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Appraising and Managingperformance
HRM
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Performance management
Appraisal performance is only one part of
the broader process of performancemanagement, which is defined as the
process through which managers ensure that
employees' activities and outputs are
congruent with the organizations goals
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The three parts ofPerformanceManagement
1.Defining performance: which aspects of
perforce are relevant to the organization (jobanalysis)
Measuring performance ( through
appraisal)
Feed backing performance information (
Performance feedback sessions to adjust
their performance
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Performance Planning and Evaluation(PPE)
This system seeks to tie the formal
performance appraisalprocess to companysstrategies by specifying at the beginning ofthe evaluation period the types and level ofperformance that must be accomplished toachieve the strategy.Then at the end of theevaluation period the employees areevaluated based on how closely their actual
performance met the performance plan
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What is an appraisal process?
It is a process where the performance of anemployee is being appraised (evaluated).
It involves:
Setting work standards
Assessing employees actual performancerelative to these standards
Providing feedback to the employee with theaim of motivating that person to eliminatedeficiencies or to continue to perform abovepar.
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Why should we appraise performance?
1. It provides information upon which to
make promotion and salary decisions. 2. provide opportunity for you and your
subordinate to review his/her work relatedbehavior
3. it is part of the companys career planningprocess
4. Appraisals help you better manage andimprove your firms performance.
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Who conducts the appraisal?
It is a supervisory skill.Thus supervisors
must be familiar with basic appraisaltechniques, understand and avoid problems
that can cripple appraisals.
The Hr dept. serves as a policy making and
advisory role.However final decisions onprocedures are left to operating division
heads.
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HRs responsibility
To train supervisors to improve their
appraisal skills. Also monitoring the appraisalsystem .
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Steps in Appraising Performance
First: define the job:
making sure that you and your subordinate agree onhis or her duties and job standards.
Second: Appraising performance: comparing yoursubordinates actual performance to the standardthat has been set.
Third: Provide feedback;the two discuss the subordinates performance andprogress and make plans for any developmentrequired.
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A. The Attribute Approach
The attribute approach to performance
management focuses on the extent to whichindividuals have certain attributes
(characteristics or traits) believed desirable
for the companys success.This technique
defines a set of traits-such asintiative,leadership,and competitiveness-and
evaluate individuals on them
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The Attribute approach
Graphic rating scale:
Is the simplest and most popular technique. It lists traits (quality, reliability) and a range of
performance (from unsatisfactory to outstanding) for
each trait.
The rater rates each subordinate by circling orchecking the score that best describes his or her
performance for each trait. You then total the
assigned values for the traits.
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Problems withRating scales
Unclear standards problem : Traits and degreesof merit are ambiguous because of the subjectivity ofeach supervisor, what may seem good for one ratermay seem fair for another.
Halo effect: a supervisor rates an employee as fairin all traits because the employee is unfriendly.
Centra
ltendency: rating most people in the middle( average)
Leniency or strictness: giving everyone a high(low) rate.
Bias: (age, sex, race may affect the rating)
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B. The Comparative Approach
This approach to performance management
requires the rater to compare an individual'sperformance with that of others.
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The comparative approach
1. Ranking:
Requires managers to rank employees within theirdepartments from highest to poorest performers (or
best to worst).
This method has received specific attention in thecourts.The court actually stated that there is no way
of knowing precisely what criteria of jobperformance that supervisors were considering,whether each supervisor was considering he samecriteria or not.
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The comparative approach
2. Forced Distribution Method:
You place predetermined percentages ofratees into performance categories:
15% high performers
20% high-average performers
30% average performers 20% low-average performers
15% low performers.
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Contd
Many firms are adopting this practice if there
is( i.e.10% in the bottom they get 90 days toimprove if not they get a chance to resign.
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3. The Behavioral Approach
This approach to performance management
attempts to define the behaviors anemployee must exhibit to be effective in this
job.
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The Behavioral Approach
1. Critical Incident Method:
The supervisor keeps a log of positive andnegative examples (critical incidents) of a
subordinates work related behavior. Every
six months, the supervisor and subordinate
meet to discuss the latters performanceusing the incidents.
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Advantages of the critical incident
method
It provides actual examples of good and poor performance thesupervisor can use to explain the persons rating.
It ensures that the manager or supervisor thinks about thesubordinate s appraisal all during the year.
The rating does not only reflect the employees most recentperformance.
The list provides examples of what specifically the subordinatecan do to eliminate deficiencies
(This method is not useful in making salary decisions)
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The Behavioral Approach
2.Behaviorally Anchored Rating Scales
(BARS) combines between the benefits ofgraphic rating scale (traits) and critical
incidents (positive and negative behavior).
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The Behavioral Approach
3. OrganizationalBehavior Modification:
OBM-entails managing the behavior of employeesthrough a formal system of behavioral feedback and
reinforcement.This system builds on the behaviorist
view of motivation, which holds that individuals'
future behavior is determined by past behaviors that
have been positively reinforced.
It best suited to less complex jobs
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4. The results approach
This approach relies heavily on managing by
objectives, it assumes subjectivity can beeliminated from the measurement process.
There are two performance management
stems: the MBO and the productivity
measurement
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The Results Approach
Management By Objectives
Requires the management to set specificmeasurable goals with each employee and
then periodically discuss the latters
progress toward these goals.
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Problems with the MBO approach
1. Setting unclear ,un-measurable objectives.
2. It is time consuming, setting objectives,measuring programs, and giving feedback can
take severalhours per employee per year.
3. Setting objectives with subordinates
sometimes turns into a tug-a war, you pushing
forhigher quotas and the subordinate pushing
forlower ones.
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The Results Approach
Productivity Measurement and
Evaluation system (ProMES) The main goal is to motivate employees to
higher levels of productivity. It is a means of
measuring and feeding back productivity
information to personnel.
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Who should do the appraising?
The immediate supervisor:
He should be in the best position to observeand evaluate the subordinates.
Peer appraisal:
self-managing teams, it can predict future
management success. except forlogrolling:
when peers collude to rate each other highly.
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Who should do the appraising?
Rating committees:
By the immediate supervisor and three othersupervisors .
This eliminates halo effect or biases.If this
committee can not be available it is advised
that the manager of the supervisor makesthe appraisal.
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Who should make the appraisal?
Appraisal by subordinates:
Appraising their supervisors in a process called:upward feedback.
This helps top managers diagnose:
Management styles
Identify potential people problems
Take corrective actions with individuals managers asrequired.
This is essential for developmental ratherthan evaluative purposes.
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360-Degree Feedback
An employee
Supervisor
Subordinates Peers
Internal and external customers.
The survey will include skills like returns phone calls promptlylistens well. A computer will gather the feedback into
individualized reports that HR presents to the rate's . Then theymeet with their supervisors to share information they feel ispertinent (considered essential) for the purpose ofdevelopment
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Types of interviews
Performance is satisfactory leading to
employee promotion. Performance is satisfactory not leading to
employee promotion( because of no
positions available)
Unsatisfactory performance leading tocorrectable action.
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Where does the problem lie?
In the satisfactory performance with no positions for
promotions.
Companies overcome this by giving out bonuses, or
incentives additional authority to handle a slightly
enlarged job. Do you think this is satisfactory for the
employee psychologically?
And in the poor performer that needs correctableactions.They become defensive and usually deny
the fact that they are poor performers.
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Do appraisals really help to improve
performance?
Shocking research results claims that:
32% of300 managers rated thatperformance appraisals are very ineffective
while 4% considered it very effective.
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Performance Management
Companies are changing the way people view the
HR functions they are concentrating on working
backwards by using the term Performance
management
what kind of performance is required
Based on this what kind of compensation is required
for that job to be performed
Based on this what kind of people will be selected
and hired.