Dessler Hrm Ppt 09
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Transcript of Dessler Hrm Ppt 09
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GARY DESSLER
HUMAN RESOURCE MANAGEMENT
12thEdition
Part 3 Training and Development
Chapter 9
Performance
Management and
Appraisal
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93
Basic Concepts in Performance
Management 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 employees
performance
supports and
contributes to theorganizations
strategic aims.
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95
Defining the Employees Goals
and Work Standards
Set
SMART
goals
Assign
challenging/
doable goals
Assign
specific
goals
Guidelines for
Effective
Goal Setting
Assign
measurable
goals
Encourageparticipation
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98
(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 thats not conducive to candor
(Honesty, openness)
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.
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910
Performance Appraisal Roles (contd)
The HR Departments 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.
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911
Effectively Appraising Performance
1
Appraising performance
Steps in Appraising Performance
Defining the job and performance criteria
Providing feedback session
2
3
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912
Designing the Appraisal Tool
What to Measure?
Work output (quality and quantity)
Personal competencies
Goal (objective) achievement
How to Measure?
Generic dimensions
Actual job duties
Behavioral competencies
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913
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
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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 employees level of performance
for each trait.
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915
GraphicRating Scalewith Space
forComments
Figure 93
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920
Performance Appraisal Methods (contd)
Alternation ranking method
Ranking employees from best to worst on a particular
trait, choosing highest, then lowest, until all are ranked.
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921
Alternation Ranking Scale
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922
Performance Appraisal Methods (contd)
Paired comparison method
Ranking employees by making a chart of all possible pairs
of the employees for each trait and indicating which is
the better employee of the pair.
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923
Ranking Employees by the
Paired Comparison Method
Figure 97
Note: + means better than. means worse than. For each chart,
add up the number of 1s in each column to get the highest-ranked
employee.
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TABLE 91 Examples of Critical Incidents for Assistant Plant Manager
Continuing Duties Targets Critical Incidents
Schedule production
for 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 machinerymaintenance
No shutdowns dueto faulty machinery
Instituted new preventativemaintenance system for plant;
prevented a machine breakdown by
discovering faulty part
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927
Performance Appraisal Methods (contd)
Narrative Forms All or part of the written appraisal may be in narrative form. The
supervisor is responsible for assessing the employees past
performance and the required areas of improvement. The
supervisors narrative assessment aids the employee in
understanding where his or her performance was good or bad , and
how to improve the performance.
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929
Performance Appraisal Methods (contd)
Behaviorally anchored rating scale (BARS) An appraisal method that combines the benefits of
narratives, critical incidents and quantified scales by
anchoring a rating scale with specific behavioral
examples of good and poor performance.
Developing a BARS:
Generate critical incidents
Develop performance dimensions
Reallocate incidents Scale the incidents
Develop a final instrument
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930
Performance Appraisal Methods (contd)
Advantages of using a BARS
A more accurate gauge
Clearer standards
Feedback
Independent dimensions Consistency
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931
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933
Management by Objectives (MBO)
A comprehensive and formal organizationwide goal-
setting and appraisal program requiring:
1. Setting of organizations goals
2. Setting of departmental goals
3. Discussion of departmental goals
4. Defining expected results (setting individual goals)
5. Conducting periodic performance reviews
6. Providing performance feedback
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934
Using MBO
Setting unclear
objective
Conflict with
subordinates
over objectives
Potential Problems with
MBO
Time-consuming
appraisal process
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935
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 accessto their employees computers and telephones.
Managers can monitor the employees rate, accuracy, and
time spent working online.
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937
Dealing with Performance
Appraisal Problems
Unclear
standards
Leniency or
strictness
Halo
effect
Potential Rating Scale
Appraisal Problems
Central
tendency
Bias
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A Graphic Rating Scale with Unclear
Standards
Note: For example, what exactly is meant by
good, quantity of work, and so forth?
Potential Rating Scale Appraisal Problems
Unclear standards
An appraisal that is too open to interpretation.
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939
Potential Rating Scale Appraisal
Problems (contd)
Halo effect
Occurs when a supervisors rating of a subordinate on
one trait biases the rating of that person on other
traits.
Central tendency
A tendency to rate all employees the same way, such
as rating them all average.
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940
Potential Rating Scale Appraisal
Problems (contd)
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.
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941
Guidelines for Effective Appraisals
Know the
problems
Get
agreement
on a plan
Use the
right tool
How to Avoid
Appraisal Problems
Keep a
diary
Be
fair
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943
Choosing the Right Appraisal Tool
Accessibility AccuracyEase-of-useEmployee
acceptance
Criteria for Choosing an
Appraisal Tool
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946
Who Should Do the Appraising?
Self-rating
Subordinates
360-degree
feedback
PotentialAppraisers
Immediate
supervisor
Peers
Rating
committee
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The Appraisal Interview
SatisfactoryPromotable
SatisfactoryNot Promotable
UnsatisfactoryCorrectable
UnsatisfactoryUncorrectable
Types of AppraisalInterviews
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949
Appraisal Interview Guidelines
Talk in terms
of objective
work data
Get
agreement
Dont get
personal
Encourage
the person to
talk
Guidelines for Conducting
an Interview
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951
Handling Defensive Responses
1
Recognize your own limitations.
Never attack a persons defenses.
How to Handle a Defensive Subordinate
Recognize that defensive behavior is normal.
Postpone action.
2
3
4
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952
How to Deliver Criticism
1
2
3
4
5
How to Criticize a Subordinate
Criticize in private, and do it constructively.
Do it in a manner that lets the person maintain
his or her dignity and sense of worth.
Give daily feedback so that the review has no surprises.
Never say the person is always wrong.
Criticism should be objective and free of biases.
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953
The Appraisal Interview (contd)
How to ensure the interview leads to improved
performance
Dont make the subordinate feel threatened during the
interview.
Give the subordinate the opportunity to present his or
her ideas and feelings and to influence the course of the
interview.
Have a helpful and constructive supervisor conduct the
interview.
Offer the subordinate the necessary support for
development and change.
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954
Formal Written Warnings
Purposes of a Written Warning
To shake your employee out of bad habits.
To help you defend your rating, both to your own boss
and (if needed) to the courts.
A Written Warning Should:
Identify standards by which employee is judged.
Make clear that employee was aware of the standard.
Specify deficiencies relative to the standard.
Indicate employees prior opportunity for correction.
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955
Creating the Total Performance
Management Process
What is our strategy and what are our goals?
What does this mean for the goals we set for
our employees, and for how we train, appraise,promote, and reward them?
What will be the technological support
requirements?
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956
Performance Management
Performance Management
Is the continuous process of identifying, measuring, and
developing the performance of individuals and teams and
aligning their performance with the organizations goals.
How Performance Management Differs FromPerformance Appraisal
A continuous process for continuous improvement
A strong linkage of individual and team goals to strategicgoals
A constant reevaluation and modification of work processes
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957
Basic Building Blocks of
Performance Management
Direction SharingGoal
Alignment
Ongoing
Performance
Monitoring
Rewards,
Recognition, and
Compensation
Coaching and
Development
Support
Ongoing
Feedback
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958
Why Performance Management?
Total Quality Management
Resolution of Appraisal Issues
Strategic Goal Alignment
The
PerformanceManagement
Approach
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959
Using Information Technology to
Support Performance Management
Assign financial and nonfinancial goals to each
teams activities along the strategy map chain of
activities leading up to the companys overall
strategic goals. Inform all employees of their goals.
Use IT-supported tools like scorecard software and
digital dashboards to continuously monitor andassess each teams and employees performance.
Take corrective action at once.
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K E Y T E R M S
performance appraisal
graphic rating scalealternation ranking method
paired comparison method
forced distribution method
critical incident methodbehaviorally anchored rating scale (BARS)
electronic performance monitoring (EPM)
unclear standards
halo effect
central tendency
strictness/leniency
bias
appraisal interview