Strategy for Human Resource Management Lecture 21 HRM 765.
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Transcript of Strategy for Human Resource Management Lecture 21 HRM 765.
![Page 1: Strategy for Human Resource Management Lecture 21 HRM 765.](https://reader035.fdocuments.net/reader035/viewer/2022071705/56649d0b5503460f949df59d/html5/thumbnails/1.jpg)
Strategy for Human Resource Management
Lecture 21
HRM 765
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Last Lecture
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
• Performance Management System• The performance management systems need to include:
– decisions about who should evaluate performance
– what format should be used
– how the results should be utilized
• The Appraisal Process• Difficulties in Performance Management Systems
Three approaches:• Absolute standards• Relative standards• Objectives
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Topic
Establishing the Performance Management System
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort Appraisals
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort Appraisals
• Leniency error – Each evaluator has his/her own value system. – Some evaluate high (positive leniency) and
others, low (negative leniency).
• Halo error: Evaluator lets an assessment of an individual on one trait influence evaluation on all traits.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort Appraisals
• Similarity error: Evaluator rates others in the same way that the evaluator perceives him or herself.
• Low appraiser motivation: Evaluators may be reluctant to be accurate if important rewards for the employee depend on the results.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort Appraisals
• Central tendency: The reluctance to use the extremes of a rating scale and to adequately distinguish among employees being rated.
• Inflationary pressures: Pressures for equality and fear of retribution for low ratings leads to less differentiation among rated employees.
• Inappropriate substitutes for performance: Effort, enthusiasm, appearance, etc. are less relevant for some jobs than others.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort AppraisalsAttribution Theory • Evaluations are affected based on
whether someone’s performance is due to– internal factors they can control– external factors which they cannot
• If poor performance is attributed to internal control, the judgment is harsher than when it is attributed to external control.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Factors that can Distort Appraisals
• Impression management:
• If employee positively influences the relationship with the supervisor, he/she is likely to receive a higher rating.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Use Behavior-Based Measures:
• Measures based on specific descriptions of behavior are more job-related and elicit more inter-rater agreement than traits, such as “loyalty” or “friendliness”.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Combine Absolute and Relative Standards:
• Absolute standards tend to be positively lenient; relative standards suffer when there is little variability.
• Combining the standards tends to offset the weaknesses of each.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Provide Ongoing Feedback:
• Expectations and disappointments should be shared with employees on a frequent basis.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Use Multiple Raters:• Increasing the number of raters leads to more
reliable and valid ratings. – Use peer evaluations: Coworkers offer constructive
insights and more specific evaluations.– Upward appraisals allow employees to give their
managers feedback. – 360-Degree appraisals: Supervisors, peers,
employees, team members, customers and others with relevant information evaluate the employee.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Rate Selectively– Appraisers only evaluate in those areas about
which they have sufficient knowledge. – Appraisers should be organizationally as
close as possible to the individual being evaluated.
– More effective raters are asked to do the appraisals.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Train Appraisers:
• Untrained appraisers who do poor appraisals can demoralize employees and increase legal liabilities.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Creating More Effective Performance Management Systems
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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International Performance Appraisal
• Who performs the evaluation?
– Different cultural perspectives and expectations between the parent and local country may make evaluation difficult.
– Evaluation forms may not be translated accurately.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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International Performance Appraisal
• Evaluation Formats – May make sense to use different forms for
parent-country nationals and host-country nationals.
– Performance criteria for a particular position should be modified to fit the overseas position and site.
– Include a current expatriate’s insights as part of the evaluation.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Summary
• Factors that can Distort Appraisals– Leniency error – Halo error– Similarity error– Low appraiser motivation– Central tendency– Inflationary pressures– Inappropriate substitutes for performance– Attribution Theory – Impression management
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
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Summary
• Creating More Effective Performance Management Systems– Use Behavior-Based Measures– Combine Absolute and Relative Standards– Provide Ongoing Feedback– Use Multiple Raters– Rate Selectively– Train Appraisers
International Performance Appraisal
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins