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Supervision in Organizations

Chapter 12

Appraising Employee Performance

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Learning OutcomesAfter reading this chapter, I will be able to:

1. Describe the purposes of the performance appraisal.

2. Identify the performance appraisal process

3. Explain the different types of measurement tools

4. Distinguish human errors that can distort performance appraisal ratings.

5. Describe key legal concerns with performance appraisals.

Performance Appraisal defined….

• Performance Appraisal:

A tool that reviews past job performance, emphasizing positive accomplishments as well as deficiencies, as a means for helping employees improve future performance.

• Purposes: Feedback Raises Development Documentation (Termination)

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Appraisal Process

1. Establish performance appraisal standards

2. Mutually set measurable goals

3. Measure actual performance

AND….

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Appraisal Process cont…

4. Compare actual with standard

5. Discuss appraisal with employee

6. Corrective actionBasic Immediate

Measurement Tools

• Focus of the measureTrait, behavior, or outcome

• Type of judgment requiredRelative, absolute, or outcome

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Focus: Trait, Behavior, & Outcome

• Trait An appraisal tool that asks a supervisor to make judgments about

worker characteristics that tend to be consistent and enduring.Ex. Dependable, confident, loyal

• Behavior An appraisal tool that asks managers to assess a worker’s

behaviors. Ex. Average number of sales calls

• Outcome An appraisal tool that asks managers to assess the results achieved

by workers. Ex. Overall sales volume, new accounts

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Sample Trait ScalesRate each worker using the scales below.

Dependable:1 2 3 4 5 6 7Very low Moderate Very high

Reliability:1 2 3 4 5 6 7Very low Moderate Very high

Energy:1 2 3 4 5 6 7Very low Moderate Very high

Loyalty:1 2 3 4 5 6 7Very low Moderate Very high

Judgment: Absolute, Relative, or Objective

Absolute “Supervisors make judgments about an employee’s

performance based solely on performance standards”

Relative “Compares an employee's performance to the performance of

other employees doing the same job”Objective “Measurement against a goal established between the supervisor

and employee”

Appraisal criteria, methods, and documentation must be job related!!!

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Absolute Standard Approaches

• Essay

• Critical incident

• Checklist

• Adjective rating scale

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Absolute: ESSAYS

• Simplest Approach Write a narrative

describing the Strengths Weaknesses Potential Suggestions for

improvement

• Results reflect the ability of the writers

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Absolute: CRITICAL INCIDENT

• Essay about what was most effective or ineffective in a key job situation

• Focus on behavior, not personality

• Time-consuming

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Absolute: CHECKLIST

• Yes or No• Predefined behaviors

or qualities• Items may be

irrelevant

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Absolute: ADJECTIVE RATING SCALE

• Oldest & most popular approach

• Factors present Job knowledgeCooperationQuality and quantity

of work

• 5 to 10 points on a continuum

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Sample Adjective Rating Items and Format

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Relative Standards

• Group order rankingQuartiles

• Individual rankingBest to worst

• Paired comparison Similar to job rankingCompare each one to

all others

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Objective: MANAGEMENT BY OBJECTIVE (MBO)

• STEPS• Goal setting• Action planning• Self control• Periodic review

?

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Objective: MBO ISSUES

• AdvantagesResults orientedCommitment

• ProblemsTrust needed

• SatisfactionTime-consuming Important to follow-upFrustration builder

Human Errors & Appraisals

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• Halo EffectTendency to rate employee high or low on

all factors

• SimilarityGiving special consideration to qualities

that appraisers perceive in themselves

• RecencyGives greater importance to job behaviors

near the end of the measurement period

• Central tendencyThe reluctance to assign extreme ratings

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Tips for Legal Performance Appraisal

• Focus on behavior, not the individual

• Bias Free – remember Appraisal Errors

• Consistent / Continuous Feedback

• Document ~ Document ~ Document

• Do you have what you need for Fact Finding?

• Published appraisal procedures = Binding contract in court

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During Evaluation Meeting

First ask for employee comments and suggestions

Be sincere, stay job oriented and objective

Summarize previous memos/suggestions

Suggest new approaches with timelines

Use good 2-way communicationsActive listening, paraphrasing and restating

Use different approach for different employees

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After Evaluation Meeting

Finalize Form - Add your comments and signature

Give to employee for comments and signature Give copy to supervisor for review Give copy to employee Send signed original to Human Resources for

employee file Set date for planning meeting for next year

How to Determine and Remedy Performance Shortfalls

Cause Questions to Ask

Ability

Effort

Situation

Possible Remedies

•Has the worker ever beenable to perform adequately?

•Can others perform the jobadequately, but not this worker?

• Is the worker’s performance level declining?

• Is performance lower on all tasks?

• Is performance erratic?•Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?

•Train•Transfer•Redesign job•Terminate•Clarify linkage betweenperformance and rewards

•Recognize good performance

•Streamline work process•Clarify needs to suppliers•Change suppliers•Eliminate conflicting signals or demands

•Provide adequate tools

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