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Performance-Appraisal-and-Merit-Increases.pdf

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Performance-Appraisal-and-Merit-Increases.pdf

  1. 1. PERFORMANCE MANAGEMENT AND APPRAISAL © 2008 Prentice Hall, Inc. All rights reserved. 9–1
  2. 2. THE HUMAN RESOURCE MANAGEMENT PROCESS © 2008 Prentice Hall, Inc. All rights reserved. 9–2
  3. 3. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler 9–3 THE APPRAISAL PROCESS • EVALUATING AN EMPLOYEE’S CURRENT AND PAST PERFORMANCE RELATIVE TO PERFORMANCE STANDARDS AND • PROVIDING A FEEDBACK TO THE EMPLOYEE.
  4. 4. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–4 OBJECTIVES OF PERFORMANCE RATING FOCUSES ON BOTH EMPLOYEE & THE ORGANIZATION • FOR EMPLOYEES: • HE IS MADE AWARE OF THE ORGANIZATION’S EVALUATION OF HIM • REASONS FOR BOTH SUCCESS & FAILURE ARE ANALYZED • FUTURE JOB PLANS ARE WORKED OUT • CAREER PLANS & OPPORTUNITIES DISCUSSED * TRAINING & DEVELOPMENT NEEDS ARE IDENTIFIED & DISCUSSED * • FOR ORGANIZATION: • CHECKING THE EFFECTIVENESS OF RECRUITMENT & SELECTION PROCESS • ASSESSING DEVELOPMENT PROGRAMS • EVALUATING PREVIOUS PROMOTION DISCUSSIONS • IDENTIFYING TALENT • MANPOWER & SUCCESSION PLANNING * INFORMATION ON SALARY DECISIONS *
  5. 5. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–5 WHO DOES THE APPRAISING? Rating Committee Peers You Subordinates Your Boss
  6. 6. HRM’S PERFORMANCE APPRAISAL ROLE 1.SERVES A POLICY-MAKING AND ADVISORY ROLE. 2. PROVIDES ADVICE & ASSISTANCE ON THE APPRAISAL TOOL TO USE. 3. TRAINS SUPERVISORS/ RATERS TO IMPROVE THEIR APPRAISAL SKILLS. 4. MONITORS THE APPRAISAL SYSTEM EFFECTIVENESS AND COMPLIANCE WITH LABOR LAWS © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler d. 9–6
  7. 7. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler 9–7 Appraising performance vs standards 3 Steps in Appraising Performance Defining the job / setting standards Providing feedback
  8. 8. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler d. 9–8 STEP 1A: WHAT DO WE MEASURE? CRITERIA FOR EMPLOYEE EVALUATION • WORK OUTPUT VOLUME, QUALITY, QUOTA, IMPACT ON COST, ON PROFIT • PROFESSIONAL PROFICIENCY ( STAFF AND MGT ) PLANNING, ORGANIZING, DELEGATING, WORKING WITH OTHERS, COMMUNICATING, ANALYSIS, CONTROL • SKILLS PROFICIENCY ( RANK AND FILE, OPERATIONS ) MACHINERY, TOOLS, MANUAL DEXTERITY, CLERICAL PERCEPTION • PERSONAL PROFICIENCY LEADERSHIP, INITIATIVE, RESOURCEFULNESS, MENTAL ALERTNESS, SENSE OF VALUES, DEPENDABILITY, COOPERATION, ADAPTABILITY ETC. NOTE: BEWARE OF “PROXY FACTORS” OR “SUBSTITUTES FOR PERFORMANCE”
  9. 9. STEP 1B: DEFINING & SETTING GOALS / STANDARDS HOW ? THROUGH 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. • TIMELY IN REFLECTING DEADLINES AND MILESTONES. * © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–9
  10. 10. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler d. 9–10 STEP 2: HOW TO MEASURE? METHODS OF PERFORMANCE APPRAISAL • GRAPHIC RATING SCALE - FROM A SCALE OF OUTSTANDING TO UNSATISFACTORY, A PERSON IS ASSESSED ON QUALITY AND QUANTITY OF THE WORK , PERSONAL TRAITS, AND OTHER FACTORS THAT VARY WITH THE JOB. RATINGS E.G. 1 EXCELLENT AND 5 UNSATISFACTORY • WEIGHTED CHECK LIST- SIMILAR TO THE FIRST, EXCEPT THE TRAITS AND BEHAVIORS ARE ALSO ASSIGNED WEIGHTS • RANKING- USED WHEN COMPARING PEOPLE; THEY ARE RANKED FROM HIGHEST TO LOWEST USING OVER ALL CRITERION LIKE QUANTITY OF WORK. CAN BE ALTERNATING • FORCED DISTRIBUTION - PERSONS ARE RATED AND ARE FORCE FIT TO A FIX OR NORMAL DISTRIBUTION CURVE.*
  11. 11. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler d. 9–11 MORE….METHODS OF PERFORMANCE APPRAISAL • ESSAY AND EVALUATION – AN ESSAY ABOUT THE PERSON’S STRONG AND WEAK POINTS. • CRITICAL INCIDENT TECHNIQUE - CONSISTS OF SHORT STORIES OR ANECDOTAL REPORTS OF EXTRAORDINARILY POSITIVE OR NEGATIVE INCIDENTS THAT HAPPEN TO THE EMPLOYEE • MANAGEMENT BY OBJECTIVE - EMPLOYEES ARE ASKED TO SET THEIR OWN PERFORMANCE GOALS, EXPECTED RESULTS • WORK PLANNING AND REVIEW - PERIODIC MEETINGS ARE HELD BETWEEN MANAGERS AND SUBORDINATES, WHERE PAST GOALS ARE REVIEWED, SOLUTIONS ARE SOUGHT AND NEW GOALS ARE SET. THERE ARE DISCUSSIONS OF PERFORMANCE BUT NO RATINGS ARE MADE; EMPHASIS ON MUTUAL GOAL PLANNING AND PROBLEM SOLVING. • BARS- BEHAVIORALLY ANCHORED RATING SCALES, COMBINE BEST FEATURES OF NARRATIVE, CRITICAL INCIDENTS AND QUANTIFIED SCALES *
  12. 12. TABLE 9–3 IMPORTANT ADVANTAGES AND DISADVANTAGES OF APPRAISAL TOOLS © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler 9–12 Tool Advantages Disadvantages Graphic rating scale Simple to use; provides a quantitative rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. BARS Provides behavioral “anchors.” BARS is very accurate. Difficult to develop. Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent. Forced distribution method End up with a predetermined number or % of people in each group. Employees’ appraisal results depend on your choice of cutoff points. Critical incident method Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis. Difficult to rate or rank employees relative to one another. MBO Tied to jointly agreed-upon performance objectives. Time-consuming.
  13. 13. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–13 STEP 3: THE APPRAISAL INTERVIEW AN INTERVIEW IN WHICH THE SUPERVISOR AND SUBORDINATE REVIEW THE PERFORMANCE APPRAISAL AND MAKE PLANS TO REMEDY DEFICIENCIES AND REINFORCE STRENGTHS. ADEQUATE PREPARATION AND EFFECTIVE IMPLEMENTATION ARE THEREFORE ESSENTIAL.
  14. 14. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–14 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
  15. 15. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–15 COMMON APPRAISAL PROBLEMS • UNCLEAR STANDARDS • BIAS ON AGE, GENDER, FORM • “HALO” EFFECT • RECENT PERFORMANCE BIAS • EARLY PERFORMANCE BIAS • COMPATIBILITY • BLIND SPOTS • CENTRAL TENDENCY VS STRICTNESS/LENIENCY • INCONSISTENCY OF RATING BY DIFFERENT SUPERVISORS
  16. 16. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler 9–16 HOW TO AVOID APPRAISAL PROBLEMS • BE CLEAR ON THE STANDARDS AND GOALS AGREED UPON • LEARN AND UNDERSTAND THE PROBLEMS, IF ANY • USE THE RIGHT APPRAISAL TOOL • TRAIN SUPERVISORS • REDUCE OUTSIDE FACTORS: TIME CONSTRAINTS, UNION PRESSURES & TURNOVER • KEEP A DIARY OF CRITICAL INCIDENTS
  17. 17. SOMETHING TO THINK ABOUT…. DO APPRAISALS REALLY HELP TO IMPROVE PERFORMANCE? •NO…..IT CAN BACKFIRE; DEMORALIZES; CAUSES CONFLICT YES….IF DONE OBJECTIVELY AND AS AN INTEGRAL PART OF COMPANY’S PERFORMANCE MANAGEMENT I.E. ALIGNING INDIVIDUAL PERFORMANCE WITH ORGANIZATIONAL GOALS) © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler . 9–17
  18. 18. 1–18 WORK ACTIVITY: GROUP CASE ANALYSIS CASE: APPRAISING THE SECRETARIES OF SWEET WATER U” (DESSLER PP337, 15TH EDITION) ANSWER ALL THREE QUESTIONS AT THE END OF THE CASE AND BE SURE YOU COVER THESE 2 IMPORTANT POINTS: WHAT PERFORMANCE APPRAISAL SYSTEM WOULD YOU DEVELOP? WHY? ON WHAT WOULD YOU BASE SALARY INCREASES AND PROMOTIONS? EXPLAIN.

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