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Supervision in Organizations

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1 Supervision in Organizations
Chapter 12 Appraising Employee Performance


3 Learning Outcomes After reading this chapter, I will be able to:
Describe the purposes of the performance appraisal. Identify the performance appraisal process Explain the different types of measurement tools Distinguish human errors that can distort performance appraisal ratings. Describe key legal concerns with performance appraisals.

4 Performance Appraisal defined….
A tool that reviews past job performance, emphasizing positive accomplishments as well as deficiencies, as a means for helping employees improve future performance. Purposes: Feedback Raises Development Documentation (Termination)

5 Appraisal Process Establish performance appraisal standards
Mutually set measurable goals Measure actual performance AND….

6 Appraisal Process cont…
Compare actual with standard Discuss appraisal with employee Corrective action Basic Immediate

7 Measurement Tools Focus of the measure Type of judgment required
Trait, behavior, or outcome Type of judgment required Relative, absolute, or outcome Numerous techniques for measuring performance have been developed over the years, and managers have a wide array of appraisal formats from which to choose. The most common and legally defensible of these formats are shown here.

8 Focus: Trait, Behavior, & Outcome
An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. Ex. Dependable, confident, loyal Behavior An appraisal tool that asks managers to assess a worker’s behaviors. Ex. Average number of sales calls Outcome An appraisal tool that asks managers to assess the results achieved by workers. Ex. Overall sales volume, new accounts Numerous techniques for measuring performance have been developed over the years, and managers have a wide array of appraisal formats from which to choose. The most common and legally defensible of these formats are shown here.

9 Rate each worker using the scales below.
Sample Trait Scales Rate each worker using the scales below. Dependable: Very low Moderate Very high Reliability: Very low Moderate Very high Energy: Very low Moderate Very high Loyalty: Very low Moderate Very high

10 Judgment: Absolute, Relative, or Objective
“Supervisors make judgments about an employee’s performance based solely on performance standards” Relative “Compares an employee's performance to the performance of other employees doing the same job” Objective “Measurement against a goal established between the supervisor and employee” Appraisal criteria, methods, and documentation must be job related!!!

11 Absolute Standard Approaches
Essay Critical incident Checklist Adjective rating scale

12 Absolute: ESSAYS Simplest Approach
Write a narrative describing the Strengths Weaknesses Potential Suggestions for improvement Results reflect the ability of the writers

Essay about what was most effective or ineffective in a key job situation Focus on behavior, not personality Time-consuming

14 Absolute: CHECKLIST Yes or No Predefined behaviors or qualities
Items may be irrelevant

Oldest & most popular approach Factors present Job knowledge Cooperation Quality and quantity of work 5 to 10 points on a continuum

16 Sample Adjective Rating Items and Format

17 Relative Standards Group order ranking Individual ranking
Quartiles Individual ranking Best to worst Paired comparison Similar to job ranking Compare each one to all others

STEPS Goal setting Action planning Self control Periodic review

19 Objective: MBO ISSUES Advantages Problems Satisfaction
Results oriented Commitment Problems Trust needed Satisfaction Time-consuming Important to follow-up Frustration builder

20 Human Errors & Appraisals
Halo Effect Tendency to rate employee high or low on all factors Similarity Giving special consideration to qualities that appraisers perceive in themselves Recency Gives greater importance to job behaviors near the end of the measurement period Central tendency The reluctance to assign extreme ratings

21 Tips for Legal Performance Appraisal
* Focus on behavior, not the individual it isn’t “Sue is lazy.” It is “sue does not complete work in a timely manner.” with appropriate examples. * Be fair -- remember appraisal errors. I’ve worked with various agency Boards over the yeras, and as an HR person on the Board, end up advising the Exec Dir on HR related issues. One director had a performance problem with an employee, and was doing her eval, from which to create a performance improvement plan. The eval was a LONG one, a laundry list specific to that job. The ED had given points from 1 though 5, no problem with central tendency! She recognized the ee’s strong points and weak points equally. THAT was a good appraisal! * Consistent/continuous feedback --appraisals should NEVER be surprises! * Document -- eg “Sue’s” performance. If it isn’t documented, it didn’t happen. * Anyone can sue these days. If you had a charge from the IDHR or EEOC, what could you bring to a fact finding? Would your documentation be as clear as the ED’s I worked with? Would you be able to show that your decisions had basis in fact? Tips for Legal Performance Appraisal Focus on behavior, not the individual Bias Free – remember Appraisal Errors Consistent / Continuous Feedback Document ~ Document ~ Document Do you have what you need for Fact Finding? Published appraisal procedures = Binding contract in court

22 During Evaluation Meeting
First ask for employee comments and suggestions Be sincere, stay job oriented and objective Summarize previous memos/suggestions Suggest new approaches with timelines Use good 2-way communications Active listening, paraphrasing and restating Use different approach for different employees

23 After Evaluation Meeting
Finalize Form - Add your comments and signature Give to employee for comments and signature Give copy to supervisor for review Give copy to employee Send signed original to Human Resources for employee file Set date for planning meeting for next year

24 How to Determine and Remedy Performance Shortfalls
Cause Questions to Ask Possible Remedies Ability Effort Situation Has the worker ever been able to perform adequately? Can others perform the job adequately, but not this worker? Is the worker’s 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

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