mgt464chapter7-rob.ppt
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Chapter 7Chapter 7Appraising and
Managing Performance
In-the-News
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Performance Appraisal
The identification, measurement, and management of human performance in organizations.
A Model of Performance Appraisal
Identification
Measurement
Management
Dimension
An aspect of performance that determines effective job performance.
The Benefits of Performance AppraisalEmployer Perspective:
Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance.
Documentation of performance appraisal and feedback may be needed for legal defense.
Appraisal provides a rational basis for constructing a bonus or merit system.
Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations.
Providing individual feedback is part of the performance management process.
Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of the appraisal.
The Benefits of Performance Appraisal (cont.)
Employee Perspective:Performance feedback is needed and desired.Improvement in performance requires assessment.Fairness required that differences in performance levels across workers be measured and have an effect on outcomes.Assessment and recognition of performance levels can motivate workers to improve their performance.
Measurement Tools
The type of judgment that is required
Relative or absolute
The focus of the measureTrait, behavior, or outcome
Relative and Absolute Judgment
An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job.
Relative JudgmentRelative Judgment
An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards.
Absolute JudgmentAbsolute Judgment
Rankings and Performance Levels Across Work Teams
Actual Ranked Work
10 (High)987654321 (Low)
Ranked Work Ranked Work
Marcos (1)Uma (2)
Joyce (3)Bill (4)Richard (5)
Jill (1)
Tom (2)Sue (3)
Greg (4)Ken (5)
Frank (1)Julien (2)Lisa (3)
Jolie (4)Steve (5)
Trait Appraisal, Behavioral Appraisal, and Outcome Appraisal Instruments
An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring.
An appraisal tool that asks managers to assess a worker’s behaviors.
An appraisal tool that asks managers to assess the results achieved by workers.
Trait AppraisalTrait Appraisal
Behavioral AppraisalBehavioral Appraisal
Outcome AppraisalOutcome Appraisal
Sample Trait ScalesRate each worker using the scales below.Rate each worker using the scales below.
Decisiveness:1 2 3 4 5 6 7Very low Moderate Very high
Reliability:1 2 3 4 5 6 7Very low Moderate Very high
Energy:1 2 3 4 5 6 7Very low Moderate Very high
Loyalty:1 2 3 4 5 6 7Very low Moderate Very high
Evaluation of Major Appraisal Formats
Legal Defensibility
Absolute
Relative
Trait
Behavior
Outcome
0
++
+
0
0
+
-
-
+
0
0
-
--
++
+
Appraisal Format
Administrative Use
Developmental Use
-- Very Poor - Poor + Good ++ Very good0 Unclear or mixed
Challenges to Effective Performance Measurement
Rater errors and bias
The influence of liking
Organizational politics
Whether to focus on the individual or the group
Legal issues
Legal Issues
A recent analysis of 295 court cases involving performance appraisal found judges’ decisions to be favorably influenced by the following additional factors:
Use of job analysis
Providing written instructions
Allowing employees to review appraisal results
Agreement among multiple raters (if more than one was used)
The presence of rater training
Situational (System) Factors to Consider in Determining the Causes of Performance Problems
• Poor coordination of work activities among workers.• Inadequate information or instructions needed to perform a job.• Low-quality materials.• Lack of necessary equipment.• Inability to obtain raw materials, parts, or supplies.• Inadequate financial resources.• Poor supervision.• Uncooperative coworkers and/or poor relations among people.• Inadequate training.• Insufficient time to produce the quantity or quality of work required.• A poor work environment (for example, cold, hot, noisy, frequent
interruptions.)• Equipment breakdown.
How to Determine and Remedy Performance Shortfalls
Cause Questions to Ask
Ability
Effort
Situation
Possible Remedies
•Has the worker ever beenable to perform adequately?
•Can others perform the jobadequately, but not this worker?
• Is the worker’s performance level declining?
• Is performance lower on all tasks?
• Is performance erratic?•Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?
•Train•Transfer•Redesign job•Terminate•Clarify linkage betweenperformance and rewards
•Recognize good performance
•Streamline work process•Clarify needs to suppliers•Change suppliers•Eliminate conflicting signals or demands
•Provide adequate tools
360° Feedback
The combination of peer, subordinate, and self-review
Key Steps in Implementing 360° Appraisal
Top management communicates the goals of and need for 360° appraisal.
Employees and managers are involved in the development of the appraisal criteria and appraisal process.
Employees are trained in how to give and receive feedback.
Employees are informed of the nature of the 360° appraisal instrument and process.
The 360° system undergoes pilot testing in one part of the organization.
Management continuously reinforces the goals of the 360° appraisal and is ready to change the process when necessary.
Shortcuts-4 easy steps to Effective Performance Appraisal
Encourage Discussion
Constructive Intention
Set Performance GOALS
Appraiser Credibility
QUIZ #6
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