5 Basic Concepts in Performance Management and Appraisal Performance Appraisal: Setting work standards,assessing actual performance, and providing feedback to employees to motivate, correct, and continue their performance.Performance Management: Performance management has to do with creating an organizational system that is fair, effective, and widely understood by all.An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims by establishing a valid and reliable process connecting the employees to it..Comparing Performance Appraisal and Performance Management
8 To summarize the purpose of performance appraisal : Why Appraise Performance?12Is the basis for pay and promotion decisions3Plays an integral role in performance management4Helps in correcting deficiencies and reinforcing good performanceIs useful in career planning
11 Defining the Employee’s Goals and Work Standards Assign Specific GoalsEncourage ParticipationAssign Measurable GoalsAssign Challenging but Doable GoalsGuidelines for Effective Goal Setting
12 Setting Goals SMART Goals: Specific, and clearly state the desired resultsMeasurable in answering “how much”Attainable, and not too tough or too easyRelevant to what’s to be achievedTimely in reflecting deadlines and milestonesEncourage participation- employees should always have the opportunity to have meaningful input into the goals they are to achieve
15 Performance Appraisal Roles SupervisorsUsually do the actual appraisingMust be familiar with basic appraisal techniquesMust understand and avoid problems that can cripple appraisalsMust know how to conduct appraisals fairlyRating committees consist of multiple raters, typically the employee’s immediate supervisor and three or four other supervisors.
16 (cont) The HR Department Serves a policy-making and advisory role Provides advice and assistance regarding the appraisal tool to useTrains supervisors to improve their appraisal skillsMonitors the appraisal system’s effectivenessCorrects any deviations from procedures
20 Designing the Appraisal Tool The graphic rating scale method is the simplest and most popular performance appraisal technique. First, a scale is used to list a number of traits and a range of performance for each. Then the employee is rated by identifying the score that best describes his/her performance level for each trait.What to Measure?Managers must decide which job performance aspects to measure. Such aspects include generic dimensions, actual job duties, or behaviorally recognizable competencies.Generic dimensions – quality, quantity, and timeliness of workDeveloping one’s competencies, or achieving one’s goals
24 Behaviorally Anchored Rating Scale (BARS) Behaviorally Anchored Rating Scales (BARS) is a method that combines the benefits of, critical incidents, and quantified scales. It does so by anchoring a scale with specific behavioral examples of good or poor performance.Developing a BARSAdvantages of BARSGenerate critical incidentsDevelop performance dimensionsReallocate incidentsScale the incidentsDevelop a final instrumentA more accurate gaugeClearer standardsFeedbackIndependent dimensionsConsistency
25 Management by Objectives (MBO) – The manager sets specific measurable goals with each employee and then periodically discusses the employee’s progress toward them. The process consists of six steps:set organizational goalsset departmental goalsdiscussdefine expected resultsconduct performance reviewsprovide feedbackA computerized and web-based performance appraisal approach generally enables managers to keep notes on subordinates during the year. It allows employee ratings on a series of performance traits, and then generates text to support each part of the appraisal.Electronic Performance Monitoring use computer network technology to allow managers access to their employees’ computers and telephones.Note, however, the most effective appraisal forms often merge several approaches
38 Performance Management Summary Performance management’s six basic elements:Direction sharing means communicating the company’s goals throughout the company. Then translating these into doable departmental, team, and individual goals.Goal alignment means having a method that enables managers and employees to see the link between the employees’ goals and those of their department and company.Ongoing performance monitoring usually includes using computerized systems that measure and then progress and exception reports. The reports are based on the person’s progress toward meeting his or her performance goals.Ongoing feedback includes both face-to-face and computerized feedback regarding progress toward goals.Coaching and developmental support should be an integral part of the feedback process.Recognition and rewards provide the consequences needed to keep the employee’s goal-directed performance on track.