performance appraisals and management
TRANSCRIPT
Performance aPPraisal and Performance management
Performance appraisal
Evaluating an employee’s current and/or past performance relative to his or her performance standards.
Performance management
The process employers use to make sure employees are working toward organizational goals.
difference between Pm and Pa
Processes used to identify,
encourage, measure,evaluate,
improve, and reward
employee performance.
The process of evaluating how
well employees perform their
jobs and then communicating
that information to the
employees.
definitions
According to Newstrom, “It is the process of evaluating
the performance of employees, sharing that information with
them and searching for ways to improve their performance’’.
meaningPerformance appraisal is the step where the management
finds out how effective it has been at hiring and placing
employees.
A “Performance appraisal” is a process of evaluating an
employee’s performance of a job in terms of its requirements.
wHY tHe Performance aPPraising
Appraisals play an integral role in the employer’s performance management process.
Appraisals help in planning for correcting deficiencies and reinforce things done correctly.
Appraisals, in identifying employee strengths and weaknesses, are useful for career planning
Appraisals affect the employer’s salary raise decisions.
continuous imProvement
A management philosophy that requires employers to continuously set and relentlessly meet ever-higher quality, cost, delivery, and availability goals by:
Eradicating the seven wastes:
overproduction, defective products, and unnecessary downtime, transportation, processing costs, motion, and inventory.
Requiring each employee to continuously improve his or her own personal performance, from one appraisal period to the next.
Performance aPPraisal roles
Supervisors
Usually do the actual appraising.
Must be familiar with basic appraisal techniques.
Must understand and avoid problems that can cripple appraisals.
Must know how to conduct appraisals fairly.
Performance aPPraisal roles (cont’d)
HR department
Serves a policy-making and advisory role.
Provides advice and assistance regarding the appraisal tool to use.
Prepares forms and procedures and insists that all departments use them.
Responsible for training supervisors to improve their appraisal skills.
Responsible for monitoring the system to ensure that appraisal formats and criteria comply with EEO laws and are up to date.
stePs in aPPraising Performance1.Defining the job
Making sure that you and your subordinate agree on his or her duties and job standards.
2.Appraising performance
Comparing your subordinate’s actual performance to the standards that have been set; this usually involves some type of rating form.
3.Providing feedback
Discussing the subordinate’s performance and progress, and making plans for any development required.
designing the aPPraisal tool
What to measure?
Work output (quality and quantity)
Personal competencies
Goal (objective) achievement
How to measure?
Graphic rating scales
Alternation ranking method
MBO
Performance aPPraisal methods
Graphic rating scale
A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employee’s level of performance for each trait.
Graphic Rating
Scale with Space for
Comments
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9–16
Figure 9–3
comParative methods
Ranking
A listing of all employees from highest to lowest in performance.
Drawbacks
Does not show size of differences in performance between employees
Implies that lowest-ranked employees are unsatisfactory performers.
Becomes difficult process if the group to be ranked is large.
Forced-Choice Method
A trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance.
Similar to grading on a curve; predetermined percentages of rates are placed in various performance categories.
Example:
15% high performers
20% high-average performers
30% average performers
20% low-average performers
15% low p
Behavioral /oBjective methods
Behavioral Rating Approach
Assesses employees’ behaviors instead of other characteristics
Consists of a series of scales created by:
Identifying important job dimensions
Creating statements describing a range of desired and undesirable behaviors (anchors)
Type of behavioral scale
Behaviorally anchored rating scales (BARS)
BARS is an appraisal tool that anchors numerical rating scale with specific examples of good or poor performance.
Behavioral /oBjective methods
Management by Objectives
Specifying the performance goals that an individual and his or her manager agree that employee will try to attain within an appropriate length of time.
Key MBO Ideas
Employee involvement creates higher levels of commitment and performance.
Encourages employees to work effectively toward achieving desired results.
Performance measures should be measurable and should define results.
Narrative methods
Critical Incident
Manager keeps a written record of highly favorable and unfavorable employee actions.
Drawbacks
Variations in how managers define a “critical incident”
Time involved in documenting employee actions
Most employee actions are not observed and may become different if observed
Narrative methods(coNtd..)
Essay
Manager writes a short essay describing an employee’s performance.
Drawback
Depends on the managers’ writing skills and their ability to express themselves.
360 Feed Back system
A system of collecting performance information from multiple parties.
Multiple parties include one’s subordinates peers, supervisors and customers
It is also used to design promotion and reward.
poteNtial ratiNg scale appraisal proBlems
Unclear standards
An appraisal that is too open to interpretation.
Halo effect
Occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits.
For example, supervisors often rate unfriendly employees lower than the others, on all traits.
Central tendency
A tendency to rate all employees the same way, such as rating them all average.
poteNtial ratiNg scale appraisal proBlems (coNt’d)
Strictness/leniency
The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.
Bias
The tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive.
how to avoid appraisal proBlems
Learn and understand the potential problems, and the solutions for each.
Use the right appraisal tool. Each tool has its own pros and cons.
Train supervisors to reduce rating errors such as halo, leniency, and central tendency.
Have raters compile positive and negative critical incidents as they occur.
Who Should do the ApprAiSing?
The immediate supervisor
Peers
Rating committees
Self-ratings
Subordinates
360-Degree feedback
mAin purpoSeS of performAnce mAnAgement
Individual Rewards (Base and Incentive)
Feedback for Sub-Ordinate (Plus and Minus)
Recognition of Superior Performance
Documentation of Weak Performance
Personnel Decision-Making
Future Goal Commitments (Planned Achievements)
Why performAnce mAnAgement?
Increasing use by employers of performance management reflects:
The popularity of the total quality management (TQM) concepts.
The belief that traditional performance appraisals are often not just useless but counterproductive.
The necessity in today’s globally competitive industrial environment for every employee’s efforts to focus on helping the company to achieve its strategic goals.
SourceS of performAnce mAnAgement
Managers
Have the ability to rate employees
Feedback from MANAGERS is strongly related to performance
Peers
Co-worker
Expert knowledge of job requirement
Observe employee daily!
Bring a different perspective in the evaluation process - provide extremely valid assessment of performance
Useful esp. if supervisor does not always observe employee (e.g. law enforcement)
SourceS of performAnce mAnAgement
Subordinates
Evaluation of managers
UPWARD FEEDBACK
Self
Not often used
Observe own behaviour
Customers
Often the only best person to observe employee performance
BEST source of information
Customer evaluation sheet
Random mail surveys
Telephone survey
performAnce mAnAgement: A four Step proceSS
Step 1: Performance Planning and Communication
Step 2: Coaching/Feedback
Step 3: Performance Review
Step 4: Staff Development
the componentS of An effective performAnce mAnAgement proceSS
Direction sharing
Role clarification
Goal alignment
Developmental goal setting
Ongoing performance monitoring
Ongoing feedback
Coaching and support
Performance assessment (appraisal)
Rewards, recognition, and compensation
Workflow and process control and return