chapter 9_performance appraisal, dessler

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

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Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

© 2008 Prentice Hall, Inc. © 2008 Prentice Hall, Inc. All rights reserved.All rights reserved.

Performance Management and AppraisalPerformance Management and Appraisal

Chapter Chapter 99

Part 3 | Training and DevelopmentPart 3 | Training and Development

© 2008 Prentice Hall, Inc. All rights reserved. 9–2

After studying this chapter, you should be able to:After studying this chapter, you should be able to:

1.1. Describe the appraisal process.Describe the appraisal process.

2.2. Develop, evaluate, and administer at least four Develop, evaluate, and administer at least four performance appraisal tools.performance appraisal tools.

3.3. Explain and illustrate the problems to avoid in Explain and illustrate the problems to avoid in appraising performance.appraising performance.

4.4. List and discuss the pros and cons of six List and discuss the pros and cons of six appraisal methods.appraisal methods.

5.5. Perform an effective appraisal interview.Perform an effective appraisal interview.

6.6. Discuss the pros and cons of using different Discuss the pros and cons of using different raters to appraise a person’s performance.raters to appraise a person’s performance.


Performance AppraisalPerformance Appraisal

Evaluating an employee’s current and/or past Evaluating an employee’s current and/or past performance relative to his or her performance relative to his or her performance standards.performance standards.Setting work standardsSetting work standardsAssessing the employee’s actual performance Assessing the employee’s actual performance

relative to those standardsrelative to those standardsProviding feedbackProviding feedback


Defining the Employee’s Goals Defining the Employee’s Goals and Work Standardsand Work Standards

Assign Specific Goals

Encourage Participation

Assign Measurable

Goals

Assign Challenging but Doable

Goals

Guidelines for Effective Goal Setting


An Introduction to AppraisingAn Introduction to AppraisingPerformancePerformance

• Why appraise performance?Why appraise performance?

Appraisals play an integral role in the employer’s Appraisals play an integral role in the employer’s

performance management process.performance management process.

Appraisals help in planning for correcting Appraisals help in planning for correcting

deficiencies and reinforce things done correctly.deficiencies and reinforce things done correctly.

Appraisals, in identifying employee strengths and Appraisals, in identifying employee strengths and

weaknesses, are useful for career planningweaknesses, are useful for career planning


Performance Appraisal RolesPerformance Appraisal Roles

• SupervisorsSupervisors Usually do the actual appraising.Usually do the actual appraising. Must be familiar with basic appraisal techniques.Must be familiar with basic appraisal techniques. Must understand and avoid problems that can Must understand and avoid problems that can

cripple appraisals.cripple appraisals. Must know how to conduct appraisals fairly.Must know how to conduct appraisals fairly.


Performance Appraisal Roles (cont’d)Performance Appraisal Roles (cont’d)

• HR departmentHR department Serves a policy-making and advisory role.Serves a policy-making and advisory role. Provides advice and assistance regarding the Provides advice and assistance regarding the

appraisal tool to use.appraisal tool to use. Prepares forms and procedures and insists that all Prepares forms and procedures and insists that all

departments use them.departments use them. Responsible for training supervisors to improve Responsible for training supervisors to improve

their appraisal skills.their appraisal skills. Responsible for monitoring the system to ensure Responsible for monitoring the system to ensure

that appraisal formats and criteria comply with that appraisal formats and criteria comply with relavents laws and are up to date.relavents laws and are up to date.


Steps in Appraising PerformanceSteps in Appraising Performance

• Defining the jobDefining the job Making sure that you and your subordinate agree Making sure that you and your subordinate agree

on his or her duties and job standards. on his or her duties and job standards.

• Appraising performanceAppraising performance Comparing your subordinate’s actual performance Comparing your subordinate’s actual performance

to the standards that have been set; this usually to the standards that have been set; this usually involves some type of rating form.involves some type of rating form.

• Providing feedbackProviding feedback Discussing the subordinate’s performance and Discussing the subordinate’s performance and

progress, and making plans for any development progress, and making plans for any development required.required.


Performance Appraisal MethodsPerformance Appraisal Methods

• Graphic rating scaleGraphic rating scale A scale that lists a number of traits and a range of A scale that lists a number of traits and a range of

performance for each that is used to identify the performance for each that is used to identify the score that best describes an employee’s level of score that best describes an employee’s level of performance for each trait.performance for each trait.


Graphic Graphic Rating Rating

Scale with Scale with Space for Space for

CommentsComments

Figure 9–3


Portion of an Administrative Secretary’s Portion of an Administrative Secretary’s Sample Performance Appraisal FormSample Performance Appraisal Form

Figure 9–4 Source: James Buford Jr., Bettye Burkhalter, and Grover Jacobs, “Link Job Description to Performance Appraisals,” Personnel Journal, June 1988, pp. 135–136.


Figure 9–5a Source: www.cwru.edu.


Figure 9–5b Source: www.cwru.edu.


Figure 9–5c Source: www.cwru.edu.


Performance Appraisal Methods (cont’d)Performance Appraisal Methods (cont’d)

• Alternation ranking methodAlternation ranking method Ranking employees from best to worst on a Ranking employees from best to worst on a

particular trait, choosing highest, then lowest, until particular trait, choosing highest, then lowest, until all are ranked.all are ranked.


Alternation Ranking ScaleAlternation Ranking Scale

Figure 9–6


Alternation Ranking Scale (contd.)

1 56Overall Ranking = (1 + 6 + 5) /3 = 4

Productivity Quality Job Knowledge



• Paired comparison method Paired comparison method Ranking employees by making a chart of all possible Ranking employees by making a chart of all possible

pairs of the employees for each trait and indicating pairs of the employees for each trait and indicating which is the better employee of the pair.which is the better employee of the pair.


Ranking Employees by the Paired Comparison Method

Figure 9–7

Note: + means “better than.” − means “worse than.” For each chart, add up the number of 1’s in each column to get the highest-ranked employee.



• Forced distribution methodForced distribution method Similar to grading on a curve; predetermined Similar to grading on a curve; predetermined

percentages of ratees are placed in various percentages of ratees are placed in various performance categories.performance categories.

Example:Example: 15% high performers15% high performers 20% high-average performers20% high-average performers 30% average performers30% average performers 20% low-average performers20% low-average performers 15% low performers15% low performers

40 students in MGT 301

15% * 40 = 6 A

20% * 40 = 8 B

30% * 40 = 12 C

20% * 40 = 8 D

15% * 40 = 6 F



• Critical Incident MethodCritical Incident Method Keeping record of uncommonly good or undesirable Keeping record of uncommonly good or undesirable

examples of an employee’s work-related behavior examples of an employee’s work-related behavior and reviewing it with the employee at predetermined and reviewing it with the employee at predetermined times.times.


Examples of Critical Incidents for Examples of Critical Incidents for an Assistant Plant Manageran Assistant Plant Manager

Table 9–1


Figure 9–8

Source: Reprinted with permission of the publisher, HRnext.com; copyright HRnext.com, 2003.

Narrative

Forms



• Behaviorally Anchored Rating Scale (BARS)Behaviorally Anchored Rating Scale (BARS) An appraisal method that uses quantified scale An appraisal method that uses quantified scale

with specific narrative examples of good and poor with specific narrative examples of good and poor performance. performance.


Job: Call Centre AgentFactors can be: Promptness of service - Includes receiving calls within a

stipulated number of rings

7 Picks up phone in 1 ring.

6 Picks up phone in 2 rings.




2 Picks up phone most of the time.

1 Does not pick up phone.


Factor 2 – Customer Complaint Management: The time spent on resolving customer complaint

7 Resolves issue in under 1 minute.

6 Resolves issue in under 2 minutes.



3 Resolves issue in over 5 minutes.

2 Resolve issue most of the time.

1 Does not resolve any customer complaint.


Factor 3 – Ability to sell new features: Is the person persuasive enough to sell new features of the company to customers.

7 Is able to sell a new feature in every call.

6 Is able to sell a new feature in every 2/3 calls.

5 Is able to sell a new feature in every 4/5 calls.

4 Is able to sell a new feature in every hour.

3 Is able to sell some new features in a day.

2 Is able to sell some new features in a week.

1 Is not able to sell any new features in a week.


Management By Objectives (MBO)Management By Objectives (MBO)

• Involves setting specific measurable goals with Involves setting specific measurable goals with each employee and then periodically reviewing each employee and then periodically reviewing the progress made.the progress made.

1.1. Set the organization’s goals.Set the organization’s goals. No. 1 in terms of service No. 1 in terms of service qualityquality

2.2. Set departmental goals.Set departmental goals. All depts. (consumer banking, All depts. (consumer banking, corporate banking etc.) to focus on quality customer service corporate banking etc.) to focus on quality customer service

3.3. Discuss departmental goals.Discuss departmental goals.

4.4. Define expected results (set individual goals).Define expected results (set individual goals).Attend service seminars, achieve 90% customer satisfaction scores etc. Attend service seminars, achieve 90% customer satisfaction scores etc.

5.5. Performance reviews.Performance reviews.

6.6. Provide feedback.Provide feedback.


Advantages and Disadvantages of Appraisal ToolsAdvantages and Disadvantages of Appraisal Tools

Table 9–3


Appraising Performance: Appraising Performance: Problems and SolutionsProblems and Solutions

Unclear Standards

Leniency or Strictness

Halo Effect

Potential Rating Scale Appraisal

Problems

Central Tendency

Bias


Appraising Performance: Appraising Performance: Problems and Solutions (cont’d)Problems and Solutions (cont’d)

Know Problems

Control Outside

Influences

Use the Right Tool

How to Avoid Appraisal Problems

Train Supervisors

Keep a Diary


Who Should Do the Appraising?Who Should Do the Appraising?

Self-Rating

Subordinates

360-Degree Feedback

Potential Appraisers

Immediate Supervisor

Peers

Rating Committee


The Appraisal InterviewThe Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable

Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

Types of Appraisal Interviews


The Appraisal Interview (cont’d)The Appraisal Interview (cont’d)

Talk in terms of objective work data.

Don’t tiptoe around.

Don’t get personal.

Encourage the person to

talk.

Guidelines for Conducting an Interview

chapter 9_performance appraisal, dessler

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