Performance Appraisals 1.ppt

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Performance Management

Transcript of Performance Appraisals 1.ppt

Strategies for Effective Performance Appraisal Systems

Performance Appraisals Performance appraisals are useful tool not only for evaluating the work of employees but also for developing and motivating employees. Performance appraisals can be thought of as means to verify that individuals are meeting performance standards that have been set.

Strategic Choices Managers should decide on the objectives and purpose for the performance appraisal. Managers can choose between formal and informal procedures for the performance appraisal. Performance appraisal formats can emphasize more objectivity versus subjectivity. Managers must decide on the frequency of the performance appraisals. Managers must decide who conducts the performance appraisal.

Performance Appraisal Objectives To determine who should be promoted, demoted, transferred, or terminated. To determine who needs formal training and development opportunities. To motivate and improve performance. Encourage individuals to work together as a team.

Who Conducts The Performance Appraisal ? The most common evaluator is the employees immediate supervisor. More than 90 percent of all performance appraisals are completed only by the immediate supervisor. Co workers may evaluate their peers performance. If the contact between supervisor and employee is limited organizations may chose to encourage Peer evaluation.

Who Conducts The Performance Appraisal ? Employees are given the opportunity to assess their own performance. This is also called Self Rating or Self evaluation. Subordinates are valuable sources of information when examining the performance supervisory employees. Computers-aided management involves the use of computer to monitor , supervise and evaluate employee performance electronically.

Formal Versus Informal Performance Appraisal

Formal performance appraisals usuallyoccur at specified time periods once or twice a year to evaluate employees performance.

Informal performance appraisals canoccur whenever the supervisor communication is needed. feels

Other Performance Feedback Systems Peers Only effective when political considerations and consequences are minimized, and employees have sense of trust Subordinates Insights into interpersonal and managerial styles Excellent measures of individual leadership capabilities Same political problems as peer evaluations Customers Feedback most free from bias

Other Performance Feedback Systems Self-evaluations Allow employees to participate in critical employment decisions More holistic assessment of performance Multi-rater systems or 360-degree feedback systems Can be very time-consuming More performance data collected, greater overall facilitation of assessment and development of employee Costly to collect and process Consistent view of effective performance relative to strategy

Types Of Performance Appraisal Methods Behavioral Performance Appraisal Methods. Check lists Weighted Check list Graphic Rating Scale Mixed-Standard Scale Critical Incident Method Behaviorally Anchored Rating Scale (BARS)

Checklists Checklist is a list of descriptive statements describing job related behavior. If Evaluator perceives the employee as possessing this trait, the item is checked. If Evaluator does not perceive the employee as possessing this trait the item is left blank. Each item listed reflects either a positive or negative quality that an employee could possess.

Example Of A Checklist Appraisal Form Asks for assistance when encountering problems. Maintains good relations with other workers. Take initiatives when faced with a new situation. Requires an excessive amount of instructions when confronted with a new situation. Continually meets deadlines.

Weighted Checklists A checklist evaluation that each response then summed rating. used for performance places weighted values on the weighted response are up to provide an overall

Example Of A Weighted Checklist Is asked for advise by others Follows directions well Does not work well in groups Works well without supervision Continually misses deadlines Treats others fairly 3.0 2.0 -1.0 2.5 -2.0 1.0

Graphic Rating Scale Most widely used performance evaluation formats. Evaluators can rate a large number of individuals in a short amount of time. Simple to develop and change when needed. Easy to understand and explain to ratees.

Example of Graphic Rating Scales1----2----3----4----5----6----7----8----9 Poor Exceptional ---------------------------------------------Needs Improvement Outstanding

1----------------2-------------------3------------------4--------------------5 Inadequate Below Average Average Above Average


Mixed Standard Scale Variation of a graphic rating scale. Instead of rating a behavior such as attendance the evaluator is given three conceptually compatible statements describing the behavior at High Medium and Low levels.

Example Of A Mixed Standard Format + This employees performance is better than the behavior described. 0 This employees performance is as good as the behavior described. This employees performance is worse than the behavior described.


Always at work unless a critical emergency has arisen. Always volunteers for difficult assignments. Misses work less than twice a month. Mistakes are present in virtually all work completed by this individual. Requests only assignments he or she has performed in the past. While rare, corrections sometimes must be made to work submitted. Will take on challenging assignments if required to do so. Has more than two absences a week. Assignments are always accurate.

Critical Incident Method It is a written description of a highly effective or highly ineffective performance. The evaluator keeps a journal of critical incidents for each individual being evaluated. Incidents to be recorded as soon as they happens.

Behaviorally Anchored Rating Scale (BARS) BARS is a sophisticated method of evaluating employee performance based on employee behavior rather than attitudes or assumptions about motivation or potential. BARS is a difficult and time consuming scale to develop. Each job must be analyzed and a list of critical incidents developed by experts in the job.

Behavioral Observation Scale (BOS)

Types Of Performance Review Closed Reporting. A method of performance review in which the appraisee has very little input into the discussion. Open Reporting. A method of performance review in which after the reporting is complete the appraiser listens to the reactions of the appraisee. Coaching. A method of performance review in which the appraisee evaluates his or her own performance which the appraiser serves as coach not a critic.

Tips for a Successful Performance Review Give the employee fair notice about when the review is to take place. Ask the employee to think and evaluate his or her own performance prior to the review session. Prepare for the review by examining information and seek additional information if needed. Begin the session on a positive tone to set the employee at ease. Explain the format of the performance review session.

Tips for a Successful Performance Review Make the employee aware of the uses of performance appraisal results. If needed set a second meeting to discuss non-performance related issues. Encourage the employee to participate. Review the standards to which the employee will be compared. Make sure to praise the employee for his or her accomplishments during the evaluation period.

Tips for a Successful Performance Review High light but do not dwell on areas in which performance did not meet the standards. Discuss ways to improve performance in the areas in which the employee was weak. Make sure that the employee fully understands the appraisal. End the discussion on a positive note.

Perceptual Errors In Evaluation Halo Effect Stereotyping Attributions Recency Effects Leniency/Strictness Errors Central Tendency Errors

Halo Effect The halo effect occurs when the rater allows one trait or characteristic either positive or negative of the employee to override a realistic appraisal of other traits or characteristics.

Stereotyping Stereotyping occurs when the rater places an employee into a class or category based on one or a few traits or characteristics. For example an old worker may be stereotyped as being slower, more difficult to train and unwilling to learn approaches.

Attributions Another perceptual error that can effect the validity of the performance appraisal involves the attributions the rater makes about employee behavior. Making an attribution means to assign causation for another's behavior. For example attribute an employees good performance to external or internal causes such as luck. Holding an easy job, or receiving help from co workers.

Recency Effects Recency errors occur when performance is evaluated based on performance information that occurred most recently. Recency errors are most likely to occur when there is a long period of time between performance evaluations (such as a year).

Leniency/Strictness Error These errors occurs when the rater tends to use one of the extremes of a rating scale. In Leniency most of the employees receive very favorable ratings. Strictness error occurs when the rater erroneously evaluates most employees unfavorably as raters simply wants to appear tough or they may have unrealistic expectations of performance.

Central Tendency Errors Central tendency error occurs when the rater avoids the extremes of the performance scale and evaluates most employees somewhere near the middle of the scale. This error results in most employees being rated as Average.

Common Problems