CHAPTER 9 Flashcards
It involves evaluating an employee’s current and/or past performance relative to his or her performance standards
Performance Appraisal
Performance appraisal three - step process
(1) setting work standards
(2) assessing the employee’s actual performance relative to those standards (this often involves some rating form)
(3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par (accepted standard/norm)
it begins before the actual appraisal, with the manager defining the employee’s job and performance criteria
Effective appraisals
It 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.
Defining the job
What does the managers use to establish ahead of time what the person’s performance standards will be
- goals
- job dimensions or traits
- behaviors or competencies
Who should do the appraising
- supervisor
- HRD
- peer appraisals
- rating committees
- self - ratings
- appraisal by subordinates
- 360 - degree feedback
- consists of the employee’s immediate supervisor and three or four other supervisors
- multiple raters is advantageous
- helps cancel out problems such as bias on the part of individual raters
- provide a way to include in the appraisal the different facets of an employee’s performance observed by different appraisers
Rating Committees
- People often come across differently to their peers than they do to their boss
- Knowing your colleagues will appraise you can also change behavior
- The latter (perhaps with the employee’s input) then selects a supervisor and several peers to evaluate the employee’s work
Peer Appraisals
- Best position to observe and evaluate the subordinate’s performance
- Responsible for that person’s performance
Supervisor
- Serves an advisory role
- Provide the advice on what appraisal tool to use
- Leaves final decisions on procedures to operating managers
Human Resource Department
It should also train supervisors to improve their:
- appraisal skills
- monitor the appraisal system’s effectiveness
- ensure that it complies with EEO laws
HR team
What is the first step in performance appraisal and management
to let employees know what you expect of them in terms of performance standards
- Some employers obtain employees’ self-ratings, usually in conjunction with supervisors’ ratings
- Problem is that employees usually rate themselves higher than do their supervisors or peers
Self - Ratings
- Many employers have subordinates rate their managers, usually for developmental rather than for pay purposes
- Anonymity affects the feedback
- Managers who receive feedback from subordinates who identify themselves view the upward feedback process more positively
Appraisal by subordinates
A strategic way to give employees a medium to address how the manager can better support and guide them.
Upward Feedback
- The employer collects performance information all around an employee – from his or her supervisors, subordinates, peers, and internal or external customers – generally for developmental rather than pay purposes
- Usual process is to have the raters complete online rate appraisal surveys
- Computerized systems then compile this feedback into individualized reports to rates.
360 Degree Feedback
- A scale that lists a number of traits and a range of performance for each
- The employee is then rated by identifying the score that best describes his or her level of performance for each traits
Graphic Rating Scale Method
- Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked
- Since it is easier to distinguish between the worst and best employees
- Most popular method
Alternation Ranking Method
- Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair
- Makes the ranking method more precise
- For every trait, you compare every employee with every other employee
Paired Comparison Method
- Similar to grading on a curve, predetermined percentages of rates are placed in various performance categories
- Has a big advantage is that it prevents supervisors from rating all or most employees “satisfactory” or “high”
Forced Distribution Method
- Keeping a record of uncommonly good or undesirable examples of an employee’s work – related behavior and reviewing it with the employee at predetermined times.
- The supervisor keeps a log of positive and negative examples of a subordinate’s work – related behaviors
Critical Incident Method
- The person’s supervisor assesses the employee’s past performance and required areas of improvement
- The supervisor’s narrative assessment helps the employee understand where his or her performance was good or bad, and how to improve that performance
Narrative Forms
- An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance
- Anchors a numerical rating scale with specific illustrative examples of good and poor performance
Behaviorally Anchored Rating Scales (BARS)
Five steps in developing BARS
- write critical incidents
- develop performance dimensions
- reallocate incidents
- scale the incidents
- develop a final instrument
- Aim is to reduce rating errors by making it less obvious to the appraiser
- Somewhat similar to behaviorally anchored scales
-the employer “mixes” together sequentially the good and poor behavioral example statements when listing them
Mixed Standard Scales
- Refers to a multistep company – wide goal – setting and appraisal program
- Requires the manager to set specific measurable, organizationally relevant goals with each employee, and then periodically discuss the latter’s progress toward these goals
Management by Objectives
Steps in Management by Objectives
- set the organization’s goals
- set department goals
- discuss department goals
- define expected results
- conduct performance reviews
- provide feedback
- Software presents written examples to support part of the appraisal
- Within each dimension (such as communication) are separate performance factors for things like writing, verbal communication, and receptivity to criticism.
- When the user clicks on a performance factor, he or she is presented with a graphic rating scale
Computerized and Web - Based Performance Appraisal
- Having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance
- Use computer network technology to allow managers to monitor their employees’ computers
- They allow managers to monitor the employees’ rate, accuracy, and time spent working online
Electronic Performance Monitoring
- The problem that occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits
- Experts define as “the influence of a rater’s general impression on ratings of specific ratee qualities”
Halo Effect
- Rating all employees, the same way, such as rating them all average
- Doing so distorts the evaluations, making them less useful for promotion, salary, or counseling purposes
Central Tendency
Problem that occurs when a supervisor has a tendency to rate all subordinates high
Leniency Error
Problem that occurs when a supervisor has a tendency to rate all subordinates low
Strictness Error
Means letting what the employee has done recently blind you to what his or her performance has been over the year
Recency Effect
- Tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive
- Managers also tend to be more lenient when appraising subordinates for administrative purposes like pay raises then for development purposes
Bias
An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths
Appraisal Interview
Performance Management’s six basic elements
- Direction sharing
- Goal Alignment
- Ongoing Performance Monitoring
- Coaching and Developmental Support
- Recognition and Rewards
- Communicating the company’s goals to all employees
- Then translating these into doable departmental, team, and individual goals
Direction Sharing
Having a method that enables managers and employees to see the link between the employees’ goals and those of their department and company
Goal Alignment
Means computerized systems to measure the team’s and/or employee’s progress toward meeting performance goals
Ongoing Performance Monitoring
Should be part of the feedback process
Coaching and Developmental Support
Provide the incentives to keep the employee’s goal – directed performance on track
Recognition and Rewards
- Continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals
- Continuous interactions and feedback to ensure continuous improvement in the employee’s and team’s capacity and performance
Performance Management
How to conduct appraisal interview
- Coaching
- Preparation
- Planning
- Actual Coaching
- Using guidelines
Guidelines in conducting appraisal interview
- talk in terms of objective work data
- encourage the person to talk
- get agreement
