Appraising and Managing Performance Masters

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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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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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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.

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Appraising and Managing Performance Masters

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