1. Copyright ©2012 by Cengage Learning. All rights reserved.10- 1 Chapter 10 Performance Appraisal and Career Management Prepared by Joseph Mosca Monmouth University

2. Copyright ©2012 by Cengage Learning. All rights reserved.10- 2 Learning Objectives 1.Describe the purpose of performance appraisal in organizations 2.Summarize the appraisal process in organizations 3.Identify and describe the most common methods that managers use for performance appraisal 4.Discuss other general issues involving performance appraisal in organizations 5.Describe the nature of careers in organizations 6.Discuss human resource management and career management 7.Identify and discuss basic career development issues and challenges

3. Copyright ©2012 by Cengage Learning. All rights reserved.10- 3 Performance Appraisal and Management Performance appraisal is the specific and formal evaluation of an employee conducted to determine the degree to which the employee is performing his or her job effectively. Performance management is the general set of activities carried out by the organization to change (improve) employee performance.

4. Copyright ©2012 by Cengage Learning. All rights reserved.10- 4 The Role of the Rater The rater is traditionally and most typically the supervisor of the employee being appraised. The rater must consider the context in which performance occurs so that any existing conditions can be taken into consideration.

5. Copyright ©2012 by Cengage Learning. All rights reserved.10- 5 The Role of the Ratee The one being rated should have a clear and unbiased view of his or her performance. It is essential that both parties have all the information they can collect about the one who is being rated and their performance. This approach should allow the one being rated to be more receptive.

6. Copyright ©2012 by Cengage Learning. All rights reserved.10- 6 360-Degree Feedback This is an approach to performance appraisal that involves gathering performance information from people on all sides of the manager: above, beside, below, and so forth. This approach is potentially helpful, especially when used for feedback purposes only.

7. Copyright ©2012 by Cengage Learning. All rights reserved.10- 7 Ranking Methods Versus Rating Methods The simple ranking method involves having the manager rank-order, from top to bottom or from best to worst, each member of a particular work group or department. The paired comparison method of performance appraisal involves comparing each individual employee with every other individual employee, one at a time. The forced distribution method involves grouping employees into predefined frequencies of performance ratings.

8. Copyright ©2012 by Cengage Learning. All rights reserved.10- 8 Specific Rating Methods A graphic rating scale consists of a statement or question about some aspect of an individual’s job performance. The critical incident method relies on instances of especially good or poor performance on the part of the employee. Behaviorally Anchored Rating Scales (BARS) are appraisal systems that represent a combination of the graphic rating scale and the critical incident method.

9. Copyright ©2012 by Cengage Learning. All rights reserved.10- 9 Specific Rating Methods (con’t) Behavioral Observation Scales (BOS) are developed from critical incidents like BARS, but use substantially more critical incidents to specifically define all the measures necessary for effective performance. A goal-based or management-by-objectives (MBO) system is based largely on the extent to which individuals meet their personal performance objectives.

10. Copyright ©2012 by Cengage Learning. All rights reserved.10- 10 Rating Errors Contrast errors occur when the rater compares people against one another instead of against an objective standard. Distributional errors occur when the rater tends to use only one part of the rating scale. A halo error occurs when one positive performance characteristic causes the manager to rate all other aspects of performance positively. A horns error occurs when the manager downgrades other aspects of an employee’s performance because of a single performance dimension.

11. Copyright ©2012 by Cengage Learning. All rights reserved.10- 11 Traditional Stages of Careers Exploration involves identifying interests and opportunities. Establishment involves creating a meaningful and relevant role in the organization. Maintenance involves optimizing talents or capabilities. Disengagement involves gradually beginning to pull away from work in the organization. Priorities change and work may become less important.

12. Copyright ©2012 by Cengage Learning. All rights reserved.10- 12 Issues Facing Older Workers and the Decision to Retire Eventually, older workers must confront the decision to retire. More commonly, individuals retire and then take on full-time work at other organizations, or retire and take on part-time work, or work as a consultant. Individuals are likely to retire when they have the financial resources needed to maintain their pre-retirement lifestyles. They may also retire when their health makes work burdensome.

13. Copyright ©2012 by Cengage Learning. All rights reserved.10- 13 Human Resource Management and Career Management Most successful organizations and managers recognize that careers do not simply happen. Why? Because careers are managed and planned, and part of the responsibility for career planning resides with the organization.