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Performance Appraisal

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Presentation on theme: "Performance Appraisal"— Presentation transcript:

1 Performance Appraisal
Chapter 7 Performance Appraisal

2 Objectives Explain the rationale for conducting performance appraisals
Describe what constitutes an effective performance appraisal Explain how to conduct a performance appraisal Explain how to give corrective feedback to employees Describe the legal aspects of performance appraisal

3 Rationale for Performance Appraisals
The rationale for performance appraisal is to improve performance. An appraisal system should identify weak areas so that they can be corrected. The appraisal should also identify strong areas so that they can be capitalized on. If the results are used as the basis for rewards or promotion, it should be done in such a way as to be an incentive for improved performance. Any element that does not serve this purpose (improved performance in the appraisal system) should be eliminated.

4 Effective Performance Appraisal
Effective performance appraisals are those that improve the performance of the employee being evaluated. Before evaluating an employee performance, it is important to ensure that both the supervisor and employee clearly understand what the job entails. The best way to clearly delineate what a job entails is through the development of a well written job description.

5 Job Description The job description should meet the following criteria: State the work description in an action oriented format (e.g. writes programs, loads software, operates fax machines, etc.) State all information clearly in as few words as possible. Give comprehensive description (list all work required of the employee). Give specific types and models of all machines, tools, or equipment that are to be used. Indicate which work tasks are more important than others. List them in order of importance or with a notation. Make sure all employees have a copy and that they understand it.

6 Supervisor’s Role in Performance Appraisal
Supervisors roles fall in 3 categories: 1. Preparing for the appraisal: Writing or updating job descriptions Reviewing and revising appraisal instruments Making sure employees know what is expected of them and how they will be evaluated. 2. Doing the Appraisal: Completing the appraisal instrument Ensuring objectivity Preparing for the appraisal interview Listening and soliciting employee input Conducting the appraisal interview Ensuring against interruptions Ensuring privacy 3. Following up the Appraisal: Encouraging Assisting Monitoring

7 Developing and Completing the Appraisal Form
All performance appraisal forms should have at least the following components: 1. A list of performance criteria. 2. A way to rate the performance according to each criteria. 3. Space for written comments. 4. An employee response section. 5. A supervisor report section.

8 Keeping Performance Appraisals Consistent and Objective
Objectivity is the best approach from both a legal perspective and from a perspective of improved performance. Review Performance Standards: Appraisal instruments use rating scales (See fig 7-1, page 94-5). Make sure all employees understand how you interpret the scale. Base Ratings on Facts: Documentation is just as important with high ratings as it is with low ratings. Avoid Personality Bias: Before assigning a rating ask yourself – Is this rating influenced in either direction by a personality factor – It should not be. Avoid Extremes in Assigned Ratings: If supervisors develop a reputation regarding performance appraisals, it should be one of fairness and objectivity.

9 Avoid the Halo Effect The halo effect is a phenomenon that can occur when an employee’s strong points cause you to overlook weak points. When assigning ratings you may rate the employee higher than he or she deserves in other areas.

10 Avoid Pecking Order Bias
In any organization there is a pecking order. Supervisors sometimes rate employees in the more important jobs higher than those in the less important jobs. Be conscious of it when assigning ratings. You are rating employees as to their performance in their respective jobs. More important employees should be rewarded with higher wages, not inflated performance appraisals.

11 Conducting the Appraisal Interview
The appraisal interview serves 4 important purposes: Communication: Employees need to know not just how they have been rated, but why. Employees need to be given an opportunity to question, comment, explain, and generally share their views. Feedback: Give specific feedback about goals for improvement. It is fundamental to improved performance. Counseling: The most important counseling skill is listening. Let the employee say what is on his or her mind without interrupting. Planning for Improvement: Goals for improvement are more likely to be accomplished when they are mutually set by the supervisor and the employees.

12 Facilitating the Appraisal Interview
1. Explain the Purpose of the Performance Appraisal: The rationale for performance appraisal is to improve performance. 2. Discuss the Ratings: The purpose of the interview is to share the results of the appraisal – strengths and weaknesses. 3. Solicit Feedback: Solicit feedback and listen to it carefully. 4. Find Out How Employees Rate Themselves: An employee proud of being dependable may not be happy with an average rating on dependability. 5. Set Goals for Improvement: Make sure the goals are realistic and measurable. 6. Follow Up and Feedback: Supervisors should give constant feedback on their progress.

13 Legal Aspect of Performance Appraisals
1. Keep Comprehensive Records: Document every performance appraisal, both good and bad. It takes time, but can protect supervisors in case of litigation. Keep notes on interactions, meetings, and correspondence on a calendar. 2. Focus on Performance not Personality: Keep all comments on a professional level. 3. Be Positive, Constructive, and Specific: Remember the purpose of a performance appraisal is to improve performance. 4. Be Honest and Treat All Employees the Same: Supervisors who are honest, straightforward, and equitable are on solid grounds legally. 5. Apply Objective Standards: List actual dates and factual examples to list shortcomings.

14 Terms Summary Appraisal Instrument Appraisal Interview Documentation
Feedback Job Description Objectivity Performance Appraisal Performance Criteria Planning for Improvement

15 Home Work Do review questions 2, 4, 6, 9 and 12 on pages 104 and 105 of the text. 2. What is meant by effective performance appraisal? 4. Explain the supervisor’s role in performance appraisal. 6. Explain the 4 strategies for keeping performance appraisal objective. 9. What are the 4 basic purposes of appraisal interview? 12. List and explain 5 strategies for ensuring that performance appraisals can pass the test of law.

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