Chapter7 Post

8/3/2019 Chapter7 Post

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CHAPTER SEVENCHAPTER SEVEN

Appraising andAppraising and

Managing PerformanceManaging Performance


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Chapter ObjectivesChapter Objectives

Explain why performance appraisalExplain why performance appraisalis important and describe itsis important and describe itscomponentscomponentsDiscuss the advantages andDiscuss the advantages anddisadvantages of differentdisadvantages of different

performance rating systems performance rating systemsManage the impact of rating errorsManage the impact of rating errorsand bias on performance appraisalsand bias on performance appraisalsDiscuss the potential role of Discuss the potential role of emotion in performance appraisalemotion in performance appraisaland how to manage its impactand how to manage its impactIdentify the major legalIdentify the major legalrequirements for appraisalrequirements for appraisalUse performance appraisals toUse performance appraisals tomanage and develop employeemanage and develop employee

performance performance

Review Key Terms

360-degree feedback Absolute judgment

BARSDimensionsMBO

Performance Appraisal

PerformanceManagementRelative judgment


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W hat is Performance Appraisal?W hat is Performance Appraisal?

Performance AppraisalPerformance AppraisalEvaluating an employees current and/or past

performance relative to his or her performance

standards.TheThe identificationidentification , , measurement measurement , and, and management management of human performance in organizations.of human performance in organizations.

Performance ManagementThe process employers use to make sure employeesare working toward organizational goals.


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I dentifying Performance DimensionsI dentifying Performance Dimensions

DimensionsDimensionsDefined as an aspect of performance that determinesDefined as an aspect of performance that determineseffectiveeffective job job performance. performance.

Performance dimensions are defined based on the jobPerformance dimensions are defined based on the joband the work itself.and the work itself.Identified based on the job analysisIdentified based on the job analysisPerformance dimensions help answer the question:Performance dimensions help answer the question:

How does someone act and/or behave when s/heHow does someone act and/or behave when s/hedoes the job well?does the job well?May be further defined through use of competenciesMay be further defined through use of competencies

Characteristics associated with successful performance


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Examples of Performance Dimensions:Examples of Performance Dimensions:Strong Interpersonal SkillsCustomer Service Orientation

Teamwork Effective CommunicationValuing DiversityAnalysis and Problem - SolvingDecision - Making and Results OrientationAdaptabilityFostering a Safe and Secure Environment


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For dimensions to be an effective means of measuring performance , they must have twocharacteristics:

Have a clear general definition Team work might then be defined in terms of competencies

Have well - defined levels of performance at each pointalong a rating scale.


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Measuring PerformanceMeasuring Performance

Measuring performanceMeasuring performanceadministering numbers or labels towards performanceadministering numbers or labels towards performanceis difficult tois difficult to quantifyquantify

Two formats that are most common , legallydefensible , and promising are classified by

type of judgment required

focus of the measure


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Measuring PerformanceMeasuring Performance


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Measurement ToolsMeasurement ToolsRelative judgment

An appraisal format that asks supervisors to comparean employees performance to the performance of

other employees doing the same job. Rank order Grouping Forced Ranking

GE , Ford Motor , Conoco , Sun Microsystems , Cisco Systems , EDS , and Enron

Pros: Forced Differentiation and create conflictCons: No absolute rankings and may force differenceswhere none truly exist


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Measurement ToolsMeasurement Tools

Absolute judgmentAn appraisal format that asks supervision to make

judgments about an employees performance based

solely on performance standards.Pros: Can be more specific , helpful and create lessconflictCons: Different supervisors may have differentstandards


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Measurement ToolsMeasurement Tools

Type of Performances Data the tool focuses on:Trait Appraisal InstrumentBehavioral Appraisal Instrument (BARS)Outcome Appraisal Instrument (MBO)


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Measurement ToolsMeasurement Tools Trait Appraisal InstrumentsTrait Appraisal Instruments

Focuses on the person rather than on the performanceGraphic rating scale

A scale that lists a number of traits and a range of performance for each that is used to identify the scorethat best describes an employees level of

performance for each trait.

Example: Reliability1

(very low) to5

(very high)Pros: We are good at itCons: Legal Concerns because traits can beambiguous and focuses is on person


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Measurement ToolsMeasurement Tools Behavioral Appraisal InstrumentBehavioral Appraisal Instrument

Combines traditional rating scales and criticalincidents methodsJob behaviors derived from critical incidentsdescribed more objectivelyPros Legally defensible and provides specificexamples of behavior to engage in

Cons - Can be time consuming to create and behavior may occur


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Measurement ToolsMeasurement Tools Behavioral Appraisal InstrumentBehavioral Appraisal Instrument

Behaviorally Anchored Rating Scale (BARS)An appraisal method that uses quantified scale withspecific narrative examples of good and poor

performance.Developing a BARS:

Generate critical incidents

Develop performance dimensionsReallocate incidentsScale the incidentsDevelop a final instrument


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Measurement ToolsMeasurement Tools Outcome Appraisal Instrument (MBO)Outcome Appraisal Instrument (MBO)

Involves setting specific measurable goals with eachemployee and then periodically reviewing the progressmade.

Set the organizations goals.

Set departmental goals. Discuss departmental goals. Define expected results (set individual goals).

Performance reviews. Provide feedback.

Pros: tied to organizational strategyCons: may develop results at any cost mentality


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W ho Does the Appraisals?W ho Does the Appraisals?

Self ReviewsSelf ReviewsPeer ReviewsPeer Reviews

Subordinate ReviewsSubordinate Reviews360360- - degree feedback degree feedback


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W ho Does the Appraisals?W ho Does the Appraisals?360360--Degree ValuationDegree Valuation

Multi - rater evaluationInput from multiple levels with firm and externalsourcesFocuses on skills needed across organizational

boundariesMore objective measure of performanceProcess more legally defensible


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Challenges to Effective PerformanceChallenges to Effective PerformanceMeasurementMeasurement

Rater ErrorsRater ErrorsAn error in performance appraisals that reflectsAn error in performance appraisals that reflectsconsistent biases on the part of the rater consistent biases on the part of the rater

FrameFrame -- of of -- reference (FOR) training can help combatreference (FOR) training can help combatthis problemthis problem


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Problems in Performance AppraisalProblems in Performance AppraisalRater Errors & BiasRater Errors & Bias

Lack of objectivityHalo error Comparability across Supervisors

Leniency/strictness

Central tendencyRecent behavior biasPersonal biasManipulating the evaluation


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Rater ErrorsRater ErrorsThe Influence of LikingThe Influence of Liking

PrecautionsPrecautionsAccurate record keepingAccurate record keeping -- journals journals

Individual or Group FocusIndividual or Group Focus

Organizational PoliticsOrganizational Politics


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Reasons for I ntentionally I nflating orReasons for I ntentionally I nflating orLowering RatingsLowering Ratings

Believe accurate ratings would have a damaging effect onsubordinates motivation and performance.Improve employees eligibility for merit raises.Avoid airing departments dirty laundry.

Avoid creating negative permanent record that might hauntemployee in the future.Protect good workers whose performance suffered because of

personal problems.Reward employees displaying great effort even when resultswere relatively low.Avoid confrontation with hard - to - manage employees.Promote a poor or dislike employee up and out of thedepartment.


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Reasons for I ntentionally I nflating orReasons for I ntentionally I nflating orLowering RatingsLowering Ratings

Scare better performance out of an employee.Punish a difficult or rebellious employee.Encourage a problem employee to quit.Create a strong record to justify a planned firing.Minimize the amount of merit increase a subordinatereceives.

Comply with an organizational edict that discouragesmanagers from giving high ratings.


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Emerging Trends: Measuring the PerformanceEmerging Trends: Measuring the Performanceof Teamsof Teams

Review existing measures to make sure the teamis aware of the measures and has commitment andresponsibilities to achieve them.

Identify interim checkpoints at which team progress or achievements can be assessed.Identify what the team and team members must

do to achieve the desired team - level results.Prioritize team goals according to relativeimportance.


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Characteristics of an EffectiveCharacteristics of an EffectiveAppraisal SystemAppraisal System

Develop any needed measures of interim and finalteam and individual performance.Develop team and individual performancestandards so that everyone has a clear understanding of performance expectations.Determine how the performance management

system will work. Who will be the raters? Howwill feedback be provided?


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Legal IssuesLegal IssuesFactors influencing judges decisions in casesFactors influencing judges decisions in casesinvolving performance appraisalsinvolving performance appraisals

Use of job analysisUse of job analysis Providing written instructionsProviding written instructions Allowing employees to review appraisal resultsAllowing employees to review appraisal results Agreement among multiple ratersAgreement among multiple raters The presence of rater trainingThe presence of rater training


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Managing PerformanceManaging PerformancePerformance ImprovementPerformance Improvement

Because formal appraisal interviews typically areconducted only once a year , they may not always have asubstantial and lasting impact on worker performance.Thus , supervisors who manage performance effectivelygenerally share four characteristics.

Exploring the causes of performance problemsDirecting attention to the causes of problems

Developing an action plan and empowering workers to reach asolutionDirecting communication at performance & provide effectivefeedback


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Tips for Better Performance ReviewsTips for Better Performance Reviews

Start with the raw dataStart with the raw dataMake sure you are evaluating performance onMake sure you are evaluating performance onappropriate dimensionsappropriate dimensions

Beware of rating biasesBeware of rating biasesSupport ratings with written commentsSupport ratings with written commentsEvaluate several or all of your people at one time , if Evaluate several or all of your people at one time , if

possible possibleStick with performance and stay away fromStick with performance and stay away frominferences about causeinferences about causeBe consistent across workersBe consistent across workers

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