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Performance Appraisal Chapter 7 MANA 160. Performance Appraisal The identification, measurement, and management of human performance in organizations.

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Presentation on theme: "Performance Appraisal Chapter 7 MANA 160. Performance Appraisal The identification, measurement, and management of human performance in organizations."— Presentation transcript:

1 Performance Appraisal Chapter 7 MANA 160

2 Performance Appraisal The identification, measurement, and management of human performance in organizations.

3 A Model of Performance Appraisal Identification Measurement Management

4 Dimension An aspect of performance that determines effective job performance.

5 The Benefits of Performance Appraisal Employer Perspective: n Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance. n Documentation of performance appraisal and feedback may be needed for legal defense. n Appraisal provides a rational basis for constructing a bonus or merit system. n Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. n Providing individual feedback is part of the performance management process. n Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of the appraisal.

6 The Benefits of Performance Appraisal (cont.) Employee Perspective: n Performance feedback is needed and desired. n Improvement in performance requires assessment. n Fairness required that differences in performance levels across workers be measured and have an effect on outcomes. n Assessment and recognition of performance levels can motivate workers to improve their performance.

7 Measurement Tools n The type of judgment that is required –Relative or absolute n The focus of the measure –Trait, behavior, or outcome

8 Relative and Absolute Judgment An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job. Relative Judgment An appraisal format that asks supervisors to make judgments about an employees performance based solely on performance standards. Absolute Judgment

9 Rankings and Performance Levels Across Work Teams ActualRanked Work 10 (High) (Low) Ranked Work Marcos (1) Uma (2) Joyce (3) Bill (4) Richard (5) Jill (1) Tom (2) Sue (3) Greg (4) Ken (5) Frank (1) Julien (2) Lisa (3) Jolie (4) Steve (5)

10 Trait Appraisal, Behavioral Appraisal & Outcome Appraisal Instruments An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. An appraisal tool that asks managers to assess a workers behaviors. An appraisal tool that asks managers to assess the results achieved by workers. Trait Appraisal Behavioral Appraisal Outcome Appraisal

11 Sample Trait Scales Rate each worker using the scales below. Decisiveness: Very lowModerateVery high Reliability: Very lowModerateVery high Energy: Very lowModerateVery high Loyalty: Very lowModerateVery high

12 Evaluation of Major Appraisal Formats Absolute Relative Trait Behavior Outcome Appraisal Format Administrative Use Developmental Use Legal Defensibility -- Very Poor- Poor + Good ++ Very good 0 Unclear or mixed

13 Challenges to Effective Performance Measurement n Rater errors and bias n The influence of liking n Organizational politics n Whether to focus on the individual or the group n Legal issues

14 Legal Issues n A recent analysis of 295 court cases involving performance appraisal found judges decisions to be favorably influenced by the following additional factors: –Use of job analysis –Providing written instructions –Allowing employees to review appraisal results –Agreement among multiple raters (if more than one was used) –The presence of rater training

15 Communication Skills for the Appraisal Interview Nonverbal Attending Open and Closed Questions Suggests interest and active listening. Appropriate use of open and closed questions can ensure an effective flow of communication during an interview. Rater sits with a slight forward, comfortable lean of the upper body, maintains eye contact, and speaks in a steady and soothing voice. Open questions encourage information sharing and are most appropriate early in an interview or in complex, ambiguous situations. Closed question evoke short responses and are useful for focusing and clarifying. While the ratee is speaking, the rater looks at the person and gently nods head to signal interest. Open questions start with words like Could, Would, How, What, or Why. Closed questions start with words like Did, Is, or Are. SkillsBenefit DescriptionExample

16 Communication Skills for the Appraisal Interview (Cont.) Paraphrasing Reflection of Feeling Paraphrasing can clarify and convey to the ratee that you are listening actively. Shows that you are trying to understand the emotional aspect of the workplace. The empathy and sensitivity of such reflection can open up communication and allow the interview to move more meaningfully to task- related issues. A paraphrase is a concise statement in your own words of what someone has just said. It should be factual and nonjudgmental. Similar to paraphrase, a reflection of feeling is a factual statement of the emotions you sense the other person is feeling. Be cautious about using this technique insincerely or with those who need professional help. You might begin by saying If I have this right… or What youre saying is… and end with Is that correct? or Thats what you are saying? Start by saying something like It sounds like youre feeling… End as you would a paraphrase (Is that right?). SkillsBenefit DescriptionExample

17 Communication Skills for the Appraisal Interview (Cont.) Cultural Sensitivity Communication is more effective when you are sensitive to the possible influence of cultural differences. Pay attention to cultural differences that may influence how another person communicates and how you might communicate with others. When dealing with employees from a culture that is highly formal, avoid addressing them in the workplace by their first names. Doing so may signal disrespect. SkillsBenefit DescriptionExample

18 Situational (System) Factors to Consider in Determining the Causes of Performance Problems Poor coordination of work activities among workers. Inadequate information or instructions needed to perform a job. Low-quality materials. Lack of necessary equipment. Inability to obtain raw materials, parts, or supplies. Inadequate financial resources. Poor supervision. Uncooperative coworkers and/or poor relations among people. Inadequate training. Insufficient time to produce the quantity or quality of work required. A poor work environment (for example, cold, hot, noisy, frequent interruptions.) Equipment breakdown.

19 How to Determine and Remedy Performance Shortfalls CauseQuestions to Ask Ability Effort Situation Possible Remedies Has the worker ever been able to perform adequately? Can others perform the job adequately, but not this worker? Is the workers performance level declining? Is performance lower on all tasks? Is performance erratic? Are performance problems showing up in all workers, even those who have adequate supplies and equipment? Train Transfer Redesign job Terminate Clarify linkage between performance and rewards Recognize good performance Streamline work process Clarify needs to suppliers Change suppliers Eliminate conflicting signals or demands Provide adequate tools

20 360° Feedback The combination of peer, subordinate, and self-review

21 Key Steps in Implementing 360° Appraisal n Top management communicates the goals of and need for 360° appraisal. n Employees and managers are involved in the development of the appraisal criteria and appraisal process. n Employees are trained in how to give and receive feedback. n Employees are informed of the nature of the 360° appraisal instrument and process. n The 360° system undergoes pilot testing in one part of the organization. n Management continuously reinforces the goals of the 360° appraisal and is ready to change the process when necessary.

22 Participation, for purposes of this class, is defined as meaningful contributions to the class' learning experience. This translates to quality, and not only quantity, as being important. What is participation? Raising and answering questions Sharing ideas, observations and personal experiences Pointing out relevant data Generating potential solutions Relating and synthesizing the ideas of others Pointing out relationships to earlier discussions Helping others develop their views and ideas Also think in terms of the following general grading system:

23 AA consistent leader in the classroom. Is always prepared and has worked out case analyses, etc., prior to class. Places emphasis on responding to comments of other students and of teams. Comments demonstrate preparation, integration and listening skills. BOccasionally takes the lead role in classroom discussion. Responds regularly to instructor comments and questions. Asks questions based on advanced preparation. COccasionally contributes to classroom discussion. Responds to remarks of other students and teams. Rarely volunteers to be a discussion leader or to summarize issues under discussion. DAnswers basic questions from the instructor, but seldom takes part in classroom discussion. F Takes no part in classroom discussion or activities

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