Chapter 7

Chapter 7

Appraising and Managing Performance

CHAPTER OVERVIEW An important function of effective management is accurate measurement of employee performance. This chapter discusses the foundation, design, and implementation of performance measurement systems. In addition, it describes the principles of effective performance management so that the reader will have an understanding of how to create a positive appraisal environment.

OUTLINE

I. What Is Performance Appraisal? The identification, measurement, and management of human performance in organizations. Organizations usually conduct appraisals for administrative and/or developmental purposes.

II. Identifying Performance Dimension The first step is to identify what is to be measured. Dimension is an aspect of performance that determines effective job performance. An increasingly popular approach to identifying performance dimensions focuses on competencies, the observable characteristics people bring with them in order to perform the job successfully. The set of competency associated with a job is often referred to as a competency.

A. Measuring Performance To measure employee performance, managers can assign a number or label, but it is often difficult to quantify performance dimensions.

B. Measurement Tools Managers can use a wide array of appraisal formats and they can be classified in two ways:(1) By the type of judgment that is required (relative or absolute.)

(a.) Relative Judgment-An appraisal format that asks supervisors to compare an employee’s performance to the performance of other employees doing the job.

(b.) Absolute Judgment-An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards.(2)By the focus of the measure (trait, behavior, or outcome.)

(a.) Trait Appraisal Instruments-An appraisal tool that ask a supervisor to make judgments about workers characteristics and enduring.

Student Name Steven Paul Assignment 7 October 24, 2011

(b.) Behavioral Appraisal Instrument-An appraisal tool that asks managers to assess a worker’s behaviors.

(c.) Outcome Appraisal Instrument-An appraisal tool that asks managers to assess the results achieved by workers.

C. Challenges to Effective Performance Management

The primary means is to understand the barriers that stand in the way. Managers confront at least five challenges in this area.

1. Rater errors and bias2. The influence of liking3. Organizational politics4. Whether to focus on the individual or group5. Legal issues

III. Managing Performance

A complete appraisal process includes informal day-to-day interactions between managers and workersas well as formal face-to-face interviews. Although the ratings themselves are important, even more critical is what managers do with them.

A. The Appraisal Interview After completing the performance rating, the supervisor conducts an interview with the worker to provide feedback. This sometimes can be completed in two sessions.

B. Appraisal Instruments See above

C. Performance Improvement

Because formal appraisal interviews typically are conducted only once a year, they may not always have a substantial and lasting impact on worker performance. Thus, supervisors who manage performance effectively generally share four characteristics.

1. Explore the causes of performance problems.2. Direct attention to the causes of problems.3. Develop an action plan and empower workers to reach a solution.4. Direct communication at performance and provide effective feedback.

2. Superficially, it seems preferable to use objective performance data (such as productivity figures), when available, rather than subjective supervisory ratings to assess employees. Why might objective data be less effective performance measures than subjective ratings?

Chapter 7

Objective data might be less effective than subjective ratings because it may not correctly correspond to an employee's performance.

3. How important are rating formats to the quality of performance ratings? What is the most important influence on rating quality?The rating formats are not as important as the appraisal’s primary purpose. And the most important influence is the person doing the rating.

4. What is comparability? How can it be maximized in performance appraisal?Comparability is the degree to which the performance ratings given by various supervisors in an organization are based on similar standards. It can be maximized by developing and communicating evaluation standards to deal with errors and bias via frame-of-reference (FOR) training.

5. "Occasionally an employee comes along who needs to be reminded who the boss is, and the appraisal is an appropriate place for such a reminder." Would the manager quoted here be likely to use a rational or a political approach to appraisal? Contrast the rational and political approaches. To what extent is it possible to separate the two?

Facets of the Performance Appraisal Process

Rational Approach Political Approach

Goal Accuracy Utility

Rating Process Accuracy is Critical Workers try to influence their evaluation

Focus

The focus is measurement Not Accurate Measurement

Assessment Criteria Performance clearly defined No defined assessment

Decision Process Based on observed behaviors

Follows the overall assessment