The document discusses performance appraisal methods including their definition, history, purpose, and process. It describes various absolute standards methods like critical incident appraisal, checklists, graphic rating scales, and forced choice appraisal. Relative standards methods covered include group order ranking, individual ranking, and paired comparison. Factors that can distort appraisals and how to create effective appraisal systems are also summarized.

1. Management of Human Resources Performance Appraisal, Objective Measurement Training: Content, Process, Outcome

2. Agenda Performance Appraisal Definition History Purpose Appraisal Process Methods of Measurement Distortions Training Definition Purpose Determining Training Needs Types Methods of Measurement

3. Performance Appraisal

4. Performance Appraisal A method by which the job performance of an employee is evaluated in terms of quality, quantity, time, cost, typically by the corresponding manager

5. History Roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies Performance appraisal systems began as simple methods of income justification As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War

6. Purpose Provides feedback to employees Employee development Provides basis for management decisions Documentation

7. Appraisal Process Establish Performance Standards with Employees Communicate Expectations Measure Actual Performance Compare Actual Performance with Standards Discuss the Appraisal with the Employee If Necessary, initiate Corrective Action

8. Appraisal Methods Absolute standards Relative standards Outcomes

9. Appraisal Methods Absolute Standards: employees are compared to a standard, & their evaluation is independent of any other employee in a work group

10. Types of Absolute Standards Critical incident appraisal Checklist Graphic rating scale Forced choice Behaviorally anchored rating scales

11. Types of Absolute Standards Critical Incident Appraisal Performance evaluation that focuses on key behaviors that differentiates between doing the job effectively or ineffectively The appraiser writes down anecdotes describing employee actions that were especially effective or ineffective

12. Types of Absolute Standards Critical Incident Appraisal Strengths: It focuses on behaviors Positive incidents can provide good examples for other employees Weaknesses: Time consuming Not quantifiable

13. Types of Absolute Standards Checklist Appraisal Performance evaluation in which a rater checks off applicable employee attributes Appraiser uses a list of behavioral descriptions & checks off behaviors that apply to the employee HR evaluator evaluates employee, the appraiser merely records the data

14. Checklist Appraisal Sample Checklist Yes No 1) are the supervisors orders usually followed? 2) does the individual approach customers promptly? 3) does the individual suggest additional merchandise to customers? 4) does the individual keep busy whenn not serving a customer? 5) does the individual lose his temper in public? 6) does the individual volunteer to help other employees?

15. Types of Absolute Standards Checklist Appraisal Strengths: Reduces bias because the rater & the scorer are different Weaknesses: Inefficient & time consuming to develop individualized checklist items for numerous job categories

16. Types of Absolute Standards Graphic Rating Scale A performance appraisal method that lists traits & a range of performance for each Used to assess factors such as quantity & quality of work, job knowledge, cooperation, loyalty, dependability, attendance, honesty, integrity, attitudes, & initiative

17. Graphic Rating Scale Sample Performance Factor Performance Rating Quality of work, skill, completeness Consistently unsatisfactory Occasionally unsatisfactory Consistently satisfactory Sometimes superior Consistently superior Quantity of work done in a day Consistently unsatisfactory Occasionally unsatisfactory Consistently satisfactory Sometimes superior Consistently superior Job knowledge is information pertinent to the job that an individual should have for satisfactory job performance Poorly informed about work duties Occasionally unsatisfactory Can answer most questions about the job Understands all phases of the job Has complete mastery of all phases of the job Dependability is following directions & company policies without supervision Requires constant supervision Requires occasional follow up Usually can be counted on Requires little supervision Requires absolute minimum supervision

18. Types of Absolute Standards Graphic Rating Scale Strengths: Less time consuming to develop & administer Provide quantitative analysis useful for comparison Compared against checklist, more generalization of items makes it possible to compare individuals in diverse job categories Weaknesses: Do not provide the dept of information essays or critical incident method

19. Types of Absolute Standards Forced Choice Appraisal A type of checklist where the rater must choose between two or more statements The appraisers job is to identify which statement is most descriptive of the individual being evaluated

20. Forced Choice Sample “ Would you rather go to a party with a group of friends or attend a lecture by a well known political figure?”

21. Types of Absolute Standards Forced Choice Appraisal Strengths: Reduces bias & distortion because the appraiser knows the right answer Weaknesses: People being appraised tend to dislike this method because they are being forced to answer Frustration arises from not knowing the right answer

22. Types of Absolute Standards Behaviorally Anchored Rating Scale A performance appraisal technique that generates critical incidents & develops behavioral dimensions of performance Combines major elements of graphic rating & critical incident methods

23. Behaviorally Anchored Rating Sample Position: Employee Relations Specialist Job Dimension: Ability to absorb & interpret policies This Employee Relations Specialist: 9. could be expected to serve as an information source concerning new & changed policies for others in the organization 8. could be expected to be aware quickly of program changes & explain these to employees 7. could be expected to reconcile conflicting policies & procedures correctly 6. could be expected to recognize the need for additional information to understand better policy changes 5. could be expected to complete various HRM forms after receiving instruction 4. could be expected to require some help in mastering new policies 3. could be expected to know that there is always a problem but encounter errors before realizing his mistake 2. could be expected to incorrectly interpret guidelines 1. could be expected to be unable to learn new procedures after explanations

24. Types of Absolute Standards Behaviorally Anchored Rating Scale Strengths: Specific feedback that it communicates Weaknesses: Suffers from same distortions inherent in all rating methods

25. Appraisal Methods Relative Standards: Evaluating an employee's performance by comparing the employee with other employees

26. Types of Relative Standards Group Order Ranking Individual Ranking Paired Comparison

27. Types of Relative Standards Group Order Ranking Evaluating an employee's performance by by placing them into a particular classification Example: evaluator places employees into a particular classification such as top 20% of the population

28. Types of Relative Standards Group Order Ranking Strengths: Prevents rater from inflating their evaluations so that everyone looks good or average Weaknesses: If the population is small, even if all are excellent evaluator is forced to place an excellent employee into the last places Zero-sum game consideration.

29. Types of Relative Standards Individual Ranking Ranking employees performance from highest to lowest Same advantages & disadvantages as group order ranking

30. Types of Relative Standards Paired Comparison Ranking Individuals performance by counting the times any one individual is the preferred member when compared with all other employees Appraiser selects one job trait, & compares each employee in a group with others. Score is obtained by the summation of the number of times the employee is superior

31. Paired Comparison Sample Job Skills Evaluated: Innovation & Creativity Employee Being Rated Comparison with Admir Betty Carmen Dante Emilio Admir - - - - Betty + + - + Carmen + - - - Dante + + + + Emilio + - - -

32. Types of Relative Standards Strengths: Each employee is compared against every other Weaknesses: Difficult to accomplish if the company has many employees

33. Appraisal Methods Outcomes: an appraisal method that includes mutual objective setting & evaluation based on attainment of the specific objectives

34. Common Elements of MBO Specific goals Participative decision making Specific time period Performance feedback

35. Factors that Distort Appraisals Leniency error Halo error Similarity error Central tendency Inflationary pressures Inappropriate substitutes

36. Factors that Distort Appraisals Leniency Error: performance appraisal distortion caused by evaluating employees against one's own value system

37. Factors that Distort Appraisals Halo Error: the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits

38. Factors that Distort Appraisals Similarity Error: evaluating employees based on the way an evaluator perceives himself or herself

39. Factors that Distort Appraisals Central Tendency: the tendency of a rater to give average ratings

40. Creating Effective Appraisal Systems Use behavior based measures Combine absolute & relative standards Provide ongoing feedback Use multiple raters Rate selectively Train appraisers

41. Creating Effective Appraisal Systems Use behavior based measures: do not rate using 'traits' such as loyalty, courage, reliability, etc. since these are objective & do not equate into productiveness

42. Creating Effective Appraisal Systems Combine absolute & relative standards: AS is biased towards positive leniency, while RS has little actual variability. Solution is to mix them up so that they cancel each others weaknesses

43. Creating Effective Appraisal Systems Provide ongoing feedback: do not sum up all negative feedback for a long period of time before giving it to the employee. This will make the appraisal an unpleasant experience which the employee will try to avoid

44. Creating Effective Appraisal Systems Use multiple raters: probability tells us that as the number of raters increase, so does the probability of attaining more accurate information Peer evaluations Upward appraisal 360 degree appraisals

45. Creating Effective Appraisal Systems Rate selectively: appraisers should only rate those areas in which they have job knowledge

46. Creating Effective Appraisal Systems Train appraisers: appraising employees correctly is a difficult job & is often underestimated. Training is needed to eliminate bias & halo effects

47. Training

48. Definition of Training Employee Training: present oriented training that focuses on individuals current job Employee Development: future oriented training that focuses on employee personal growth New Employee Orientation : activities that introduce new employees to the organization & their work unit

49. Purpose of Training Onboarding: Expands information received about the company during the recruitment stage Helps reduce initial anxiety during the beginning of the job Hastens familiarization with the company's objectives, culture, philosophy, rules, procedures, etc

50. Purpose of Training Employee Training Maintenance of human errors Improving productivity Employee Development Employee advancement / growth

51. Determining Training Needs What deficiencies if any do Incumbents have in the skills, Knowledge, abilities, required To exhibit the necessary job behaviors? What behaviors are Necessary for each job Incumbent to complete his Arranged tasks? What are the organizations goals? What task must be completed To achieve the goals? Is There a need for training?

52. Typical Training Methods On the job Job rotation Apprenticeships Internships Off the job Classroom lectures Multimedia training Simulations Vestibule training

53. Typical Training Methods Job rotation: involves lateral transfers that allow employees to work on different jobs & provides exposure to various tasks

54. Typical Training Methods Apprenticeships: combination of classroom instruction & working alongside a seasoned veteran Used mainly in skilled trades

55. Typical Training Methods Internships: students in higher education use their instruction & training in a chosen profession as part of their education. Used by companies to minimize recruitment expenses

56. Typical Training Methods Classroom lectures: typical classroom instruction Multimedia learning: demonstrates technical skills not easily presented by other methods. Can either be videos or online Simulations: case studies, experiments, computer simulation, group interaction

57. Typical Training Methods Vestibule training: training using the same equipment but in a simulated work environment

58. Typical Training Methods Adventure training: wilderness/ outdoor/ survival training used to develop teamwork Sample in next slide

59. Measuring Training Effectiveness Easy example: Advance driving techniques training allows a delivery truck driver to make 5 more deliveries per day. Each delivery is $10 of the drivers time: $10 x 5 additional deliveries = $50 benefit per day for the employer

60. Measuring Training Effectiveness Kirkpatrick's Model: Level 1: measures the reactions of participants toward the training & answers questions about whether the participants liked the training, achieved the goals, liked the trainers, suggestion to improve the training

61. Measuring Training Effectiveness Level 2: measures how much participants learned using pre & post testing or by comparing against a group that did not go through the training

62. Measuring Training Effectiveness Post training performance method: evaluating training programs based on how well employees can perform their jobs after training

63. Measuring Training Effectiveness Pre-Post Training Performance Method : evaluating training programs based on the difference in performance before & after training

64. Measuring Training Effectiveness Pre-Post Training performance with control group Method: evaluating training by comparing pre & post training results with individuals

65. Measuring Training Effectiveness Level 3: measures whether the training actually changes the employees behavior.

66. Measuring Training Effectiveness Level 4: measures whether the training benefited the employee or not. Done by conducting ROI, productivity tests, or comparing against a benchmark

67. References Human Resource Management 10 th Edition by David A. Decenzo & Stephen P. Robbins Kokology by Tadahiko Nagao & Isamu Saito Kokology 2 by Tadahiko Nagao & Isamu Saito

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