Topic5 3 a_techniquesfor_appraisingperformance-rev

1. Welcome
to
Techniques
for
Appraising
Performance
Dyah Pramanik,
MM
HUMAN
RESOURCES
DEVELOPMENT
Techniques
for
Appraising
Performance
Dyah Pramanik,
MM
[ ]
Copyright © 2011 PearsonEducation, Inc.
publishing as Prentice Hall

2. 8–2
PPT 5_2_a
HUMAN RESOURCES DEVELOPMENT:
Techniques for Appraising Performance

3. 8–3
LEARNING OUTCOMES
1. Define performance management
and discuss how it differs from
performance appraisal.
2. Set effective performance appraisal
standards.
3. Describe the appraisal process.
4. Develop, evaluate, and administer at
least four performance appraisal
tools.
1. Define performance management
and discuss how it differs from
performance appraisal.
2. Set effective performance appraisal
standards.
3. Describe the appraisal process.
4. Develop, evaluate, and administer at
least four performance appraisal
tools.

4. 9–4
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.

5. 9–5
FIGURE 9–1
Online Faculty
Evaluation Form

6. 9–6
Defining the Employee’s
Goals and Work Standards
Set
SMART
goals
Assign
challenging/
doable goals
Assign
specific
goals
Assign
measurable
goals
Encourage
participation
Guidelines for
Effective
Goal Setting

7. 9–7
Setting SMART Goals
S
M
A
R
T
pecific, and clearly state the desired results.
easurable in answering “how much.”
ttainable, and not too tough or too easy.
elevant to what’s to be achieved.
imely in reflecting deadlines and milestones.

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
(Un)Realistic Appraisals
• Motivations for Soft Appraisals
• The fear of having to hire and train someone
new.
• The unpleasant reaction of the appraisee.
• An appraisal process that’s not conducive to
candor.
• Hazards of Soft Appraisals
• Employee loses the chance to improve before
being discharged or forced to change jobs.
• Lawsuits arising from dismissals involving
inaccurate performance appraisals.

10. Performance Appraisal Roles

11. 9–11
The Supervisor’s Role
• 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

12. 9–12
The HR Department’s Role
• 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.

13. 9–13
Effectively Appraising
Performance
1
Appraising performance
Steps in Appraising Performance
Defining the job and
performance criteria
Providing feedback session
2
3

14. 9–14
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

15. 9–15
Performance Appraisal Methods
1
2
3
4
5
Alternation ranking
Graphic rating scale
Paired comparison
Forced distribution
Critical incident
6
7
8
9
10
Behaviorally anchored rating
scales (BARS)
Narrative forms
Management by objectives
(MBO)
Computerized and Web-based
performance appraisal
Merged methods
Appraisal Methodologies

16. 9–16
FIGURE 9–2
Sample Graphic
Rating Performance
Rating Form

17. 9–17
FIGURE 9–3 One Item from an Appraisal Form Assessing Employee
Performance on Specific Job-Related Duties

18. FIGURE 9–4 Appraisal Form for Assessing Both Competencies
and Specific Objectives

19. FIGURE 9–4 Appraisal Form for Assessing Both Competencies
and Specific Objectives (cont’d)

20. FIGURE 9–5 Scale for Alternate Ranking of Appraisee

21. 9–21
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.

22. Copyright © 2011
Pearson Education, Inc.
publishing as Prentice
9–22
TABLE 9–1 Examples of Critical Incidents for Assistant Plant
Manager
Continuing Duties Targets Critical Incidents
Schedule production
for plant
90% utilization of
personnel and
machinery in plant;
orders delivered on time
Instituted new production
scheduling system; decreased
late orders by 10% last month;
increased machine utilization in
plant by 20% last month
Supervise
procurement of raw
materials and on
inventory control
Minimize inventory costs
while keeping adequate
supplies on hand
Let inventory storage costs rise
15% last month; over-ordered
parts “A” and “B” by 20%;
under-ordered part “C” by 30%
Supervise machinery
maintenance
No shutdowns due
to faulty machinery
Instituted new preventative
maintenance system for plant;
prevented a machine
breakdown by discovering
faulty part

23. FIGURE 9–7
Appraisal-Coaching
Worksheet

24. 9–24
Behaviorally Anchored Rating Scale (BARS)
Developing a BARS
1. Write critical incidents
2. Develop performance
dimensions
3. Reallocate incidents
4. Scale the incidents
5. Develop a final instrument
Advantages of BARS
• A more accurate gauge
• Clearer standards
• Feedback
• Independent dimensions
• Consistency

25. Copyright © 2011
Pearson Education, Inc.
publishing as Prentice
9–25
FIGURE 9–8
Example of a Behaviorally
Anchored Rating Scale
for the Dimension
Salesmanship Skills

26. 9–26
Management by Objectives (MBO)
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
A comprehensive and formal organization wide
goal-setting and appraisal program requiring:

27. Copyright © 2011
Pearson Education, Inc.
publishing as Prentice
9–27
Using MBO
Setting unclear
objective
Conflict with
subordinates over
objectives
Time-consuming
appraisal process
Potential
Problems
with MBO

28. 9–28
Computerized and Web-Based
Performance Appraisal Systems
§ Allow managers to keep notes on subordinates.
§ Notes can be merged with employee ratings.
§ Software generates written text to support
appraisals.
§ Allows for employee self-monitoring and self-
evaluation.
§ Electronic Performance Monitoring (EPM) Systems
• Use computer network technology to allow managers
access to their employees’ computers and telephones.
• Managers can monitor the employees’ rate, accuracy,
and time spent working online.

29. 9–29
FIGURE 9–9
Online
Performance
Appraisal Tool

30. 8–30
K E Y T E R M S
§ performance appraisal
§ graphic rating scale
§ alternation ranking method
§ paired comparison method
§ forced distribution method
§ critical incident method
§ behaviorally anchored rating
scale (BARS)
§ electronic performance
monitoring (EPM)
§ unclear standards
§ halo effect
§ central tendency
§ strictness/leniency
§ bias
§ appraisal interview
§ performance management
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31. 8–31
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Copyright © 2011 PearsonEducation, Inc.
publishing as Prentice Hall