performance appraisals and management
TRANSCRIPT
Human Resource Management
Performance Appraisal and Performance Management
Performance appraisal Evaluating an employee’s current and/or
past performance relative to his or her performance standards.
Performance management The process employers use to make sure
employees are working toward organizational goals.
Difference between PM and PA
Processes used to identify,encourage,
measure,evaluate, improve, and reward employee performance.
The process of evaluating howwell employees perform their jobs and then communicating that information to the employees.
Performance appraisal
DefinitionsAccording to Newstrom, “It is the process of
evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
MeaningPerformance appraisal is the step where the
management finds out how effective it has been at hiring and placing employees.
A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
WHY THE PERFORMANCE Appraising Appraisals play an integral role in the
employer’s performance management process. Appraisals help in planning for correcting
deficiencies and reinforce things done correctly. Appraisals, in identifying employee strengths
and weaknesses, are useful for career planning Appraisals affect the employer’s salary raise
decisions.
Benefits of Performance Appraisal
Continuous improvement A management philosophy that requires
employers to continuously set and relentlessly meet ever-higher quality, cost, delivery, and availability goals by: Eradicating the seven wastes:
overproduction, defective products, and unnecessary downtime, transportation, processing costs, motion, and inventory.
Requiring each employee to continuously improve his or her own personal performance, from one appraisal period to the next.
Performance Appraisal Roles
Supervisors 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.
Performance Appraisal Roles (cont’d) HR department
Serves a policy-making and advisory role. Provides advice and assistance regarding
the appraisal tool to use. Prepares forms and procedures and insists
that all departments use them. Responsible for training supervisors to
improve their appraisal skills. Responsible for monitoring the system to
ensure that appraisal formats and criteria comply with EEO laws and are up to date.
Steps in Appraising Performance1.Defining the job
Making sure that you and your subordinate agree on his or her duties and job standards.
2.Appraising performance Comparing your subordinate’s actual performance
to the standards that have been set; this usually involves some type of rating form.
3.Providing feedback Discussing the subordinate’s performance and
progress, and making plans for any development required.
Designing the Appraisal Tool
What to measure? Work output (quality and quantity) Personal competencies Goal (objective) achievement
How to measure? Graphic rating scales Alternation ranking method MBO
Performance Appraisal Methods
Performance Appraisal Methods
Graphic rating scale A scale that lists a number of traits
and a range of performance for each that is used to identify the score that best describes an employee’s level of performance for each trait.
Graphic Rating
Scale with Space for Comment
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Figure 9–3
Comparative methodsRanking
A listing of all employees from highest to lowest in performance.
Drawbacks Does not show size of differences in
performance between employees Implies that lowest-ranked employees
are unsatisfactory performers. Becomes difficult process if the group to
be ranked is large.
Forced-Choice Method A trait approach to performance appraisal that requires the
rater to choose from statements designed to distinguish between successful and unsuccessful performance. Similar to grading on a curve; predetermined
percentages of rates are placed in various performance categories.
Example: 15% high performers 20% high-average performers 30% average performers 20% low-average performers 15% low p
Behavioral /Objective methods
Behavioral Rating Approach Assesses employees’ behaviors instead of other
characteristicsConsists of a series of scales created by:
Identifying important job dimensions Creating statements describing a range of
desired and undesirable behaviors (anchors)Type of behavioral scale
Behaviorally anchored rating scales (BARS)BARS is an appraisal tool that anchors numerical
rating scale with specific examples of good or poor performance.
Behavioral /Objective methodsManagement by Objectives
Specifying the performance goals that an individual and his or her manager agree that employee will try to attain within an appropriate length of time.
Key MBO Ideas Employee involvement creates higher levels of
commitment and performance. Encourages employees to work effectively toward
achieving desired results. Performance measures should be measurable and
should define results.
Narrative MethodsCritical Incident
Manager keeps a written record of highly favorable and unfavorable employee actions.
Drawbacks Variations in how managers define a
“critical incident” Time involved in documenting employee
actions Most employee actions are not observed
and may become different if observed
Narrative Methods(contd..)
Essay Manager writes a short essay describing an
employee’s performance.Drawback
Depends on the managers’ writing skills and their ability to express themselves.
360 Feed Back SystemA system of collecting performance information from multiple parties.
Multiple parties include one’s subordinates peers, supervisors and customers
It is also used to design promotion and reward.
360 degree performance appraisal
Potential Rating Scale Appraisal Problems
Unclear standards An appraisal that is too open to interpretation.
Halo effect Occurs when a supervisor’s rating of a subordinate
on one trait biases the rating of that person on other traits.
For example, supervisors often rate unfriendly employees lower than the others, on all traits.
Central tendency A tendency to rate all employees the same way,
such as rating them all average.
Potential Rating Scale Appraisal Problems (cont’d)
Strictness/leniency The problem that occurs when a supervisor
has a tendency to rate all subordinates either high or low.
Bias The tendency to allow individual differences
such as age, race, and sex to affect the appraisal ratings employees receive.
How to Avoid Appraisal Problems
Learn and understand the potential problems, and the solutions for each.
Use the right appraisal tool. Each tool has its own pros and cons.
Train supervisors to reduce rating errors such as halo, leniency, and central tendency.
Have raters compile positive and negative critical incidents as they occur.
Who Should Do the Appraising?
The immediate supervisor Peers Rating committees Self-ratings Subordinates 360-Degree feedback
Performance MANAGEMENT
Main Purposes of Performance Management
Individual Rewards (Base and Incentive) Feedback for Sub-Ordinate (Plus and Minus) Recognition of Superior Performance Documentation of Weak Performance Personnel Decision-Making Future Goal Commitments (Planned
Achievements)
Why Performance Management? Increasing use by employers of performance
management reflects:
The popularity of the total quality management (TQM) concepts.
The belief that traditional performance appraisals are often not just useless but counterproductive.
The necessity in today’s globally competitive industrial environment for every employee’s efforts to focus on helping the company to achieve its strategic goals.
Sources Of Performance Management
Managers Have the ability to rate employees Feedback from MANAGERS is strongly related to
performance Peers
Co-worker Expert knowledge of job requirement Observe employee daily! Bring a different perspective in the evaluation
process - provide extremely valid assessment of performance
Useful esp. if supervisor does not always observe employee (e.g. law enforcement)
Sources Of Performance Management
Subordinates Evaluation of managers UPWARD FEEDBACK
Self Not often used Observe own behaviour
Customers Often the only best person to observe employee
performance BEST source of information Customer evaluation sheet Random mail surveys Telephone survey
Performance Management: A four step process
Step 1: Performance Planning and Communication
Step 2: Coaching/Feedback
Step 3: Performance Review
Step 4: Staff Development
The Components of an Effective Performance Management Process
Direction sharing Role clarification Goal alignment Developmental goal setting Ongoing performance monitoring Ongoing feedback Coaching and support Performance assessment (appraisal) Rewards, recognition, and compensation Workflow and process control and return
Objective setting: Be sure it’s S.M.A.R.T. Specific Measurable Achievable Results Oriented Time bound