Effective Employee Performance Appraisal

IDS 705Business Communications

Amanda ChenDamian Glenn

The process by which an employee’s contribution to the organization during a specified period of time is assessed.

Lets employees know how well they have performed in comparison with the standards of the organization

Performance Feedback

Performance Appraisal

STRATEGIC IMPORTANCE

Consistency between job behavior and

Organizational strategy

Organization values

Performance Management as an

Employee development tool

Administrative tool

A GOOD APPRAISAL SYSTEM

Criteria

Validity

Reliability

Freedom from bias: errors

Practicality

Recruitment

PA and other HRM Functions

Selection

Training &Development

Compensation

Labor Relations

PPAA

Why PA May Fail

Unclear Language

Mgr not taking PA seriously

Mgr not prepared

No on-going

feedback

Mgr not honest orsincere

Ineffective discussio

n

Lack appraisal

skills

Mgr Lacks Infor.

Insuff. Rewards

SUPERIORSUPERIOR

CUSTOMERSCUSTOMERS

TEAM

SUBORDINATESSUBORDINATES

PEERS

PEERS

SELFSELF

Alternative Sources of Appraisal

Training Appraisers

Leniency or Strictness Error

Similar-to-Me Error

Contrast Error

Error of Central Tendency Recency Error

Common Appraisal Errors

to Address in Training

Common Appraisal Errors

to Address in Training

Types of Performance to Measure

3 Types of Methods

Trait based

Behavior based

Results based

Measurement Methods Objective

Production Dollar Sales Performance Tests

Subjective Comparative

Procedures Ranking Forced Distribution

Trait Methods

Graphic Rating Scale

Mixed Standard Scale

Essay

Forced-Choice

Common Trait Methods of Appraisal

Common Trait Methods of Appraisal

Behavioral Methods

Critical Incidents Behavioral Checklist

Behaviorally Anchored Rating

Scale (BARS)

Behavior Observation

Scales

Common Behavioral Appraisal Methods

Common Behavioral Appraisal Methods

Results-based Methods

Used when It is not important how results are achieved There are many different ways to succeed

Practicality Contamination Deficiency Teamwork

PA Methods Vary upon Task Types

High Low

High Behavioral / Result

Ex: assembly workers

Result

Ex: sales

Low Behavioral

Ex: reporters

Extensive selection/ training

Ex: researchers

Knowledge of the transformation process

Reliability and Validity of PA Measurement

Contemporary PA Concepts

Management by objectives (MBO)

360-degree feedback

Self-managed teams

PA under a MBO ProgramStep 1:

Org. goals& metrics

Step 1:Org. goals& metrics

Step 2:Dpt. Goals& metrics

Step 2:Dpt. Goals& metrics

Step 5:Interimreview

Step 5:Interimreview

Step 5b:New inputs are then provided

Step 5b:New inputs are then provided

Step 5a:Inappropriate goals/metrics

deleted

Step 5a:Inappropriate goals/metrics

deleted

Step 4:Mutual

agreement

Step 4:Mutual

agreementStep 3:Sbt. proposes goals & metrics

Step 3:Sbt. proposes goals & metrics

Step 3:Spvr lists

goals & metrics

Step 3:Spvr lists

goals & metrics

Step 7:Review org. performance

Step 7:Review org. performance Step 6:

Finalreview

Step 6:Final

review

Self-Managed Teams

Characteristics Focusing group result Larger Span of control More part-time/contract

workers More cross-functional

workers

Challenges Measuring individual

result Unfair & Hard Quality and commitment

std. Diverse Measure cross-

functional performance Tough

360° Feedback

RelationshipsRelationships

AdaptabilityAdaptability

LeadershipLeadershipCommunicationCommunication

PersonalPersonalDevelopmentDevelopment

DevelopmentDevelopmentof Othersof Others

ProductionProduction TaskTaskManagementManagement

Example

CONCLUSION

Purposes of performance appraisal

Characteristics of an effective appraisal

Different sources of appraisal information

Various methods used for evaluation