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Dessler, Cole, Goodman, and Sutherland

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1 Dessler, Cole, Goodman, and Sutherland
In-Class Edition Management of Human Resources Second Canadian Edition 7 Chapter Seven Performance Appraisal: The Key to Effective Performance Management © 2007 Pearson Education Canada

2 Performance Management
–entire process affecting how well an employee performs –foundation is performance appraisal

3 The Performance Appraisal Process
Three steps: 1. Defining performance expectations 2. Appraising performance 3. Providing feedback to employee regarding performance

4 The Performance Appraisal Process
Performance Appraisal Problems lack of standards; irrelevant, subjective, unrealistic standards poor measures of performance rater errors poor feedback to employees; eg. arguing failure to use evaluation results for decision making

5 Step 1: Defining Performance Expectations
quantifiable and measurable standards of performance required more specific than job descriptions ensure employees clearly understand expectations

6 Step 2: Appraising Performance
Performance Appraisal Methods Graphic rating scale Forced distribution Critical incident Behaviourally anchored rating scale Management by objectives Technology-based

7 Appraisal Methods Graphic Rating Scale Trait: _____ ____ Outstanding
____ Very Good ____ Good ____ Improvement Needed ____ Unsatisfactory ____ Not Rated

8 Critical Incident Method
Appraisal Methods Critical Incident Method keep a record of: uncommonly good undesirable work-related behaviours review with employee at predetermined times

9 Management by Objectives (MBO)
Appraisal Methods Management by Objectives (MBO) Set the organization’s objectives Allocate objectives to departments Set objectives for business units Define expected results (individual) Define action plans for individuals Implement action plans Performance reviews: measure the results Provide rewards for meeting objectives

10 Management by Objectives (MBO)
Appraisal Methods Management by Objectives (MBO) Problems 1. Setting unclear, unmeasurable objectives 2. Time consuming 3. Tug of war between manager and employee

11 Technology-based Methods
Appraisal Methods Technology-based Methods New software programs enable employees to check their own performance against prescribed criteria

12 Performance Appraisal Problems
Validity: criteria must be relevant, specific and cover all aspects of the job in order to be accurate Reliability: criteria must provide consistent measures of performance across many employees and many raters Unclear performance standards

13 Performance Appraisal Problems
Who Should Do the Appraisal? immediate supervisor peers rating committees self employees/subordinates 360-degree appraisal (all of the above)

14 Dealing with Rater Errors
Performance Appraisal Dealing with Rater Errors halo effect central tendency leniency or strictness appraisal bias recency effects similar-to-me bias

15 Performance Appraisal
Avoiding Rater Errors Ensure rater awareness of problems Train supervisors to eliminate rating errors Ensure that appraisals are reviewed by the supervisor’s immediate boss

16 Step 3: Providing Feedback
Appraisal Interview An interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths

17 The Appraisal Interview
How to Conduct an Appraisal Interview be direct and specific focus on job-related behaviours encourage the person to talk develop an action plan

18 The Appraisal Interview
How to Handle a Defensive Employee recognize that defensive behaviour is normal never attack a person’s defenses postpone action recognize human limitations

19 The Appraisal Interview
constructive criticism within a dignified context ensure the interview leads to improved performance consider appropriate use of formal written warnings

20 Legal and Ethical Issues
use rating instruments based on specific job behaviours provide an honest assessment of performance requires raters to have regular contact with employees accurate feedback is critical to defend charges of biases based on prohibited grounds

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