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Instructor presentation questions: docwin@tampabay.rr.com

Human Resource ManagementChapter 6: Performance Appraisal and Management

Ass. Prof. Ipek Kalemci TUZUN

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Basic Concepts in PerformanceManagement and Appraisal

Performance Appraisal:Setting work standards, assessing

performance, and providing feedback to employees to motivate,

correct, and continue their performance.

Performance Management:An integrated approach to

ensuring that an employee’s performance supports and

contributes to the organization’s strategic aims.

ComparingPerformance Appraisal

and Performance Management

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The Appraisal Process

Performance Appraisal is the periodic evalutaion of an employees job performance. The evaluation of an employee’s current and past performance relative to performance standards

Employees are judged in threee ways; What they achieve (results and outcomes) What they do (behavior and actions) What they are (knowledge, skills and abilities)

Definition

Definition

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Performance Appraisal Standarts

Performance Apprasisals standarts can be quantitaive or qualitative

An appraisal involves: Setting work standards

- Specific

- Measurable

- Agreed

- Realistic

- Timely Assessing actual performance vs. these standards Providing feedback to the employee

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Why Appraise Performance?

Appraisals provide information for promotion and salary decisions

Provides opportunity to review an employee’s work related behavior ,increase morale, improve communication

Is part of the career-planning process Appraisals help manage and improve your

firm’s performance Determine training needs

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The Supervisor’s Role Must be familiar with basic appraisal

techniques Be candid but fair when delivering bad news HR will often outline guidelines but leave

implementation to supervisors

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Step in Appraising Performance

Defining job Appraising Performance Provide feedback

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How to clarify Expectations Job descriptions are usually written for a

group of jobs leaving many aspects of a job without specific goals

Quantify expectations with explicit goals for each expectation

Employee should know basis of appraisal ahead of time

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Appraisal Methods Graphic rating scale Alternation ranking Forced distribution Narrative Forms Critical Incident Paired comparison BARS( Behaviorally Anchored Rating Scales MBO (Management by Objectives)

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Graphic Rating Scale

Lists traits like quality and reliability Versus a range of performance values (from

unsatisfactory to outstanding)

OutstandingUnsatisfactory

Each subordinate is rated for each quality

Ratings total ranks appraisal

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Alternation Ranking Method

- Ranking employees from best to worst on a trait or traits.

Paired Comparison Method

Ranking employees by makin chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

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FIGURE 9–6 Scale for Alternate Ranking of Appraisees

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FIGURE 9–7 Ranking Employees by the Paired Comparison Method

Note: + means “better than.” – means “worse than.” For each chart, add up the number of +’s in each column to get the highest-ranked employee.

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Forced Distribution Predetermined percenatges of rates are placed in various

performance categories

Narrative FormsFinal appraisals are frequently in a written

narrative form Supervisor rates employee’s:

Performance factor or skill Give examples & an improvement plan Explains good & bad performance areas

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Critical Incident

Keeping a record of positive and negative examples of subordinate’s work related behaviour

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Behaviorally Anchored Rating Scales

BARS combine best features of narrative, critical incidents, and quantified scales in five steps

Generate critical incidents Develop performance dimensions Reallocate incidents Scale the incidents Develop a final instrument

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BARS for Grocery Clerks

Researchers developed a BARS for grocery clerks by collecting critical incidents in 8 areas (rating scale given below):

•Knowledge and judgment

•Conscientiousness

•Skill in human relations

•Skill in operation of register

•Skill in bagging

•Ability of checkout work

•Skill in monetary transactions

•Observational ability

Extremely Poor Poor Average Good Extremely Good1 9

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Advantages of BARS

A more accurate gauge of performance

Clearer standards – critical incidents along the scale make it clear

Feedback – its easier to explain ratings to appraisees

Independent dimensions – clustering critical incidents make dimensions more independent

Consistency – different raters appraisals of same individual are similar

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Management by Objectives

MBO refers to a organizational 6 step goal setting and appraisal program

Set theorganization’s

goals

Set thedepartmental

goals

Discussdevelopmental

goals

Defineexpected

results

Performancereviews

Providefeedback

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Appraisal Rating Problems Unclear standards – use

of words like “good” or “fair” on appraisals

Halo effect – one trait affects all ratings positively

Central tendency – everyone’s in the middle

Leniency or strictness – no middle

Bias – characteristics affect rating

Horns Effect; one trait affects all ratings negatively

Recency Error: Rating only recent performance

First Impression

Fixed Impression

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How to Avoid Appraisal Problems

Learn and understand the problems Use the right appraisal tool Train supervisors Conduct consistent policy, procedures and

performance standards Reduce outside factors: time constraints,

union pressures & turnover Keep a diary of critical incidents

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Guidelines for Effective Appraisals

Conduct a job analysis to determine “successful performance”

Use these criteria in a rating instrument

Use exact performance metrics

Tell employees and evaluators these metrics

Train supervisors Allow appraisers

daily contact Rate on each of

job’s dimensions Use multiple appraisers

Document everything Provide consistent help

to poor performers

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Most Commonly Used Appraisal Methods

32%

24%

34%

10% 0% MBOGraphic ratingEssayOtherBehavioral

Society for Human Resource Management reports about 89% of surveyed managers use performance appraisal for all their employees