performance appraisal the identification measurement and693

7/31/2019 Performance Appraisal the Identification Measurement And693

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Performance Appraisal

The identification, measurement,and management of humanperformance in organizations.


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8-5

Performance Evaluation

and ManagementPerformance Management: efforts to alignemployee performance with the firms goals

Performance Evaluation:efforts to determinethe extent to which an employee performswork effectively. Also known as:

Performance reviewPersonnel ratingMerit rating

Performance appraisalEmployee appraisalEmployee evaluation


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9-3Potential Purposes ofEvaluation

Development

Motivation

HRM

ResearchCommunications

Legal

Compliance

HR and

Employment

Planning


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A Model of PerformanceAppraisal

Identification

Measurement

Management


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Reliability

RelevanceSensitivity

Practicality

Evaluation:

Criteria of Evaluation

Combination of criteria using activities

and results is desirable


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9-6Who Should Evaluatethe Employee?

Immediate supervisor only (typical)

Committee of several supervisors

Employees peers (coworkers)

Employees subordinates

Someone outside the immediate worksituation

Self-evaluation

MANY POSSIBILITIES


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Some Potential

Benefits

Encourages employeeparticipation

Enables subordinates toexercise self-control

and manage ownperformance

Useful for training andcareer development

anagemen yObjectives

(MBO) Some PotentialPitfalls

Managers may not beadequately preparedfor MBO

Demands active

employee and managerinvolvement

Too much emphasis onthe short run and

P t ti l E l ti


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9-12Potential EvaluationProblems

Opposition to evaluation

System design and operatingproblems

Rater problems include:Problems withstandards

of evaluation

Halo effectsLeniency or

harshness

Central tendencyerrors

Recency of events

errorsContrast effects

Personalbias/stereotyping

Major problems exist more with

the rater than the technique used.


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9-13

Solutions to EvaluationProblem

ELIMINATING

RATER

ERRORS

Train raters onhow to evaluateothers well

Grant ampleopportunities to

AVOIDING

PROBLEMS

WITH EMPLOYEES Train employees inperformance evaluation

methods Simplify reporting forms Communicate howevaluation information is


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The Benefits ofPerformance Appraisal

Employer Perspective:

Despite imperfect measurement techniques, individualdifferences in performance can make a difference to companyperformance.

Documentation of performance appraisal and feedback maybe needed for legal defense.

Appraisal provides a rational basis for constructing a bonus ormerit system.

Appraisal dimensions and standards can help to implement

strategic goals and clarify performance expectations.

Providing individual feedback is part of the performancemanagement process.

Despite the traditional focus on the individual, appraisalcriteria can include teamwork and the teams can be the focus

of the a raisal


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Appraisal, and Outcome AppraisalInstruments

An appraisal tool that asks a supervisor to make judgmentsabout worker characteristics that tend to be consistent andenduring.

An appraisal tool that asks managers to assess a workers

behaviors.

An appraisal tool that asks managers to assess the resultsachieved by workers.

Trait Appraisal

Behavioral Appraisal

Outcome Appraisal


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Sample Trait ScalesRate each worker using the scales below.

Decisiveness:

1 2 3 4 5 6 7

Very low Moderate Very high

Reliability:

1 2 3 4 5 6 7


Energy:

1 2 3 4 5 6 7


Loyalty:

1 2 3 4 5 6 7



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Evaluation of MajorAppraisal Formats

Absolute

RelativeTrait

Behavior

Outcome

0

+++

0

0

+

--

+

0

0

---

++

+

AppraisalFormat

AdministrativeUse

DevelopmentalUse

LegalDefensibility

-- Very Poor - Poor + Good ++ Very good0 Unclear or mixed


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Who Should Evaluatethe Employee?

Alternative to

traditionalsupervisor-onlyapproaches

Uses multiple

appraisers

Not a anacea

9-7

360-DEGREE FEEDBACK

Subordinates

Peers

Supervisors

Self-appraisal


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Challenges to EffectivePerformance Measurement

Rater errors and bias

The influence of liking

Organizational politics

Whether to focus on the

individual or the group Legal issues


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Legal Issues Arecent analysis of 295 court cases involving

performance appraisal found judges decisions to befavorably influenced by the following additional factors:

Use of job analysis Providing written instructions

Allowing employees to review appraisal results

Agreement among multiple raters (if more than onewas used)

The presence of rater training


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Communication Skills for theAppraisal Interview

NonverbalAttending

Open andClosedQuestions

Suggests interestand active listening.

Appropriate use ofopen and closedquestions canensure an effectiveflow of

communicationduring an interview.

Rater sits with a slightforward, comfortablelean of the upper body,maintains eye contact,and speaks in a steady

and soothing voice.Open questionsencourage informationsharing and are mostappropriate early in aninterview or in complex,

ambiguous situations.Closed question evokeshort responses and areuseful for focusing andclarifying.

While the ratee isspeaking, the raterlooks at the personand gently nods headto signal interest.

Open questionsstart with words likeCould, Would,

How, What, or

Why.

Closed questionsstart with words likeDid, Is, or Are.

Skills Benefit Description Example


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Communication Skills for theAppraisal Interview (Cont.)

CulturalSensitivity

Communication is moreeffective when you aresensitive to the possibleinfluence of cultural

differences.

Pay attention to culturaldifferences that mayinfluence how anotherperson communicates

and how you mightcommunicate withothers.

When dealing withemployees from aculture that is highlyformal, avoid

addressing them in theworkplace by their firstnames. Doing so maysignal disrespect.

Skills Benefit Description Example


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Key Steps in Implementing360 Appraisal

Top management communicates the goals of and need for360 appraisal.

Employees and managers are involved in the development ofthe appraisal criteria and appraisal process.

Employees are trained in how to give and receive feedback.

Employees are informed of the nature of the 360 appraisal

instrument and process.

The 360 system undergoes pilot testing in one part of the

organization.

Management continuously reinforces the goals of the 360

appraisal and is ready to change the process when necessary.

performance appraisal the identification measurement and693

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