HRM Dessler 9 Appraisal

Dessler 2013

Chapter 9: Performance Management & Appraisal

App

CBEB 1104Human Resource Management

Lecture 7

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall


Learning Objectives

1. Define performance management and discuss how it differs from performance appraisal.

2. Describe the appraisal process.

3. Set effective performance appraisal standards.

4. Develop, evaluate, and administer at least four performance appraisal tools.

Chapter 9-2


Learning Objectives



Learning Objectives

5. Explain and illustrate the problems to avoid in appraising performance.

6. Discuss the pros and cons of using different raters to appraise a person’s performance.

7. Perform an effective appraisal interview.

Chapter 9-3


Define performance management and discuss

how itdiffers from performance

appraisal.

Chapter 9-4

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9–5

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.


Describe the appraisal process.

Chapter 9-6

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

9–7

Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

2

3


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

5Identify training and development needs.


Set effective performance appraisal standards.

Chapter 9-9


Setting SMART Goals• Specific, and clearly state the desired results.

• Measurable in answering “how much.”

• Attainable, and not too tough or too easy.

• Relevant to what’s to be achieved.

• Timely in reflecting deadlines and milestones.


Defining the Employee’s Goals and Work Standards

Set SMART goals

Assign challenging

/ doable goals

Assign specific

goals

Guidelines for Effective

Goal Setting

Assign measurable

goals

Encourage participatio

n


Employee’s Goals and

Performance Standards

• Basing appraisal standards on required competencies

• The role of job descriptions

Chapter 9-12


Who Should Do the Appraising?

Self-rating

Subordinates

360-degree feedback

Potential Appraisers

Immediate supervisor

Peers

Rating committee


Develop, evaluate, and administer at least four

performance appraisal tools.

Chapter 9-14


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

FIGURE 9–3Sample Graphic Rating Performance Rating Form


FIGURE 9–4One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall9–18

FIGURE 9–5Appraisal Form for Assessing Both Competencies and Specific Objectives


FIGURE 9–5 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d)


FIGURE 9–6Scale for Alternate Ranking of Appraisee


FIGURE 9–7Ranking 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.


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–/8Appraisal-Coaching Worksheet


Behaviorally Anchored Rating Scale (BARS)

Developing a BARS

1. Write critical incidents

2. Develop performance dimensions

3. Reallocate incidents

4. Scale the incidents

5. Develop a final instrument

Advantages of BARS

A more accurate gauge

Clearer standards

Feedback

Independent dimensions

Consistency


FIGURE 9–9Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills


Mixed Standard Scales

• Similar to BARS, but list only a few behavioural examples (about 3 – high/medium/low) as opposed to 5-10

• Mix the “good” and “bad” behavioural examples, as opposed to “good” to “bad”

• Examine several performance dimensions (e.g. Quality of Work, Conscientiousness, Gets Along with others)

• Mix for statements across dimensions.

• “Ideal answer” less obvious


Management by Objectives (MBO)

• A comprehensive and formal organizationwide goal-setting and appraisal program requiring:

1. Setting of organization’s 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


Using MBO

Setting unclear objective

Conflict with subordinates

over objectives

Potential Problems with MBO

Time-consuming appraisal process


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) Systemso Use computer network technology to allow managers

access to their employees’ computers and telephones.o Managers can monitor the employees’ rate, accuracy, and

time spent working online (e.g. data entry staff)o Can induce Stress - monitored


Explain and illustrate the problems to avoid in

appraising performance.

Chapter 9-30


Dealing with Performance Appraisal Problems

Unclear standards

Leniency or strictness

Halo effect

Potential Rating Scale Appraisal

Problems

Central tendency

Bias


TABLE 9–2 A Graphic Rating Scale with Unclear Standards


Discuss the pros and cons of using different

raters to appraise a person’s performance.

Chapter 9-33


9–34

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


TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages

Graphic rating scale Simple to use; provides a quantitative rating for each employee.

Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems.

BARS Provides behavioral “anchors.” BARS is very accurate.

Difficult to develop.

Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales.

Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent.

Forced distribution method

End up with a predetermined number or % of people in each group.

Employees’ appraisal results depend on your choice of cutoff points.

Critical incident method

Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis.

Difficult to rate or rank employees relative to one another.

MBO Tied to jointly agreed-upon performance objectives.

Time-consuming.


Perform an effective appraisal interview.

Chapter 9-36


The Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable

Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

Types of Appraisal Interviews


Appraisal Interview Guidelines

Talk in terms of objective work data

Get agreement

Don’t get personal

Encourage the person to

talk

Guidelines for Conducting an Interview


Handling Defensive Responses

1

Recognize your own limitations.

Never attack a person’s defenses.

How to Handle a Defensive Subordinate

Recognize that defensive behavior is normal.

Postpone action.

2

3

4


9–40

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.


Formal Written Warnings

• Purposes of a Written Warningo To shake your employee out of bad habits.

o To help you defend your rating, both to your own boss and (if needed) to the courts.

• A Written Warning Should:o Identify standards by which employee is judged.

o Make clear that employee was aware of the standard.

o Specify deficiencies relative to the standard.

o Indicate employee’s prior opportunity for correction.


Performance Management

• Performance Management

o Is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals.

• How Performance Management Differs From Performance Appraisal

o A continuous process for continuous improvement

o A strong linkage of individual and team goals to strategic goals

o A constant reevaluation and modification of work processes


Basic Building Blocks of Performance Management

Direction sharing

Goal alignment

Ongoing performance monitoring

Rewards, recognition,

and compensation

Coaching and development

support

Ongoingfeedback

Tutorial and RemindersTutorial 7 (Week 8):

Carter Cleaning Company (page 341)

Questions 1 and 2

Have a good semester break

– See you after the break –

REFRESHED, REENERGIZED AND READY

TO LEARN MORE THINGS ON H.R.M.

1–44


All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Chapter 9-45

HRM Dessler 9 Appraisal

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