Professional Documents
Culture Documents
EMB 602-1
Human Resource Management;
Summer Semester 2020
Lecture 9
Today’s Lecture outline
Performance Appraisal
Appraisal Methods
Errors in Appraisal
Performance Appraisal
Providing feedback
Corrective Actions
Types
Types of
of Performance
Performance Information
Information
Trait-based
Trait-based
Information
Information
Job
Job Behaviour-based
Behaviour-based
Performance?
Performance? Information
Information
Results-based
Results-based
Information
Information
Methods/Steps/Tools for Measuring Performance
1. Making Comparisons
2. Rating Individuals
3. Measuring Results
4. Total Quality Measurement (TQM)
Methods for Measuring Performance
1. Making Comparisons: …Compare one
individual’s performance with that of others.
a) Simple ranking: …Requires managers to rank
employees in their group from the highest performer to
the poorest performer.
b) Forced-distribution method: ..Assigns a certain
percentage of employees to each category in a set of
categories.
c) Paired-comparison method: …Compares each
employee with each other employee to establish
rankings.
Ranking method
Employee Rank
A 2
B 1
C 3
D 5
E 4
Methods for Measuring Performance
1. Making Comparisons: …Compare one
individual’s performance with that of others.
a) Simple ranking: …Requires managers to rank employees in their
group from the highest performer to the poorest performer.
No.
of
employees
10% 20% 40% 20% 10%
poor Below average good Excellent
average
Note: + means “better than.” – means “worse than.” For each chart, add up the
number of +’s in each column to get the highest-ranked employee.
Methods for Measuring Performance…
2. Rating Individuals: Measures relative to a uniform
set of standards…evaluate in terms of attributes
believed desirable…a rating scale from 1 to 5…
a) Rating attributes
i. Graphic rating scale:…Lists traits & provides a
rating scale for each trait; the employer uses the
scale to indicate the extent to which an employee
displays each trait
ii. Mixed-standard scale:...Uses several statements
describing each trait to produce a final score for that
trait
Rating Attributes
Graphic Rating Scale
Rating
Performance Distinguished Excellent Commendable Adequate Poor
dimension
Knowledge 5 4 3 2 1
Communication 5 4 3 2 1
Initiative 5 4 3 2 1
Problem solving 5 4 3 2 1
Rating Attributes
Methods for Measuring Performance…
2. Rating Individuals: Measures relative to a
uniform set of standards…evaluate in terms of
attributes believed desirable…a rating scale from 1
to 5…
a) Rating attributes
i. Graphic rating scale:…Lists traits & provides a rating scale
for each trait; the employer uses the scale to indicate the
extent to which an employee displays each trait
ii. Mixed-standard scale:...Uses several statements
describing each trait to produce a final score for
that trait
Rating Attributes
Mixed-standard Scale
Three traits being assessed Levels of performance in statements
Initiative High
Intelligence Medium
High This employee is a real self-starter. The employee always takes the
(Initiative) initiative & his/her supervisors never has to prod (push) this
individual
Low This employee has a bit of tendency to it around & wait for direction
(initiative)
Methods for Measuring Performance..
b) Rating behaviours: …Begins by defining which behaviours
are associated with success on the job
i. Critical-incident method:...Based on managers’ records of specific
examples of the employees acting in ways that are either effective
or ineffective…keeping a daily or weekly log of critical incidents
ii. Behaviourally anchored rating scale (BARS):...Rates behaviour in
terms of a scale showing specific statements of behaviour that
describe different levels of performance
iii. Behavioural observation scale (BOS):…A variation of BARS which
uses all behaviours necessary for effective performance to rate
performance at a task
iv. Organizational behaviour modification (OBM):…a plan of
managing the behaviour of employees through a formal system of
feedback & reinforcement
Examples of Critical Incidents for Assistant Plant Manager
Supervise procurement Minimize inventory costs Let inventory storage costs rise 15% last
of raw materials and while keeping adequate month; overordered parts “A” and “B” by
inventory control supplies on hand 20%; underordered part “C” by 30%
Alternation ranking Simple to use (but not as simple as Can cause disagreements among
graphic rating scales). Avoids central employees and may be unfair if all
tendency and other problems of rating employees are, in fact, excellent.
scales.
Forced distribution End up with a predetermined number or Employees’ appraisal results depend on
method % of people in each group. your choice of cutoff points.
Critical incident Helps specify what is “right” and “wrong” Difficult to rate or rank employees relative
method about the employee’s performance; to one another.
forces supervisor to evaluate
subordinates on an ongoing basis.
Immediate
Self-Rating
Supervisor
Peers
Potential Subordinates
Appraisers
Rating 360-Degree
Committee Feedback
Errors in Performance Management
Types of rating errors
People often tend to give a higher
evaluation to people they consider similar
to themselves. Most of us think of ourselves
as effective, so if others are like us, they
must be effective, too. Research has
demonstrated that this effect is strong
If the rater compares an individual, not
against an objective standard, but against
other employees, contrast errors occur
Raters make distributional errors when they
tend to use only one part of a rating scale
Raters often let their opinion of one quality
colour their opinion of others
(Halo error, Horn error, First impression error)
Errors in Performance Management
First impression
Stereotypes
Just-like-me
Halo effect
Horn effect
Contrast effect
Giving Performance Feedback
Scheduling performance feedback
Preparing for a feedback session
Conducting the feedback session