1 performance appraisal. 2 performance appraisal defined system of review and evaluation of job...
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PERFORMANCE APPRAISAL
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Performance Appraisal Defined
System of review and evaluation of job performance
Assesses accomplishments and evolves plans for development
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Performance Management
Process that significantly affects organizational success
Managers and employees work together to set expectations, review results and reward performance.
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Purposes of Performance Mangement
Strategic Aligning employee performance with
organizational objectives
Administrative Making employment-related decisions
Developmental Aiding employee growth
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Appraiser Discomfort
Performance appraisal process cuts into manager’s time
Experience can be unpleasant when employee has not performed well
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Employee Anxiety
Creates anxiety for appraised employee
Rationale for Performance Appraisal
Provides legal and other benefits for employers
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Designing a performance management system
Conduct job analysis Set performance standards Appraise performance Feedback information to employee
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Establish Performance Criteria
Traits Behaviors
Competencies Goal Achievement
Improvement Potential
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Responsibility for Appraisal
Immediate supervisor Subordinates Peers Rationale for evaluations conducted
by team members Self-appraisal Customer appraisal
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360-Degree Valuation
Multi-rater evaluation Input from multiple levels with firm and
external sources Focuses on skills needed across
organizational boundaries More objective measure of performance Process more legally defensible
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Performance Measure Standards
Strategic congruence Reliability Validity Acceptability Specificity
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The Appraisal Period
Prepared at specific intervals
Usually annually or semiannually
Period may begin with employee’s date of hire
All employees may be evaluated at same time
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Appraisal categories and types Comparative
Ranking (Simple, alternation) Forced distribution Paired comparison
Attribute Graphic rating scale
Behavioral Critical incidents BARS BOS
Results MBO
Quality
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Problems in Performance Appraisal
Lack of objectivity Halo error
Leniency/strictness Central tendency
Recent behavior bias Personal bias
Manipulating the evaluation
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Reasons for Intentionally Inflating or Lowering Ratings
Believe accurate ratings would have a Believe accurate ratings would have a damaging effect on subordinate’s damaging effect on subordinate’s motivation and performance.motivation and performance.
Improve employee’s eligibility for merit Improve employee’s eligibility for merit raises.raises.
Avoid airing department’s “dirty Avoid airing department’s “dirty laundry.”laundry.”
Avoid creating negative permanent Avoid creating negative permanent record that might haunt employee in record that might haunt employee in the future.the future.
Protect good workers whose Protect good workers whose performance suffered because of performance suffered because of personal problems.personal problems.
Reward employees displaying great Reward employees displaying great effort even when results were relatively effort even when results were relatively low.low.
Avoid confrontation with hard-to-Avoid confrontation with hard-to-manage employees.manage employees.
Promote a poor or dislike employee up Promote a poor or dislike employee up and out of the department.and out of the department.
Scare better performance out of an Scare better performance out of an employee.employee.
Punish a difficult or rebellious Punish a difficult or rebellious employee.employee.
Encourage a problem employee to Encourage a problem employee to quit.quit.
Create a strong record to justify a Create a strong record to justify a planned firing.planned firing.
Minimize the amount of merit increase Minimize the amount of merit increase a subordinate receives.a subordinate receives.
Comply with an organizational edict Comply with an organizational edict that discourages managers from giving that discourages managers from giving high ratings.high ratings.
Inflating Ratings Lowering Ratings
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Characteristics of an Effective Appraisal System
Job-related criteria Performance expectations Standardization Trained appraisers Continuous open communication Performance reviews Due process
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Legal Implications
With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals
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The Appraisal Interview
Scheduling the interview Interview structure Use of praise and criticism Employees’ role Use of software Concluding the interview