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Chapter 7 Evaluating Employee Performance

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Competencies for Evaluating Employee Performance


1. Describe general performance appraisal issues and summarize the functions of performance appraisals. 2. Identify and discuss potential problems with performance appraisals. 3. Describe the principal types of rating systems used in appraising employee performance. 4. Describe commonly used methods of appraising performance.
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Competencies for Evaluating Employee Performance


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5. Identify who should evaluate performance, and discuss objectives for programs that train managers and supervisors to conduct performance appraisals. 6. Discuss how often performance appraisals should be conducted, identify legal issues relating to performance appraisals, and summarize keys to developing an effective employee appraisal system.
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Functions of Performance Appraisals


Performance feedback Employee training and development

Decision-making tool
Evaluation of training/policies/programs

Validation of selection process

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Validity/Reliability Errors
Construct validity Content validity Inter-rater reliability Consistency

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Bias Errors

Leniency
Severity Central tendency Recency Past anchoring

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Halo

Three Types of Employee Ratings


Trait-based Behavior-based Results-based

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Ranking Methods
Simple/straight ranking Alternative ranking Paired comparisons

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Performance Appraisal Methods


Forced distribution

Graphic rating scale


Behaviorally anchored rating scales


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Behavioral observation scale


Narrative essays Critical incidents Management by objectives
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Evaluators of Performance
Supervisor

Peer evaluations
Staff evaluations of managers

Self-appraisal
Guest appraisals Multiple rater evaluation systems

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Keys to an Effective Employee Appraisal System


Identify the functions the performance appraisal will serve Develop sound criteria for the system Identify the types of performance to measure

Choose the method of appraisal


Determine who will conduct appraisals and train them

Determine the frequency of performance appraisals


Make sure the system meets all legal requirements Periodically evaluate the appraisal process
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2006, Educational Institute