Chapter 12 PERFORMANCE APPRAISAL. 2 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458

Chapter 12

PERFORMANCE APPRAISAL

2Supervision Today! 6th EditionRobbins, DeCenzo, Wolter

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights

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Chapter Outcomes Describe the three purposes of the performance appraisal.

Differentiate formal and informal performance appraisals.

Describe key legal concerns in performance appraisals.

Identify the three most popular sets of criteria that supervisors appraise.

Contrast absolute and relative standards. List human errors that can distort performance appraisal ratings.

Describe what is meant by term 360-degree appraisal.

Describe the purpose of employee counseling.



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Performance appraisal defined

A review of past performance that emphasizes positive accomplishments as well as deficiencies; a means for helping employees improve future performance.



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Performance appraisers

Supervisor Peers Self



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Review guidelines

Prepare for and schedule the appraisal Create a supportive environment Describe the purpose of the appraisal Involve the employee in the appraisal Focus discussion on work behaviors Support evaluation with specific examples

Provide positive feedback and feedback for improvement

Ensure that employees understand what was discussed

Generate a development plan



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Legality Performance appraisal policies set forth in organizational handbooks are increasingly construed as a binding unilateral contract.

Do everything possible to avoid the appearance of prejudice and discrimination.



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Absolute-standards measurements

Written essays Critical incidents Checklists Adjective rating scales (see page 302)

Behaviorally Anchored Rating Scales (BARS)



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Relative standards

Group-order ranking Individual ranking



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Objectives

Objectives must be: Tangible Verifiable Measurable



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EXHIBIT 12–2Sample items from a checklist appraisal form.



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EXHIBIT 12-3Example of adjective rating scale items.



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EXHIBIT 12–4Sample BARS for an employee relations specialist. Source: Reprinted from Business Horizons, August 1976. Copyright 1976 by The Foundation for the School of Business at Indiana University.



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EXHIBIT 12–5Group-order ranking distribution.



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Potential problems in performance appraisals

Leniency error Halo error Similarity error Recency error Central tendency error Inflationary pressures



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Overcoming hurdles Continually document employee performance

Use behaviorally-based measures Combine absolute and relative standards

Use multiple raters Rate selectively Participate in appraisal training Conduct performance appraisals of teams



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EXHIBIT 12–6The counseling process.

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Chapter 12 PERFORMANCE APPRAISAL. 2 Supervision Today! 6 th Edition Robbins, DeCenzo, Wolter © 2010 Pearson Higher Education, Upper Saddle River, NJ 07458