Transcript Chapter 8
Performance Management and the Employee Appraisal Process The Challenges of Human Resources Management © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–1 Chapter Objectives After studying this chapter, you should be able to LEARNING OUTCOME 1 Explain what performance management is and how the establishment of goals, ongoing performance feedback, and the appraisal process are part of it. LEARNING OUTCOME 2 Explain the purposes of performance appraisals and the reasons they sometimes fail. LEARNING OUTCOME 3 Describe the different sources of appraisal information. LEARNING OUTCOME 4 LEARNING OUTCOME 5 Explain the various methods used to evaluate the performance of employees. Outline the characteristics of an effective performance appraisal interview. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 2 of 50 36 Performance Appraisal and Other HRM Functions Availability of training can aid in recruitment Recruitment Provide an additional source of trainees Training may permit hiring less-qualified applicants Selection Effective selection may reduce training needs Training aids in the achievement of performance Performance Appraisal A basis for assessing training needs and results Training and development may lead to higher pay Compensation Management A basis for determining employee’s rate of pay Training may include a role for the union Labor Relations Union cooperation can facilitate training efforts © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 3 of 50 36 Performance Appraisal Programs • Performance Appraisal A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success. • Performance Management The process of creating a work environment in which people can perform to the best of their abilities. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 4 of 50 36 Ongoing Performance Feedback © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 5 of 50 36 Performance Appraisal Programs Appraisal Programs Administrative Developmental Compensation Ind. Evaluation Job Evaluation Training EEO/AA Support Career Planning © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 6 of 50 36 Purposes of a Performance Appraisal © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 7 of 50 36 Reasons Appraisal Programs Sometimes Fail • Lack of top-management information and support • Unclear performance standards • Rater bias • Too many forms to complete • Use of the appraisal program for conflicting (political) purposes. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 8 of 50 36 Let Me Count the Ways © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 9 of 50 36 Managerial Issues Concerning Appraisals 1. There is little face-to-face discussion between the manager and the employee being appraised. 2. The relationship between the employee’s job description and the criteria on the appraisal form isn’t clear. 3. Managers feel that little or no benefit will be derived from the time and energy spent in the process, or they are concerned only with bad performances. 4. Managers dislike the face-to-face confrontation of appraisal interviews. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 10 of 50 36 Managerial Issues Concerning Appraisals (cont.) 5. Managers are not sufficiently adept at rating employees or providing them with appraisal feedback. 6. The judgmental role of appraisal conflicts with the helping role of developing employees. 7. The appraisal is just a once-a-year event, and there is little follow-up afterward. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 11 of 50 36 Developing an Effective Appraisal Program • Performance Standards Must be based on job-related requirements derived from job analysis and reflected in job description and job specifications. Help translate an organization’s goals and objectives into job requirements that define acceptable and unacceptable performance levels. • Calibration A process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 12 of 50 36 Establishing Performance Standards © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 13 of 50 36 What Are the Performance Standards? Performance Standards Characteristics Strategic Relevance Individual standards directly relate to strategic goals. Criterion Deficiency Standards capture all of an individual’s contributions. Criterion Performance capability is not Contamination reduced by external factors. Reliability (Consistency) Standards are quantifiable, measurable, and stable. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 14 of 50 36 Are You Complying with the Law? • Brito v Zia The Supreme Court ruled that performance appraisals were subject to the same validity criteria as selection procedures. • Albemarle Paper Company v Moody The U.S. Supreme Court found that employees had been ranked against a vague standard, open to each supervisor’s own interpretation. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 15 of 50 36 Legal Guidelines for Appraisals • Performance ratings must be job-related. • Employees must be given a written copy of their job standards in advance of appraisals. • Managers who conduct the appraisal must be able to observe the behavior they are rating. • Supervisors must be trained to use the appraisal form correctly. • Appraisals should be discussed openly with employees and counseling or corrective guidance offered. • An appeals procedure should be established to enable employees to express disagreement with the appraisal. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 16 of 50 36 Alternative Sources of Appraisal © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 17 of 50 36 Sources of Performance Appraisal • Manager and/or Supervisor Appraisal done by an employee’s manager and reviewed by a manager one level higher. • Self-Appraisal Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview. • Subordinate Appraisal Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 18 of 50 36 Sources of Performance Appraisal (cont.) • Peer Appraisal Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager. Why peer appraisals are not used more often: 1. Peer ratings are simply a popularity contest. 2. Managers are reluctant to give up control over the appraisal process. 3. Those receiving low ratings might retaliate against their peers. 4. Peers rely on stereotypes in ratings. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 19 of 50 36 Sources of Performance Appraisal (cont.) • Team Appraisal Based on TQM concepts; recognizes team accomplishment rather than individual performance • Customer Appraisal A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 20 of 50 36 Pros and Cons of 360-Degree Appraisal © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 21 of 50 36 360-Degree Performance Appraisal System Integrity Safeguards • Assure anonymity • Make respondents accountable • Prevent “gaming” of the system • Use statistical procedures • Identify and quantify biases © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 22 of 50 36 Training Appraisers • Establishing an Appraisal Plan Provide an explanation of the performance appraisal system’s objectives so that raters will understand the compensation and development purposes for which the appraisal is to be used. Explain the mechanics of the rating system – How frequently the appraisals are to be conducted – Who will conduct them – What are the standards of performance. Alert raters to the weaknesses and problems of appraisal systems so that they can be avoided. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 23 of 50 36 Training Performance Appraisers Common rater-related errors Error of central tendency Leniency or strictness errors Similar-to-me errors Recency errors Contrast and halo errors © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 24 of 50 36 Rater Errors • Error of Central Tendency A rating error in which all employees are rated about average. • Leniency or Strictness Error A rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings. • Recency Error A rating error in which appraisal is based largely on an employee’s most recent behavior rather than on behavior throughout the appraisal period. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 25 of 50 36 Rater Errors (cont.) • Contrast Error A rating error in which an employee’s evaluation is biased either upward or downward because of comparison with another employee just previously evaluated. • Similar-to-Me Error An error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 26 of 50 36 Rater Errors: Training and Feedback • Rating Error Training Observe other managers making errors Actively participate in discovering their own errors Practice job-related tasks to reduce the errors they tend to make • Feedback Skills Training Communicating effectively Diagnosing the root causes of performance problems Setting goals and objectives © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 27 of 50 36 Performance Appraisal Methods Graphic Rating Scale Trait Methods Mixed Standard Scale Forced-Choice Essay © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 28 of 50 36 Trait Methods • Graphic Rating-Scale Method A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics. • Mixed-Standard Scale Method An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 29 of 50 36 Trait Methods (cont.) • Forced-Choice Method Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. 1. ______ a) Works hard 2. ______ a) Shows initiative 3. ______ a) Produces poor quality _____ b) Works quickly _____ b) Is responsive to customers _____ b) Lacks good work habits • Essay Method Requires the rater to compose a statement describing employee behavior. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 30 of 50 36 © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 31 of 50 36 © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 32 of 50 36 Trait Methods • Forced-Choice Method Requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance. 1. ______ a) Works hard 2. ______ a) Shows initiative 3. ______ a) Produces poor quality _____ b) Works quickly _____ b) Is responsive to customers _____ b) Lacks good work habits • Essay Method Requires the rater to compose a statement describing employee behavior. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 33 of 50 36 Behavioral Methods Critical Incident Behavioral Checklist Behavioral Methods Behaviorally Anchored Rating Scale (BARS) Behavior Observation Scale (BOS) © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 34 of 50 36 Behavioral Methods (cont.) • Critical Incident Method Critical incident – An unusual event that denotes superior or inferior employee performance in some part of the job – The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform. • Behavioral Checklist Method The rater checks statements on a list that the rater believes are characteristic of the employee’s performance or behavior. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 35 of 50 36 Behavioral Methods (cont.) • Behaviorally Anchored Rating Scale (BARS) Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers. • Behavior Observation Scale (BOS) A performance appraisal that measures the frequency of observed behavior (critical incidents). Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 36 of 50 36 © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 37 of 50 36 Results Methods • Productivity Measures Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization. – Criterion contamination – Focus on short-term results • Management by Objectives (MBO) A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 38 of 50 36 Performance Appraisal Under an MBO Program © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 39 of 50 36 Creating an Effective MBO Program 1. Managers and employees must be willing to establish goals and objectives together. 2. Objectives should be quantifiable and measurable for the long and short terms. 3. Expected results must be under the employee’s control and free from criterion contamination. 4. Goals and objectives must be consistent for each employee level (top executive, manager, and employee). 5. Managers and employees must establish specific times when the goals are to be reviewed and evaluated. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 40 of 50 36 The Balanced Scorecard • The appraisal focuses on four related categories Financial, customer, processes, and learning • Ensuring the method’s success: Translate strategy into a scorecard of clear objectives. Attach measures to each objective. Cascade scorecards to the front line. Provide performance feedback based on measures. Empower employees to make performance improvements. Reassess strategy. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 41 of 50 36 © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 42 of 50 36 Summary of Appraisal Methods © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 43 of 50 36 Appraisal Interviews Types of Appraisal Interviews Tell and Sell - persuasion Tell and Listen - nondirective Problem Solving - focusing the interview on problem resolution and employee development © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 44 of 50 36 Appraisal Interview Guidelines Invite Participation Change Behavior Minimize Criticism Establish Goals Ask for a Self-Assessment Problem Solving Focus Express Appreciation Be Supportive Follow Up Day by Day © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 45 of 50 36 Factors That Affect an Employee’s Performance © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 46 of 50 36 Performance Diagnosis © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 47 of 50 36 Managing Ineffective Performance • Possible Courses of Action Provide training to increase skills and abilities Transfer employee to another job or department Attention of actions to motivate employee Take disciplinary action Discharge the employee • Cautions All actions taken must be objective and fair. Do not treat underperformer differently, setting the employee up to fail. © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 48 of 50 36 Key Terms behavior observation scale (BOS) management by objectives (MBO) behaviorally anchored manager and/or supervisor appraisal rating scale (BARS) mixed-standard scale method calibration peer appraisal contrast error performance appraisal critical incident performance management customer appraisal recency error error of central tendency self-appraisal essay method similar-to-me error forced-choice method subordinate appraisal graphic rating scale method team appraisal leniency or strictness error © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 49 of 50 36 Chapter 8 - Learning Outcomes Learning Outcome Statements Related Outcomes from Body of the Text 1 Explain what performance management is and how the establishment of goals, ongoing performance feedback, and the appraisal process are part of it. Does your school have a performance management system in place to help students succeed? If so, how do you think the system might be similar or different to performance management systems in the workplace? 2 Explain the purposes of performance appraisals and the reasons they sometimes fail. Have ever been given a formal performance appraisal? If you have not, what do you think your employer’s rationale was for not appraising you or other employees? 3 Describe the different sources of appraisal information. Do you think as an employee you would be in a good position to appraise your boss? What aspects of his or her performance might you be in a good position to appraise? 4 Explain the various methods used to evaluate the performance of employees. As an employee, would you rather be evaluated on your personal traits or characteristics, your on-the-job behaviors, or the results you get? Would it depend upon the job you were doing? 5 Outline the characteristics of an effective performance appraisal interview. As a manager, how might you get an employee who is reluctant to talk during an appraisal to share his or her thoughts? © 2012 Learning. All Rights Reserved. May not be not copied, scanned,scanned, or duplicated, in whole or in in whole part, except useexcept as © 2012Cengage Cengage Learning. All Rights Reserved. May be copied, or duplicated, or in for part, for use as permitted distributed withwith a certain product or service or otherwise on a password-protected website for classroom use. permittedinina alicense license distributed a certain product or service or otherwise on a password-protected website for classroom use. 50 of 50 36