PowerPoint Presentation by Charlie PowerPoint Presentation by Charlie Cook Cook The University of West Alabama The University of West Alabama 1 Human Human Resource Resource Management Management ELEVENTH EDITION ELEVENTH EDITION G A R Y D E S S L E G A R Y D E S S L E R R Part 3 | Training and Development Part 3 | Training and Development Tariq Saeed Tariq Saeed Performance Management and Performance Management and Appraisal Appraisal Chapter Chapter 9
Transcript
PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama
1
Human Resource Human Resource ManagementManagement
ELEVENTH EDITIONELEVENTH EDITION
G A R Y D E S S L E RG A R Y D E S S L E R
Part 3 | Training and DevelopmentPart 3 | Training and Development
Tariq SaeedTariq Saeed
Performance Management and AppraisalPerformance Management and Appraisal
Chapter Chapter 99
• Introduction
• Basic Concepts in Performance Management and Appraisal
• An Introduction to Appraising Performance
• Appraising Performance: Problems And Solutions
• The Appraisal Interview
• Creating the Total Performance Management Process
• Summary/Q&A & Discussion
Performance Management and AppraisalPerformance Management and Appraisal
Basic Concepts in PerformanceBasic Concepts in PerformanceManagement and AppraisalManagement 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
Basic Concepts in PerformanceBasic Concepts in PerformanceManagement and AppraisalManagement and Appraisal
• All companies have some formal or informal means of All companies have some formal or informal means of appraising employees performance appraising employees performance
• Performance AppraisalPerformance Appraisal Any procedure that involves (1) Setting work standards, (2 ) Any procedure that involves (1) Setting work standards, (2 )
Assessing the employees actual performance relative to Assessing the employees actual performance relative to standards (3) Providing feedback to the employees to standards (3) Providing feedback to the employees to motivate them or eliminate performance deficiencies or to motivate them or eliminate performance deficiencies or to cont perform. cont perform.
• Performance managementPerformance management The process that unites goal setting , performance appraisal , The process that unites goal setting , performance appraisal ,
and development into a single , common system whose aim and development into a single , common system whose aim is to ensure the employee’s performance is supporting the is to ensure the employee’s performance is supporting the company’s strategic aims.(cont)company’s strategic aims.(cont)
Basic Concepts in PerformanceBasic Concepts in PerformanceManagement and AppraisalManagement and Appraisal
• Performance management (cont)Performance management (cont) The distinguishing feature is that it measures The distinguishing feature is that it measures
employee’s expectations/training , standards setting, employee’s expectations/training , standards setting, monitoring progress, measuring results and appraising monitoring progress, measuring results and appraising and feedback and rewarding or correcting employee and feedback and rewarding or correcting employee performance.performance.
It means setting goals which contribute to achieving It means setting goals which contribute to achieving company’s strategic aims.company’s strategic aims.
Daily/weekly interactions ensuring cont improvement in Daily/weekly interactions ensuring cont improvement in employee’s capacity & performanceemployee’s capacity & performance
Employee training & needs provision for job Employee training & needs provision for job performanceperformance
Comparing Performance Appraisal and Comparing Performance Appraisal and Performance ManagementPerformance Management
• Performance appraisalPerformance appraisal Evaluating an employee’s current and/or past Evaluating an employee’s current and/or past
performance relative to his or her performance performance relative to his or her performance standards.standards.
• Performance managementPerformance management The process employers use to make sure The process employers use to make sure
employees are working toward organizational goals.employees are working toward organizational goals. Employees’ individual goals point towards overall strategic Employees’ individual goals point towards overall strategic
• Increasing use by employers of performance Increasing use by employers of performance management reflects:management reflects: The popularity of the total quality management (TQM) The popularity of the total quality management (TQM)
concepts.concepts. An employee’s performance is a function of training, An employee’s performance is a function of training,
communication, tools & supervision than his own motivation.communication, tools & supervision than his own motivation. PM’s integration of goal setting, Appraisal & Development.PM’s integration of goal setting, Appraisal & Development.
The belief that traditional performance appraisals are often The belief that traditional performance appraisals are often not just useless but tense& counterproductive.not just useless but tense& counterproductive.
The necessity in today’s globally competitive industrial The necessity in today’s globally competitive industrial environment for every employee’s competencies and efforts environment for every employee’s competencies and efforts to focus on helping the company to achieve its strategic to focus on helping the company to achieve its strategic goals while continuous improvement is a management goals while continuous improvement is a management philosophy.philosophy.
Continuous improvementContinuous improvement
• A management philosophy that requires employers to A management philosophy that requires employers to continuously set and relentlessly meet ever-higher continuously set and relentlessly meet ever-higher quality, cost, delivery, and availability goals by:quality, cost, delivery, and availability goals by:
Eradicating the seven wastes: Eradicating the seven wastes: Overproduction, defective products, and unnecessary Overproduction, defective products, and unnecessary
downtime, transportation, processing costs, motion, and downtime, transportation, processing costs, motion, and inventory.inventory.
Requiring each employee to continuously improve Requiring each employee to continuously improve his or her own personal performance, from one his or her own personal performance, from one appraisal period to the next.appraisal period to the next.
An Introduction to Appraising PerformanceAn Introduction to Appraising Performance
• Why appraise performance?Why appraise performance?• Realistic AppraisalsRealistic Appraisals• Steps in appraising performanceSteps in appraising performance• Appraisal MethodsAppraisal Methods
An Introduction to Appraising PerformanceAn Introduction to Appraising Performance
• Why appraise performance?Why appraise performance? Appraisals play an integral role in the employer’s Appraisals play an integral role in the employer’s
performance management process and translates performance management process and translates employers strategic goals into specific employee employers strategic goals into specific employee goals.goals.
Appraisals helps boss and employee in planning Appraisals helps boss and employee in planning for correcting deficiencies and reinforce things for correcting deficiencies and reinforce things done correctly.done correctly.
Appraisals , help in identifying employee strengths Appraisals , help in identifying employee strengths and weaknesses, are useful for career planningand weaknesses, are useful for career planning
Appraisals affect the employer’s salary raise and Appraisals affect the employer’s salary raise and promotion decisions.promotion decisions.
Realistic AppraisalsRealistic Appraisals
• The tool will NOT matter if the appraisal isn’t accurateThe tool will NOT matter if the appraisal isn’t accurate• Motivations for soft (less-than-candid) appraisalsMotivations for soft (less-than-candid) appraisals
The fear of having to hire and train someone newThe fear of having to hire and train someone new The unpleasant reaction of the appraiseeThe unpleasant reaction of the appraisee A company appraisal process that’s not conducive to A company appraisal process that’s not conducive to
candorcandor• Hazards of giving soft appraisalsHazards of giving soft appraisals
Employee loses the chance to improve before being Employee loses the chance to improve before being forced to change jobs.forced to change jobs.
Lawsuits arising from dismissals involving inaccurate Lawsuits arising from dismissals involving inaccurate performance appraisals.performance appraisals.
Defining the Employee’s Goals and Defining the Employee’s Goals and Work StandardsWork Standards
Assign Specific Goals
Encourage Participation
Assign Measurable
Goals
Assign Challenging but Doable
Goals
Guidelines for Effective Goal Setting
Defining Goals and Work EffortsDefining Goals and Work Efforts
• Guidelines for effective goalsGuidelines for effective goals Assign specific goalsAssign specific goals Assign measurable goalsAssign measurable goals Assign challenging but doable goalsAssign challenging but doable goals Encourage participationEncourage participation
• SMART goals are:SMART goals are: SSpecific, and clearly state the desired results.pecific, and clearly state the desired results. MMeasurable in answering “how much.”easurable in answering “how much.” AAttainable, and not too tough or too easy.ttainable, and not too tough or too easy. RRelevant to what’s to be achieved.elevant to what’s to be achieved. TTimely in reflecting deadlines and milestones.imely in reflecting deadlines and milestones.
• SupervisorsSupervisors Usually do the actual appraising.Usually do the actual appraising. Must be familiar with basic appraisal techniques.Must be familiar with basic appraisal techniques. Must understand and avoid problems that can Must understand and avoid problems that can
cripple appraisals.cripple appraisals. Must know how to conduct appraisals fairly.Must know how to conduct appraisals fairly.
Give the employee advance noticeGive the employee advance notice Give the employee an advance copy of the appraisalGive the employee an advance copy of the appraisal
Must BE PREPARED.Must BE PREPARED. Review prior performance appraisalsReview prior performance appraisals Review any notes taken regarding employee’s Review any notes taken regarding employee’s
performanceperformance BE FAMILIAR with the employee’s jobBE FAMILIAR with the employee’s job– What projects they are working on, etc.What projects they are working on, etc.
• HR departmentHR department Serves a policy-making and advisory role.Serves a policy-making and advisory role. Provides advice and assistance regarding the Provides advice and assistance regarding the
appraisal tool to use.appraisal tool to use. Prepares forms and procedures and insists that all Prepares forms and procedures and insists that all
departments use them.departments use them. Responsible for training supervisors to improve their Responsible for training supervisors to improve their
appraisal skills.appraisal skills. Responsible for monitoring the system to ensure that Responsible for monitoring the system to ensure that
appraisal formats and criteria comply with EEO laws appraisal formats and criteria comply with EEO laws and are up to date.and are up to date.
Steps in Appraising PerformanceSteps in Appraising Performance
• Defining the jobDefining the job Making sure that you and your subordinate agree on Making sure that you and your subordinate agree on
his or her duties and job standards. his or her duties and job standards. Here’s where that job description comes in handy..Here’s where that job description comes in handy..
• Appraising performanceAppraising performance Comparing your subordinate’s actual performance to Comparing your subordinate’s actual performance to
the standards that have been set; this usually the standards that have been set; this usually involves some type of rating form.involves some type of rating form.
• Providing feedbackProviding feedback Discussing the subordinate’s performance and Discussing the subordinate’s performance and
progress, and making plans for any development progress, and making plans for any development required.required.
Designing the Appraisal ToolDesigning the Appraisal Tool
• What to measure?What to measure? Work output (quality and quantity)Work output (quality and quantity)
• Graphic rating scaleGraphic rating scale A scale that lists a number of traits and a range of A scale that lists a number of traits and a range of
performance for each that is used to identify the performance for each that is used to identify the score that best describes an employee’s level of score that best describes an employee’s level of performance for each trait.performance for each trait.
• Alternation ranking methodAlternation ranking method Ranking employees from best to worst on a Ranking employees from best to worst on a
particular trait, choosing highest, then lowest, until all particular trait, choosing highest, then lowest, until all are ranked.are ranked.
• Paired comparison method Paired comparison method Ranking employees by making a chart of all possible Ranking employees by making a chart of all possible
pairs of the employees for each trait and indicating pairs of the employees for each trait and indicating which is the better employee of the pair.which is the better employee of the pair.
• Behaviorally anchored rating scale (BARS)Behaviorally anchored rating scale (BARS) An appraisal method that uses quantified scale with An appraisal method that uses quantified scale with
specific narrative examples of good and poor specific narrative examples of good and poor performance. performance.
• Developing a BARS:Developing a BARS: Generate critical incidentsGenerate critical incidents Develop performance dimensionsDevelop performance dimensions Reallocate incidentsReallocate incidents Scale the incidentsScale the incidents Develop a final instrumentDevelop a final instrument
• Advantages of using a BARSAdvantages of using a BARS A more accurate gaugeA more accurate gauge Clearer standardsClearer standards FeedbackFeedback Independent dimensionsIndependent dimensions ConsistencyConsistency
Using MBOUsing MBO
Problems with MBO
Setting unclear objectives
Conflict with subordinates over
objectives
Time-consuming appraisal process
Management by Objectives (MBO)Management by Objectives (MBO)
• Involves setting specific measurable goals Involves setting specific measurable goals with each employee and then periodically with each employee and then periodically reviewing the progress made.reviewing the progress made.
1.1. Set the organization’s goals.Set the organization’s goals.
2.2. Set departmental goals.Set departmental goals.
• Strictness/leniencyStrictness/leniency The problem that occurs when a supervisor has a The problem that occurs when a supervisor has a
tendency to rate all subordinates either high or tendency to rate all subordinates either high or low.low.
• BiasBias The tendency to allow individual differences such The tendency to allow individual differences such
as age, race, and sex to affect the appraisal as age, race, and sex to affect the appraisal ratings employees receive.ratings employees receive.
Appraising Performance: Appraising Performance: Problems and Solutions (cont’d)Problems and Solutions (cont’d)
Know Problems
Control Outside
Influences
Use the Right Tool
How to Avoid Appraisal Problems
Train Supervisors
Keep a Diary
How to Avoid Appraisal ProblemsHow to Avoid Appraisal Problems
• Learn and understand the potential problems, Learn and understand the potential problems, and the solutions for each.and the solutions for each.
• Use the right appraisal tool. Each tool has its Use the right appraisal tool. Each tool has its own pros and cons.own pros and cons.
• Train supervisors to reduce rating errors such Train supervisors to reduce rating errors such as halo, leniency, and central tendency.as halo, leniency, and central tendency.
• Have raters compile positive and negative Have raters compile positive and negative critical incidents as they occur.critical incidents as they occur.
• PAY ATTENTIONPAY ATTENTION
Who Should Do the Appraising?Who Should Do the Appraising?
Self-Rating
Subordinates
360-Degree Feedback
Potential Appraisers
Immediate Supervisor
Peers
Rating Committee
Who Should Do the Appraising?Who Should Do the Appraising?
• How to conduct the appraisal interviewHow to conduct the appraisal interview Talk in terms of objective work data.Talk in terms of objective work data. Don’t get personal.Don’t get personal. Encourage the person to talk.Encourage the person to talk. Don’t tiptoe around.Don’t tiptoe around.
The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)
Talk in terms of objective work data.
Don’t tiptoe around.
Don’t get personal.
Encourage the person to
talk.
Guidelines for Conducting an Interview
The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)
• How to ensure the interview leads to improved How to ensure the interview leads to improved performanceperformance Don’t make the subordinate feel threatened during Don’t make the subordinate feel threatened during
the interview.the interview.
Give the subordinate the opportunity to present his Give the subordinate the opportunity to present his or her ideas and feelings and to influence the course or her ideas and feelings and to influence the course of the interview. of the interview.
Have a helpful and constructive supervisor conduct Have a helpful and constructive supervisor conduct the interview.the interview.
Offer the subordinate the necessary support for Offer the subordinate the necessary support for development and change.development and change.
The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)
• How to handle a defensive subordinateHow to handle a defensive subordinate Recognize that defensive behavior is normal.Recognize that defensive behavior is normal. Never attack a person’s defenses.Never attack a person’s defenses. Postpone action.Postpone action. Recognize your own limitations.Recognize your own limitations.
You are their boss – not their shrinkYou are their boss – not their shrink
The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)
• How to criticize a subordinateHow to criticize a subordinate
Do it in a manner that lets the person maintain his or Do it in a manner that lets the person maintain his or her dignity and sense of worth.her dignity and sense of worth.
Criticize in private, and do it constructively. Criticize in private, and do it constructively.
Avoid once-a-year “critical broadsides” by giving Avoid once-a-year “critical broadsides” by giving feedback on a daily basis, so that the formal review feedback on a daily basis, so that the formal review contains no surprises. contains no surprises.
Never say the person is “always” wrong Never say the person is “always” wrong
Criticism should be objective and free of any Criticism should be objective and free of any personal biases on your part.personal biases on your part.
The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)
• How to handle a formal written warningHow to handle a formal written warning Purposes of the written warningPurposes of the written warning
Purpose is to CHANGE BEHAVIORPurpose is to CHANGE BEHAVIOR
To shake your employee out of bad habits.To shake your employee out of bad habits.
Help you defend your rating, both to your own boss and (if Help you defend your rating, both to your own boss and (if needed) to the courts.needed) to the courts.
Written warnings should:Written warnings should: Identify standards by which employee is judged.Identify standards by which employee is judged.
Make clear that employee was aware of the standard.Make clear that employee was aware of the standard.
Specify deficiencies relative to the standard.Specify deficiencies relative to the standard.
Indicates employee’s prior opportunity for correction.Indicates employee’s prior opportunity for correction.
Creating the Total Performance Creating the Total Performance Management ProcessManagement Process
• ““What is our strategy and what are our goals?”What is our strategy and what are our goals?”
• ““What does this mean for the goals we set for What does this mean for the goals we set for our employees, and for how we train, appraise, our employees, and for how we train, appraise, promote, and reward them?”promote, and reward them?”
• What will be the technological support What will be the technological support requirements?requirements?
Performance Management SystemsPerformance Management Systems
• What Are the Purposes of a Performance What Are the Purposes of a Performance Management System?Management System?
• What Difficulties Exist in Performance Management What Difficulties Exist in Performance Management Systems?Systems? Focus on the IndividualFocus on the Individual Focus on the ProcessFocus on the Process
The Appraisal ProcessThe Appraisal Process
1. Establish performance standards with employees.
2. Mutually set measurable goals.
3. Measure actual performance
4. Compare actual performance with standards.
5. Discuss the appraisal with employee.
6. If necessary, initiate corrective action
Factors That Can Distort AppraisalsFactors That Can Distort Appraisals
• Leniency ErrorLeniency Error• Halo ErrorHalo Error• Similarity ErrorSimilarity Error• Low Appraiser MotivationLow Appraiser Motivation• Central TendencyCentral Tendency• Inflationary PressuresInflationary Pressures• Inappropriate Substitute for PerformanceInappropriate Substitute for Performance• Attribution TheoryAttribution Theory
Creating More Effective Performance Creating More Effective Performance Management SystemsManagement Systems
• Use Behavior-based MeasuresUse Behavior-based Measures• Combine Absolute and Relative StandardsCombine Absolute and Relative Standards• Provide Ongoing FeedbackProvide Ongoing Feedback• Have Multiple RatersHave Multiple Raters
Use Peer EvaluationsUse Peer Evaluations 360-Degree Appraisals360-Degree Appraisals
Performance Evaluations/Appraisals Performance Evaluations/Appraisals • Performance evaluations are an integral part of most Performance evaluations are an integral part of most
organizations. Properly developed and implemented, the organizations. Properly developed and implemented, the performance appraisal process can help an organization achieve performance appraisal process can help an organization achieve its goals by developing productive employees.its goals by developing productive employees.
• Although there are many types of performance evaluation Although there are many types of performance evaluation systems, each with its own advantages and disadvantagessystems, each with its own advantages and disadvantages
• Performance evaluations must be objective and job related. That Performance evaluations must be objective and job related. That is they must be reliable and valid.is they must be reliable and valid.
• Performance evaluations/appraisals must also be able to Performance evaluations/appraisals must also be able to measure “ reasonable” performance success. To assist these measure “ reasonable” performance success. To assist these matters, two factors arise;matters, two factors arise;1. 1. The performance appraisal must be conducted The performance appraisal must be conducted according to some established intervals; andaccording to some established intervals; and2. 2. Appraisers must be trained in the processAppraisers must be trained in the process. .
