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Human Resource Management Robert L. Mathis | John H. Jackson | Sean R. Valentine © 2014 Cengage Learning. All rights reserved. May not be scanned, copied.

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Presentation on theme: "Human Resource Management Robert L. Mathis | John H. Jackson | Sean R. Valentine © 2014 Cengage Learning. All rights reserved. May not be scanned, copied."— Presentation transcript:

1 Human Resource Management Robert L. Mathis | John H. Jackson | Sean R. Valentine © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Performance Management and Appraisal Chapter 10 14e

2 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Performance Management versus Performance Appraisal

3 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. The Nature of Performance Management

4 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.2 - Components of a Performance-Focused Culture

5 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Identifying and Measuring Employee Performance

6 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.3 - Types of Performance Information

7 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Performance Standards  Define the expected levels of employee performance  Should be realistic, measurable, and clearly understood  Benefit both organizations and employees  Ensure that everyone involved knows the levels of accomplishment expected  Can be both numerical and non-numerical  Assessing non numerical standards can be difficult

8 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.4 - ACTFL Performance Standards for Speaking Proficiency

9 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Difficulties in Measuring Service Performance

10 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Performance Appraisals  Assess an employee’s performance  Provide a platform for feedback  Help administering wages and salaries  Help identifying individual employee strengths and weaknesses  Provide answers to work-related questions  Help improve job performance

11 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.5 - Uses for Performance Appraisals

12 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Decisions About the Performance Appraisal Process Designing Appraisal Systems Appraisal Responsibilitie s Informal vs. Systematic Processes Timing of Appraisals

13 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.6 - Typical Division of HR Responsibilities: Performance Appraisal

14 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Who Conducts Appraisals? Supervisors rating their employees Employees rating their superiors Multisource or 360° feedback Outside sources rating employees Team members rating each other Employees rating themselves Sources of Performance Appraisals

15 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.7 - Multisource Appraisal

16 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. 10–16 Category Scaling Methods  Graphic rating scale : Allows the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular characteristic

17 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. 10–17 Category Scaling Methods Aspects of Performance Measured Descriptive Categories Job Duties Behavioral Dimensions

18 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Category Scaling Methods  Behaviorally Anchored Rating Scale (BARS)  Composed of job dimensions (specific descriptions of important job behaviors) that anchor performance levels on the scale  Developing a BARS  Identify important job dimensions  Write short statements of job behaviors  Assign statements (anchors) to job dimensions  Set scales for anchors

19 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.10 - Behaviorally-Anchored Rating Scale for Customer Service Skills

20 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Comparative Methods  Ranking : Listing of all employees from highest to lowest in performance  Drawbacks  Does not show size of differences in performance between employees  Implies that lowest-ranked employees are unsatisfactory performers  Becomes an unwieldy process if the group to be ranked is large

21 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Comparative Methods  Forced distribution : Causes ratings of employees to be distributed along a bell- shaped curve

22 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Forced Distribution Advantages Helps deal with “rater inflation” Makes manages identify high, average, and low performers Ensures that compensation increases reflect performance differences among individuals Disadvantages Managers resist placing people in the lowest or highest groups Explanation for placement can be difficult Performance may not follow normal distribution Managers may make false distinctions between employees

23 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Figure 10.11 - Forced Distribution on a Bell-Shaped Curve

24 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Narrative Methods  Critical incident - Manager keeps a written record of highly favorable and unfavorable employee actions  Drawbacks  Variations in how managers define a critical incident  Time involved in documenting employee actions  Most employee actions are not observed and may become different if observed  Employee concerns about manager’s black books

25 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Narrative Methods  Essay - Manager writes a short essay describing an employee’s performance  Drawback - Depends on the supervisors’ writing skills and their ability to express themselves

26 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Management by Objectives (MBO)  Management by objectives : Performance appraisal method that specifies the performance goals that an individual and manager identify together

27 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Stages in the MBO Process 4. Continuing performance discussions 3. Setting of objectives 2. Development of performance standards 1. Job review and agreement

28 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Training Of Managers And Employees in Performance Appraisal

29 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Types of Rater Errors  Varying standards  Recency and primacy effects  Central tendency, leniency, and strictness errors  Rater bias  Halo and horns effects  Contrast error  Similar-to-me/different-from-me errors

30 © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. Effective Performance Management Consistent with the strategic mission Beneficial as a development tool Effectively documents performance Viewed as fair by employees Useful as an administrative tool Is legal and job related Effective Performance Management System


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