Download - Chapter 11
© 2008 Thomson/South-Western All rights reserved.© 2008 Thomson/South-Western All rights reserved. PowerPoint Presentation by Charlie CookThe University of West Alabama
PowerPoint Presentation by Charlie CookThe University of West Alabama
CHAPTER 11CHAPTER 11
Performance Performance
Management and Management and
AppraisalAppraisal
CHAPTER 11CHAPTER 11
Performance Performance
Management and Management and
AppraisalAppraisalSection 3Section 3 Developing Human Resources Developing Human Resources
© 2008 Thomson/South-Western. All rights reserved. 11–2
The Nature of Performance The Nature of Performance ManagementManagement
Effective Performanc
e Managemen
t System
Make clear what the organization
expects
Provide performance
information to employees
Document performance for
personnel records
Identify areas of success and
needed development
© 2008 Thomson/South-Western. All rights reserved. 11–3
Performance Management versus Performance Management versus Performance AppraisalPerformance Appraisal
Performance Management
Processes used to identify, encourage, measure,
evaluate, improve, and reward employee
performance
Performance Appraisal
The process of evaluating how well employees
perform their jobs and then communicating that information to the
employees
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FIGURE 11-2 Components of a Performance-Focused Culture
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Identifying and Measuring Identifying and Measuring Employee PerformanceEmployee Performance
Common Performan
ce Measures
Quantity of Output
Quality of Output
Timeliness of Output
Presence at Work
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FIGURE 11-5 Conflicting Uses for Performance Appraisal
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Legal Concerns and Performance Legal Concerns and Performance AppraisalsAppraisals
Legally Defensible Performance Appraisal System:
• Appraisal criteria based on job analysis (i.e., job-related)
• Absence of disparate impact and evidence of validity
• Formal evaluation criterion that limit managerial discretion
• Formal rating instrument linked to job duties and responsibilities
• Personal knowledge of and contact with ratee
• Training of supervisors in conducting appraisals
• Review process to prevent undue control of careers
• Counseling to help poor performers improve
© 2008 Thomson/South-Western. All rights reserved. 11–8
Who Conducts Appraisals?Who Conducts Appraisals?
Supervisors rating their employees
Employees rating their superiors
Multisource, or 360°, feedback
Outside sources rating
employees
Team members rating each
other
Employees rating
themselves
Sources of Performance Appraisals
© 2008 Thomson/South-Western. All rights reserved. 11–9
Employee Rating of ManagersEmployee Rating of Managers
Advantages Disadvantages
• Helps in identifying competent managers
• Serves to make managers more responsive to employees
• Contributes to the career development of managers
• Negative reactions by managers to ratings
• Subordinates’ fear of reprisals may inhibit them from giving realistic (negative) ratings
• Ratings are useful only for self-improvement purposes
© 2008 Thomson/South-Western. All rights reserved. 11–10
Team/Peer RatingTeam/Peer Rating
Advantages Disadvantages
• Helps improve performance of lower-rated individuals
• Peers have opportunity to observe other peers
• Peer appraisals focus on individual contributions to teamwork and team performance
• Can negatively affect working relationships
• Can create difficulties for managers in determining individual performance
• Organizational use of individual performance appraisals can hinder the development of teamwork
© 2008 Thomson/South-Western. All rights reserved. 11–11
FIGURE 11-8 Multisource Appraisal
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Category Scaling MethodsCategory Scaling Methods• Graphic Rating ScaleGraphic Rating Scale
A scale that allows the rater to indicate an employee’s A scale that allows the rater to indicate an employee’s performance on a continuum of job behaviors.performance on a continuum of job behaviors.
Aspects of Performance Measured
Descriptive Categories
Job Duties
Behavioral Dimensions
© 2008 Thomson/South-Western. All rights reserved. 11–13
Category Scaling MethodsCategory Scaling Methods
Graphic Rating Scale
Drawbacks
Restrictions on the range and type of rater responses
Differences in rater
interpretations of scale item
meanings and scale ranges
Poorly designed scales that
encourage rater errors
Rating form deficiencies limit effectiveness of
the appraisal
© 2008 Thomson/South-Western. All rights reserved. 11–14
Category Scaling Methods (cont’d)Category Scaling Methods (cont’d)• Behaviorally Anchored Rating Scale (BARS)Behaviorally Anchored Rating Scale (BARS)
A rating scale composed of job dimensions (specific A rating scale composed of job dimensions (specific descriptions of important job behaviors) that “anchor” descriptions of important job behaviors) that “anchor” performance levels on the scale.performance levels on the scale.
• Developing a BARSDeveloping a BARS Identify important job dimensionsIdentify important job dimensions Write short statements of job behaviorsWrite short statements of job behaviors Assign statements (anchors) to job dimensionsAssign statements (anchors) to job dimensions Set scales for anchorsSet scales for anchors
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FIGURE 11-10 Sample Terms for Defining Standards
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FIGURE 11-11 Behaviorally-Anchored Rating Scale for Customer Service Skills
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Comparative MethodsComparative Methods• RankingRanking
A listing of all employees from highest to lowest in A listing of all employees from highest to lowest in performance.performance.
DrawbacksDrawbacks
Does not show size of differences in performance Does not show size of differences in performance between employeesbetween employees
Implies that lowest-ranked employees are Implies that lowest-ranked employees are unsatisfactory performers.unsatisfactory performers.
Becomes an unwieldy process if the group to be Becomes an unwieldy process if the group to be ranked is large.ranked is large.
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Comparative Methods (cont’d)Comparative Methods (cont’d)• Forced DistributionForced Distribution
Performance appraisal method in which ratings of Performance appraisal method in which ratings of employees are distributed along a bell-shaped curve.employees are distributed along a bell-shaped curve.
Advantages
• Helps deal with “rater inflation.
• Makes manages identify high, average, and low performers.
• Ensures that compensation increases reflect performance differences among individuals.
Disadvantages
• Managers resist placing people in the lowest or highest groups.
• Explanation for placement can be difficult.
• Performance may not follow normal distribution.
• Managers may make false distinctions between employees.
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FIGURE 11-12 Forced Distribution on a Bell-Shaped Curve
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Narrative MethodsNarrative Methods• Critical IncidentCritical Incident
Manager keeps a written record of highly favorable Manager keeps a written record of highly favorable and unfavorable employee actions.and unfavorable employee actions.
DrawbacksDrawbacks
Variations in how managers define a “critical Variations in how managers define a “critical incident”incident”
Time involved in documenting employee actionsTime involved in documenting employee actions
Most employee actions are not observed and may Most employee actions are not observed and may become different if observedbecome different if observed
Employee concerns about manager’s “black books”Employee concerns about manager’s “black books”
© 2008 Thomson/South-Western. All rights reserved. 11–21
Narrative Methods (cont’d)Narrative Methods (cont’d)• EssayEssay
Manager writes a short essay describing an Manager writes a short essay describing an employee’s performance.employee’s performance.
DrawbackDrawbackDepends on the managers’ writing skills and their Depends on the managers’ writing skills and their
ability to express themselves.ability to express themselves.
© 2008 Thomson/South-Western. All rights reserved. 11–22
Management by Objectives (MBO)Management by Objectives (MBO)• Management by ObjectivesManagement by Objectives
Specifying the performance goals that an individual Specifying the performance goals that an individual and his or her manager agree the employee will to try and his or her manager agree the employee will to try to attain within an appropriate length of time.to attain within an appropriate length of time.
• Key MBO IdeasKey MBO Ideas Employee involvement creates higher levels of Employee involvement creates higher levels of
commitment and performance.commitment and performance. Employees are encouraged to work effectively toward Employees are encouraged to work effectively toward
achieving desired results.achieving desired results. Performance measures should be measurable and Performance measures should be measurable and
should define results.should define results.
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The MBO ProcessThe MBO Process
4. Continuing performance discussions
3. Setting of objectives
2. Development of performance
standards
1. Job review and agreement
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FIGURE 11-14 Appraisal Interview Hints for Supervisors and Managers
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Appraisal FeedbackAppraisal Feedback
Components of a Feedback System
Data on Actions
Data Evaluation
Action Based on Evaluation
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Performance Management System Performance Management System (PMS)(PMS)
Consistent with the strategic
mission
Beneficial as a development
tool
Effectively documents
performance
Viewed as fair by employees
Useful as an administrative
tool
Is legal and job related
Effective Performance Management
System