supervisor, subordinates and
peers.
Multiple source feedback- an employee receives
feedback from sources (clients, subordimates, peers)
other than his or her supervisor
Supervisors
Peers
Subordinates
Customers
Self appraisal
3: Determine
who will
evaluate
performance

7. 7
Decision 1: Focus of the Appraisal Dimensions
Decision 2: Should Dimensions Be Weighted?
Decision 3: Use of Employee Comparisons,
Objective Measures, or Ratings
4: Select the
best appraisal
methods

8. 8
criteria- ways of describing employee success
1. Trait focused performance dimensions- focus on
employee attributes
2. Competency focused performance dimensions-
employee’s knowledge, skills and abilities
3. Task focused performance dimensions- similarity of
tasks that are performed
4. Goal focused performance dimension- on the basis
of goals to be accomplished
5. Contextual performance- being good organizational
citizens
4: Select the
best appraisal
methods

9. 9
Ranking method

10. 10

11. 11
Forced
distribution
method

12. 12
Objective Measures:
1. Quantity of Work- simply counting the number of
relevant job behaviors that take place.
2. Quality of Work- Quality is usually measured in terms
of errors, which are defined as deviations from a
standard.
3. Attendance- Can be separated into three distinct
criteria: absenteeism, tardiness, and tenure.
4. Safety- Employees who follow safety rules and who
have no occupational accidents do not cost an
organization as much money as those who break rules,
equipment, and possibly their own bodies.
4: Select the
best appraisal
methods

13. 13
Frame of reference training- a
method of training raters in which
the rater is provided with job-
related information, a chance to
practice ratings, examples of
ratings, made by experts, and the
rationale behind the expert ratings.
5. Train raters

14. 14
Critical incidents- a method of
performance appraisal in which the
supervisor records employee
behaviors that were observed on
the job and rates the employee on
the basis of that record.
6. Observe
and Document
Performance

15. 15
Critical incidents- a method of
performance appraisal in which the
supervisor records employee
behaviors that were observed on
the job and rates the employee on
the basis of that record.
6. Observe
and Document
Performance

16. 16
Supervisors tend to remember the
following:
• First impressions
• Recent behaviors
• Unusual or extreme behaviors
• Behavior consistent with supervisor’s
opinion

17. 17
Distribution errors:
• Leniency error
• Central Tendency error
• Strictness error
• Proximity error
• Halo error
• Contrast error
7. Evaluate
Performance

18. 18
8. Communicate
Appraisal
Results to
Employees
PRIOR THE INTERVIEW
• Allocating time
• Scheduling the Interview
• Preparing for the interview
DURING THE INTERVIEW
o Role of the performance appraisal
o How the appraisal was conducted
o How the evaluation process was accomplished
o The expectation that the appraisal interview will be
interactive
o The goal of understanding and improving performance

19. 19
9. Terminate
employees
LEGAL REASONS FOR
TERMINATING EMPLOYEES:
1. Probationary period
2. Violation of Company rules
3. Inability to perform
4. Reduction in force (layoff)

20. 20
10. Monitor the
Legality and
Fairness of the
Appraisal system

21. JOB PERFORMANCE- the record of
outcomes produced on a specified job
function during a specified time period
(Bernadin and Beatty 2001; Hechanova)

25. 25

26. Roles in Performance Management
26
TOP
EXECUTIVES
LINE
MANAGERS
EMPLOYEES IN
PARTNERSHIP
WITH THEIR
SUPERVISORS
HUMAN
RESOURCES