Transcript No Slide Title

Dessler, Cole, Goodman, and Sutherland
In-Class Edition
Management of Human Resources
Second Canadian Edition
Chapter Seven
Performance Appraisal:
The Key to Effective
Performance Management
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Performance Management
–entire process affecting how well an employee
performs
–foundation is performance appraisal
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The Performance Appraisal Process
Three steps:
1. Defining performance expectations
2. Appraising performance
3. Providing feedback to employee
regarding performance
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The Performance Appraisal Process
Performance Appraisal Problems
–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
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Step 1: Defining Performance
Expectations
–quantifiable and measurable standards of
performance required
–more specific than job descriptions
–ensure employees clearly understand
expectations
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Step 2: Appraising Performance
Performance Appraisal Methods
1.
2.
3.
4.
5.
6.
Graphic rating scale
Forced distribution
Critical incident
Behaviourally anchored rating scale
Management by objectives
Technology-based
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Appraisal Methods
Graphic Rating Scale
Trait: _____
____ Outstanding
____ Very Good
____ Good
____ Improvement Needed
____ Unsatisfactory
____ Not Rated
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Appraisal Methods
Critical Incident Method
–keep a record of:
• uncommonly good
• undesirable
work-related behaviours
–review with employee at predetermined times
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Appraisal Methods
Management by Objectives (MBO)
1.
2.
3.
4.
5.
6.
7.
8.
Set the organization’s objectives
Allocate objectives to departments
Set objectives for business units
Define expected results (individual)
Define action plans for individuals
Implement action plans
Performance reviews: measure the results
Provide rewards for meeting objectives
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Appraisal Methods
Management by Objectives (MBO)
Problems
1. Setting unclear, unmeasurable objectives
2. Time consuming
3. Tug of war between manager and employee
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Appraisal Methods
Technology-based Methods
New software programs enable employees to
check their own performance against prescribed
criteria
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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
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Performance Appraisal Problems
Who Should Do the Appraisal?
–immediate supervisor
–peers
–rating committees
–self
–employees/subordinates
–360-degree appraisal (all of the above)
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Performance Appraisal
Dealing with Rater Errors
–halo effect
–central tendency
–leniency or strictness
–appraisal bias
–recency effects
–similar-to-me bias
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Performance Appraisal
Avoiding Rater Errors
Ensure that
Ensure rater
Train
appraisals are
awareness
supervisors
reviewed by
of problems
to eliminate
the supervisor’s
rating errors
immediate boss
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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
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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
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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
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The Appraisal Interview
–constructive criticism within a dignified
context
–ensure the interview leads to improved
performance
–consider appropriate use of formal written
warnings
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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
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