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1. Describe the three purposes of the performance appraisal. 2. Differentiate formal and informal performance appraisals. 3. Describe key legal concerns.

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Presentation on theme: "1. Describe the three purposes of the performance appraisal. 2. Differentiate formal and informal performance appraisals. 3. Describe key legal concerns."— Presentation transcript:

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2 1. Describe the three purposes of the performance appraisal. 2. Differentiate formal and informal performance appraisals. 3. Describe key legal concerns in performance appraisals. 4. Identify the three most popular sets of criteria that supervisors appraise. 5. Contrast absolute and relative standards. 6. List human errors that can distort performance appraisal ratings. 7. Describe what is meant by the term 360-degree appraisal. 8. Describe the purpose of employee counseling.

3  What is it?  Appraisal Process  Supervisors’ Role

4  What is it?  Review of past performance  Emphasizing positive accomplishments and deficiencies  Helping employees improve future performance  Purpose  Evaluation tool – review past performance  Developmental tool – offer detailed plan to improve future performance  Legal document – support and justify personnel actions

5  When? How Often?  Formal  Once or twice a year  Informal  Ongoing feedback  Facilitate formal appraisal  Appraisal process  Who are the appraisers?  How is it conducted?  What forms and documentation are provided?

6  Who are the appraiser?  Supervisor  Self-evaluation  Peer evaluation  How is it conducted?  Example: self evaluation, followed by face to face appraisal session with supervisor  Forms and documentation  Criteria for evaluation  How assessment is made

7  Setting expectations  Goals  Standards upon which results will be evaluated  Performance feedback  Intrinsic – self generated from the work itself  Extrinsic – provided by supervisor or other external sources e.g. peers, customers, business partners, etc.

8  Polices and Procedures are legally binding  Possible appearance of prejudice and discrimination  Equal employment opportunity (EEO)  Relevance in Vietnam  Legal system is being refined and these issues are becoming more relevant

9  Appraisal criteria  Outcomes  Behaviors  Traits  How to establish appropriate criteria  Environment  Business model/Nature of work  Characteristics of workforce

10  Absolute standards  Employees are not compared against one another  Relative standards  Compare employees against one another  Objectives  Compare performance against set objectives

11  Absolute standards  Written essays  Critical incidents  Checklists  Adjective rating scale  Behavior anchored rating scales (BARS)

12  Relative standards  Group order ranking  Classify employees into groups  Advantage: prevent inflating evaluations or equalizing employees  Disadvantage: more valid for larger number, zero-sum approach  Individual ranking  List employees in order of highest to lowest performance  Advantage: Don’t allow avoidance of confronting differences  Disadvantage: Magnify differences, allow no ties

13  Leniency error  Positive – overstate performance  Negative – understate performance  Halo effect  Rating all factors based on impression of one specific factor  Similarity error  Give special considerations to people perceived as having similar traits to appraiser

14  Recency error  Give more importance to recent events  Central tendency error  Assign all people to average or midpoint  Inflationary pressures  Pushing up all evaluations to upper range to avoid conflicts and negative repercussions

15  Continually document employee performance  Use behavioral based measures  Combine absolute and relative standards  Use multiple raters/appraisers  360 degree feedback/appraisal  Rate selectively  Participate in appraisal training  Conduct performance appraisals of teams

16  Performance problems  Ability related  Desire related – unwillingness to correct  Employee counseling  Listen  Identify the problem  Clarify alternatives  Come to a resolution  Agree on an action plan  Ethical consideration  Draw the line between private and work-related matters


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