Transcript PERFORMANCES APPRAISAL - Indiana State University

PERFORMANCE
APPRAISAL
ITE 695
PERFORMANCE
APPRAISAL
“Process by which an organization
measures and evaluates an
individual employee’s behavior and
accomplishments for a defined
period of employment” (Dr.
Anderson)
Reasons for Performance
Appraisals
To effectively evaluate the work done buy
an employee
 To set a standard that can be used to judge
future performance
 Help a manager motivate employees and
improve their performance
 Strengthen communication

Reasons for Performance
Appraisals (cont.)
Most people want to know how they are
doing and this is a good way for them to
learn
 Let the employee know what is expected of
them
 Assist the employee in setting career goals
 Help reward employees fairly

Reasons for Performance
Appraisals (cont.)
 Identify
training the employee needs
 Provide legal defensibility
REQUIREMENTS FOR ANY
PERFORMANCE APPRAISAL TO
BE SUCCESSFUL
The employer and the employee must have
a clear idea of where the company is going
 Employees understand how their job
contributes to goals of the company
 Employees and their supervisor agree on
what is expected from the employee.

Requirements (cont.)
Employees are given the needed training to
ensure they have the skills to perform their
work
 Supervisors give feedback to employees
about their performance on a regular basis
not just at formal appraisal times
 Supervisors are trained on how to do
performance appraisal

Typical Mistakes of Evaluators
Halo Effect
 Central Tendency or Constant Error
 Contrast Effect
 Recent Incident Effect
 Discrimination

Recommendations for Complying
with EEOC Guidelines and Court
Rulings:
 Formalized
 Job
and standard
related
 Formal job analysis
 Supervisory rating as one component
 Evaluators trained
Recommendations (cont.)
 Substantial
daily contact
 Proportions are fixed load
 Independent appraisal by more than
one
 Administration and scoring standard
FUNDAMENTAL RULE OF
PERFORMANCE APPRAISALS
“judge the work, not the person”
(Performance appraisals: The Latest Legal
Nightmare by Alexander Hamilton Institute,
1991, p. 113)
Performance appraisals should
be held a least once a year and
twice a year would be better
Things that limit the frequency
of performance appraisals:
Complicated programs
 Supervisors that do not support performance
appraisals.
 Can the supervisor get help?
 How many appraisals will the supervisor
have to do?
 How experienced is the supervisor at giving
performance reviews?

Five Major Objectives of the
Performance Appraisal Interview
1. Supervisor and employee should reach
an agreement on the performance of
the employee.
2. Strengths of employee should be
identified.
3. Areas that need to be improved should
be identified.
Five Objectives (cont)
4. A plan should be agreed upon to
improve at least one area.
5. Supervisor and employee should agree
on what is expected during the next
appraisal period.
(How to Improve Performance Through Appraisal
and Coaching by Donald Kirkpatric)
Types of Performance
Appraisal Systems
*
Rating Scales
*
Personal Comparison OR Ranking Systems
*
Critical Incident Technique
Behavioral Checklists and Scales
Management by Objective
360-Degree Feedback or Multirater
Assessment
*
*
*
RATING SCALES

In this system the employee is given
a numerical rating. This rating can be
given on a graphic rating scale with the
supervisor simply making a mark on
the scale that rates the employee.
PERSONAL COMPARISON
OR RANKING SYSTEM

In this system employees are rated in
comparison with each other. A number
is given which supposedly indicates
where each employee ranks in
comparison to all the other employees.
CRITICAL INCIDENT
TECHNIQUE

Employee’s performance in specific
situations are evaluated and a number
of these incidents are used in the
overall rating of the employee.
BEHAVIORAL CHECKLISTS
AND SCALES

The supervisor uses a list of
descriptive statements and marks the
statement that most closely describes
the employee. Statements are for
specifically defined aspects of a job.
MANAGEMENT BY
OBJECTIVE

The employee is appraised according
to how well they have reached agreed
to goals. Employee and supervisor
must agree on measurable objectives
and how they will be met.
360-DEGREE OR MULTIRATERREVIEW-FEEDBACK

Employees are rated by peers, team
members, subordinates, and sometimes
customers along with supervisors. A
study by William M. Mercer reports
that more than 40% of companies will
use this method by the end of 1997.
A Good Performance Appraisal
System is Invaluable to Both
the Employee and Employer
Research
A survey in 1995 revealed that
44% of 218 companies had
changed their performance
appraisal system in the last two
years and another 29% said they
will be changing theirs.
REFERENCES
Alexander Hamilton Institute, (1991). Performance
appraisal: The latest legal nightmare. Maywood,
NJ: Modern Business
Kirkpatrick, Donald L., (1982). How to improve
performance through appraisal and coaching.
New York: Amacom.
Schellhardt, Timothy D., (1997, January 19- January
25). Everybody hates performance reviews.
National Business Employment Weekly, 43-44.