c11 Performance Appraisal

8/12/2019 c11 Performance Appraisal

1/28

11-1

Chapter 11:

Performance Appraisal

Paul L. Schumann, Ph.D.

2004 by Paul L. Schumann. All rights reserved.


2/28

11-2

Outline

Performance Measurement

Functions of Performance Appraisal

Types of Performance to MeasurePerformance Appraisal Methods

Performance Raters

Performance Feedback


3/28

11-3

Performance Management

Goal:

Improve the effectiveness & efficiency of the

organization by:

Aligning the employees work behaviors & results

with the organizations goals

Improving the employees work behaviors & results

On-going, integrative process


4/28


5/28

11-5


Employee Development Tool Set goals

Involve employee

Measurable Challenging but realistic, difficult but achievable

Empower employee to achieve goals

Provide feedback to reinforce and sustain

performance

Provide help and advice to improve

performance


6/28

11-6


Employee Development Tool (contd.) Assist employee in achieving career

progression goals

Determine training needs

Administrative Tool

Link rewards to performance

Pay increases, promotions, demotions, dismissals,

disciplinary actions

Evaluate HRM policies and programs

Example: before-after study (pretest-posttest design)


7/2811-7

Types of Performance to Measure

Results-based (results-oriented): measure

the results produced by the employee

Examples for a retail store manager:

Sales of the store

Profit per square foot

Inventory shrinkage

Customer satisfaction Makes sense for many jobs

Use it where results matter


8/2811-8


Results-based (contd.):

Challenges:

Which results are relevant may not be obvious for

all jobs

Some results are not under the employees control

May foster results at all costs mentality

May interfere with teamwork

May be difficult to provide effective feedback


9/2811-9


Behavior-based (behavior-oriented):

measure the employees behaviors


Good teamwork

Welcome & thank customers

Good attendance

Monitor customers & employees for theft Makes sense for many jobs

Use it where how the employee produces results

matters


10/2811-10


Behavior-based (contd.):

Makes it easier to provide detailed feedback


Results: You didnt achieve your sales goal. Behavior: You are allowing your employees to wait too

long before offering help to customers.

Challenges:

Difficult to capture the full range of relevantbehaviors

Different behaviors can lead to the same results

do we always care which behaviors were used?


11/2811-11


Trait-based (trait-oriented): measure theemployees abilities and other personal

characteristics

Examples for a retail store manager: Pleasant personality

Effective communicator

Usually a bad idea:

Poor reliability & validity

Weak linkages with job effectiveness

Measurement subject to biases (racism, sexism)

Difficult to provide effective feedback


12/2811-12

Performance Appraisal Methods

Objective Measures: measure performance

in terms of things we can see and count

Production measures: count units produced

Sales measures: count sales

Personnel data: count things in the employees

personnel file, such as:

Number of times late to work Number of times absent

Number of disciplinary actions taken


13/2811-13


Objective Measures (contd.)

Performance tests: evaluate a sample of the

employees work

Business unit performance measures:

Examples:

Stock price

Market share

Profit measures: profits, return on sales, return on assets,

return on equity

Use for managers with business unit responsibility


14/2811-14


Subjective measures: measure performance

using human judgment

Ranking: subjectively rank employees from

best to worst

Example:

1. Bob

2. Carol

3. Ted

4. Alice


15/2811-15


Subjective measures (contd.) Paired Comparisons: in all possible pairs of

employees, subjectively rate which employee is

better

# of paired comparisons = (N2N)/2

Example: N = 4 6 paired comparisons:

Bob > Carol; Bob > Ted; Bob > Alice

Carol > Ted; Carol > Alice

Ted > Alice

Example: N = 12 66 paired comparisons


16/2811-16

Outline




Performance Raters



17/2811-17


Subjective measures (contd.) Rating scale (graphic rating scale): subjectively

rate the employees performance on a labeled

numeric measuring scale

Rate overall job performance as well as specific

aspects of job performance

Example:

5 = Excellent

4 = Very satisfactory

3 = Satisfactory

2 = Unsatisfactory

1 = Very unsatisfactory


18/2811-18

Examples of Rating Scales

Use a graphic or justuse words?

Label all the points in

the scale, or just label

the endpoints of the

scale?

Odd or even number

of points in the scale?

Fewer points in the

scale, or more points

in the scale?Source of figure: Fisher, Schoenfeldt, &

Shaw (2003), Figure 11.7


19/2811-19


Subjective measures (contd.) Forced distribution: evaluator must place a

fixed percentage of employees in each

performance category

Example:

10% must be rated 5 = Excellent

20% must be rated 4 = Very satisfactory

50% must be rated 3 = Satisfactory

15% must be rated 2 = Unsatisfactory

5% must be rated 1 = Very unsatisfactory

But what if the distribution being forced doesnt fit?


20/2811-20


Subjective measures (contd.) Behaviorally Anchored Rating Scale (BARS): replace

the vague descriptors in a traditional rating scale with

specific examples of performance

Example: Customer assistance5 = Could be expected to volunteer to help customer and to walk

with customer to desired product location

4 = Could be expected to walk with customer to desired product

location when asked for help by customer

3 = Could be expected to tell and point customer to where the

desired product is located

2 = Could be expected to shrug shoulders and walk away when

asked for assistance by customer

1 = Could be expected to hide from customers in the employee

break-room


21/2811-21


Subjective measures (contd.) BARS (contd.)

A different scale will be needed for each aspect of

performance

Advantages:

Job-relevant measures of performance

Involves employees in developing scales

Disadvantages:

More work to develop BARS (time & money)

Employees may not consistently fit into one of the BARS

categories (solution to this problem is BOS)


22/28

11-22


Subjective measures (contd.) Behavioral Observation Scales (BOS):

evaluators rate the frequency with which an

employee engages in specific behaviors

Example: on a list of possible employee behaviors,

rate how often the employee engages in each

behavior using a rating scale where:

1 = almost never 5 = almost always

Weighted checklist: from a list of possible

employee behaviors, check off the ones that

apply to the employee


23/28

11-23


Management By Objectives (MBO): At the beginning of the review period, meet

with employee and agree on goals for the

employee to achieve by the end of the period

Involve employee in setting goals

Measurable goals

Challenging but realistic, difficult but achievable

At the end of the review period, meet withemployee and, for each goal, determine if the

goal has been achieved


24/28

11-24

Performance Raters

Who should we ask to rate an employees

job performance? Need:

Opportunity to observe the employees

performance

Ability to translate observations of employees

performance into a rating

Motivation to do a good job of observing andrating


25/28

11-25

Performance Raters

Options for performance raters:

Supervisors

Self-evaluation

Peers (co-workers)

Subordinates

Customers

360-Degrees


26/28

11-26


Employees need good feedback

Allow time & eliminate distractions

Types of feedback sessions: Tell-and-sell

Tell-and-listen

Problem-solving

Mixture of tell-and-sell and problem-solving


27/28

11-27


Doesnt hurt to cover both administrative(e.g., pay increase) and developmental (e.g.,

future goals) issues in one feedback session

Provide specific feedback Dont say: Youre always late.

Do say: You were more than 5 minutes late on

25 separate occasions in the last 3 months. This

is unacceptable. We need to develop (1) a

specific goal concerning prompt attendance,

and (2) an action plan that you will follow to

achieve the goal.


28/28

Outline




Performance Raters


Documents

c11 Performance Appraisal