Transcript Performance Management and Appraisal

9
Chapter 6-1
Performance Management
and Appraisal
Copyright © 2013 Pearson Education
Learning Objectives
1. Define performance management and
discuss how it differs from performance
appraisal.
2. Describe the appraisal process.
3. Set effective performance appraisal
standards.
Copyright © 2013 Pearson
Education
Chapter 9-2
Learning Objectives
4. Develop, evaluate, and administer
performance appraisal tools.
5. Explain and illustrate the problems to
avoid in appraising performance.
6. Perform an effective appraisal interview.
Copyright © 2013 Pearson
Education
Chapter 9-3
Define performance
management
and discuss how it
differs from performance
appraisal.
Copyright © 2013 Pearson
Education
Chapter 9-4
Basic Concepts in Performance Management and
Appraisal
Comparing
Performance Appraisal
and
Performance Management
5
Performance Appraisal:
Performance Management:
Setting work standards,
assessing actual performance, and
providing feedback to employees
to motivate, correct, and continue
their performance.
Performance management has to do with
creating an organizational system that is fair,
effective, and widely understood by all.
An integrated approach to ensuring that
an employee’s performance supports and
contributes to the organization’s strategic
aims by establishing a valid and reliable process
connecting the employees to it..
Describe the appraisal
process.
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Education
Chapter 9-6
The Performance Appraisal Process
• Why appraise performance?
• Continuous feedback
• Performance management
Effective appraisals begin before the actual appraisal, with the manager
defining the employee’s job and performance criteria. Defining the job means
making sure that you and your subordinate agree on his or her duties and job
standards and on the appraisal method you will use.
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Education
Chapter 9-7
To summarize the purpose of performance appraisal :
Why Appraise Performance?
8
1
Is the basis for pay and promotion decisions
2
Plays an integral role in performance management
3
Helps in correcting deficiencies and reinforcing good
performance
4
Is useful in career planning
Appraising performance is important for several reasons. Many employers still
base pay and promotions on employee appraisals. Appraisals play an integral role
in the employer's performance management process. The appraisal lets the boss
and subordinate develop a plan for correcting any deficiencies while reinforcing
correct actions. Appraisals are a useful career planning tool. In addition, appraisals
play a role in identifying training and development needs. In addition, training
and development activities are based on the appraisal system.
Aligning the employee’s efforts with the job’s standards should be a continuous
process. When you see a performance problem, the time to take action is
immediately. Similarly, when someone does something well, the best
reinforcement comes immediately, not six months later.
Finally, providing continuous feedback and making improvements to how
employees and employers do things contributes to organizational success.
Performance management includes continuously adjusting how an organization
and its team members do things. Team members who need coaching and training
receive it, and procedures that need changing are changed.
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Education
Chapter 9-9
Set effective performance
appraisal standards.
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Education
Chapter 9-10
Defining the Employee’s Goals and Work
Standards
Guidelines for
Effective Goal Setting
Assign
Specific
Goals
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Assign
Measurable
Goals
Assign
Challenging
but Doable
Goals
Encourage
Participation
Setting Goals
• SMART Goals:
- Specific, and clearly state the desired results
- Measurable in answering “how much”
- Attainable, and not too tough or too easy
- Relevant to what’s to be achieved
- Timely in reflecting deadlines and milestones
 Encourage participation- employees should always have
the opportunity to have meaningful input into the goals they
are to achieve
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Employee’s Goals and Performance Standards
• Basing appraisal standards on required competencies.
Competencies are often arranged according to the basic
technical, motor, intellectual, and other skills needed to be
successful in a job. In addition, the minimum level of each skill
needed should be specified.
• The role of job descriptions: Ideally, what to appraise and
how to appraise it will be obvious from the job description.
For the criteria to appraise, the job description should list the
job’s duties or tasks, including how critical each is to the job
and how often it’s performed.
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Education
Chapter 9-13
Who Should Do the Appraising?
Immediate
supervisor
HR
Self-rating
Potential
Appraisers
360-degree
feedback
Peers
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Inc. publishing as Prentice Hall
Subordinates
9–14
Performance Appraisal Roles
• Supervisors
- Usually do the actual appraising
- Must be familiar with basic appraisal techniques
- Must understand and avoid problems that can cripple
appraisals
- Must know how to conduct appraisals fairly
 Rating committees consist of multiple raters, typically the
employee’s immediate supervisor and three or four other
supervisors.
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(cont)
• The HR Department
- Serves a policy-making and advisory role
- Provides advice and assistance regarding the appraisal
tool to use
- Trains supervisors to improve their appraisal skills
- Monitors the appraisal system’s effectiveness
- Corrects any deviations from procedures
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(cont)
• Peer appraisal
Performance appraisal by peers is becoming popular.
Studies found that peer appraisal has a positive impact on
improving open communication, task motivation, cohesion
and satisfaction.
• Self ratings :
Some employers ask employee to evaluate him self.
The basic problem is that employees usually rate themselves higher
than do their supervisors or peers.
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Inc. publishing as Prentice Hall
9–17
(cont)
• Appraisal by subordinates
Studies found that managers who received upward feedback poor
or moderate showed significant improvements. And managers who
met their subordinates to discusse their assessment improved than
who did not.
•
360-degree feedback
It means that the employer collects performance information from
all around the employee:
Supervisors, peers, customers, self-ratings
Results are mixed
Most employees prefer this approach
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Inc. publishing as Prentice Hall
9–18
Develop, evaluate, and
administer at least four
performance appraisal tools.
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Education
Chapter 9-19
Designing the Appraisal Tool
• The graphic rating scale method is the simplest and most popular
performance appraisal technique. First, a scale is used to list a number of traits
and a range of performance for each. Then the employee is rated by identifying
the score that best describes his/her performance level for each trait.
• What to Measure?
Managers must decide which job performance aspects to measure. Such
aspects include generic dimensions, actual job duties, or behaviorally
recognizable competencies.
- Generic dimensions – quality, quantity, and timeliness of
work
- Developing one’s competencies, or achieving one’s goals
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Performance Appraisal Tools
•
•
•
•
Alternation ranking
Forced distribution
Critical incident
Behaviorally Anchored Rating Scales (BARS)
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Chapter 9-21
Performance Appraisal Tools
• Management by objectives (MBO)
• Computerized and web-based
performance appraisal
• Electronic performance monitoring (EPM)
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Education
Chapter 9-22
The Alternation Ranking Method ranks employees from best
to worst on a specific trait, choosing highest, then lowest, until
all are ranked.
Forced Distribution Method – Predetermined percentages of
employee ratings are placed in various performance
categories, similar to grading on a curve.
Critical Incident Method – A supervisor keeps a record of
uncommonly good and/or undesirable examples of an
employee’s work-related behavior. The supervisor then
reviews the record with the employee at predetermined
times.
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Education
Chapter 9-23
Behaviorally Anchored Rating Scale (BARS)
Behaviorally Anchored Rating Scales (BARS) is a method that combines the
benefits of, critical incidents, and quantified scales. It does so by anchoring a scale
with specific behavioral examples of good or poor performance.
Developing a BARS
Advantages of BARS
1. Generate critical incidents
1. A more accurate gauge
2. Develop performance dimensions
2. Clearer standards
3. Reallocate incidents
3. Feedback
4. Scale the incidents
4. Independent dimensions
5. Develop a final instrument
5. Consistency
2
4
Management by Objectives (MBO) – The manager sets specific measurable
goals with each employee and then periodically discusses the employee’s
progress toward them. The process consists of six steps:
1. set organizational goals
2. set departmental goals
3. discuss
4. define expected results
5. conduct performance reviews
6. provide feedback
A computerized and web-based performance appraisal approach generally
enables managers to keep notes on subordinates during the year. It allows
employee ratings on a series of performance traits, and then generates text
to support each part of the appraisal.
Electronic Performance Monitoring use computer network technology to
allow managers access to their employees’ computers and telephones.
Note, however, the most effective appraisal forms often merge several
approaches
Chapter 9-25
Explain and illustrate the
problems to avoid in
appraising performance.
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Education
Chapter 9-26
Appraising Performance:
Problems and Solutions
Potential RatingScale Appraisal
Problems
Unclear
Standards
27
Halo
Effect
Central
Tendency
Recency
Effect
Leniency or
Strictness
Bias
If standards are unclear, ambiguous traits and degrees of merit can result
in an unfair appraisal.
The influence of a rater’s general impression on ratings of specific qualities is
known as the halo effect.
Central tendency occurs when supervisors stick to the middle of the rating
scales, thus rating everyone average.
Leniency or strictness occurs if supervisors have a tendency to rate
everyone either high or low.
Recency effects involve letting what the employee has done recently blind
the manager to the employee’s performance over the entire year.
Bias is a tendency to allow individual differences such as age, race, and sex
affect employee appraisal ratings.
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Education
Chapter 9-28
Guidelines for Effective Appraisals
Dealing with appraisal problems
Guidelines for
effective appraisals
Know the
problems
Use the
right tool
Keep a
diary
9–29
Get
agreement on
a plan
Be
fair
Guidelines for appraisal effectiveness
• Appraisals are always interpersonal and so subject to
human bias
• First The rater must learn and understand the potential appraisal
problems such as central tendency and work to avoid them.
• Second, he must use the right appraisal tool or combination of
tools because each tool has its pros and cons
• Third, he must keep a diary for employee’s performance over the
year. Studies proved that critical incidents as they occur reduces
appraisal problems.
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Inc. publishing as Prentice Hall
9–30
Guidelines for appraisal effectiveness
Cont.
• Fourth, he must get agreement on a plan because the aim of
the appraisal is to improve unsatisfactory performance and
reinforce good performance.
Therefore the appraisal’s end product, should always be a plan for
what the employee must do to improve his effort.
•
Fifth, ensure fairness. Some managers ignore accuracy and
honesty in performance appraisal, therefor performance
standards must be clear to ensure that the appraisal is fair.
9–31
Perform an effective
appraisal interview.
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Education
Chapter 9-32
Types of Appraisal Interview
Satisfactory—Promotable
Satisfactory—Not Promotable
Types of Appraisal
Interviews
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
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Inc. publishing as Prentice Hall
9–33
Satisfactory-promotable: the person’s performance is
satisfactory and there is a promotion a head. In this case, The
supervisor discuss the person’s career plans.
•Satisfactory-not promotable: the person’s performance is
satisfactory, but the promotion is not possible. The objective
here is to maintain satisfactory, so the best option is to find
incentives to maintain performance.
•Unsatisfactory but correctable. The objective here is to lay
out an action plan for correcting the unsatisfactory
performance.
•If the performance is unsatisfactory and uncorrectable the
interview is skipped
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Inc. publishing as Prentice Hall
9–34
How to conduct the appraisal
interview
Guidelines for Conducting
an Interview
Talk in terms of
objective work
data
Such as absences,
productivity, quality
Encourage the
person to talk
Don’t get
personal
Llisten and ask
open questions
Try to compare
person’s performance
to standards
9–35
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Get
agreement
Make sure the person
know his weak points and
put plan with him
Performance Management
Three
concepts
distinguish
performance
management from performance appraisal:
1.performance management is continuous
2.it is goal-directed
3.it is continuously re-evaluating and modifying the way
people accomplish their work
Using information technology to support performance
management allows management to monitor and correct
deficiencies in real time.
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Education
Chapter 9-36
Six basic elements of
Performance Management
Direction sharing
Goal
alignment
Ongoing
performance
monitoring
Ongoing
feedback
Coaching and
development
support
Rewards,
recognition, and
compensation
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Inc. publishing as Prentice Hall
9–37
Performance Management Summary
Performance management’s six basic elements:
• Direction sharing means communicating the company’s goals throughout the company.
Then translating these into doable departmental, team, and individual goals.
• Goal alignment means having a method that enables managers and employees to see the
link between the employees’ goals and those of their department and company.
• Ongoing performance monitoring usually includes using computerized systems that
measure and then e-mail progress and exception reports. The reports are based on the
person’s progress toward meeting his or her performance goals.
• Ongoing feedback includes both face-to-face and computerized feedback regarding
progress toward goals.
• Coaching and developmental support should be an integral part of the feedback process.
•
Recognition and rewards provide the consequences needed to keep the employee’s
goal-directed performance on track.
Chapter 9-38