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TRANSCRIPT
2
Chapter Objectives
Describe the 360-degree feedback
evaluation method.
Define performance appraisal and identify
the uses of performance appraisal.
Discuss the performance appraisal
environmental factors.
Describe the performance appraisal
process.
3
Chapter Objectives (Continued)
Identify the aspects of a person’s performance that an organization should evaluate.
Identify who may be responsible for performance appraisal and the performance period.
Identify the various performance appraisal methods used.
Describe how computer software is used in performance appraisal.
4
Chapter Objectives (Continued)
List the problems associated with
performance appraisal.
Explain the characteristics of an effective
appraisal system.
Describe the legal implications of
performance appraisal.
Explain how the appraisal interview should
be conducted.
5
Performance Appraisal Defined
System of review and
evaluation of job
performance
Assesses
accomplishments and
evolves plans for
development
6
Performance Management
Process that significantly affects
organizational success
Managers and employees work
together to set expectations, review
results and reward performance.
7
Appraiser Discomfort
Performance appraisal process cuts into manager’s time
Experience can be unpleasant when employee has not performed well
8
Employee Anxiety
Creates anxiety for appraised employee
Rationale for Performance
Appraisal
Provides legal and other benefits for
employers
9
Uses of Performance Appraisal
Human resource planning
Recruitment and selection
Training and development
Career planning and development
Compensation programs
Internal employee relations
Assessment of employee potential
10
Performance Appraisal
Environmental Factors
External:
Legislation requiring
nondiscriminatory
appraisal systems
Labor unions
Factors within the internal
environment, such as type
of corporate culture
11
The Performance Appraisal ProcessExternal Environment
Internal EnvironmentPlan the Performance
Identify Performance Goals
Communicate Goals
Establish Performance Criteria
Determine:
Responsibility for Appraisal
Appraisal Period
Appraisal Method(s)
Computer Software
Examine Work Performed
Appraise the Results
Conduct Appraisal Interview
Discuss Goals for Next Period
Anticipate and Consider
Problems in PA
Effective PA Systems
Management Support
Coaching and T&D
12
Establish Performance Criteria
Traits
Behaviors
Competencies
Goal Achievement
Improvement
Potential
13
Responsibility for Appraisal
Immediate supervisor
Subordinates
Peers
Rationale for evaluations conducted
by team members
Self-appraisal
Customer appraisal
14
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
15
Performance Appraisal Methods
360-Degree Valuation
Rating Scales
Critical Incidents
Essay
Work Standards
Ranking
Paired Comparisons
Forced Distribution
Behaviorally
Anchored Rating
Scales (BARS)
Result-Based
Systems
Assessment Centers
16
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
17
Rating Scales
Rates according to
defined factors
Judgments are
recorded on a scale
Many employees are
evaluated quickly
18
Critical Incidents
Written records of highly favorable
and unfavorable work actions
Appraisal more likely to cover entire
evaluation period
Does not focus on last few weeks or
months
19
Essay
Brief narrative describing
performance
Tends to focus on extreme
behavior
Depends heavily on
evaluator's writing ability
Comparing essay
evaluations might be
difficult
20
Work Standards
Compares performance to
predetermined standard
Standards - normal output of
average worker operating at
normal pace
Time study and work sampling
used
Workers need to know how
standards were set
21
Ranking
All employees from group
ranked in order of overall
performance
Comparison is based on
single criterion, such as
overall performance
22
Paired Comparison
Variation of ranking method
Compares performance of
each employee with every
other employee in the group
23
Forced Distribution
Rater assigns individual in work
group to a limited number of
categories similar to a normal
distribution
Assumes all groups of employees
have the same distribution
24
Behaviorally Anchored Rating
Scales (BARS)
Combines traditional rating
scales and critical
incidents methods
Job behaviors derived
from critical incidents
described more objectively
25
Result-Based Systems
Manager and
subordinate agree on
objectives for next
appraisal
Evaluation based on
how well objectives
accomplished
28
Problems in Performance Appraisal
Lack of objectivity
Halo error
Leniency/strictness
Central tendency
Recent behavior bias
Personal bias
Manipulating the evaluation
29
Reasons for Intentionally Inflating or Lowering Ratings
Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance.
Improve employee’s eligibility for merit raises.
Avoid airing department’s “dirty laundry.”
Avoid creating negative permanent record that might haunt employee in the future.
Protect good workers whose performance suffered because of personal problems.
Reward employees displaying great effort even when results were relatively low.
Avoid confrontation with hard-to-manage employees.
Promote a poor or dislike employee up and out of the department.
Scare better performance out of an
employee.
Punish a difficult or rebellious
employee.
Encourage a problem employee to
quit.
Create a strong record to justify a
planned firing.
Minimize the amount of merit increase
a subordinate receives.
Comply with an organizational edict
that discourages managers from giving
high ratings.
Inflating Ratings Lowering Ratings
30
Characteristics of an Effective
Appraisal System
Job-related criteria
Performance expectations
Standardization
Trained appraisers
Continuous open communication
Performance reviews
Due process
31
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