Performance Method

8/13/2019 Performance Method

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PERFORMANCE APPRAISAL METHOGLANCE


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Performance Appraisal is a systematic and cyclic procassesses an individual employees job performance and p

in relation to certain pre-established criteria and organ

objectives.

PERFORMANCE APPRAISAL ?


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The Performance Appraisal Process

Step 1: JobAnalysis

OrganizationalMission andObjectives

Step 4: Prepare for andconduct the formal PA

Step 2: and

methostand

Step 3: Informal PAcoaching and

discipline


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This is logically our first step because if we dont know what a jof, how can we possibly evaluate an employees performance

we should realize that the job must be based on the organizatand objectives, the department, and the job itself.

Step 1. Job analysis


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If we dont have standards of acceptable behavior and methmeasure performance, how can we assess performance?

Step 2. Develop standards and measure

methods


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Performance appraisal should not be simply a once- or twicformal interview. As its definition states, performance appra

ongoing process. While a formal evaluation may only take por twice a year, people need regular feedback on their perfo

know how they are doing.

Step 3. Informal performance appraisalc

and disciplining.


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The common practice is to have a formal performance revieboss once or sometimes twice a year using one or more

measurement forms .

BUT DOES IT GIVE YOU THE EXPECTED OUTCOMES?

Step 4. Prepare for and conduct the fo

performance appraisal


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Management by Objectives (MBO) Method

The Management by Objectives (MBO) method is a proces

managers and employees jointly set objectives for the empperiodically evaluate performance, and reward accordingresults. Although it is a three-step process, no standard formMBO. MBO is also referred to as work planning and review, management, goals and controls, and management by res

METHOD OF PERFORMANCE APPRAIS


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The MBO method is one of the best methods of developing employees. Like criticaemployees get ongoing feedback on how they are doing, usually at scheduled iWe can use the MBO method successfully with our employees if we commit to the

involve employees rather than trying to make them believe that our objectives aremeasures.

On an organization-wide basis, MBO is not too commonly used as the sole assessmmore commonly used based on the evaluative assessment during the developmeperformance appraisal. One difficult part of MBO is that in many situations, most, if employees will have different goals, making MBO more difficult and time-consumistandard assessment form.

Why and when do we use the MB

method?


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MBO is a three-step process:Step 1. Set individual objectives and plans. The manager sets objectives jointly with each individual employee. Theart of the MBO process and should be accurate measures of performance results. To be accurate, objectives need to be Specific, Measurable, Attainable, Relevant, and Time-based. Being specific, measurable, and time-b

determine in a written goal, but being attainable and relevant is more difficult.

Step 2. Give feedback and evaluate performance. Communication is the key factor in determining MBOs succeemployees should continually critique their own performance.28 Thus, the manager and employee must commprogress.29 The frequency of evaluations depends on the individual and the job performed. However, most manenough review sessions.

Step 3. Reward according to performance. Employees performance should be measured against their objectivetheir objectives should be rewarded through recognition, praise, pay raises, promotions, and so on.30 Employeegoals, so long as the reason is not out of their control, usually have rewards withheld and even punishment when

How do we use the MBO method?


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The narrative method or form requires a manager to write a stathe employees performance. There often is no actual standardbut there can be a form, so narrative can be a method or a fo

Why and when do we use the narrative method or form A narrative gives managers the opportunity to give their evalu

assessment in a written form that can go beyond a simple cheto describe an assessment item. Managers can also write up adevelopmental plan of how the employee will improve performfuture. Narratives can be used alone, but are often combined method or form. Although the narrative is ongoing, it is commothe formal review.

Narrative Method


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The system can vary. Managers may be allowed to write whatever they waor they may be required to answer questions with a written narrative aboutemployees performance (form). Lets discuss both here.

The no-form narrative method can be the only assessment method used dumal review process. But the narrative method, when used alone, is more cowith professionals and executives, not operative employees.

How we write the formal narrative assessment varies, as writing content andifferent. A narrative based on critical incidents and MBO results is clearly t

for the written assessment. The narrative is also often used as part of a form. For example, you have m

an assessment form (such as a recommendation) that has a list of items to off. Following the checklist, the form may ask one or more questions requiriwrit- ten statement.

How do we use the narrative method or fo


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The graphic rating scale form is a performance appraisal checklist on which a simply rates performance on a continuum such as excellent, good, average, faThe continuum often includes a numerical scale, for example from 1 (lowest pelevel) to 5 (highest performance level).

Why and when do we use the graphic rating scale form? Graphic rating scales are probably the most commonly used form during the fo

performance appraisal (primarily for evaluative decisions), but they should leaddevelopment decisions as well. Why the popularity? Because graphic rating scused for many different types of jobs, they are a kind of one form fits all form tminimal time, effort, cost, and training. If we walk into an office supply store, weof them. But on the negative side, graphic rating scales are not very accurate mperformance because the selection of one rating over another, such as an excgood rating, is very subjective. For example, think about professors and how thperformance with grades. Some give lots of work and few As, while others give almost all As.

Graphic Rating Scale Method


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It is very simple, and we have most likely all used one. For example, many collstudent assessments of professors at the end of the course. All we do is check oin a circle for, our rating. One problem is that some of us dont bother to actuallquestions. Based on our biases, some of us just go down the list checking the saregardless of actual performance on the item. To be fair, this problem is not commanagers formally evaluating their employees. However, it does tend to occurcustomers evaluate products and services, including student assessments of pr

To overcome this problem, which is unfortunately not commonly done, we can

scale from good to poor on different questions. Why isnt this done all the time?other, managers who make the scales do not know they should do this. Some wthey should reverse the scales dont because they dont want to end up with ovbeing pushed to the middle because people dont read the questions.

How do we use the graphic rating scale f


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The Behaviorally Anchored Rating Scale (BARS) form is a performance appraisadescription of each assessment along a continuum. Like with rating scales, the c

includes a numerical scale from low to high. Why and when do we use the BARS form?

The answer to why and when is the same as for graphic rating scales. So lets focdifferences between graphic rating scale and BARS forms. BARS forms overcomsubjectivity by providing an actual description of the performance for each raticontinuum, rather than one simple word (excellent, good, etc.) like graphic ratidescription of each level of performance makes the assessment a more objecti

measure. So if BARS forms are more accurate, why arent they more commonly rating scale forms?

Its partly economics and partly expertise. Again, the graphic rating scale can bdifferent jobs, but BARS forms have to be customized to every different type of jodeveloping potentially hundreds of different BARS forms takes a lot of time (whicand expertise. Even when a firm has an HR staff, the question becomes whether forms is the most effective use of staff members time. Obviously, it depends on being evaluated and the resources available to complete the evaluation proce

Behaviorally Anchored Rating Scale (


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Like graphic rating scales, we simply select a level of performance alongcontinuum. College accreditation associations are requiring more measureoutcomes as assurance of learning, and as part of the process they want mrubrics as evidence. So in college courses, especially for written assignmengive out rubrics that describe in some detail the difference between excell(B), average (C), poor (D), and not acceptable (F) grades for multiple crite

together to provide a final grade. Here is a very simple example of makingrating scale item into the more objective BARS form.

Attendanceexcellent, good, average, fair, poor Attendancenumber of1, 2, 34, 5, 6 or more

How do we use BARS forms?


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The ranking method is a performance appraisal method that is usedemployee performance from best to worst. There often is no actual form used, and we dont always have to rank all employees.

Why and when do we use the ranking method? Managers have to make evaluative decisions, such as who is the em

the month, who gets a raise or promotion, and who gets laid off. So have to make evaluative decisions, we generally have to use rankiour ranking can, and when possible should, be based on other metforms.

Ranking can also be used for developmental purposes by letting emknow where they stand in comparison to their peersthey can be mimprove performance. For example, when one of the authors passeexams, he places the grade distribution on the board. It does not inaffect the current gradesbut it lets students know where they standoes it to motivate improvement.

Ranking Method


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How do we use the ranking method?

Under the ranking method, the manager com- pares an emplother similar employees, rather than to a standard measuremoffshoot of ranking is the forced distribution method, which is sgrading on a curve. Predetermined percentages of employeeplaced in various performance categories, for example, exceabove average, 15%; average, 60%; below average, 15%; anThe employees ranked in the top group usually get the rewardbonus, promotion), those not at the top tend to have the rewaand those at the bottom sometimes get punished. In Self-AsseSkill Builder 8-1, you are asked to rank the performance of you

Ranking Method


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Determining the best appraisal method or form to use depeobjectives of the organization. A combination of the methodusually superior to any one used by itself. For developmentathe critical incidents, MBO, and narrative methods work weladministrative decisions, a ranking method based on the evmethods and especially graphic rating scale or BARS forms

Remember that the success of the performance appraisal pnot just lie in the formal method or form used once or twice depends on the managers human relations skills in ongoingincidents coaching, and on effective measures of performaaccurate so that everyone knows why they are rated at a g(evaluative), as well as how to improve (develop) for the ne

Which Option Is Best?


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Performance Method

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