Ch 7 - Perfomance Appraisal
Transcript of Ch 7 - Perfomance Appraisal
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PowerPoint Presentation by Charlie Cook
The University of West Alabama
Chapter 9
PerformanceManagement
and Appraisal
Part Three | Training and Development
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W'"(" W" A(" )*W+
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!&!& ,efine performance management and disc#ss how it,efine performance management and disc#ss how it
differs from performance appraisal&differs from performance appraisal&
2&2& -et effective performance appraisal standards&-et effective performance appraisal standards&
.&.& ,escribe the appraisal process&,escribe the appraisal process&
/&/& ,evelop$ eval#ate$ and administer at least fo#r,evelop$ eval#ate$ and administer at least fo#rperformance appraisal tools&performance appraisal tools&
0&0& "1plain and ill#strate the problems to avoid in"1plain and ill#strate the problems to avoid in
appraising performance&appraising performance&
&& ,isc#ss the pros and cons of #sing different raters to,isc#ss the pros and cons of #sing different raters toappraise a person3s performance&appraise a person3s performance&
4&4& Perform an effective appraisal interview&Perform an effective appraisal interview&
LEARNING OUTCOMESLEARNING OUTCOMES
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Basic Concepts inBasic Concepts in
PerformancePerformance
Management and AppraisalManagement and Appraisal
PerformanceAppraisal
Setting workstandards,assessing
performance, andproviding feedback
to employees to
motivate, correct,and continue their
performance.
PerformanceManagement
An integratedapproach to
ensuring that anemployee’sperformancesupports and
contributes to theorganization’sstrategic aims.
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*nline 5ac#lty
"val#ation 5orm
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Dening the Employee’sDening the Employee’s
Goals and Work StandardsGoals and Work Standards
SetSMA!
goals
Assignchallenging
" doablegoals
Assignspeci#c
goals
$uidelines for%&ective
$oal Setting
Assignmeasurable
goals
%ncourageparticipatio
n
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Setting SMA! GoalsSetting SMA! Goals
6 ..pecific$ and clearly state the desired res#lts&pecific$ and clearly state the desired res#lts&
6 //eas#rable in answering 7how m#ch&8eas#rable in answering 7how m#ch&8
6 ttainable$ and not too to#gh or too easy&ttainable$ and not too to#gh or too easy&
6 ++elevant to what3s to be achieved&elevant to what3s to be achieved&
6 TTimely in reflecting deadlines and milestones&imely in reflecting deadlines and milestones&
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An "ntrod#ction to AppraisingAn "ntrod#ction to Appraising
PerformancePerformance
1
%s #sef#l in career planning&
Plays an integral role in performance management&
'hy Appraise Performance(
%s basis for pay and promotion decisions&
'elps in correcting deficiencies and reinforcing good
performance&
2
%
&
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$%n&ealistic Appraisals$%n&ealistic Appraisals
6 Motivations for -oft AppraisalsMotivations for -oft Appraisals
The fear of having to hire and train someone new&The fear of having to hire and train someone new&
The #npleasant reaction of the appraisee&The #npleasant reaction of the appraisee&
An appraisal process that3s not cond#cive to candor& An appraisal process that3s not cond#cive to candor&
6 'a9ards of -oft Appraisals'a9ards of -oft Appraisals "mployee loses the chance to improve before being discharged"mployee loses the chance to improve before being discharged
or forced to change :obs&or forced to change :obs&
;aws#its arising from dismissals involving inacc#rate;aws#its arising from dismissals involving inacc#rate
performance appraisals&performance appraisals&
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Performance Appraisal olesPerformance Appraisal oles
$cont’d&$cont’d&6 The '( ,epartment3s (oleThe '( ,epartment3s (ole -erves a policy=making and advisory role&-erves a policy=making and advisory role&
Provides advice and assistance regarding the appraisalProvides advice and assistance regarding the appraisal
tool to #se&tool to #se&
Trains s#pervisors to improve their appraisal skills&Trains s#pervisors to improve their appraisal skills&
Monitors the appraisal system effectiveness andMonitors the appraisal system effectiveness and
compliance with ""* laws&compliance with ""* laws&
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E'ecti(ely Appraising PerformanceE'ecti(ely Appraising Performance
1
Appraising performance
Steps in AppraisingPerformance
,efining the :ob and performance criteria
Providing feedback session
2
%
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Designing the Appraisal !oolDesigning the Appraisal !ool
6 What to Meas#re>What to Meas#re>
Work o#tp#t ?
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Performance Appraisal MethodsPerformance Appraisal Methods
1
2
%
&
'
lternation raning
)raphic rating scale
Paired comparison
(orced distri"ution
Critical incident
-
9
10
3ehaviorally anchored ratingscales 43+.5
6arrative 7orms
/anagement "y o"8ectives 4/35
Computeri:ed and ;e"
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-ample raphic
(ating Performance
(ating 5orm
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()*+E 9$% *ne %tem from an Appraisal 5orm Assessing "mployee
Performance on -pecific ob=(elated ,#ties
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()*+E 9$& Appraisal 5orm for Assessing Both Competencies and -pecific *b:ectives
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()*+E 9$& Appraisal 5orm for Assessing Both Competencies and -pecific *b:ectives ?cont3d@
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()*+E 9$' -cale for Alternate (anking of Appraisee
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()*+E 9$ (anking "mployees by the Paired Comparison Method
)oteD E means 7better than&8 = means 7worse than&8 5or each chart$ add #p
the n#mber of E3s in each col#mn to get the highest ranked employee&
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T3=E 9$1 "1amples of Critical %ncidents for Assistant Plant Manager
Continuing Duties Targets Critical ncidents-ched#le prod#ctionfor plant
FG #tili9ation ofpersonnel and machineryin plantH orders deliveredon time
%nstit#ted new prod#ctionsched#ling systemH decreasedlate orders by !G last monthHincreased machine #tili9ation inplant by 2G last month
-#pervise proc#rementof raw materials andon inventory control
Minimi9e inventory costswhile keeping ade
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Appraisal=Coaching
Worksheet
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Beha(iorally Anchored ating ScaleBeha(iorally Anchored ating Scale
$BAS&$BAS&,eveloping a BA(-,eveloping a BA(-
!&!& Write critical incidentsWrite critical incidents
2&2& ,evelop performance,evelop performance
dimensionsdimensions
.&.& (eallocate incidents(eallocate incidents
/&/& -cale the incidents-cale the incidents
0&0& ,evelop a final,evelop a final
instr#mentinstr#ment
Advantages of BA(- Advantages of BA(-
A more acc#rate ga#ge A more acc#rate ga#ge
Clearer standardsClearer standards
5eedback5eedback
%ndependent dimensions%ndependent dimensions
ConsistencyConsistency
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"1ample of a
Behaviorally
Anchored (ating
-cale for the
,imensionSalesmanship Skills
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Management )y *)+ecti(es $MB*&Management )y *)+ecti(es $MB*&
6 A comprehensive and formal organi9ationwide A comprehensive and formal organi9ationwide
goal=setting and appraisal program re
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%sing MB*%sing MB*
Setting unclearob)ective
*on+ict withsubordinates
over ob)ectives
Potential Problems withM-
!imeconsumingappraisal process
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Comp#teri,ed and We)-BasedComp#teri,ed and We)-Based
Performance Appraisal SystemsPerformance Appraisal Systems
6 Allow managers to keep notes on s#bordinates& Allow managers to keep notes on s#bordinates&
6 )otes can be merged with employee ratings&)otes can be merged with employee ratings&
6 -oftware generates written te1t to s#pport appraisals&-oftware generates written te1t to s#pport appraisals&
6 Allows for employee self=monitoring and self=eval#ation& Allows for employee self=monitoring and self=eval#ation&
6 "lectronic Performance Monitoring ?"PM@ -ystems"lectronic Performance Monitoring ?"PM@ -ystems Use comp#ter network technology to allow managers access toUse comp#ter network technology to allow managers access to
their employees3 comp#ters and telephones&their employees3 comp#ters and telephones&
Managers can monitor the employees3 rate$ acc#racy$ and timeManagers can monitor the employees3 rate$ acc#racy$ and time
spent working online&spent working online&
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*nline Performance
Appraisal Tool
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Dealing .ithDealing .ith
Performance AppraisalPerformance Appraisal
Pro)lemsPro)lems
/nclearstandards
0eniency orstrictness
1aloe&ect
Potential atingScale Appraisal
Problems
*entraltendency
ias
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T3=E 9$2 A raphic (ating -cale with Unclear -tandards
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G#idelines for E'ecti(e AppraisalsG#idelines for E'ecti(e Appraisals
2now theproblems
$etagreementon a plan
/se theright tool
1ow to AvoidAppraisal Problems
2eep adiary
efair
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T3=E 9$% %mportant Advantages and ,isadvantages of Appraisal Tools
Tool dvantages Disadvantages
)raphic rating scale -imple to #seH provides a
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Choosing the ight Appraisal !oolChoosing the ight Appraisal !ool
Accessibility Accuracy%aseofuse%mployee
acceptance
*riteria for *hoosing anAppraisal !ool
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()*+E 9$10 -elected Best Practices for Administering 5air Performance Appraisals
6 Base the performance review on d#ties and standards from a :ob analysis&
6 Try to base the performance review on observable :ob behaviors or ob:ective
performance data&
6 Make it clear ahead of time what yo#r performance e1pectations are&
6 Use a standardi9ed performance review proced#re for all employees&
6 Make s#re whoever cond#cts the reviews has fre
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()*+E 9$11 #idelines for a ;egally ,efensible Appraisal
!& Preferably$ cond#ct a :ob analysis to establish performance criteria and standards&
2& Comm#nicate performance standards to employees and to those rating them$ in writing&
.& When #sing graphic rating scales$ avoid #ndefined abstract trait names ?s#ch as 7loyalty8 or7honesty8@&
/& Use s#b:ective narratives as only one component of the appraisal&
0& Train s#pervisors to #se the rating instr#ment properly&
& Allow appraisers s#bstantial daily contact with the employees they3re eval#ating&
4& Using a single overall rating of performance is #s#ally not acceptable to the co#rts&I& When possible$ have more than one appraiser$ and cond#ct all s#ch appraisals
independently&
F& *ne appraiser sho#ld never have absol#te a#thority to determine a personnel action&
!& ive employees the opport#nity to review and make comments$ and have a formal appeals
process&
!!& ,oc#ment everythingD Witho#t e1ception$ co#rts condemn informal performance eval#ationpractices that eschew doc#mentation&
!2& Where appropriate$ provide corrective g#idance to assist poor performers in improving&
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Who Sho#ld Do the Appraising/Who Sho#ld Do the Appraising/
Selfrating
Subordinates
345degree
feedback
Potentialppraisers
6mmediatesupervisor
Peers
ating
committee
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!he Appraisal "nter(ie.!he Appraisal "nter(ie.
Satisfactory7Promotable
Satisfactory78ot
Promotable
/nsatisfactory7*orrectable
/nsatisfactory7/ncorrectable
!ypes ofAppraisal6nterviews
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()*+E 9$12 -ample "mployee ,evelopment Plan
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Appraisal "nter(ie. G#idelinesAppraisal "nter(ie. G#idelines
!alk in termsof ob)ectivework data
$etagreement
9on’t getpersonal
%ncouragethe person to
talk
$uidelines for*onductingan 6nterview
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Checklist ,#ring
Appraisal %nterview
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0andling Defensi(e esponses0andling Defensi(e esponses
1
(ecogni9e yo#r own limitations&
)ever attack a person3s defenses&
1ow to 1andle a 9efensive Subordinate
(ecogni9e that defensive behavior is normal&
Postpone action&
2
%
&
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0o. to Deli(er Criticism0o. to Deli(er Criticism
1
2
%
&
'
1ow to *riticize aSubordinate
Critici9e in private$ and do it constr#ctively&
,o it in a manner that lets the person maintain
his or her dignity and sense of worth&
ive daily feedback so that the review has no
s#rprises&
)ever say the person is 7always8 wrong&
Criticism sho#ld be ob:ective and free of biases&
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1ormal Written Warnings1ormal Written Warnings
6 P#rposes of a Written WarningP#rposes of a Written Warning
To shake yo#r employee o#t of bad habits&To shake yo#r employee o#t of bad habits&
To help yo# defend yo#r rating$ both to yo#r own boss and ?ifTo help yo# defend yo#r rating$ both to yo#r own boss and ?if
needed@ to the co#rts&needed@ to the co#rts&
6 A Written Warning -ho#ldD A Written Warning -ho#ldD
%dentify standards by which employee is :#dged&%dentify standards by which employee is :#dged&
Make clear that employee was aware of the standard&Make clear that employee was aware of the standard&
-pecify deficiencies relative to the standard&-pecify deficiencies relative to the standard&
%ndicate employee3s prior opport#nity for correction&%ndicate employee3s prior opport#nity for correction&
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Performance ManagementPerformance Management
6 Performance ManagementPerformance Management
%s the contin#o#s process of identifying$ meas#ring$ and%s the contin#o#s process of identifying$ meas#ring$ and
developing the performance of individ#als and teams anddeveloping the performance of individ#als and teams and
aligning their performance with the organi9ation3s goals&aligning their performance with the organi9ation3s goals&
6 'ow Performance Management'ow Performance Management ,iffers,iffers 5rom5rom
PerformancePerformance Appraisal Appraisal A contin#o#s process for contin#o#s improvement A contin#o#s process for contin#o#s improvement
A strong linkage of individ#al and team goals to strategic goals A strong linkage of individ#al and team goals to strategic goals
A constant reeval#ation and modification of work processes A constant reeval#ation and modification of work processes
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Basic B#ilding Blocks ofBasic B#ilding Blocks of
Performance ManagementPerformance Management
9irectionsharing
$oalalignment
-ngoingperformancemonitoring
ewards,recognition,
andcompensation
*oaching anddevelopment
support
-ngoingfeedback
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Why Performance Management/Why Performance Management/
!otal :uality Management
esolution of Appraisal 6ssues
Strategic $oal Alignment
!he
PerformanceManagement
Approach
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%sing "nformation !echnology to%sing "nformation !echnology to
S#pport Performance ManagementS#pport Performance Management
6 Assign financial and nonfinancial goals to each team3s Assign financial and nonfinancial goals to each team3s
activities along the strategy map chain of activitiesactivities along the strategy map chain of activities
leading #p to the company3s overall strategic goals&leading #p to the company3s overall strategic goals&
6%nform all employees of their goals&%nform all employees of their goals&
6 Use %T=s#pported tools like scorecard software andUse %T=s#pported tools like scorecard software and
digital dashboards to contin#o#sly monitor and assessdigital dashboards to contin#o#sly monitor and assess
each team3s and employee3s performance&each team3s and employee3s performance&
6 Take corrective action at once&Take corrective action at once&
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()*+E 9$1& Performance Management (eport
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2 % ; ! % M S
performance appraisal
graphic rating scalealternation ranking method
paired comparison method
forced distrib#tion method
critical incident method
behaviorally anchored rating scale ?BA(-@
electronic performance monitoring ?"PM@
#nclear standards
halo effect
central tendency
strictnessJleniency
bias
appraisal interview
performance management
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