2 Performance Appraisal The identification, measurement, and management of human performance in organizations.
3 A Model of Performance Appraisal IdentificationMeasurementManagement
4 DimensionAn aspect of performance that determines effective job performance.
5 The Benefits of Performance Appraisal Employer Perspective:Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance.Documentation of performance appraisal and feedback may be needed for legal defense.Appraisal provides a rational basis for constructing a bonus or merit system.Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations.Providing individual feedback is part of the performance management process.Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of the appraisal.Though there is generally a lot of dissatisfaction with the way appraisals are conducted, these next two illustrations highlight some of the benefits of performance appraisal; from the perspective of the employer and the employee.
6 The Benefits of Performance Appraisal (cont.) Employee Perspective:Performance feedback is needed and desired.Improvement in performance requires assessment.Fairness required that differences in performance levels across workers be measured and have an effect on outcomes.Assessment and recognition of performance levels can motivate workers to improve their performance.
7 Measurement Tools The type of judgment that is required Relative or absoluteThe focus of the measureTrait, behavior, or outcomeNumerous 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 Relative and Absolute Judgment Relative JudgmentAn appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job.Absolute JudgmentAn appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards.
9 Rankings and Performance Levels Across Work Teams ActualRanked WorkRanked WorkRanked Work10 (High)987654321 (Low)Marcos (1)Uma (2)Joyce (3)Bill (4)Richard (5)Jill (1)Tom (2)Sue (3)Greg (4)Ken (5)Frank (1)Julien (2)Lisa (3)Jolie (4)Steve (5)
10 Trait Appraisal, Behavioral Appraisal & Outcome Appraisal Instruments An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring.Behavioral AppraisalAn appraisal tool that asks managers to assess a worker’s behaviors.Outcome AppraisalAn appraisal tool that asks managers to assess the results achieved by workers.
11 Rate each worker using the scales below. Sample Trait ScalesRate each worker using the scales below.Decisiveness:Very low Moderate Very highReliability:Very low Moderate Very highEnergy:Very low Moderate Very highLoyalty:Very low Moderate Very high
12 Evaluation of Major Appraisal Formats Administrative UseDevelopmental UseLegal DefensibilityAbsoluteRelativeTraitBehaviorOutcome++++----+++-- Very Poor- Poor0 Unclear or mixed+ Good++ Very good
13 Challenges to Effective Performance Measurement Rater errors and biasThe influence of likingOrganizational politicsWhether to focus on the individual or the groupLegal issues
14 Legal IssuesA recent analysis of 295 court cases involving performance appraisal found judges’ decisions to be favorably influenced by the following additional factors:Use of job analysisProviding written instructionsAllowing employees to review appraisal resultsAgreement among multiple raters (if more than one was used)The presence of rater training
15 Communication Skills for the Appraisal Interview BenefitDescriptionExampleNonverbal AttendingOpen and Closed QuestionsSuggests interest and active listening.Appropriate use of open and closed questions can ensure an effective flow of communication during an interview.Rater sits with a slight forward, comfortable lean of the upper body, maintains eye contact, and speaks in a steady and soothing voice.—Open questions encourage information sharing and are most appropriate early in an interview or in complex, ambiguous situations.—Closed question evoke short responses and are useful for focusing and clarifying.While the ratee is speaking, the rater looks at the person and gently nods head to signal interest.— Open questions start with words like “Could,” “Would,” “How,” “What,” or “Why”.— Closed questions start with words like “Did,” “Is,” or “Are.”
16 Communication Skills for the Appraisal Interview (Cont.) BenefitDescriptionExampleParaphrasingReflection of FeelingParaphrasing can clarify and convey to the ratee that you are listening actively.Shows that you are trying to understand the emotional aspect of the workplace. The empathy and sensitivity of such reflection can open up communication and allow the interview to move more meaningfully to task-related issues.A paraphrase is a concise statement in your own words of what someone has just said. It should be factual and nonjudgmental.Similar to paraphrase, a reflection of feeling is a factual statement of the emotions you sense the other person is feeling. Be cautious about using this technique insincerely or with those who need professional help.You might begin by saying “If I have this right…” or “What you’re saying is…” and end with “Is that correct?” or “That’s what you are saying?”Start by saying something like “It sounds like you’re feeling…” End as you would a paraphrase (“Is that right?”).
17 Communication Skills for the Appraisal Interview (Cont.) BenefitDescriptionExampleCultural SensitivityCommunication is more effective when you are sensitive to the possible influence of cultural differences.Pay attention to cultural differences that may influence how another person communicates and how you might communicate with others.When dealing with employees from a culture that is highly formal, avoid addressing them in the workplace by their first names. Doing so may signal disrespect.
18 Situational (System) Factors to Consider in Determining the Causes of Performance Problems Poor coordination of work activities among workers.Inadequate information or instructions needed to perform a job.Low-quality materials.Lack of necessary equipment.Inability to obtain raw materials, parts, or supplies.Inadequate financial resources.Poor supervision.Uncooperative coworkers and/or poor relations among people.Inadequate training.Insufficient time to produce the quantity or quality of work required.A poor work environment (for example, cold, hot, noisy, frequentinterruptions.)Equipment breakdown.
19 How to Determine and Remedy Performance Shortfalls CauseQuestions to AskPossible RemediesAbilityEffortSituationHas the worker ever beenable to perform adequately?Can others perform the jobadequately, but not this worker?Is the worker’s performancelevel declining?Is performance lower on alltasks?Is performance erratic?Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?TrainTransferRedesign jobTerminateClarify linkage betweenperformance and rewardsRecognize good performanceStreamline work processClarify needs to suppliersChange suppliersEliminate conflictingsignals or demandsProvide adequate tools
20 360° FeedbackThe combination of peer, subordinate, and self-review
21 Key Steps in Implementing 360° Appraisal Top management communicates the goals of and need for 360° appraisal.Employees and managers are involved in the development of the appraisal criteria and appraisal process.Employees are trained in how to give and receive feedback.Employees are informed of the nature of the 360° appraisal instrument and process.The 360° system undergoes pilot testing in one part of the organization.Management continuously reinforces the goals of the 360° appraisal and is ready to change the process when necessary.