human resource management 8

8/3/2019 Human Resource Management 8

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I N S T R U C T O R : H A R O O N A H M A D

R E C O M M E N D E D R E A D I N G : D E S S L E R , G A R Y

1 1 T H E D I T I O N

Human Resource Management


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LECTURE OUTLINE

Performance appraisal

Performance management

Why manage performance?

Why appraise performance?

Appraisal methods

MBO

Problems of performance appraisal The appraisal interview


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It may be defined as a procedure that involves:

Setting work standards

Assessing the employees actual performance relative to thosestandards

Providing feedback to employees with the aim of motivatingthem to eliminate performance deficiencies or continue toperform at par.


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Performance management

Performance management is a process that unitesgoal setting, performance appraisal, anddevelopment into a single common system whoseaim is to ensure that the employee performance issupporting the strategic aims of the company.


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Why performance management?

Total quality

Strategic focus

Continuous improvement

Appraisal issues


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Performance measurement process

Direction sharing

Role clarification

Goal setting and planning

Goal alignment Development

Ongoing performance monitoring

Ongoing feedback

Coaching and support Performance appraisal

Rewards, recognition and compensation

Workflow, process control and ROI management


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Why appraise performance?

Employers base pay and promotional decisions onthe employee appraisals

Play an integral role in performance management

Help the boss and subordinate develop a plan forcorrecting deficiencies

Appraisals serve a useful career planning purpose.


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Appraisals

Realistic

Motivating The fear of having to hire and train someone new

Appraisees unpleasant reactions Candid

Supervisors role

Familiarity with techniques

Understand and avoid problems Knows how to conduct appraisals


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Steps in appraising performance

Define job

Appraise performance

Provide feedback


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What to measure?

Quality

Timeliness of work

Generic dimensions such as communication, teamwork, know-how and quantity

Actual job duties

Competency based appraisals

How to measure? Methodologies


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Methods of performance appraisal

Graphic rating scale method

Simplest and most popular method which lists traits and arange of performance values (from satisfactory to outstanding)for each trait.

The supervisor rates each subordinate

The values are then totaled


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Alteration ranking method

Ranking employees from best to worst on a trait.

First all the subordinates are rated

Then cross out names of any not known well enough to rank

Indicate employee who is the highest on the characteristicbeing measured and also the lowest

Then choose the next lowest and next highest until all havebeen ranked


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Critical incident method

Supervisor keeps a log of positive and negativeexamples/incidents of a subordinates work-related behavior.

The list can be used to eliminate deficiencies

Incidents can be accumulated to relate to employeesperformance.


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Paired comparison method

It helps make the ranking method more precise by comparingevery subordinate with every other subordinate.


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Behaviorally anchored rating scales

It uses a numerical rating scale with specific behavioralexamples of good or poor performance.

It combines critical incidents and graphic rating scales

Generate critical incidents

Develop performance dimensions

Reallocate incidents

Scale the incidents

Develop a final instrument


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Advantages of BARS

Accurate gauge

Clearer standards

Feedback

Independent dimensions Consistency


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Management by objectives (MBO)

It involves setting specific measurable goals witheach employee and then periodically reviewing theprogress.

Set organizational goals

Set department goals

Discuss department goals

Define expected results

Performance reviews

Provide feedback


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MBO

Objectives should be CSMART

It is time consuming

Standards have to be set according to individuals


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Computerized and web-based appraisals

Performance appraisals software

Online appraisals


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Problems of performance appraisals

Unclear standards

Halo effect Effect of one trait on others

Central tendency To rate employees the same way

Leniency or strictness

Supervisor has a tendency to rate all subordinates either low or

high

Bias Individual differences


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How to avoid appraisal problems?

Know problems

Using right tool

Train supervisors

Control outside influences Union pressure

Employee turnover

Time constraints

Keep a diary


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Who should do appraising?

The immediate supervisor

Peer appraisals

Rating committees

Self ratings Appraisals by subordinates Upward feedback

360 degree feedback


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Appraisal interviews objectives Supervisor and subordinate review the appraisal and

make plans to remedy deficiencies and reinforcestrengths.

Satisfactory promotable

Satisfactory not promotable

Unsatisfactory but correctable

Unsatisfactory and uncorrectable


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How to conduct the appraisal interview?

Preparation

Review job description

Compare performance to standards

Review previous appraisals Give atleast a weeks notice

Talk in terms of objective work data

Dont get personal Encourage the person to talk

Dont tiptoe around

human resource management 8

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