Appraising and Managing Performance (c) 2007 by Prentice Hall7-1 Chapter 7

CHAPTER 7 OVERVIEW  Explain why performance appraisal is important and describe its components  Discuss the advantages and disadvantages of different performance rating systems  Manage the impact of rating errors and bias on performance appraisals  Discuss the potential role of emotion in performance appraisal and how to manage its impact  Identify the major legal requirements for appraisal  Use performance appraisals to manage and develop employee performance (c) 2007 by Prentice Hall 7-2

YEARS OF SERVICE PURE EFFORT WORKLOAD HARD WORING SKILLS TECHNICAL KNOWLEDGE FRIENDLY PERSONALITY LIKED BY OTHER COLLEAGUES

YEARS OF SERVICE PURE EFFORT WORKLOAD HARD WORKING TECHNICAL KNOWLEDGE FRIENDLY PERSONALITY LIKED BY OTHER COLLEAGUES SKILLS

Delivering Agreed or Understood DESIRED RESULTS required for the JOB

WHAT IS PERFORMANCE APPRAISAL?  The identification, measurement, and management of human performance in organizations. (c) 2007 by Prentice Hall 7-6

WHAT IS PERFORMANCE APPRAISAL? 1. Administrative purposes 2. Developmental purposes (c) 2007 by Prentice Hall7-7 The Uses of Performance Appraisal

IDENTIFYING PERFORMANCE DIMENSIONS  Dimension – An aspect of performance that determines effective job performance.  What is measured should be directly tied to what the business is trying to achieve  Should be viewed as a management tool (c) 2007 by Prentice Hall 7-8

Administering numbers or labels towards performance is difficult to quantify (c) 2007 by Prentice Hall 7-9

MEASURING PERFORMANCE Measurement Tools Type of Judgment  Relative judgment – An appraisal format that asks supervisors to compare an employee’s performance to the performance of other employees doing the same job.  Absolute judgment – An appraisal format that asks supervision to make judgments about an employee’s performance based solely on performance standards. (c) 2007 by Prentice Hall 7-10

MEASURING PERFORMANCE TRAIT, BEHAVIORAL AND OUTCOME DATA Trait appraisal instruments  Focuses to person rather than to performance  Personal behavior tendencies (c) 2007 by Prentice Hall7-11

MEASURING PERFORMANCE Behavioral appraisal instruments  Workers behaviors  Time consuming in developing system system  Behaviors not exhibit Outcome appraisal instruments – MBO  Increased flexibility (c) 2007 by Prentice Hall7-12

MEASURING PERFORMANCE Measurement Tools – continued (c) 2007 by Prentice Hall 7-13

Self Peers Managers Subordinates Self Customers

YAHOO! (c) 2007 by Prentice Hall 7-15

CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENT  Rater errors and bias  Rater error – An error in performance appraisals that reflects consistent biases on the part of the rater.( hallo error, leniency, central tendency, severity)  Comparability  Frame-of-reference (FOR) training (c) 2007 by Prentice Hall 7-16

CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENTS  The Influence of Liking ( Like and dislike)  Precautions ( Record keeping)  Organizational Politics  Individual or Group Focus (c) 2007 by Prentice Hall 7-17

EMERGING TRENDS: MEASURING THE PERFORMANCE OF TEAMS  Review existing measures to make sure the team is aware of the measures and has commitment and responsibilities to achieve them.  Identify interim checkpoints at which team progress or achievements can be assessed.  Identify what the team and team members must do to achieve the desired team-level results.  Prioritize team goals according to relative importance. (c) 2007 by Prentice Hall 7-18

EMERGING TRENDS: MEASURING THE PERFORMANCE OF TEAMS  Develop any needed measures of interim and final team and individual performance.  Develop team and individual performance standards so that everyone has a clear understanding of performance expectations.  Determine how the performance management system will work. Who will be the raters? How will feedback be provided? (c) 2007 by Prentice Hall 7-19

CHALLENGES TO EFFECTIVE PERFORMANCE MEASUREMENT  Legal Issues – factors influencing judges’ decisions in cases involving performance appraisals  Use of job analysis  Providing written instructions  Allowing employees to review appraisal results  Agreement among multiple raters  The presence of rater training (c) 2007 by Prentice Hall 7-20

MANAGING PERFORMANCE  The AppraisalInterview Helpful or Dreadful?? (c) 2007 by Prentice Hall7-21

MANAGING PERFORMANCE Performance Improvement  Exploring the causes of performance problems  Ability  Motivation  Situational factors / system factors  Self, peer, and subordinate reviews  360-degree feedback (c) 2007 by Prentice Hall 7-22

SITUATIONAL (SYSTEM) FACTORS TO CONSIDER IN DETERMINING THE CAUSES OF PERFORMANCE PROBLEMS (c) 2007 by Prentice Hall 7-23

MANAGING PERFORMANCE Performance Improvement  Explore the causes of performance problems  Direct attention to the causes of problems  develop an action plan and empower workers to reach a solution  Clarify performance expectation  Provide immediate feedback  Eliminate unnecessary rules,procedures etc (c) 2007 by Prentice Hall 7-24

MANAGING PERFORMANCE Performance Improvement  Direct communication at performance and provide effective feedback.  What is communicated  How it is communicated  Open minded communication (c) 2007 by Prentice Hall 7-25

HOW TO DETERMINE AND REMEDY PERFORMANCE SHORTFALLS (c) 2007 by Prentice Hall 7-26

CUSTOMER-DRIVEN HR  Give-and-Take! Tips for Better Performance Reviews  Start with the raw data  Make sure you are evaluating performance on appropriate dimensions  Beware of rating biases  Support ratings with written comments  Evaluate several or all of your people at one time, if possible  Stick with performance and stay away from inferences about cause  Be consistent across workers (c) 2007 by Prentice Hall 7-27

SUMMARY AND CONCLUSIONS  What is performance appraisal?  Identify performance dimensions  Measuring Performance  Managing Performance (c) 2007 by Prentice Hall7-28

October 10, 2014MAPP 29 Performance Dimensions should be appropriate to the employee’s role: –For example, “coaching” would be relevant only to those responsible for managing and developing people Performance Dimensions should reflect Developmental Needs (either for the individual or department) –These should represent relevant “stretch” goals Performance Dimensions should reflect areas in which focus will enhance overall business and employee performance The Premise: Sharp focus on relevant Performance Dimensions will improve business performance

October 10, 2014MAPP 30 1 point each 3 points each5 points each Total points = 25 / 7 factors = 3.57 Select 7 most frequently exhibited behaviours

October 10, 2014MAPP 31 1 point each3 points each5 points each Select 7 most frequently exhibited behaviours Total points = 27 / 7 factors = 3.86

October 10, 2014MAPP 32 1 point each5 points each Select 7 most frequently exhibited behaviours Total points = 15 / 7 factors = points each Assessing Performance Dimensions