HRM

1. 1–
1
MGT-351
Human Resource Management
Chapter-9
Performance Management and Appraisal

2. 9–2
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:
The continuous process of
identifying, measuring, and
developing the performance of
individuals and teams and aligning
their performance with the
organization’s goals
Comparing
Performance Appraisal
and
Performance Management

3. 9–3
Defining the Employee’s Goals
and Work Standards
Assign
Specific
Goals
Encourage
Participation
Assign
Measurable
Goals
Assign
Challenging
but Doable
Goals
Guidelines for
Effective Goal Setting

4. 9–4
Effective goals are SMART
• SMART Goals:
⮚ Specific, and clearly state the desired results.
⮚ Measurable in answering “how much.”
⮚ Attainable, and not too tough or too easy.
⮚ Relevant to what’s to be achieved as per org goal.
⮚ Timely in reflecting deadlines and milestones.

5. 9–5
Who should do the Performance Appraisal?
• Supervisors/ Line Manager
⮚ 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.

6. 1. PEER APPRAISALS: With more firms using self-managing
teams, appraisal of an employee by his or her peers peer
appraisal is popular. Employees seem to be motivated to meet
their colleagues expectations.
2. RATING COMMITTEES A rating committee is usually composed
of the employee s immediate supervisor and three or four other
supervisors.
3. SELF-RATINGS Some employers obtain employees self-ratings,
usually in conjunction with supervisors ratings.
4. APPRAISAL BY SUBORDINATES Many employers have
subordinates rate their managers, usually for developmental
rather than for pay purposes. Anonymity affects the feedback.
5. 360-DEGREE FEEDBACK With 360-degree feedback, the
employer collects performance information all around an
employee from his or her supervisors, subordinates, peers,
and internal or external customers for developmental
purpose.
© 2008 Prentice Hall, Inc. All rights reserved. 9–6

7. 9–7
Performance Appraisal Roles (cont’d)
• 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 effectiveness and
compliance with EEO laws.

8. 9–8
An Introduction to Appraising Performance
1
Is useful in career planning.
Plays an integral role in performance management.
Why Appraise Performance?
Is basis for pay and promotion decisions.
Helps in correcting deficiencies and reinforcing good
performance.
2
3
4

9. 9–9
An Introduction to Appraising Performance
1
Appraising performance
Steps in Appraising Performance
Defining the job
Providing feedback
2
3

10. 9–10
Designing the Appraisal Tool
• What to Measure?
⮚ Work output (quality and quantity)
⮚ Personal competencies
⮚ Goal (objective) achievement
• How to Measure?
⮚ Generic dimensions
⮚ Actual job duties
⮚ Behavioral competencies

11. TECHNIQUES FOR APPRAISING PERFORMANCE
1. Graphic rating scale: A scale that lists a number of traits and a range of performance for
each. The employee is then rated by identifying the score that best describes his or her
level of performance for each trait.
2. Alternation Ranking Method: Ranking employees from best to worst on a trait or traits is
another option. Since it is usually easier to distinguish between the worst and best
employees, an alternation ranking method is most popular.
3. Forced Distribution Method: The forced distribution method is similar to grading on a
curve. With this method, you place predetermined percentages of ratees into several
performance categories.
4. Critical incident method: Keeping a record of uncommonly good or undesirable
examples of an employee’s work-related behavior and reviewing it with the employee at
predetermined times.
5. Behaviorally anchored rating scale (BARS): An appraisal method that aims at
combining the benefits of narrative critical incidents and quantified ratings by anchoring a
quantified scale with specific narrative examples of good and poor performance.
6.paired comparison method: Ranking employees by making a chart of all possible pairs of
the employees for each trait and indicating which is the better employee of the pair

12. 9–12
FIGURE 9–6 Scale for Alternate Ranking of Appraisees

13. 9–13
FIGURE 9–7 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.

14. FIGURE 9-9 Example of a Behaviorally Anchored Rating
Scale for grocery check out clerks
© 2008 Prentice Hall, Inc. All rights reserved. 9–14
RESEARCH INSIGHT Three researchers developed a BARS
for grocery checkout
clerks. They collected many critical incidents, and then
grouped or clustered these
into eight performance dimensions:
1.Knowledge and Judgment
2.Conscientiousness
3.Skill in Human Relations
4.Skill in Operation of Register
5.Skill in Bagging
6.Organizational Ability of Checks and Work
7.Skill in Monetary Transactions
8.Observational Ability
They then developed behaviorally anchored rating scales for
each of these dimensions. Each BARS contained a scale
(ranging from 1 to 9) for rating performance from extremely
poor to extremely good. Then a specific critical incident (such
as by knowing the price of items, this checker would be
expected to look for mismarked and unmarked items ) helped
anchor or specify what was meant by extremely good (9)
performance. Similarly, they used several other critical
incident anchors along the performance scale from (8) down
to (1). To illustrate, Figure 9-9 shows a BARS for one
performance dimension for a car sales person the dimension
automobile salesmanship skills.

15. 9–15
7. Management by Objectives (MBO) : A comprehensive and formal
organization wide goal-setting and appraisal program requiring:
1. Setting of organization’s goals.
2. Setting of departmental goals.
3. Discussion of departmental goals.
4. Defining expected results (setting individual goals).
5. Conducting periodic performance reviews.
6. Providing performance feedback.
8. Electronic performance monitoring (EPM) systems use computer network technology
to allow managers to monitor their employees computers. They thus allow managers to
monitor the employees rate, accuracy, and time spent working online.
9. Mixed Standard Scales: Mixed standard scales are somewhat similar to behaviorally
anchored scales. However, mixed scales generally list just a few (usually 3) behavioral
examples (or standards ) for each of, say, 3 performance dimensions.

16. 9–16
Appraising Performance: Problems and Solutions
1. Unclear standards: An appraisal that is too open to interpretation.
1. Central tendency: A tendency to rate all employees the same way, such
as rating them all average.
1. Strictness/leniency: The problem that occurs when a supervisor has a
tendency to rate all subordinates either high or low.
1. Halo effect: In performance appraisal, the problem that occurs when a
supervisor s rating of a subordinate on one trait biases the rating of that
person on other traits.
1. Recency Effects: The recency effect means letting what the employee has
done recently blind you to what his or her performance has been over the
year.
1. Bias: The number of things that can lead to bias during appraisals is
limitless. The bottom line is that the appraisal often says more about the
appraiser than about the appraisee

17. 9–17
TABLE 9–2 A Graphic Rating Scale with Unclear Standards
Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth?
Excellent Good Fair Poor
Quality of work
Quantity of work
Creativity
Integrity

18. 9–18
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.
Satisfactory—Promotable
Satisfactory—Not Promotable
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
Types of
Appraisal
Interviews

19. 9–19
The Appraisal Interview (cont’d)
Talk in terms
of objective
work data.
Don’t tiptoe
around.
Don’t get
personal.
Encourage
the person to
talk.
Guidelines for
Conducting an Interview

20. 9–20
The Appraisal Interview (cont’d)
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.
2
3
4

21. 9–21
The Appraisal Interview (cont’d)
1
2
3
4
5
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 and sense of worth.
Give daily feedback so that the review has no
surprises.
Never say the person is “always” wrong.
Criticism should be objective and free of biases.

22. 9–22
The Appraisal Interview (cont’d)
1
2
3
4
5
How to Ensure Improved Performance
Give the subordinate the opportunity to present
his or her ideas and feelings.
Don’t make the subordinate feel threatened
during the interview.
Give daily feedback so that the review has no
surprises.
Never say the person is “always” wrong.
Criticism should be objective and free of biases.
Quazi Tafsirul Islam.
Find more at www.quazitafsir.com