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Performance Appraisal Rev

Date post: 05-Dec-2014
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Chapter 8 Performance Appraisals
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Page 1: Performance Appraisal Rev

Chapter 8

Performance Appraisals

Page 2: Performance Appraisal Rev

Performance Management

• Provides data to assess the current

skill, experience, and performance level

of every employee

• Impacts human resource planning,

training & development, career

development & compensation forecasts

• Requires effective performance

appraisal system i.e. valid

Page 3: Performance Appraisal Rev

Uses of Performance

Appraisal

Performance improvement

Compensation adjustments

Placement decisions

Training & Development needs

Career planning & development

Identify deficiencies in staffing process

Detect informational inaccuracies

Diagnose job design errors

Avoidance of discrimination

External challenges

Page 4: Performance Appraisal Rev

Key Elements

Employee

Feedback

Employee

Records &

HR Decisions

Human

Performance

Performance

Measures &

Criteria

Performance

Appraisal

Interview

Page 5: Performance Appraisal Rev

Appraisal Systems

• Job-related

– System evaluates critical behaviours that

constitute job success

• Practical

– Understood and relatively simple

• Performance standards

– Related to the desired results of each job

• Performance measures

– Reports on critical behaviours

Page 6: Performance Appraisal Rev

Performance Measures

Indirect

Objective

• Rater must evaluate substitutes for

performance (constructs)

• Verifiable by others

• Usually quantitative

Subjective• Not verifiable by others

• Usually rater’s personal opinions

Direct• Rater actually sees the employee’s

performance

Page 7: Performance Appraisal Rev

Problems with Subjective

Measures

Rater Biases

Haloeffect

Error of central

tendency

Leniency &strictness bias

Recencyeffect

Personalprejudice

Page 8: Performance Appraisal Rev

Characteristics for

Effectiveness

Effective

Performance

Appraisal

System

Validity

Reliability

Input into system development

Acceptable standards

Acceptable goals

Control of standards

more

Page 9: Performance Appraisal Rev

Characteristics for

Effectiveness

Effective

Performance

Appraisal

System

Frequency of feedback

Rater training

Ratee training

Input into interview process

Appraisal consequences

Different sources (raters)

Page 10: Performance Appraisal Rev

Past-Oriented:

Noncomparative

Critical

incident

Behaviourallyanchored

•Rater records performance statements

•Describes very effective/ineffective behaviour

•Behaviours are placed along a scale

•Looks at specific job-related factors

Rating scale•Oldest and most widely used method

•Subjective i.e. based on the rater’s opinion

•Responses may be given numerical values

•Appraisal based on a test

•Test may be pen & pencil or demonstration

Tests &

observations

Page 11: Performance Appraisal Rev

Past-Oriented: Comparative

Forceddistributions

•Categories are developed

•Employees assigned to categories

Ranking •Employees ranked from best to worst

Page 12: Performance Appraisal Rev

Future-Oriented Methods

Management-by-objectives

Assessmentcentre

•Employee & supervisor jointly establish goals

•Employee is later evaluated on the objectives

•Usually used to evaluate future potential

•Multiple types of evaluation

•Usually used for managers

Self-

Appraisals•Useful to further self-development

•Can be used with any evaluation approach

Page 13: Performance Appraisal Rev

Recent Developments

• 360-degree appraisal

– In line with the trend toward flatter

organizations

– Combination of perspectives e.g. peer,

self, supervisor, client

• Balanced scorecard

– Integrates organizational performance

measures such as financial, customer

satisfaction, internal processes, learning

Page 14: Performance Appraisal Rev

Evaluation Interviews

• Performance review sessions that give

employees feedback about their past

performance or future potential

• Interview should be a positive,

performance-improving dialogue

Page 15: Performance Appraisal Rev

Effective Evaluation

Interviews

• Emphasize positive aspects of employee performance

• Tell each employee the evaluation session is to improve performance not to discipline

• Conduct the performance review session in private without interruptions

• Review performance formally at least annually

• Make criticisms specific, not general and vague

Page 16: Performance Appraisal Rev

Effective Evaluation

Interviews

• Focus criticisms on performance, not on personality

• Stay calm and do not argue with the person being evaluated

• Identify specific actions to improve performance

• Emphasize willingness to assist the employee’s efforts to improve performance

• End the evaluation by stressing positive aspects and reviewing improvement plans


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