1. Performance Management
Performance Appraisal is a
systematic description of job relevant
strengths and development needs of
an employee’s actual performance
relative to established standards.
2. Performance Management …
is a process to control
employee work behaviors and
outputs through providing
feedback on performance.
3. Performance Management …
Benefits: An Employee Perspective
Improved Performance requires
Assessment and Feedback
Fairness results when performance is
measured objectively and outcomes are
equitable
Recognition of performance can
motivate employee improvement
4. Performance Management …
Administrative/Evaluative
pay, promotions, layoffs
Developmental
training, career development, HR research
Legal (minimize exposure to EEO)
Job related appraisal
Avoid vague/subjective performance criteria
Implement a review and appeals process
Respect employee privacy and confidentiality
5. Performance Management
Uses of Performance Appraisal Systems
Rewards
Staffing/Career Decisions
Training/Development Assessment
Motivation
Validate HR Research
6. Performance Management
Requirements for an Effective
Performance Appraisals
Relevant
Acceptable (Evaluators and Employees)
Practical (Organization and Evaluators)
Reliable
Sensitive to Employee Issues and Needs
7.
8. Performance Management
Performance Appraisal Criteria
Traits (focus on the Person)
Observable personality dimensions
Reliable, decisive, loyal
Ambiguous and open to bias
Behavioral (focus on worker behaviors)
Behaviors required to accomplish the job
More legally defensive (than Traits), expensive, time consuming
and limits application across jobs (more job specific)
Outcomes
Clear, Unambiguous Criteria
Eliminates subjective rater error ~ subject to criteria
contamination and deficiency
9. Performance Management
Comparative Methods
Ranking, Forced Distribution, Essay
Advantage
Differentiates employees
Disadvantages
Degree of differences unclear
Difficult to compare across groups
May cause conflict among workers
Vague feedback-difficult to defend
10. Performance Management
Adjective Descriptor Methods
Behavioral Checklist, Graphic Rating Scale
Advantages
Avoids conflict
Allows comparison across work groups
Feedback of Specific performance dimensions
Disadvantages
Open to Rater Error
Inconsistency Across Raters
13. Performance Management
Expected Outcome Methods
Management by Objectives, Behavioral
Anchored Rating Scales (BARS)
BARS measures actual performance
behaviors exhibited by an employee
relative to pre-defined behaviors of a
critical performance dimension.
MBO is a mutual goal setting process
comparing actual performance to agreed
upon performance objectives.
14.
15. Performance Management
Effective Performance Evaluators should be
Knowledgeable of job requirements
Able to observe performance
Accurate, unbiased, able to differentiate
performance levels
17. Performance Management
Evaluator Error (Bias)
Halo/horn
Harshness/strictness
Leniency
Central Tendency
Recency
Contrast- similar or dissimilar to me
Anchoring- biased by prior appraisal
18. Performance Management
Scheduling (Timing) of Performance Appraisal
Intermittent v. Continuous (Formal v. Informal)
Purpose: Developmental v. Pay Adjustment
Intermittent v. Continuous
Formal ~ usually intermittent (monthly, semi-annual,
annual)
Informal ~ should be continuous (daily if necessary)
Communicate when required – support positive results or
correct developmental (deficient) performance areas
Development v. Pay (Two separate Appraisal Interviews)
First discuss performance strengths and developmental
needs
Second discuss pay issues
19. Performance Management
Improving Performance Appraisal Process
Give daily not once a year
Have employee’s rate their performance
Encourage the employee to participate
Emphasize Constructive criticism
Provide constant Feedback
Focus on behavior (performance) not the person
Mutually agree on specific goals, timelines, and
developmental programs/assignments