1. CHAPTER

2. Supervisión y controlM. En C. Eduardo Bustos Farías2 What is Performance? Performance is determined by three factors: 1. Effort: how hard a person works 2. Ability: how capable the person is 3. Direction: how well the person understands what is expected on the job Performance should be evaluated on results achieved not effort expended Performance may be affected by working conditions outside the employee’s control

3. Supervisión y controlM. En C. Eduardo Bustos Farías3 Job Description and Job Specification These are two of the best means for enhancing employee direction 1. A job description states the characteristics of a job and the types of work required 2. A job specification gives the qualifications necessary to perform the job, including experience, training, education, knowledge, skills, and abilities

4. Supervisión y controlM. En C. Eduardo Bustos Farías4 Performance Appraisal Defined It communicates to an employee how well they are performing the job and what they can do to improve It is used for wage and salary administration, promotions or demotions, transfers, layoffs, discharges, counseling, and human resources planning It has three main purposes: –Improve employee performance in the present job –Prepare employees for future opportunities in the organization –Provide a record of employee performance to be used as a basis for future management decisions

5. Supervisión y controlM. En C. Eduardo Bustos Farías5 Performance Appraisal Methods Creating satisfactory measures of job success can be difficult –The type of job may make measuring performance difficult –Performance may be influenced by factors outside the employee’s control –Using personal characteristics and other subjective factors is a common practice, but has potential problems

6. Supervisión y controlM. En C. Eduardo Bustos Farías6 Performance Appraisal Methods 1. Graphic rating scale: a.Employee is rated on factors such as initiative, dependability, cooperativeness, and quality of work b.Supervisors tend to evaluate everyone a little above average c.Method provides same information on all employees and is inexpensive to develop 2. Essay appraisals: a.Supervisor writes a series of statements about an employee’s past performance, potential for promotion, strengths, and weaknesses b.Evaluations vary considerably from supervisor to supervisor c.Method depends on the writing skills of the supervisor

7. Supervisión y controlM. En C. Eduardo Bustos Farías7 Performance Appraisal Methods 3.Checklist: a.Supervisor records performance by checking yes or no to a series of questions b.Method is easy to use c.Assembling the questions can be difficult and usually requires a different set for each job category 4. Forced-choice rating: a.Supervisor chooses most applicable from set of two statements b.Methods attempts to eliminate bias by using statements where the supervisor cannot determine which answer is best c.Method may frustrate supervisors and may be expensive to develop

8. Supervisión y controlM. En C. Eduardo Bustos Farías8 Performance Appraisal Methods 5. Critical incident appraisals: a.Supervisor keeps a written record of unusual incidents that show both positive and negative actions by an employee b.Employees should be given a chance to state their views c.Method is time consuming and tends to stress negative incidents 6. Work standards approach: a.Establish objectives measures such as number of pieces produced or sales quota b.Used most frequently for operative workers in production c.Standards must be fair and viewed as fair by the employees

9. Supervisión y controlM. En C. Eduardo Bustos Farías9 Performance Appraisal Methods 7.Ranking methods: a. Alternation ranking is a method of creating a list of employees from most to least valuable by alternatively selecting the most and least valuable employees out of a group b. Paired comparison ranking compares the performance of each employee with the performance of every other employee in the group to determine their rank in the group c. Forced distribution ranking distributes employee performance according to a bell shaped or normal curve. This may be applicable to small groups of employees 8.Management by Objectives: a. The supervisor and employee jointly agree on the employee’s work objectives and how they will be accomplished b. The employee’s appraisal is based on the degree to which the work objectives are accomplished

10. Supervisión y controlM. En C. Eduardo Bustos Farías10 Frequency of Performance Appraisals Appraisals should be done as frequently as necessary to let employees know how they are doing Many organizations require formal appraisals at least once a year Supervisors should do at least two or three reviews each year in addition to the formal annual performance appraisal New employees or those being retrained need more frequent appraisals

11. Supervisión y controlM. En C. Eduardo Bustos Farías11 Supervisor Biases in Performance Appraisals Supervisors who rate everyone near the high end or group everyone in the middle make it difficult to distinguish good performers from poor performers and make it difficult to compare ratings between different raters The halo effect occurs when supervisors allow a single prominent characteristic of an employee to influence their judgment on each of the items in the performance appraisal Personal preferences and prejudices can cause error in performance appraisals

12. Supervisión y controlM. En C. Eduardo Bustos Farías12 Overcoming Biases in Performance Appraisals Raters should be given training to observe behavior more accurately and judge it fairly. They should receive training in the following: –The performance appraisal methods used by the company –Rater biases and causes of those biases –The importance of the rater’s role in the total appraisal process –The use of performance appraisal information –The communication skills necessary to provide feedback to the employee

13. Supervisión y controlM. En C. Eduardo Bustos Farías13 Conducting Performance Appraisal Interviews The purposes of communicating the appraisal are to: –Provide the employee with a clear understanding of how the supervisor feels the employee is performing –Clear up any misunderstandings about what is expected –Establish a program of improvement –Improve the working relationship between the supervisor and the employee Interview –Interview should be planned ahead of time –The interview should be in a private room and confidential –The supervisor should be specific –The supervisor should ask the employee for feedback

14. Supervisión y controlM. En C. Eduardo Bustos Farías14 Preparing for Your Own Performance Appraisal Interview Evaluate your own performance Outline ways in which your boss can help you do your job better Determine any additional training you feel you need Suggest any changes that would make you more effective

15. Supervisión y controlM. En C. Eduardo Bustos Farías15 Handling the Poor Performer The supervisor’s alternatives are: –Improve the employee’s performance to an acceptable level –Transfer the employee to a job that better fits the abilities –Demote the employee to a job that can be handled –Attempt to terminate the employee –The supervisor should document all steps and work closely with the HR department –Unacceptable performance should be dealt with immediately

16. Supervisión y controlM. En C. Eduardo Bustos Farías16 Performance Appraisal and the Law Title VII of the Civil Rights Act permits the use of a bona fide performance appraisal system

17. Supervisión y controlM. En C. Eduardo Bustos Farías17 Performance Appraisal and the Law Many suggestions have been offered for making performance appraisal systems more legally acceptable 1.Driving the content of the appraisal system from job analyses 2. Emphasizing work behaviors rather than personal traits 3.Ensuring that the results of appraisals are communicated to employees 4.Ensuring that employees are allowed to give feedback during the appraisal interview 5.Training managers in how to conduct proper evaluations 6.Ensuring that appraisals are written, documented, and retained 7.Ensuring that personnel decisions are consistent with the performance appraisals

18. Supervisión y controlM. En C. Eduardo Bustos Farías18 Rewarding Performance Intrinsic rewards Sense of achievement Feelings of accomplishment Informal recognition Job satisfaction Personal growth Status Extrinsic rewards Formal recognition Fringe benefits Incentive payments Base wages Promotion Social relationships

19. Supervisión y controlM. En C. Eduardo Bustos Farías19 Relating Rewards to Performance Preconditions have been identified and generally accepted for implementing a merit pay program: 1.Trust in management 2.Absence of performance constraints 3.Trained managers 4.Good measurement systems 5.Ability to pay 6.Clear distinction among cost of living, seniority, and merit pay 7.Well-communicated total pay policy 8.Flexible reward schedule