1. Dessler, Cole and Sutherland Human Resources Management in Canada Canadian Ninth Edition Chapter Ten Performance Appraisal: The Key to Effective Performance Management © 2005 Pearson Education Canada Inc., Toronto, Ontario 10-1

2. 10-2 Performance Management -process encompassing all activities related to improving employee performance, productivity,and effectiveness © 2005 Pearson Education Canada Inc., Toronto, Ontario

3. 10-3 The Performance Appraisal Process -three steps: 1. Setting work standards 2. Assessing actual performance relative to standards 3. Providing feedback to employee regarding performance -three steps: 1. Setting work standards 2. Assessing actual performance relative to standards 3. Providing feedback to employee regarding performance © 2005 Pearson Education Canada Inc., Toronto, Ontario

4. 10-4 Appraisal Methods Forced Distribution Method High Performers15% of employees High-Average Performers20% of employees Average Performers30% of employees Low-Average Performers20% of employees Low Performers15% of employees High Performers15% of employees High-Average Performers20% of employees Average Performers30% of employees Low-Average Performers20% of employees Low Performers15% of employees © 2005 Pearson Education Canada Inc., Toronto, Ontario

5. 10-5 Appraisal Methods Critical Incident Method -keep a record of: -uncommonly good -undesirable work-related behaviours -review with employee at predetermined times -keep a record of: -uncommonly good -undesirable work-related behaviours -review with employee at predetermined times © 2005 Pearson Education Canada Inc., Toronto, Ontario

6. 10-6 Appraisal Methods Behaviourally Anchored Rating Scales 1.Generate critical incidents 2.Develop performance dimensions 3.Reallocate incidents 4.Scale the incidents 5.Develop final instrument 1.Generate critical incidents 2.Develop performance dimensions 3.Reallocate incidents 4.Scale the incidents 5.Develop final instrument © 2005 Pearson Education Canada Inc., Toronto, Ontario

7. 10-7 Appraisal Methods Management by Objectives (MBO) 1.Set the organization’s goals 2.Set departmental goals 3.Discuss departmental goals 4.Define expected results (individual) 5.Performance reviews: measure the results 6.Provide feedback 1.Set the organization’s goals 2.Set departmental goals 3.Discuss departmental goals 4.Define expected results (individual) 5.Performance reviews: measure the results 6.Provide feedback © 2005 Pearson Education Canada Inc., Toronto, Ontario

8. 10-8 Performance Appraisal: Problems and Solutions -unclear standards -halo effect -central tendency -leniency/strictness -unclear standards -halo effect -central tendency -leniency/strictness Rating Scale Problems -appraisal bias -recency effect -similar-to-me bias -appraisal bias -recency effect -similar-to-me bias © 2005 Pearson Education Canada Inc., Toronto, Ontario

9. 10-9 Performance Appraisal: Problems and Solutions Avoiding Appraisal Problems Ensure rater awareness of problems Ensure rater awareness of problems Choose the right appraisal tool Choose the right appraisal tool Train supervisors to eliminate rating errors Train supervisors to eliminate rating errors © 2005 Pearson Education Canada Inc., Toronto, Ontario

10. 10-10 The Appraisal Interview How to Conduct an Appraisal Interview be direct and specific don’t get personal encourage the person to talk develop an action plan be direct and specific don’t get personal encourage the person to talk develop an action plan © 2005 Pearson Education Canada Inc., Toronto, Ontario