Performance

9 Management and
Appraisal

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 Learning Objectives

1. Describe the appraisal process.

2. Define performance management and discuss
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how it differs from performance appraisal.
3. Develop, evaluate, and administer at least four
performance appraisal tools.

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 Learning Objectives

4. Explain and illustrate the problems to

avoid in appraising performance.
5. Perform an effective appraisal
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interview.
6. Explain how to “segment” employees for
appraisal and reward purposes.

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Describe the appraisal
process.
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 The Basics of Performance
Management and Appraisal

• The performance appraisal process steps

1. Sets work standards
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2. Assesses performance
3. Provides feedback to the employee
o Figure 9-1 sample
evaluation survey

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 Performance Management and
Appraisal
Five reasons:
1. Used for pay, promotion, and retention
decisions
2. Links performance management to
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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
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 Review

• Pay and promotions

• Planning
• Career planning
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• Training and
development
• Ongoing feedback
• Teamwork and change
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Define performance
management and discuss
how it differs4-9 from
performance appraisal.

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 Performance Management
Performance management definition
The continuous process of:
o Identifying
o Measuring 4-
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o Developing performance
of individuals and teams
o Aligning performance with the
organization’s goals
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 Performance Management
Six Elements

• Direction sharing
• Goal alignment
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• Ongoing performance monitoring
• Ongoing feedback
• Coaching and developmental support
• Recognition and rewards

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 Information Technology Supports
Performance Management

• Assign financial and nonfinancial goals

• Inform all employees4-9 of their goals
• Use IT-supported scorecard software
• Continuously take corrective action

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 IMPROVING PERFORMANCE:
HR Practices Around the Globe

• GDAS makes products for the

military, industrial, and commercial
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markets
• Use scorecard reporting system
o Team
o Divisional

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 Defining the Employee’s Goals and
Performance Standards
• Manager assess:
o Attaining numerical goals
o Meeting quality and quantity criteria
o Mastering competencies
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• Managers goals are SMART:
o Specific
o Measurable
o Attainable
o Relevant
o Timely
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 IMPROVING PERFORMANCE:
HR as a Profit Center
• Ball Corporation supplies packaging to
manufacturers worldwide
• Trained plant leaders4-9 on:
o How to set performance goals
o Track daily goal attainment
o Use scorecards

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 IMPROVING PERFORMANCE:
HR Tools for Line Managers and
Entrepreneurs
1. Should a manager tell employees what their
goals are or let them participate in setting the
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goals?
2. Write a short paragraph that addresses the
question: “Why is it not a good idea to simply tell
employees to ‘do their best’ when assigning a
task?”
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 Who Should Do the Appraising?

• Peer appraisals
• Rating committees
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• Self-ratings
• Appraisal by subordinates
• 360-degree feedback

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 Review

• Performance management’s definition

• The six basic elements
• Improving performance
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examples
• Use IT to automate performance
management
• Performance standards
• SMART goals
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 Review

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Develop, evaluate, and administer
at least four performance
appraisal
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tools.

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 Techniques for Appraising
Performance

• Graphic rating
scale method 4-
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• What to rate?

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 Performance Appraisal
Tools
• Alternation ranking
• Paired comparison
• Forced distribution
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• Critical incident
• Narrative forms
• Behaviorally Anchored Rating Scales
(BARS)

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 Performance Appraisal
Tools
• Mixed standard scales
• Management by objectives (MBO)
• Computerized and web-based performance
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appraisal
• Electronic performance monitoring (EPM)
• Conversation Days
• Using Multiple Methods

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 Review

• Alternation • BARS
• Pairs • Scales
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• Distribution • MBO
• Incidents • Computerized
• Narratives • EPM

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Explain and illustrate the
problems to avoid in
appraising performance.
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 Dealing with Appraisal
Problems and Interviews
• Potential appraisal problems
o Unclear standards
o Halo effect
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o Central tendency
o Leniency or strictness
o Recency effects
o Bias

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 Guidelines for Effective
Appraisals

• Know the problems

• Use the right tool
• Keep a diary 4-
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• Get agreement on a plan

• Ensure fairness
• Appraisals and the law

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 Review

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e
a
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 Review
• Problems
• Tools
• Records
• Fairness 4-
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• Legal
• Ethics

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Perform an effective
appraisal interview.
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 How to Conduct the
Appraisal Interview

• Prepare
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• Plan
• Coach
• Be objective

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 How to Conduct the
Appraisal Interview
• Types of appraisal interviews
• How to conduct the appraisal
interview
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o Objective data
o Don’t get personal
o Encouragement
o Agreement

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 Managing the Appraisal
Interview

• Handling a defensive subordinate

• Criticizing a subordinate
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• The formal written warning

• Realistic appraisals

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 Review
• How to Conduct the
Appraisal Interview
• Managing the
Appraisal Interview
o Type of interviews4-9
o Defensiveness
o Criticism
o Warnings
o Realism

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 Explain how to
“segment” employees
for appraisal
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reward purposes.

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 Talent Management and
Employee Appraisal
• Appraising and Actively
Managing Employees
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• Segmenting and Actively
Managing Employees in
Practice

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 Review

• Talent management and employee

appraisal
• Segmenting and actively
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employees in practice

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 Improving Performance
at The Hotel Paris

• Focus the appraisal on strategic goal

achievement
o Actions that achieve4-9 hotel goals
• A performance management system with a focus
on competencies and objectives
o Job descriptions that include competencies

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 Improving Performance at
The Hotel Paris
1. Choose one job, such as front-desk clerk.
Based on any information you have (including
job descriptions you may have created in other
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chapters), write a list of duties, competencies,
and performance standards for that chosen job.

2. Based on that job, create a performance

appraisal form for appraising that job.

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Hotel Paris
Strategy
Chapter 9

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 4-
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