Chapter 7 Flashcards
Goal-oriented process ensuring processes are in place to maximize productivity at the employee, team, and organizational levels.
Performance Management
a formal system of review and evaluation of individual or team task performance.
Performance Appraisal
Uses of Performance Appraisal
- Human Resource Planning
- Training and Development
- Career Planning and Development
- Compensation Programs
- Internal Employee Relation
- Assessment of Employee Potential
In assessing a firm’s HR, data must be available to identify those who have the potential to be promoted or for any area of internal employee relations.
Human Resource Planning
an ongoing process whereby an individual sets career goals and identifies the means to achieve them.
Career Planning
a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed
Career Development
PA results provide a basis for rational decisions regarding pay adjustments. Most managers believe that you should reward outstanding job performance tangibly with pay increases. They believe that the behaviors you reward are the behaviors you get.
Compensation Programs
PA data are also used for decisions in several areas of internal employee relations, including:
promotion, demotion, termination, layoff, and transfer
Establish Performance Criteria
- Traits
- Behaviors
- Competencies
- Goal Achievement
- Improvement Potential
RESPONSIBILITY FOR PERFORMANCE APPRAISAL
- Immediate Supervisor
- Subordinates
- Peers and team members
- Self Appraisal
- Customer Appraisal
360 – DEGREE FEEDBACK EVALUATION METHOD
Based on the reliance of multiple sources to provide information about an employee’s performance. Include senior managers, the employee himself or herself, a supervisor, subordinates, peers, team members, and internal or external customers.
PERFORMANCE APPRAISAL PERIOD
either annually or semiannually
PERFORMANCE APPRAISAL METHOD
- Trait System
- Comparison System
- Behavioral System
- Result Based System
Raters to evaluate each employee’s traits or characteristics
Trait System
highly subjective because they are based on the assumption that every supervisor’s perception of a given trait is the same.
Trait System
evaluate a given employee’s performance against that of other employees. Employees are ranked from the best performer to the poorest performer.
Comparison Systems
Performance appraisal method in which the rater is required to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution.
Forced distribution method
Supervisors compare each employee to every other employee, identifying the better performer in each pair.
Paired Comparisons
Two Types of Comparison Systems
a. Forced Distribution Method
b. Paired Comparisons
Three Types of Behavioral System
a. Critical Incident Technique
b. Behaviorally anchored rating scale (BARS)
c. Behavioral observation scale (BOS)
Performance appraisal method that requires keeping written records of highly favorable and unfavorable employee work actions.
Critical Incident Technique
Performance appraisal method that combines elements of the traditional rating scale and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee’s specific job behavior.
Behaviorally anchored rating scale (BARS)
A specific kind of behavioral system for evaluating job performance by illustrating positive incidents (or behaviors) of job performance for various job dimensions.
Behavioral observation scale (BOS)
Performance appraisal method in which the manager and subordinate jointly agree on objectives for the next appraisal period; in the past a form of management by objectives,
Result Based System
performance appraisal method that compares each employee’s performance to a predetermined standard or expected level of output.
Work Standards Method
PROBLEMS IN PERFORMANCE APPRAISAL
- Appraiser’s Discomfort
- Subjectivity of Performance Evaluations
- Employee Anxiety
Conducting PAs is often a frustrating task for managers. If a PA system has a faulty design, or improper administration, employees will dread receiving appraisals and the managers will despise giving them. Some managers have always loathed the time, paperwork, difficult choices, and discomfort
Appraiser Discomfort
performance appraisals, differences between human judgment processes versus objective, accurate assessments uncolored by bias, prejudice, or other subjective, extraneous influences.
Rating Errors
Types of Rating Errors
- Bias Errors
- Positive halo effect (or halo effect)
- Negative halo effect (or horn error)
- Illegal discriminatory bias
- Contrast Errors
- Central tendency error
- Leniency Error
- Strictness errors
This may take the form of discontent, apathy, and turnover. In a worst-case scenario, a lawsuit is filed based on real or perceived unfairness. Opportunities for promotion, better work assignments, and increased compensation may hinge on the results.
Employee Anxiety
evaluation errors that occur when the rater evaluates the employee based on a personal negative or positive opinion of the employee rather than on the employee’s actual performance
Bias Errors
evaluation error that occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance, resulting in a higher rating.
Positive halo effect (or halo effect)
evaluation error that occurs when a manager generalizes one negative performance feature or incident to all aspects of employee performance, resulting in a lower rating.
Negative halo effect (or horn error)
a bias error for which a supervisor rates members of his or her race, gender, nationality, or religion more favorably than members of other classes.
Illegal discriminatory bias
a rating error in which a rater (e.g., a supervisor) compares an employee to other employees rather than to specific explicit performance standards
Contrast Errors
evaluation appraisal error that occurs when employees are incorrectly rated near the average or middle of a scale.
Central tendency error
giving an undeserved high performance appraisal rating to an employee.
Leniency Error
being unduly critical of an employee’s work performance.
Strictness Error
