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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.

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Presentation on theme: "© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license."— Presentation transcript:

1 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–1 The Challenges of Human Resources Management Performance Management and the Employee Appraisal Process

2 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2 of 50 Performance Appraisal “Performance Appraisal given by someone who does not want to give it to someone who does not want to get it.” –Anonymous Managers resist appraisal programs because they find the role of judging others (“playing God”) intolerable.

3 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 3 of 50 Performance appraisal An annual or biannual process in which a (typically) a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information  To develop the worker and show the person where improvements are needed and why  To make various kinds of administrative decisions

4 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4 of 50 Actual Quotes from Federal Employee Performance Evaluations

5 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 5 of 50 Purposes of a Performance Appraisal

6 9–6 Selected Best Practices for Administering Fair Performance Appraisals Base the performance review on duties and standards from a job analysis. Try to base the performance review on observable job behaviors or objective performance data. Make it clear ahead of time what your performance expectations are. Use a standardized performance review procedure for all employees (at same level). Make sure whoever conducts the reviews has frequent opportunities to observe the employee’s job performance. Either use multiple raters or have the rater’s supervisor evaluate the appraisal results. Include an appeals mechanism. Document the appraisal review process and results. Discuss the appraisal results with the employee. Let the employees know ahead of time how you’re going to conduct the review and use the results. Let the employee provide input regarding your assessment of him or her. Indicate what the employee needs to do to improve. Thoroughly train the supervisors who will be doing the appraisals.

7 9–7 Guidelines for a Legally Defensible Appraisal 1.Preferably, conduct a job analysis to establish performance criteria and standards. 2.Communicate performance standards to employees and to those rating them, in writing. 3.When using graphic rating scales, avoid undefined abstract trait names (such as “loyalty” or “honesty”). 4.Use subjective narratives as only one component of the appraisal. 5.Train supervisors to use the rating instrument properly. 6.Allow appraisers substantial daily contact with the employees they’re evaluating. 7.Using a single overall rating of performance is usually not acceptable to the courts. 8.When possible, have more than one appraiser, and conduct all such appraisals independently. 9.One appraiser should never have absolute authority to determine a personnel action. 10.Give employees the opportunity to review and make comments, and have a formal appeals process. 11.Document everything: Without exception, courts condemn informal performance evaluation practices that eschew documentation. 12.Where appropriate, provide corrective guidance to assist poor performers in improving.

8 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 8 of 50 Alternative Sources of Appraisal

9 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 9 of 50 Sources of Performance Appraisal Manager and/or SupervisorManager and/or Supervisor  Appraisal done by an employee’s manager and reviewed by a manager one level higher. Most frequently used protocol. Subordinate AppraisalSubordinate Appraisal  Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes. Self-AppraisalSelf-Appraisal  Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.

10 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 10 of 50 Example of a Self-Assessment

11 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 11 of 50 Can We All Be Better Than Average?

12 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 12 of 50 Sources of Performance Appraisal (cont.) Peer AppraisalPeer Appraisal  Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager.  Why peer appraisals are not used more often: 1.Peer ratings are simply a popularity contest. 2.Managers are reluctant to give up control over the appraisal process. 3.Those receiving low ratings might retaliate against their peers. 4.Peers rely on stereotypes in ratings.

13 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 13 of 50 Sources of Performance Appraisal (cont.) Team AppraisalTeam Appraisal  Based on TQM (total quality management) concepts; recognizes team accomplishment rather than individual performance Customer AppraisalCustomer Appraisal  A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers

14 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 14 of 50 Performance Appraisal Roles 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

15 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 15 of 50 Performance Appraisal Roles (cont’d) 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.

16 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 16 of 50 Effectively Appraising Performance 1 Appraising performance Steps in Appraising Performance Defining the job and performance criteria Providing feedback session 23

17 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 17 of 50 Ongoing Performance Feedback

18 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 18 of 50 Setting SMART Goals S pecific, and clearly state the desired results. M easurable in answering “how much.” A ttainable, and not too tough or too easy. R elevant to what’s to be achieved. T imely in reflecting deadlines and milestones.

19 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 19 of 50 Ongoing Performance Feedback

20 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 20 of 50 One Minute Manager Published 1982 About 100 pages in a story format Sold more than 13 million copies Translated into more than 37 languages

21 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 21 of 50 Three Steps in Being a One Minute Manager One Minute Goal Setting One Minute Praisings One Minute Reprimand

22 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 22 of 50 One Minute Goal Setting This is foundation for One Minute Management. The authors advocate the goal-setting rule: that 80% of your really important results will come from 20% of your goals. One Minute Goal Setting is simply: 1. Agree on your goals. 2. See what good behavior looks like. 3. Write out each of your goals on a single sheet of paper using less than 250 words. 4. Read and re-read each goal, which requires only a minute or so each time you do it. 5. Take a minute every once in a while out of your day to look at your performance. 6. See whether or not your behavior matches your goal.

23 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 23 of 50 One Minute Praisings The authors suggest that effective managers help people reach their full potential by catching them doing something right. The One Minute Praising works well when you: 1. Tell people up front that you are going to let them know how they are doing. 2. Praise people immediately. 3. Tell people what they did right—be specific. 4. Tell people how good you feel about what they did right, and how it helps the organization and the other people who work there. 5. Stop for a moment of silence to let them "feel" how good you feel. 6. Encourage them to do more of the same. 7. Shake hands or touch people in a way that makes it clear that you support their success in the organization.

24 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 24 of 50 One Minute Reprimand (1 of 2) The One Minute Reprimand works well when you: 1. Tell people beforehand that you are going to let them know how they are doing and in no uncertain terms. the first half of the reprimand: 2. Reprimand them immediately. [reprimand the behavior only, not the person or their worth] 3. Tell people what they did wrong—be specific. 4. Tell people how you feel about what they did wrong—and in no uncertain terms. 5. Stop for a few seconds of uncomfortable silence to let them feel how you feel.

25 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 25 of 50 One Minute Reprimand (2 of 2) the second half of the reprimand: 6. Shake hands, or touch them in a way that lets them know you are honestly on their side. 7. Remind them how much you value them. 8. Reaffirm that you think well of them but not of their performance in this situation. 9. Realize that when the reprimand is over, it’s over.

26 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 26 of 50 (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.

27 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 27 of 50 Factors That Affect an Employee’s Performance

28 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 28 of 50 Environment/Situational Factors Affecting Performance

29 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 29 of 50 Performance Appraisal Methods Alternation ranking Graphic rating scale Paired comparison Forced distribution Narrative forms Behaviorally anchored rating scales (BARS) Critical incident Management by objectives (MBO) Computerized and Web-based performance appraisal 360º feedback Appraisal Methodologies

30 9–30 Sample Graphic Rating Performance Rating Form

31 Alison’s Performance Review at Disneyworld 9–31

32 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 32 of 50 Six Primary Criteria on Which the Value of Performance May Be Assessed

33 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 33 of 50 Measuring Quality with a Graphic Rating Scale

34 9–34 Scale for Alternate Ranking of Appraisee

35 9–35 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.

36 Forced Distribution Normal curveNormal curve Rank and YankRank and Yank 9–36

37 Targeted Distribution of Performance Ratings 9–37

38 Narrative forms Write something (provide a narrative) about the individual’s performance either by key factors or just overall.Write something (provide a narrative) about the individual’s performance either by key factors or just overall. 9–38

39 Critical Incident Method   Critical incident – – An unusual event that denotes superior or inferior employee performance in some part of the job – – The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform. 9–39

40 9–40 Examples of Critical Incidents for Assistant Plant Manager Continuing DutiesTargetsCritical Incidents Schedule production for 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

41 9–41 Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills

42

43 9–43 Behaviorally Anchored Rating Scale (BARS) Developing a BARS 1. Write critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument Advantages of BARS  A more accurate gauge  Clearer standards  Feedback  Independent dimensions  Consistency

44 9–44 Management by Objectives (MBO) A comprehensive and formal organizationwide goal-setting and appraisal program requiring:A comprehensive and formal organizationwide goal-setting and appraisal program requiring: 1. Setting of organization’s goals 2. Setting of departmental goals 3. Discussion of departmental goals 4. Defining expected results (setting individual goals) 5. Conducting periodic performance reviews 6. Providing performance feedback

45 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 45 of 50 Performance Appraisal Under an MBO Program

46 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 46 of 50 MBO in Action (cont’d)

47 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 47 of 50 MBO in Action (cont’d)

48 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 48 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 48 of 50 MBO in Action (cont’d)

49 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 49 of 50 MBO in Action (cont’d)

50 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 50 of 50 MBO in Action (cont’d)

51 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 51 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 51 of 50 MBO in Action (cont’d)

52 9–52 Computerized and Web-Based Performance Appraisal Systems Allow managers to keep notes on subordinates.Allow managers to keep notes on subordinates. Notes can be merged with employee ratings.Notes can be merged with employee ratings. Software generates written text to support appraisals.Software generates written text to support appraisals. Allows for employee self-monitoring and self-evaluation.Allows for employee self-monitoring and self-evaluation. Electronic Performance Monitoring (EPM) SystemsElectronic 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.

53 9–53 Online Performance Appraisal Tool

54 9–54 Who Should Do the Appraising?: 360-degree feedback Self-rating Subordinates Customers/Vendors Potential Appraisers Immediate supervisor Peers Rating committee

55 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 55 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 55 of 50 Pros and Cons of 360-Degree Appraisal

56 9–56 Important Advantages and Disadvantages of Appraisal Tools ToolAdvantagesDisadvantages Graphic rating scaleSimple to use; provides a quantitative rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. BARSProvides behavioral “anchors.” BARS is very accurate. Difficult to develop. Alternation rankingSimple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent. Forced distribution method End up with a predetermined number or % of people in each group. Employees’ appraisal results depend on your choice of cutoff points. Critical incident method Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis. Difficult to rate or rank employees relative to one another. MBOTied to jointly agreed-upon performance objectives. Time-consuming.

57 Training Performance Appraisers Recency errors Leniency or strictness errors Error of central tendency Similar-to-me errors Contrast and halo/horn errors Common rater-related errors

58 Rater Errors Error of Central TendencyError of Central Tendency  A rating error in which all employees are rated about average. Leniency or Strictness ErrorLeniency or Strictness Error  A rating error in which the appraiser tends to give all employees either unusually high or unusually low ratings. Similar-to-Me ErrorSimilar-to-Me Error  An error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection

59 Rater Errors (cont.) Recency ErrorRecency Error  A rating error in which appraisal is based largely on an employee’s most recent behavior rather than on behavior throughout the appraisal period. Contrast ErrorContrast Error  A rating error in which an employee’s evaluation is biased either upward or downward because of comparison with another employee just previously evaluated. Halo/Horn ErrorHalo/Horn Error  The tendency to rate a person high on all performance factors or low on all of them because of a global impression one has based on one characteristic.

60 Rater Errors: Training and Feedback Rating Error TrainingRating Error Training  Observe other managers making errors  Actively participate in discovering their own errors  Practice job-related tasks to reduce the errors they tend to make Feedback Skills TrainingFeedback Skills Training  Communicating effectively  Diagnosing the root causes of performance problems  Setting goals and objectives

61 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 61 of 36 © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 61 of 50 Let Me Count the Ways: Why PAs are NOT Effective


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