chapter seven performance appraisal: the key to effective performance management © 2007 pearson...
TRANSCRIPT
Chapter Seven
Performance Appraisal: The Key to Effective Performance Management
© 2007 Pearson Education Canada 7-1
Dessler, Cole, Goodman, and SutherlandIn-Class Edition
Management of Human ResourcesSecond Canadian Edition
© 2007 Pearson Education Canada 7-2
Performance Management
–entire process affecting how well an employee
performs
–foundation is performance appraisal
–entire process affecting how well an employee
performs
–foundation is performance appraisal
© 2007 Pearson Education Canada 7-3
The Performance Appraisal Process
Three steps:
1. Defining performance expectations
2. Appraising performance
3. Providing feedback to employee
regarding performance
Three steps:
1. Defining performance expectations
2. Appraising performance
3. Providing feedback to employee
regarding performance
© 2007 Pearson Education Canada 7-4
The Performance Appraisal Process
–lack of standards; irrelevant, subjective,
unrealistic standards–poor measures of performance–rater errors–poor feedback to employees; eg. arguing–failure to use evaluation results for decision
making
–lack of standards; irrelevant, subjective,
unrealistic standards–poor measures of performance–rater errors–poor feedback to employees; eg. arguing–failure to use evaluation results for decision
making
Performance Appraisal Problems
© 2007 Pearson Education Canada 7-5
Step 1: Defining Performance Expectations
–quantifiable and measurable standards of
performance required–more specific than job descriptions–ensure employees clearly understand
expectations
–quantifiable and measurable standards of
performance required–more specific than job descriptions–ensure employees clearly understand
expectations
© 2007 Pearson Education Canada 7-6
Step 2: Appraising Performance
1. Graphic rating scale
2. Forced distribution
3. Critical incident
4. Behaviourally anchored rating scale
5. Management by objectives
6. Technology-based
1. Graphic rating scale
2. Forced distribution
3. Critical incident
4. Behaviourally anchored rating scale
5. Management by objectives
6. Technology-based
Performance Appraisal Methods
© 2007 Pearson Education Canada 7-7
Appraisal Methods
Trait: _____ ____ Outstanding
____ Very Good
____ Good
____ Improvement Needed
____ Unsatisfactory
____ Not Rated
Trait: _____ ____ Outstanding
____ Very Good
____ Good
____ Improvement Needed
____ Unsatisfactory
____ Not Rated
Graphic Rating Scale
© 2007 Pearson Education Canada 7-8
Appraisal Methods
Critical Incident Method
–keep a record of:• uncommonly good• undesirable
work-related behaviours–review with employee at predetermined times
–keep a record of:• uncommonly good• undesirable
work-related behaviours–review with employee at predetermined times
© 2007 Pearson Education Canada 7-9
Appraisal Methods
Management by Objectives (MBO)
1. Set the organization’s objectives2. Allocate objectives to departments3. Set objectives for business units4. Define expected results (individual)5. Define action plans for individuals6. Implement action plans7. Performance reviews: measure the results8. Provide rewards for meeting objectives
1. Set the organization’s objectives2. Allocate objectives to departments3. Set objectives for business units4. Define expected results (individual)5. Define action plans for individuals6. Implement action plans7. Performance reviews: measure the results8. Provide rewards for meeting objectives
© 2007 Pearson Education Canada 7-10
Appraisal Methods
Management by Objectives (MBO)
Problems
1. Setting unclear, unmeasurable objectives
2. Time consuming
3. Tug of war between manager and employee
Problems
1. Setting unclear, unmeasurable objectives
2. Time consuming
3. Tug of war between manager and employee
© 2007 Pearson Education Canada 7-11
Appraisal Methods
Technology-based Methods
New software programs enable employees to
check their own performance against prescribed
criteria
New software programs enable employees to
check their own performance against prescribed
criteria
© 2007 Pearson Education Canada 7-12
Performance Appraisal Problems
Validity: criteria must be relevant,
specific and cover all aspects of the job
in order to be accurate
Reliability: criteria must provide consistent
measures of performance across many
employees and many raters
Unclear performance standards
Validity: criteria must be relevant,
specific and cover all aspects of the job
in order to be accurate
Reliability: criteria must provide consistent
measures of performance across many
employees and many raters
Unclear performance standards
© 2007 Pearson Education Canada 7-13
Performance Appraisal Problems
Who Should Do the Appraisal?
–immediate supervisor–peers–rating committees–self–employees/subordinates–360-degree appraisal (all of the above)
–immediate supervisor–peers–rating committees–self–employees/subordinates–360-degree appraisal (all of the above)
© 2007 Pearson Education Canada 7-14
Dealing with Rater Errors
–halo effect–central tendency–leniency or strictness–appraisal bias–recency effects–similar-to-me bias
–halo effect–central tendency–leniency or strictness–appraisal bias–recency effects–similar-to-me bias
Performance Appraisal
© 2007 Pearson Education Canada 7-15
Performance Appraisal
Avoiding Rater Errors
Ensure rater
awareness
of problems
Ensure rater
awareness
of problems
Train
supervisors
to eliminate
rating errors
Train
supervisors
to eliminate
rating errors
Ensure that
appraisals are
reviewed by
the supervisor’s
immediate boss
Ensure that
appraisals are
reviewed by
the supervisor’s
immediate boss
© 2007 Pearson Education Canada 7-16
Step 3: Providing Feedback
Appraisal Interview
–An interview in which the supervisor and
employee review the appraisal and make
plans to remedy deficiencies and reinforce
strengths
–An interview in which the supervisor and
employee review the appraisal and make
plans to remedy deficiencies and reinforce
strengths
© 2007 Pearson Education Canada 7-17
The Appraisal Interview
How to Conduct an Appraisal Interview
–be direct and specific–focus on job-related behaviours–encourage the person to talk–develop an action plan
–be direct and specific–focus on job-related behaviours–encourage the person to talk–develop an action plan
© 2007 Pearson Education Canada 7-18
The Appraisal Interview
How to Handle a Defensive Employee
–recognize that defensive behaviour is normal
–never attack a person’s defenses
–postpone action
–recognize human limitations
–recognize that defensive behaviour is normal
–never attack a person’s defenses
–postpone action
–recognize human limitations
© 2007 Pearson Education Canada 7-19
The Appraisal Interview
–constructive criticism within a dignified
context
–ensure the interview leads to improved
performance
–consider appropriate use of formal written
warnings
–constructive criticism within a dignified
context
–ensure the interview leads to improved
performance
–consider appropriate use of formal written
warnings
© 2007 Pearson Education Canada 7-20
Legal and Ethical Issues
–use rating instruments based on specific job
behaviours
–provide an honest assessment of performance
–requires raters to have regular contact with
employees
–accurate feedback is critical to defend charges
of biases based on prohibited grounds
–use rating instruments based on specific job
behaviours
–provide an honest assessment of performance
–requires raters to have regular contact with
employees
–accurate feedback is critical to defend charges
of biases based on prohibited grounds