2 Chapter OutcomesDescribe the three purposes of the performance appraisal.Differentiate formal and informal performance appraisals.Describe key legal concerns in performance appraisals.Identify the three most popular sets of criteria that supervisors appraise.Contrast absolute and relative standards.List human errors that can distort performance appraisal ratings.Describe what is meant by term 360-degree appraisal.Describe the purpose of employee counseling.
3 Performance appraisal defined A review of past performance that emphasizes positive accomplishments as well as deficiencies; a means for helping employees improve future performance.
5 Review guidelines Prepare for and schedule the appraisal Create a supportive environmentDescribe the purpose of the appraisalInvolve the employee in the appraisalFocus discussion on work behaviorsSupport evaluation with specific examplesProvide positive feedback and feedback for improvementEnsure that employees understand what was discussedGenerate a development plan
6 LegalityPerformance appraisal policies set forth in organizational handbooks are increasingly construed as a binding unilateral contract.Do everything possible to avoid the appearance of prejudice and discrimination.
7 Absolute-standards measurements Written essaysCritical incidentsChecklistsAdjective rating scales (see page 302)Behaviorally Anchored Rating Scales (BARS)
9 ObjectivesObjectives must be:TangibleVerifiableMeasurable
10 EXHIBIT 12–2Sample items from a checklist appraisal form.
11 EXHIBIT 12-3Example of adjective rating scale items.
12 Sample BARS for an employee relations specialist. EXHIBIT 12–4Sample BARS for an employee relations specialist.Source: Reprinted from Business Horizons, August Copyright 1976 by The Foundation for the School of Business at Indiana University.
15 Overcoming hurdles Continually document employee performance Use behaviorally-based measuresCombine absolute and relative standardsUse multiple ratersRate selectivelyParticipate in appraisal trainingConduct performance appraisals of teams