chap 6 appraising and managing performance 4311

8/8/2019 Chap 6 Appraising and Managing Performance 4311

1/24

2003 Prentice Hall, Inc.9-1

Instructor presentation questions: [email protected]

Human Resource ManagementChapter 6: Performance Appraisal

and Management

Ass. Prof. Ipek Kalemci TUZUN


2/24


B asic Concepts in Performance

Management and Appraisal

Performance Appraisal:Setting work standards, assessing

performance, and providingfeedback to employees to

motivate, correct, and continuetheir performance.

Performance Management:An integrated approach to

ensuring that an employeesperformance supports and

contributes to the organizationsstrategic aims.

ComparingPerformance Appraisal

and

Performance Management


3/24


T he Appraisal Process

Performance Appraisal is the periodicevalutaion of an employees job performance.The evaluation of an employees current andpast performance relative to performancestandardsEmployees are judged in threee ways;

What they achieve (results and outcomes)What they do (behavior and actions)What they are (knowledge, skills and abilities)


4/24


Performance Appraisal Standarts

Performance Apprasisals standarts can bequantitaive or qualitative

An appraisal involves:

Setting work standards- Specific- Measurable- Agreed

- Realistic- Timely

Assessing actual performance vs. these standardsProviding feedback to the employee


5/24


W hy Appraise Performance?

Appraisals provide information for promotionand salary decisions

Provides opportunity to review an employeeswork related behavior ,increase morale,improve communicationIs part of the career-planning process

Appraisals help manage and improve your firms performanceDetermine training needs


6/24


T he Supervisors

RoleMust be familiar with basic appraisaltechniquesBe candid but fair when delivering bad newsHR will often outline guidelines but leaveimplementation to supervisors


7/24


Step in Appraising Performance

Defining job Appraising PerformanceProvide feedback


8/24


How to clarify

ExpectationsJ ob descriptions are usually written for agroup of jobs leaving many aspects of a jobwithout specific goalsQuantify expectations with explicit goals for each expectationEmployee should know basis of appraisal

ahead of time


9/24


Appraisal Methods

G raphic rating scale Alternation rankingForced distributionNarrative FormsCritical IncidentPaired comparison

BARS( Behaviorally Anchored RatingScalesMBO (Management by Objectives)


10/24


G raphic Rating Scale

L ists traits like quality and reliabilityVersus a range of performance values (fromunsatisfactory to outstanding)

O ut standingUnsatisfactory

Each subordinate is rated for

each qualityRatings total ranks appraisal


11/24



12/24


Alternation Ranking Method

- Ranking employees from best to worston a trait or traits.

Paired Comparison Method

Ranking employees by makin chart of all

possible pairs of the employees for each traitand indicating which is the better employee of the pair.


13/24


FIGURE 9 6 Scale for A lte rn ate R a nking of Appr a isee s


14/24


FIGURE 9 7 R a nking Emp loy ee s by the P a ir ed Comp a risonM eth od

Note: + means better than. means worse than. For each chart, addup the number of + s in each column to get the highest-ranked employee.


15/24


F orced DistributionPredetermined percenatges of rates are placed in various

performance categories

N arrative FormsFinal appraisals are frequently in a writtennarrative formSupervisor rates employees:

Performance factor or skillG ive examples & an improvement planExplains good & bad performance areas


16/24


Critical Incident

Keeping a record of positive and negativeexamples of subordinates work relatedbehaviour


17/24


B ehaviorally AnchoredRating Scales

BARS combine best features of narrative,critical incidents, and quantified scales in fivesteps

G enerate critical incidentsDevelop performance dimensionsReallocate incidentsScale the incidentsDevelop a final instrument


18/24


B ARS for G rocery

ClerksResearchers developed a BARS for groceryclerks by collecting critical incidents in 8areas (rating scale given below):

Knowledge and judgment

Conscientiousness

Skill in human relations

Skill in operation of register

Skill in bagging

Ability of checkout work

Skill in monetary transactions

Observational ability

Extremely Poor Poor Average G ood Extremely G ood1 9


19/24


Advantages of B ARS

A more accurate gaugeof performanceClearer standards

critical incidents alongthe scale make it clear Feedback its easier toexplain ratings toappraisees

Independentdimensions clusteringcritical incidents makedimensions moreindependentConsistency differentraters appraisals of same individual aresimilar


20/24


Management by

ObjectivesMBO refers to a organizational 6 step goalsetting and appraisal program

Set theorganizations

goals

Set thedepartmental

goals

Discussdevelopmental

goals

Defineexpected

results

Performancereviews

Providefeedback


21/24


Appraisal Rating

ProblemsUnclear standards use of words like goodor fair on appraisalsHalo effect one traitaffects all ratingspositively

Central tendency everyones in the

middleLeniency or strictness no middle

Bias characteristics

affect rating

Horns Effect; one traitaffects all ratingsnegatively

Recency Error: Ratingonly recentperformance

First Impression

Fixed Impression


22/24


How to Avoid Appraisal Problems

Learn and understand the problemsUse the right appraisal toolTrain supervisorsConduct consistent policy, procedures andperformance standardsReduce outside factors: time constraints,

union pressures & turnover Keep a diary of critical incidents


23/24


G uidelines for Effective Appraisals

Conduct a job analysisto determinesuccessfulperformanceUse these criteria in arating instrumentUse exact performancemetricsTell employees andevaluators thesemetrics

Train supervisors Allow appraisersdaily contactRate on each of

jobs dimensions Usemultiple appraisersDocument everythingProvide consistent helpto poor performers


24/24


Most Commonly Used Appraisal

Methods

32%

24%

34%

0% 0%

Gra ic ratina

t er e a i ral

S ciet f r Human Re urce ana ement re rt ab ut89% f ur e ed mana er u e erf rmance a rai alf r all t eir em l ee

chap 6 appraising and managing performance 4311

Documents