2 Basic Concepts in Performance Management and Appraisal Performance Appraisal: Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance.Performance Management: An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims.Comparing Performance Appraisal and Performance Management
5 The Building Blocks of an Effective Performance Management Process Direction sharingRole clarificationGoal setting and planningGoal alignmentDevelopmental goal settingOngoing performance monitoringOngoing feedbackCoaching and supportPerformance assessment (appraisal)Rewards, recognition, and compensationWorkflow, process control, and return on investment management
6 Defining the Employee’s Goals and Work Standards Assign Specific GoalsEncourage ParticipationAssign Measurable GoalsAssign Challenging but Doable GoalsGuidelines for Effective Goal Setting
8 Performance Appraisal Roles SupervisorsUsually do the actual appraising.Must be familiar with basic appraisal techniques.Must understand and avoid problems that can cripple appraisals.Must know how to conduct appraisals fairly.
9 Performance Appraisal Roles (cont’d) The HR DepartmentServes a policy-making and advisory role.Provides advice and assistance regarding the appraisal tool to use.Trains supervisors to improve their appraisal skills.Monitors the appraisal system effectiveness and compliance with EEO laws.
10 An Introduction to Appraising Performance Why Appraise Performance?12Is basis for pay and promotion decisions.3Plays an integral role in performance management.4Helps in correcting deficiencies and reinforcing good performance.Is useful in career planning.
11 (Un)Realistic Appraisals Motivations for Soft AppraisalsThe fear of having to hire and train someone new.The unpleasant reaction of the appraisee.An appraisal process that’s not conducive to candor.Hazards of Soft AppraisalsEmployee loses the chance to improve before being forced to change jobs.Lawsuits arising from dismissals involving inaccurate performance appraisals.
12 An Introduction to Appraising Performance Steps in Appraising Performance12Defining the job3Appraising performanceProviding feedback
13 Designing the Appraisal Tool What to Measure?Work output (quality and quantity)Personal competenciesGoal (objective) achievementHow to Measure?Generic dimensionsActual job dutiesBehavioral competencies
14 Performance Appraisal Methods Appraisal Methodologies16328Graphic Rating Scale Method7Narrative Forms49Alternation Ranking MethodBehaviorally Anchored Rating Scales (BARS)510Paired Comparison MethodManagement by Objectives (MBO)Forced Distribution MethodComputerized and Web-Based Performance AppraisalCritical Incident MethodMerged Methods
15 Sample Graphic Rating Performance Rating Form Source: Elaine Pulakos, Performance Management (SHRM Foundation, 2004) p. 16–17.
16 Sample Performance Rating Form (cont’d) Source: Elaine Pulakos, Performance Management (SHRM Foundation, 2004) p. 16–17.
17 Portion of an Administrative Secretary’s Performance Appraisal Form Showing Task(s) to Appraise
18 Appraisal Form for Assessing Both Competencies and Specific Objectives Source: Accessed May 17, 2007.
23 Ranking Employees by the Paired Comparison Method Note: + means “better than.” – means “worse than.” For each chart, add up the number of +’s in each column to get the highest-ranked employee.
24 Behaviorally Anchored Rating Scale (BARS) Developing a BARSGenerate critical incidentsDevelop performance dimensionsReallocate incidentsScale the incidentsDevelop a final instrumentAdvantages of BARSA more accurate gaugeClearer standardsFeedbackIndependent dimensionsConsistency
25 Management by Objectives (MBO) A comprehensive and formal organizationwide goal-setting and appraisal program requiring:Setting of organization’s goals.Setting of departmental goals.Discussion of departmental goals.Defining expected results (setting individual goals).Conducting periodic performance reviews.Providing performance feedback.
26 Using MBO Problems with MBO Setting unclear objectives Conflict with subordinates over objectivesTime-consuming appraisal process
27 Appraising Performance: Problems and Solutions Unclear StandardsLeniency or StrictnessHalo EffectPotential Rating Scale Appraisal ProblemsCentral TendencyBias
28 Appraising Performance: Problems and Solutions (cont’d) Know ProblemsControl Outside InfluencesUse the Right ToolHow to Avoid Appraisal ProblemsTrain SupervisorsKeep a Diary
29 Who Should Do the Appraising? Self-RatingSubordinates360-Degree FeedbackPotential AppraisersImmediate SupervisorPeersRating Committee
30 The Appraisal Interview Satisfactory—PromotableSatisfactory—Not PromotableUnsatisfactory—CorrectableUnsatisfactory—UncorrectableTypes of Appraisal Interviews
31 The Appraisal Interview (cont’d) Talk in terms of objective work data.Don’t tiptoe around.Don’t get personal.Encourage the person to talk.Guidelines for Conducting an Interview
32 The Appraisal Interview (cont’d) How to Handle a Defensive Subordinate12Recognize that defensive behavior is normal.3Never attack a person’s defenses.4Postpone action.Recognize your own limitations.
33 The Appraisal Interview (cont’d) How to Criticize a Subordinate132Do it in a manner that lets the person maintain his or her dignity and sense of worth.4Criticize in private, and do it constructively.5Give daily feedback so that the review has no surprises.Never say the person is “always” wrong.Criticism should be objective and free of biases.
34 The Appraisal Interview (cont’d) How to Ensure Improved Performance132Don’t make the subordinate feel threatened during the interview.4Give the subordinate the opportunity to present his or her ideas and feelings.5Give daily feedback so that the review has no surprises.Never say the person is “always” wrong.Criticism should be objective and free of biases.
35 Performance Appraisal Methods Appraisal Methodologies16328Graphic Rating Scale Method7Narrative Forms49Alternation Ranking MethodBehaviorally Anchored Rating Scales (BARS)510Paired Comparison MethodManagement by Objectives (MBO)Forced Distribution MethodComputerized and Web-Based Performance AppraisalCritical Incident MethodMerged Methods