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October 24, 2011
Chapter 7 Appraising and Managing Performance
CHAPTER OVERVIEW An important function of effective management is accurate measurement of employee performance. This chapter discusses the foundation, design, and implementation of performance measurement systems. In addition, it describes the principles of effective performance management so that the reader will have an understanding of how to create a positive appraisal environment. OUTLINE I. What Is Performance Appraisal? The identification, measurement, and management of human performance in organizations. Organizations usually conduct appraisals for administrative and/or developmental purposes. II. Identifying Performance Dimension The first step is to identify what is to be measured. Dimension is an aspect of performance that determines effective job performance. An increasingly popular approach to identifying performance dimensions focuses on competencies, the observable characteristics people bring with them in order to perform the job successfully. The set of competency associated with a job is often referred to as a competency. A. Measuring Performance To measure employee performance, managers can assign a number or label, but it is often difficult to quantify performance dimensions. Measurement Tools Managers can use a wide array of appraisal formats and they can be classified in two ways: (1) By the type of judgment that is required (relative or absolute.) (a.) Relative Judgment-An appraisal format that asks supervisors to compare an employee’s performance to the performance of other employees doing the job. (b.) Absolute Judgment-An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. (2)By the focus of the measure (trait, behavior, or outcome.) (a.) Trait Appraisal Instruments-An appraisal tool that ask a supervisor to make judgments about workers characteristics and enduring.
supervisors who manage performance effectively generally share four characteristics. Rater errors and bias The influence of liking Organizational politics Whether to focus on the individual or group Legal issues Managing Performance A complete appraisal process includes informal day-to-day interactions between managers and workers as well as formal face-to-face interviews. A. 3. Appraisal Instruments See above C. B. Direct attention to the causes of problems. it seems preferable to use objective performance data (such as productivity figures). even more critical is what managers do with them. Why might objective data be less effective performance measures than subjective ratings? . 3. This sometimes can be completed in two sessions. Explore the causes of performance problems. 2.Student Name Steven Paul Assignment 7 October 24. the supervisor conducts an interview with the worker to provide feedback. 5. Challenges to Effective Performance Management The primary means is to understand the barriers that stand in the way. 4. 4. Direct communication at performance and provide effective feedback. rather than subjective supervisory ratings to assess employees. when available. Although the ratings themselves are important. 2. (c. C. Thus. The Appraisal Interview After completing the performance rating. III.) Behavioral Appraisal Instrument-An appraisal tool that asks managers to assess a worker’s behaviors. Performance Improvement Because formal appraisal interviews typically are conducted only once a year. Superficially. Develop an action plan and empower workers to reach a solution. Managers confront at least five challenges in this area. they may not always have a substantial and lasting impact on worker performance.) Outcome Appraisal Instrument-An appraisal tool that asks managers to assess the results achieved by workers. 2. 1. 1. 2011 (b.
How important are rating formats to the quality of performance ratings? What is the most important influence on rating quality? The rating formats are not as important as the appraisal’s primary purpose. 5. It can be maximized by developing and communicating evaluation standards to deal with errors and bias via frame-of-reference (FOR) training." Would the manager quoted here be likely to use a rational or a political approach to appraisal? Contrast the rational and political approaches. 3. And the most important influence is the person doing the rating. What is comparability? How can it be maximized in performance appraisal? Comparability is the degree to which the performance ratings given by various supervisors in an organization are based on similar standards. 4.Chapter 7 Objective data might be less effective than subjective ratings because it may not correctly correspond to an employee's performance. and the appraisal is an appropriate place for such a reminder. "Occasionally an employee comes along who needs to be reminded who the boss is. To what extent is it possible to separate the two? Facets of the Performance Appraisal Process Goal Rating Process Focus Rational Approach Political Approach Accuracy Accuracy is Critical The focus is measurement Utility Workers try to influence their evaluation Not Accurate Measurement No defined assessment Assessment Criteria Performance clearly defined Decision Process Based on observed behaviors Follows the overall assessment .