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Welcome toTechniques for Appraising PerformanceDyah Pramanik, MM
HUMAN RESOURCES DEVELOPMENTTechniques for Appraising PerformanceDyah Pramanik, MM
[ ]
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
8–2
PPT 5_2_a
HUMAN RESOURCES DEVELOPMENT: Te c h n iqu e s f o r Apprai s in g Pe r f o rm an c e
8–3
LEARNING OUTCOMES1. Define performance management
and discuss how it differs from performance appraisal.
2. Set effective performance appraisal standards.
3. Describe the appraisal process.4. Develop, evaluate, and administer at
least four performance appraisal tools.
1. Define performance management and discuss how it differs from performance appraisal.
2. Set effective performance appraisal standards.
3. Describe the appraisal process.4. Develop, evaluate, and administer at
least four performance appraisal tools.
9–4
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.
9–5
FIGURE 9–1Online FacultyEvaluation Form
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Defining the Employee’s Goals and Work Standards
Set SMART goals
Assign challenging/ doable goals
Assign specific
goals
Assign measurable
goals
Encourage participation
Guidelines for Effective
Goal Setting
9–7
Setting SMART Goals
SMART
pecific, and clearly state the desired results.
easurable in answering “how much.”
ttainable, and not too tough or too easy.
elevant to what’s to be achieved.
imely in reflecting deadlines and milestones.
9–8
An Introduction to Appraising Performance
1
Is useful in career planning.
Plays an integral role in performance management.
Why Appraise Performance?
Is basis for pay and promotion decisions.
Helps in correcting deficiencies and reinforcing good performance.
2
3
4
9–9
(Un)Realistic Appraisals
• Motivations for Soft Appraisals• The fear of having to hire and train someone
new.• The unpleasant reaction of the appraisee.• An appraisal process that’s not conducive to
candor.• Hazards of Soft Appraisals• Employee loses the chance to improve before
being discharged or forced to change jobs.• Lawsuits arising from dismissals involving
inaccurate performance appraisals.
Performance Appraisal Roles
9–11
The Supervisor’s Role
• Usually do the actual appraising
• Must be familiar with basic appraisal techniques
• Must understand and avoid problems that can cripple appraisals
• Must know how to conduct appraisals fairly
9–12
The HR Department’s Role • Serves a policy-making and
advisory role.• Provides advice and
assistance regarding the appraisal tool to use.
• Trains supervisors to improve their appraisal skills.
• Monitors the appraisal system effectiveness and compliance with EEO laws.
9–13
Effectively Appraising Performance
1
Appraising performance
Steps in Appraising Performance
Defining the job and performance criteria
Providing feedback session
2
3
9–14
Designing the Appraisal ToolWhat to Measure?
• Work output (quality and quantity)
• Personal competencies• Goal (objective)
achievement
How to Measure?• Generic dimensions• Actual job duties• Behavioral competencies
9–15
Performance Appraisal Methods
1
2
3
4
5
Alternation ranking
Graphic rating scale
Paired comparison
Forced distribution
Critical incident
6
7
8
9
10
Behaviorally anchored rating scales (BARS)
Narrative forms
Management by objectives (MBO)Computerized and Web-based performance appraisal
Merged methods
Appraisal Methodologies
9–16
FIGURE 9–2Sample Graphic Rating Performance Rating Form
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FIGURE 9–3 One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties
FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives
FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d)
FIGURE 9–5 Scale for Alternate Ranking of Appraisee
9–21
FIGURE 9–6 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.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
9–22
TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical Incidents
Schedule productionfor plant
90% utilization of personnel and machinery in plant; orders delivered on time
Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month
Supervise procurement of raw materials and on inventory control
Minimize inventory costs while keeping adequate supplies on hand
Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under-ordered part “C” by 30%
Supervise machinery maintenance
No shutdowns due to faulty machinery
Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part
FIGURE 9–7Appraisal-Coaching Worksheet
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Behaviorally Anchored Rating Scale (BARS)
Developing a BARS1. Write critical incidents2. Develop performance
dimensions3. Reallocate incidents4. Scale the incidents5. Develop a final instrument
Advantages of BARS• A more accurate gauge• Clearer standards• Feedback• Independent dimensions• Consistency
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
9–25
FIGURE 9–8Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills
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Management by Objectives (MBO)
1. Setting of organization’s goals2. Setting of departmental goals3. Discussion of departmental goals4. Defining expected results (setting individual goals)5. Conducting periodic performance reviews6. Providing performance feedback
A comprehensive and formal organization wide goal-setting and appraisal program requiring:
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
9–27
Using MBO
Setting unclear objective
Conflict with subordinates over
objectives
Time-consuming appraisal process
Potential Problems with MBO
9–28
Computerized and Web-Based Performance Appraisal Systems
§ Allow managers to keep notes on subordinates.§ Notes can be merged with employee ratings.§ Software generates written text to support
appraisals.§ Allows for employee self-monitoring and self-
evaluation.§ Electronic Performance Monitoring (EPM) Systems• Use computer network technology to allow managers
access to their employees’ computers and telephones.• Managers can monitor the employees’ rate, accuracy,
and time spent working online.
9–29
FIGURE 9–9Online Performance Appraisal Tool
8–30
K E Y T E R M S
§ performance appraisal§ graphic rating scale§ alternation ranking method§ paired comparison method§ forced distribution method§ critical incident method§ behaviorally anchored rating
scale (BARS)§ electronic performance
monitoring (EPM)
§ unclear standards§ halo effect§ central tendency§ strictness/leniency§ bias§ appraisal interview§ performance management
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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall