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TRANSCRIPT
Factors impacting performance
f (indi. attributes + wk effort + orgn support)
f (ability + motivation + opportunity)
f (knowledge + motivation + feedback + leadership + personality)
PA to PMFROM TOSystemAppraisalOutputsReward orientedRatings commonTop downDirectiveMonolithicOwned by HR
ProcessJoint reviewOutputs/InputsDevelopment orientedLess rating3600 feedbackSupportiveFlexibleOwned by users
Performance
Management
Process
Performance Planning & Goal setting
Observation of performance & continual Feedback
Performance Appraisal using a predetermined format
AppraisalInterview
Using the results for different organizational decisions
WHY? Purpose of PM SystemûStrategic: help top mgmt achieve strategic
objectiveûAdministrative: furnish valid information to
make admin decisions about employeesûDevelopmental: allow managers to coach
employeesûInformational: inform employees about their
performance and expectations from themûOrganisational maintenance: provide information
to be used in HR planning and allocationûDocumentational: collect information that can be
used for different purposes
WHEN? Frequency of Appraisal
û Informal evaluation – Continuous
û Formal evaluation – Annual or Biannualó Anniversary date approachó Focal point approach
WHAT? Criteria used
Traits or characteristics
Actual performance
Training Needs Potential
Behaviour
WHO are the appraisers?
û Superior(s)û Selfû Committeeû Peersû Subordinatesû Customers – internal and external
Performance Appraisal Methods
1 6
2
3
4
5
Alternation ranking
Graphic rating scale
Paired comparisonForced distributionCritical incident
7
8
9
10
Behaviorally anchored rating scales (BARS)
Narrative forms
MBO
Computerized and Web-based methods
Merged methods
Appraisal Methodologies
Scale for Alternate Ranking of Appraisee
Ranking Employees by the Paired Comparison Method
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.
Forced Distribution on a Bell-Shaped Curve
Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical Incidents
Schedule productionfor plant
90% utilization of personnel and machinery in plant; orders delivered on time
Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month
Supervise procurement of raw materials and on inventory control
Minimize inventory costs while keeping adequate supplies on hand
Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under-ordered part “C” by 30%
Supervise machinery maintenance
No shutdowns due to faulty machinery
Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part
Narrative Forms
û Final appraisals are frequently written in a narrative form
û Supervisor rates employee by describing the behaviour related to each factor
Graphic Rating Form
Behaviorally Anchored Rating Scale (BARS)
û BARS is an appraisal tool that anchors a numerical rating scale with specific examples of good or poor performance.
û Its proponents say it provides better, more equitable appraisals than do the other appraisal tools.
û It takes more time to develop a BARS, but the tool has several advantages.
Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills
Management byObjectives
MBO refers to a organizational 6 step goal setting and appraisal program
Set theorganization’s
goals
Set thedepartmental
goals
Discussdevelopmental
goals
Defineexpectedresults
Performancereviews
Providefeedback
Defining the Employee’s Goals and Work Standards
Set SMART goals
Assign challenging/ doable goals
Assign specific goals
Guidelines for Effective
Goal Setting
Assign measurable
goals
Encourage participation
Appraisal Form for Assessing Both Competencies and Specific Objectives
Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d)
Choosing the Right Appraisal Tool
Accessibility AccuracyEase-of-use Employee acceptance
Criteria for Choosing an Appraisal Tool
Errors in Performance Measurement
RATER ERROR
Varying standards
Primacy and Recency Error
Leniency/Strictness/ Central Tendency
Rater bias
Halo / Horns
Contrast error
Similar-to-me Error
Sampling error
PRACTICAL IMPACT
Similar perf is rated differently
Timing of information affects rating
Everyone is rated the same
Rater prejudices affect rating
Generalisation is made from only one traitComparison is made to other people not standards
Rater compares employee to self
Available information is insufficient or inaccurate
The Appraisal Interview
Satisfactory—Promotable
Satisfactory—Not Promotable
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
Types of Appraisal Interviews
Performance Feedback
Components of a Feedback System
Data on Actions
Data Evaluation
Action Based on Evaluation