Human Resource Management Chapter 9: Performance Management and Appraisal

Human Resource Management
Fifteenth Edition
Chapter 9
Performance
Management and
Appraisal
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved

Learning Objectives (1 of 2)
9-1. Describe the performance appraisal process.
9-2. Define the pros and cons of at least eight
performance appraisal methods.

Learning Objectives (2 of 2)
9-3. Give examples of potential appraisal problems
and how to deal with them.
9-4. List steps to take in the appraisal interview.
9-5. Explain key points in how to use the appraisal
interview to boost employee engagement.
9-6. Explain how you would take a performance
management approach to appraisal.

I.
Describe the appraisal process.

Basics of Performance Appraisal
• The performance appraisal process steps
1. Sets work standards
2. Assesses performance
3. Provides feedback to the employee

Why Appraise Performance?
Five reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company
goals
3. The manager can correct deficiencies and
reinforce strengths
4. With appraisals employee’s can review career
plans
5. Training needs are identified

Defining the Employee’s Goals and
Performance Standards
1. Goals
2. Job dimensions or Traits
3. Behaviors or Competencies

Improving Performance: HR as a
Profit Center
Setting Performance Goals at Ball Corporation
Let’s talk about it…

Improving Performance: HR Tools for
Line Managers and Small Businesses
How to set Effective Goals

Who Should Do the Appraising?
1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by Subordinates
5. 360-Degree Feedback

II.
Discuss the pros and cons of at
least eight performance
appraisal methods.

Techniques for Appraising
Performance (1 of 2)
1. Graphic Rating Scale
2. Alternation Ranking
3. Paired Comparison
4. Forced Distribution
5. Critical Incident Method

Techniques for Appraising
Performance (2 of 2)
6. Narrative Forms
7. Behavior Anchored Rating
Scale
8. Mixed Standards Scales
9. Management by
Objectives (MBO)

Computerized and Web-Based
Performance Appraisal
Many employers today
make use of computerized
or online appraisals for
evaluating employee
performance.

Electronic Performance Monitoring

Additional Techniques
• Conversation Days
• Appraisal in Practice

Trends Shaping HR: Customized
Talent Management
Appraisal Methods being Customized
Let’s take a look…

Improving Performance: The Strategic
Context
TRW’s New Global Performance Appraisal /
Management System

III.
Give examples of potential
appraisal problems and how to
deal with them.

Dealing with Rater Error Appraisal
Problems
• Potential appraisal problems
‒ Unclear standards
‒ Halo Effect
‒ Central Tendency
‒ Leniency or Strictness
‒ Recency Effects

Diversity Counts The Problem of Bias

The Need for Fairness (1 of 4)
Figure 9-10 Checklist of Best Practices for
Administering Fair Performance Appraisals
• Base the performance review on duties and standards
from a job analysis.
• Try to base the performance review on observable job
behaviors or objective performance data.
• Make it clear ahead of time what your performance
expectations are.
• Use a standardized performance review procedure for all
employees.

• Make sure whoever conducts the reviews has
frequent opportunities to observe the employee’s
job performance.
• Either use multiple raters or have the rater’s
supervisor evaluate the appraisal results.
• Include an appeals mechanism.
• Document the appraisal review process and
results.

• Discuss the appraisal results with the employee.
• Let the employees know ahead of time how you’re
going to conduct the reviews.
• Let the employee provide input regarding your
assessment of him or her.
• Indicate what the employee needs to do to
improve.

• Train the supervisors who will be doing the
appraisals. Make sure they understand the
procedure to use, how problems (like leniency and
strictness) arise, and how to deal with them.

Know Your Employment Law
Appraising Performance

IV.
List steps to take in the
appraisal interview.

Managing the Appraisal Interview
• Appraisal Interview – an interview in which the
supervisor and subordinate review the appraisal
and make plans to remedy deficiencies and
reinforce strengths.

How to Conduct the Appraisal
Interview
• Prepare
• Plan
• Measure Success
• Date to Complete
• Coach

Guidelines to Conducting the
Appraisal Interview
• Objective data
• Don’t get personal
• Encouragement
• Agreement

How to Handle a Defensive
Subordinate
• Recognize behavior
• Never Attack defenses
• Postpone Action
• Recognize Limitations

How to Criticize a Subordinate

How to Handle a Formal Written
Warning

V.
Explain key points in how to
use the appraisal interview to
boost employee engagement.

Employee Engagement Guide for
Managers
• Use the Appraisal Interview to Build Engagement

VI.
Explain how you would take a
performance management
approach to appraisal.

Performance Management
• Performance Management – is the continuous
process of identifying, measuring, and developing
the performance of individuals and teams and
aligning their performance with the organization’s
goals.

Total Quality Management and
Performance Appraisal
• Cease Dependence
• Continuous Improvement
• Extensive Training
• Drive out Fear
• Remove Barriers
• Self Improvement

What is Performance Management?

Trends Shaping HR: Digital and
Social Media
Digital Technology use in Performance
Management

Improving Performance: HR Practices
Around the Globe
Performance Management at General Dynamic
Armament Systems (GDAS)

The Managers Role in Performance
Management

Chapter 9 Review
What you should now know….

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Human Resource Management Chapter 9: Performance Management and Appraisal

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