Welcome  toTechniques  for  Appraising  PerformanceDyah Pramanik,  MM

HUMAN  RESOURCES  DEVELOPMENTTechniques  for  Appraising  PerformanceDyah Pramanik,  MM

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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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PPT 5_2_a

HUMAN RESOURCES DEVELOPMENT: Te c h n iqu e s f o r Apprai s in g Pe r f o rm an c e

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LEARNING OUTCOMES1. Define performance management

and discuss how it differs from performance appraisal.

2. Set effective performance appraisal standards.

3. Describe the appraisal process.4. Develop, evaluate, and administer at

least four performance appraisal tools.

1. Define performance management and discuss how it differs from performance appraisal.

2. Set effective performance appraisal standards.

3. Describe the appraisal process.4. Develop, evaluate, and administer at

least four performance appraisal tools.

9–4

Basic Concepts in PerformanceManagement and Appraisal

Performance Appraisal

Setting work standards, assessing performance, and

providing feedback to employees to

motivate, correct, and continue their

performance.

Performance Management

An integrated approach to

ensuring that an employee’s

performance supports and

contributes to the organization’s strategic aims.

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FIGURE 9–1Online FacultyEvaluation Form

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Defining the Employee’s Goals and Work Standards

Set SMART goals

Assign challenging/ doable goals

Assign specific

goals

Assign measurable

goals

Encourage participation

Guidelines for Effective

Goal Setting

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Setting SMART Goals

SMART

pecific, and clearly state the desired results.

easurable in answering “how much.”

ttainable, and not too tough or too easy.

elevant to what’s to be achieved.

imely in reflecting deadlines and milestones.

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An Introduction to Appraising Performance

1

Is useful in career planning.

Plays an integral role in performance management.

Why Appraise Performance?

Is basis for pay and promotion decisions.

Helps in correcting deficiencies and reinforcing good performance.

2

3

4

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(Un)Realistic Appraisals

• Motivations for Soft Appraisals• The fear of having to hire and train someone

new.• The unpleasant reaction of the appraisee.• An appraisal process that’s not conducive to

candor.• Hazards of Soft Appraisals• Employee loses the chance to improve before

being discharged or forced to change jobs.• Lawsuits arising from dismissals involving

inaccurate performance appraisals.

Performance Appraisal Roles

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The Supervisor’s Role

• Usually do the actual appraising

• Must be familiar with basic appraisal techniques

• Must understand and avoid problems that can cripple appraisals

• Must know how to conduct appraisals fairly

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The HR Department’s Role • Serves a policy-making and

advisory role.• Provides advice and

assistance regarding the appraisal tool to use.

• Trains supervisors to improve their appraisal skills.

• Monitors the appraisal system effectiveness and compliance with EEO laws.

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Effectively Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

2

3

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Designing the Appraisal ToolWhat to Measure?

• Work output (quality and quantity)

• Personal competencies• Goal (objective)

achievement

How to Measure?• Generic dimensions• Actual job duties• Behavioral competencies

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Performance Appraisal Methods

1

2

3

4

5

Alternation ranking

Graphic rating scale

Paired comparison

Forced distribution

Critical incident

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7

8

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10

Behaviorally anchored rating scales (BARS)

Narrative forms

Management by objectives (MBO)Computerized and Web-based performance appraisal

Merged methods

Appraisal Methodologies

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FIGURE 9–2Sample Graphic Rating Performance Rating Form

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FIGURE 9–3 One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties

FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives

FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives (cont’d)

FIGURE 9–5 Scale for Alternate Ranking of Appraisee

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FIGURE 9–6 Ranking Employees by the Paired Comparison Method

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

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager

Continuing Duties Targets Critical Incidents

Schedule productionfor plant

90% utilization of personnel and machinery in plant; orders delivered on time

Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month

Supervise procurement of raw materials and on inventory control

Minimize inventory costs while keeping adequate supplies on hand

Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under-ordered part “C” by 30%

Supervise machinery maintenance

No shutdowns due to faulty machinery

Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part

FIGURE 9–7Appraisal-Coaching Worksheet

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Behaviorally Anchored Rating Scale (BARS)

Developing a BARS1. Write critical incidents2. Develop performance

dimensions3. Reallocate incidents4. Scale the incidents5. Develop a final instrument

Advantages of BARS• A more accurate gauge• Clearer standards• Feedback• Independent dimensions• Consistency

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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FIGURE 9–8Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills

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Management by Objectives (MBO)

1. Setting of organization’s goals2. Setting of departmental goals3. Discussion of departmental goals4. Defining expected results (setting individual goals)5. Conducting periodic performance reviews6. Providing performance feedback

A comprehensive and formal organization wide goal-setting and appraisal program requiring:

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

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Using MBO

Setting unclear objective

Conflict with subordinates over

objectives

Time-consuming appraisal process

Potential Problems with MBO

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Computerized and Web-Based Performance Appraisal Systems

§ Allow managers to keep notes on subordinates.§ Notes can be merged with employee ratings.§ Software generates written text to support

appraisals.§ Allows for employee self-monitoring and self-

evaluation.§ Electronic Performance Monitoring (EPM) Systems• Use computer network technology to allow managers

access to their employees’ computers and telephones.• Managers can monitor the employees’ rate, accuracy,

and time spent working online.

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FIGURE 9–9Online Performance Appraisal Tool

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K E Y T E R M S

§ performance appraisal§ graphic rating scale§ alternation ranking method§ paired comparison method§ forced distribution method§ critical incident method§ behaviorally anchored rating

scale (BARS)§ electronic performance

monitoring (EPM)

§ unclear standards§ halo effect§ central tendency§ strictness/leniency§ bias§ appraisal interview§ performance management

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