Professional Documents
Culture Documents
REWARDING PERFORMANCE
PERFORMANCE APPRAISAL
IMMEDIATE SUPERVISOR
SUBORDINATES
PEERS AND TEAM MEMBERS
SELF-APPRAISAL
CUSTOMER APPRAISAL
PERFORMANCE APPRAISAL METHODS
ESSAY METHOD
is a performance appraisal method in which the rater writes a brief narrative
describing the employee’s performance
tends to focus on extreme behavior in the employee’s work rather than on
routine day-to-day performance
Ratings of this type depend heavily on the evaluator’s writing ability
PERFORMANCE APPRAISAL METHODS
RANKING METHOD
is a performance appraisal method in which the rater ranks all employees from a
group in order of overall performance
Comparison is based on single criterion, such as overall performance
For example, the best employee in the group is ranked highest, and the poorest
is ranked lowest
PERFORMANCE APPRAISAL METHODS
RESULTS-BASED SYSTEM
Managers and subordinate agree on objectives for next appraisal period
At the end of the appraisal period, an evaluation focuses on how well the
employee achieved this objective
PROBLEMS IN PERFORMANCE APPRAISAL
APPRAISER DISCOMFORT
Conducting performance appraisals is often a frustrating human
resource management task
Experience can be unpleasant when employee has not performed well
It may create conflict between supervisors and subordinates and lead
to dysfunctional behaviors
PROBLEMS IN PERFORMANCE APPRAISAL
LACK OF OBJECTIVITY
For example, in the rating scales method, factors such as attitude,
appearance and personality are difficult to measure
Factors may have little to do with employee’s job performance
May place evaluator and company in untenable positions
PROBLEMS IN PERFORMANCE APPRAISAL
HALO ERROR
occurs when a manager generalizes one POSITIVE performance feature
or incident to all aspects of employee performance, resulting in higher
rating
HORN ERROR
occurs when a manager generalizes one NEGATIVE performance
feature or incident to all aspects of employee performance, resulting in
lower rating
PROBLEMS IN PERFORMANCE APPRAISAL
LENIENCY/STRICTNESS
Some managers are too generous with praise or too hard on a person
Leniency – Giving undeserved high ratings
Strictness – Being unduly critical of employee’s work performance
PROBLEMS IN PERFORMANCE APPRAISAL
CENTRAL TENDENCY
is an evaluation appraisal error that occurs when employees are
incorrectly rated near the average or middle of a scale
may be encouraged by some rating scale systems requiring evaluator
to justify extremely high or extremely low ratings
the rater may avoid possible controversy or criticism by giving only
average ratings
PROBLEMS IN PERFORMANCE APPRAISAL
EMPLOYEE ANXIETY
Evaluation process may create anxiety for appraised employee
This may take the form of discontent, apathy, and turnover
REWARDING
PERFORMANCE
REWARD SYSTEM
Purpose
To attract, retain, and motivate qualified employees
Roles
To be equitable and consistent
To be a fair reward for the individual’s contribution
To be competitive in the external labor market
COMPLETE REWARD SYSTEM
BASE PAY
according to level of responsibility
Job analysis and wage survey rate jobs, comparing one job with
another to determine base pay
PERFORMANCE REWARDS
based on contribution of the employee
PROFIT SHARING
rates the organization in terms of its general economic performance
and rewards employees to improve performance on the job
MONETARY INCENTIVES