Dessler hrm12e ppt_09

PowerPoint Presentation by Charlie CookThe University of West Alabama

Chapter 9

Performance Management and Appraisal

Part Three | Training and Development

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9–2

1.1. Define performance management and discuss how it Define performance management and discuss how it differs from performance appraisal.differs from performance appraisal.

2.2. Set effective performance appraisal standards.Set effective performance appraisal standards.

3.3. Describe the appraisal process.Describe the appraisal process.

4.4. Develop, evaluate, and administer at least four Develop, evaluate, and administer at least four performance appraisal tools.performance appraisal tools.

5.5. Explain and illustrate the problems to avoid in Explain and illustrate the problems to avoid in appraising performance.appraising performance.

6.6. Discuss the pros and cons of using different raters to Discuss the pros and cons of using different raters to appraise a person’s performance.appraise a person’s performance.

7.7. Perform an effective appraisal interview.Perform an effective appraisal interview.

LEARNING OUTCOMESLEARNING OUTCOMES


Basic Concepts in Basic Concepts in PerformancePerformance

Management and AppraisalManagement and AppraisalPerformance

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.


An Introduction to Appraising An Introduction to Appraising PerformancePerformance

1

Is useful in career planning.

Plays an integral role in performance management.

Why Appraise Performance?

Is basis for pay and promotion decisions.

Helps in correcting deficiencies and reinforcing good performance.

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(Un)Realistic Appraisals(Un)Realistic Appraisals• Motivations for Soft AppraisalsMotivations for Soft Appraisals

The fear of having to hire and train someone new.The fear of having to hire and train someone new. The unpleasant reaction of the appraisee.The unpleasant reaction of the appraisee. An appraisal process that’s not conducive to candor.An appraisal process that’s not conducive to candor.

• Hazards of Soft AppraisalsHazards of Soft Appraisals Employee loses the chance to improve before being discharged Employee loses the chance to improve before being discharged

or forced to change jobs.or forced to change jobs. Lawsuits arising from dismissals involving inaccurate Lawsuits arising from dismissals involving inaccurate

performance appraisals.performance appraisals.


Performance Appraisal RolesPerformance Appraisal Roles• The Supervisor’s RoleThe Supervisor’s Role

Usually do the actual appraisingUsually do the actual appraising

Must be familiar with basic Must be familiar with basic appraisal techniquesappraisal techniques

Must understand and avoid Must understand and avoid problems that can cripple problems that can cripple appraisalsappraisals

Must know how to conduct Must know how to conduct appraisals fairlyappraisals fairly


Performance Appraisal Roles Performance Appraisal Roles (cont’d)(cont’d)• The HR Department’s Role The HR Department’s Role

Serves a policy-making and advisory role.Serves a policy-making and advisory role.

Provides advice and assistance regarding the appraisal Provides advice and assistance regarding the appraisal tool to use.tool to use.

Trains supervisors to improve their appraisal skills.Trains supervisors to improve their appraisal skills.

Monitors the appraisal system effectiveness and Monitors the appraisal system effectiveness and compliance with EEO laws.compliance with EEO laws.


Effectively Appraising PerformanceEffectively Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

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3


Defining the Employee’s Defining the Employee’s Goals and Work StandardsGoals and Work Standards

Set SMART goals

Assign challenging

/ doable goals

Assign specific

goals

Guidelines for Effective

Goal Setting

Assign measurable

goals

Encourage participatio

n


Setting SMART GoalsSetting SMART Goals• SSpecific, and clearly state the desired results.pecific, and clearly state the desired results.

• MMeasurable in answering “how much.”easurable in answering “how much.”

• AAttainable, and not too tough or too easy.ttainable, and not too tough or too easy.

• RRelevant to what’s to be achieved.elevant to what’s to be achieved.

• TTimely in reflecting deadlines and milestones.imely in reflecting deadlines and milestones.


Designing the Appraisal ToolDesigning the Appraisal Tool• What to Measure?What to Measure?

Work output (quality and quantity)Work output (quality and quantity) Personal competenciesPersonal competencies Goal (objective) achievementGoal (objective) achievement

• How to Measure?How to Measure? Generic dimensionsGeneric dimensions Actual job dutiesActual job duties Behavioral competenciesBehavioral competencies


Performance Appraisal MethodsPerformance Appraisal Methods

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2

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5

Alternation ranking

Graphic rating scale

Paired comparison

Forced distribution

Critical incident

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Behaviorally anchored rating scales (BARS)

Narrative forms

Management by objectives (MBO)

Computerized and Web-based performance appraisal

Merged methods

Appraisal Methodologies


FIGURE 9–3 One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties


FIGURE 9–4 Appraisal Form for Assessing Both Competencies and Specific Objectives


FIGURE 9–5 Scale for Alternate Ranking of Appraisee


FIGURE 9–6 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.


TABLE 9–1 Examples of Critical Incidents for Assistant Plant Manager

Continuing Duties Targets Critical Incidents

Schedule productionfor plant

90% utilization of personnel and machinery in plant; orders delivered on time

Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month

Supervise procurement of raw materials and on inventory control

Minimize inventory costs while keeping adequate supplies on hand

Let inventory storage costs rise 15% last month; over-ordered parts “A” and “B” by 20%; under-ordered part “C” by 30%

Supervise machinery maintenance

No shutdowns due to faulty machinery

Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part


FIGURE 9–7Appraisal-Coaching Worksheet


FIGURE 9–8Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills


Dealing with Dealing with Performance Appraisal Performance Appraisal

ProblemsProblems

Unclear standards

Leniency or strictness

Halo effect

Potential Rating Scale Appraisal

Problems

Central tendency Bias


TABLE 9–2 A Graphic Rating Scale with Unclear Standards


Guidelines for Effective AppraisalsGuidelines for Effective Appraisals

Know the problems

Get agreement on a plan

Use the right tool

How to Avoid Appraisal Problems

Keep a diary

Be fair


TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages Graphic rating scale Simple to use; provides a quantitative

rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems.

BARS Provides behavioral “anchors.” BARS is very accurate.

Difficult to develop.

Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales.

Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent.

Forced distribution method

End up with a predetermined number or % of people in each group.

Employees’ appraisal results depend on your choice of cutoff points.

Critical incident method

Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis.

Difficult to rate or rank employees relative to one another.

MBO Tied to jointly agreed-upon performance objectives.

Time-consuming.


Choosing the Right Appraisal ToolChoosing the Right Appraisal Tool

Accessibility AccuracyEase-of-use Employee acceptance

Criteria for Choosing an Appraisal Tool


Who Should Do the Appraising?Who Should Do the Appraising?

Self-rating

Subordinates

360-degree feedback

Potential Appraisers

Immediate supervisor

Peers

Rating committee


The Appraisal InterviewThe Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable

Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

Types of Appraisal Interviews


Appraisal Interview GuidelinesAppraisal Interview Guidelines

Talk in terms of objective work data

Get agreement

Don’t get personal

Encourage the person to

talk

Guidelines for Conducting an Interview


Handling Defensive ResponsesHandling Defensive Responses

1

Recognize your own limitations.

Never attack a person’s defenses.

How to Handle a Defensive Subordinate

Recognize that defensive behavior is normal.

Postpone action.

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How to Deliver CriticismHow to Deliver Criticism

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How to Criticize a Subordinate

Criticize in private, and do it constructively.

Do it in a manner that lets the person maintain his or her dignity and sense of worth.

Give daily feedback so that the review has no surprises.

Never say the person is “always” wrong.

Criticism should be objective and free of biases.


Formal Written WarningsFormal Written Warnings• Purposes of a Written WarningPurposes of a Written Warning

To shake your employee out of bad habits.To shake your employee out of bad habits. To help you defend your rating, both to your own boss and (if To help you defend your rating, both to your own boss and (if

needed) to the courts.needed) to the courts.

• A Written Warning Should:A Written Warning Should: Identify standards by which employee is judged.Identify standards by which employee is judged. Make clear that employee was aware of the standard.Make clear that employee was aware of the standard. Specify deficiencies relative to the standard.Specify deficiencies relative to the standard. Indicate employee’s prior opportunity for correction.Indicate employee’s prior opportunity for correction.

Business

Dessler hrm12e ppt_09