1. Performance Management Methods and Problems

2. When it goes wrong.  GE’s Superabraisives

3. Applications to HR

4. Appraisal Process Identify Specific Performance Appraisal Goals Establish Job Expectations Examine Work Performed Appraise Performance Discuss Appraisal with Employee

5. Responsibility for Appraisal  Immediate supervisor  Subordinates  Peers  Self appraisal  Combination (e.g., 360 degree)

6. Appraisal Period  Daily?  Weekly?  Monthly?  Yearly?  Multiple years?  Probationary?  “Never?”

7. Methods of Appraisal  Rating Scales  Critical Incidents  Essay  Work Standards  Ranking  Forced Distribution  MBO  Behaviorally Anchored Rating Scales*

8. Problems in Performance Appraisal  Lack of objectivity  Halo error  Leniency  Strictness  Central Tendency  Recent Behavior Bias  Personal bias  “Opinion” vs. “Judgment”

9. Characteristics of an Effective Appraisal System  Job-related criteria  Performance expectations  Standardization  Qualified appraisers  Open communication  Employee access to results  Due process

10. End Questions?

11. Graphic Rating Scales 1-------2--------3--------4--------5--------6--------7 PoorExceptional |_______|_______|_______|_______| Needs Outstanding Improvement Improvement1------------2------------3------------4------------5 InadequateBelowAverageAbove Superior Average Average

12. Forced Distribution on a Bell- Shaped Curve