Dessler - Fund5 - 08-Performance Management and Appraisal Today

Fundamentals of Human Resource
Management
Fifth Edition
Chapter 8
Performance
Management and
Appraisal Today
Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
1. Explain the purpose of performance appraisal.
2. Discuss the pros and cons of at least eight
performance appraisal methods.
3. Give examples of how to deal with potential
appraisal rater error problems.
Learning Objectives (2 of 2)
4. List the steps to take in the appraisal interview to
improve employee engagement.
5. Explain how you would take a performance
management approach to appraisal.
Explain the purpose of performance
appraisal
Performance Appraisal
• Steps in Performance Appraisal
• Why Appraise Performance?
• Defining Employee’s Performance Standards
The Three-Step Performance Appraisal
Cycle
How to Set Effective Goals
1. Assign specific goals
2. Assign measurable goals
3. Assign challenging but doable goals
4. Encourage participation
Who Should Do the Appraising?
• Peer Appraisals
• Rating Committees
• Self-Ratings
• Appraisal by Subordinates
• 360-Degree Feedback
• Crowd Appraisals
Appraisal Methods (1 of 4)
Graphic Rating Scale Method
• Alternation Ranking
• Paired Comparison Method
• Forced Distribution Method
– Drawbacks
Paired Comparison Method
• Critical Incident Method
• Behaviorally Anchored Rating Scales
• Appraisal Forms in Practice
• Management by Objectives (MBO)
Behaviorally Anchored Rating Scale
The Management by Objectives Method
1. Set the organization’s goals
2. Set department goals
3. Discuss departmental goals
4. Define expected results
5. Conduct performance reviews
6. Provide feedback
• Computerized and Online Performance Appraisals
• Virtual Appraisal Games
• Electronic Performance Monitoring
• Talent Management and Differential Employee
Appraisal
• Conversation Days
Performance Appraisal Problems and
Appraisal Interview (1 of 4)
• Clarify Standard
• Fair Appraisals
– The employees should understand on what basis you will appraise them, and the
appraisals should be objective. Base the performance review on observable job
behaviors or objective performance data, and on the job description.
– Use a standardized performance review procedure for all employees.
– Let the employees know ahead of time how you’re going to conduct the reviews.
– Make sure you have had frequent opportunities to observe the employee’s job
performance.
– Make sure you understand the appraisal procedure to use.
– Consider your personality. Raters who score higher on “conscientiousness” tend to give
their peers lower ratings—they are stricter; those more “agreeable” give higher ratings.
– Be consistent. Managers tend to be more lenient when appraising subordinates for
things like pay raises than when they’re giving, say, career advice.
– Document the appraisal review process and results.
– Discuss the appraisal results with the employee.
– Let the employee provide input regarding your assessment of him or her.
– Indicate what the employee needs to do to improve.
– Have your own supervisor evaluate the appraisal result.
– Include an appeals mechanism.
Performance Appraisal Problems
and Appraisal Interview (2 of 4)
• Avoid Halo Effect Ratings
• Avoid the Middle
• Don’t Be Lenient or Strict
• Avoid Bias
TABLE 8.1 Important Similarities, Differences, and Advantages and
Disadvantages of Appraisal Tools
Tool Similarities/Differences Advantages Disadvantages
Graphic rating These scales aim at Simple to use; provides a Halo effect, central
scale measuring an employee’s quantitative rating for each tendency, leniency, bias
absolute performance employee. can also be problems.
based on objective criteria
as listed on the scales.
BARS Provides behavioral “anchors.” Difficult to develop.
BARS is very accurate.
Alternation These are both methods Simple to use (but not as Can cause
ranking for simple as graphic rating disagreements
judging the relative scales); avoids central among employees and
performance of employees tendency and other problems may be unfair if all
relative to each other, but of rating scales. employees are, in fact,
still based on objective excellent.
criteria.
TABLE 8.1 Important Similarities, Differences, and Advantages and
Disadvantages of Appraisal Tools
Tool Similarities/Differences Advantages Disadvantages
Forced blank End up with a predetermined Appraisal results depend
distribution proportion of people in each on the adequacy of your
method group. original choice of cutoff
points (for top 10%, and
so on).
Critical incident These are both subjective, Helps clarify what exactly is Difficult to rate or rank
method narrative methods for “right” and “wrong” about employees relative to
appraising performance. the employee’s performance; one another.
forces supervisor to size up
subordinates on an ongoing
basis.
MBO blank Tied to agreed-upon Time consuming.

performance objectives.
Steps to Ensure Appraisals are Legally
Defensible
• Base the duties and criteria you appraise on a job analysis.
• At the start of the period, communicate performance standards to employees in writing.
• Using a single overall rating of performance is not acceptable to the courts, which often
characterize such systems as vague. Courts generally require combining separate ratings
for each performance dimension (quality, quantity, and so on) with some formal weighting
system to yield a summary score.
• Include an employee appeals process. Employees should have the opportunity to review
and make comments, written or verbal, about their appraisals before they become final, and
should have a formal appeals process to appeal their ratings.
• One appraiser should never have absolute authority to determine a personnel action.
• Document all information bearing on a personnel decision in writing. “Without exception,
courts condemn informal performance evaluation practices that eschew documentation.”
• Train supervisors. If formal rater training is not possible, at least provide raters with written
instructions on how to use the rating scale.
James Austin, Peter Villanova, and Hugh Hindman, “Legal Requirements and Technical Guidelines Involved in Implementing Performance Appraisal
Systems,” in Gerald Ferris and M. Ronald Buckley (eds.), Human Resources Management, 3rd ed. (Upper Saddle River, NJ: Prentice Hall, 1996), pp.
271–288. Austin et al., op. cit., p. 282.
But beware: One problem with training raters to avoid rating errors is that, sometimes, what appears to be an error—such as leniency—isn’t an error at
all, as when all subordinates really are superior performers. Manuel London, Edward Mone, and John Scott, “Performance Management and
Assessment: Methods for Improved Rater Accuracy and Employee Goal Setting,” Human Resource Management 43, no. 4 (Winter 2004), pp. 319–336;
Wayne Cascio and H. John Bernardin, “Implications of Performance Appraisal Litigation for Personnel Decisions,” Personnel Psychology, Summer 1981,
pp. 211–212; Gerald Barrett and Mary Kernan, “Performance Appraisal and Terminations: A Review of Court Decisions Since Brito v. Zia with
Implications for Personnel Practices,” Personnel Psychology 40, no. 3 (Autumn 1987), pp. 489–504; Elaine Pulakos, Performance Management, SHRM
Foundation, 2004.
How to Conduct the Appraisal Interview (1 of 2)
• Talk in terms of objective work data
• Don’t get personal
• Encourage the person to talk
• End with an action plan
How to Handle a Defensive Subordinate
• Recognize that defensive behavior is normal
• Never attack a person’s defenses
• Postpone action
• Recognize your own limitations
How to Conduct the Appraisal Interview (2 of 2)
• How to criticize a subordinate
• How to ensure the interview leads to improved
performance
• How to handle a formal written warning
Employee Engagement Guide
1. Show how efforts are part of the “big picture”
2. Emphasize “psychological meaningfulness”
3. Be candid and objective while respectful
4. Provide support, resources, and tools needed
5. Focus on the strengths
6. Listen and value employees’ feedback
7. Show how efforts are part of career development
8. Ensure fair and just rewards or remedial actions
Performance Management
Total Quality Management and Performance
Appraisal
• Organization-wide programs
• Built on a philosophy
• Continuous improvement
• Remove barriers
What Is Performance Management?
• Direction sharing
• Goal alignment
• Ongoing performance monitoring
• Ongoing feedback
• Coaching and developmental support
• Recognition and rewards
Summary of Performance Management
Process
Using Information Technology
• Assign financial and nonfinancial goals
• Inform all teams and employees
• Use IT-supported tools
• Take corrective action
Summary
1. Performance appraisal and performance
management
2. Appraisal methods
3. The appraisal method can be improved
4. Improving employee engagement
5. Performance management is a continuous
process
Copyright

Dessler - Fund5 - 08-Performance Management and Appraisal Today

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Dessler - Fund5 - 08-Performance Management and Appraisal Today

Uploaded by

Copyright:

Available Formats

Fundamentals of Human Resource

MBO blank Tied to agreed-upon Time consuming.

You might also like