Dessler Hrm Ppt 09

8/12/2019 Dessler Hrm Ppt 09

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GARY DESSLER

HUMAN RESOURCE MANAGEMENT

12thEdition

Part 3 Training and Development

Chapter 9

Performance

Management and

Appraisal


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93

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 employees

performance

supports and

contributes to theorganizations

strategic aims.


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95

Defining the Employees Goals

and Work Standards

Set

SMART

goals

Assign

challenging/

doable goals

Assign

specific

goals

Guidelines for

Effective

Goal Setting

Assign

measurable

goals

Encourageparticipation


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98

(Un)Realistic Appraisals

Motivations for Soft Appraisals

The fear of having to hire and train someone new.

The unpleasant reaction of the appraisee.

An appraisal process thats not conducive to candor

(Honesty, openness)

Hazards of Soft Appraisals

Employee loses the chance to improve before being

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

performance appraisals.


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910

Performance Appraisal Roles (contd)

The HR Departments Role

Serves 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.


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911

Effectively Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

2

3


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912

Designing the Appraisal Tool

What to Measure?

Work output (quality and quantity)

Personal competencies

Goal (objective) achievement

How to Measure?

Generic dimensions

Actual job duties

Behavioral competencies


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Performance Appraisal Methods

1

2

3

4

5

Alternation ranking

Graphic rating scale

Paired comparison

Forced distribution

Critical incident

6

7

8

9

10

Behaviorally anchored rating

scales (BARS)

Narrative forms

Management by objectives (MBO)

Computerized and Web-based

performance appraisal

Merged methods

Appraisal Methodologies


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Performance Appraisal Methods

Graphic rating scale

A scale that lists a number of traits and a range of

performance for each that is used to identify the score

that best describes an employees level of performance

for each trait.


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GraphicRating Scalewith Space

forComments

Figure 93


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Performance Appraisal Methods (contd)

Alternation ranking method

Ranking employees from best to worst on a particular

trait, choosing highest, then lowest, until all are ranked.


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Alternation Ranking Scale


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Paired comparison method

Ranking employees by making a chart of all possible pairs

of the employees for each trait and indicating which is

the better employee of the pair.


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Ranking Employees by the

Paired Comparison Method

Figure 97

Note: + means better than. means worse than. For each chart,

add up the number of 1s in each column to get the highest-ranked

employee.


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TABLE 91 Examples of Critical Incidents for Assistant Plant Manager

Continuing Duties Targets Critical Incidents

Schedule production

for 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 machinerymaintenance

No shutdowns dueto faulty machinery

Instituted new preventativemaintenance system for plant;

prevented a machine breakdown by

discovering faulty part


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Narrative Forms All or part of the written appraisal may be in narrative form. The

supervisor is responsible for assessing the employees past

performance and the required areas of improvement. The

supervisors narrative assessment aids the employee in

understanding where his or her performance was good or bad , and

how to improve the performance.


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Behaviorally anchored rating scale (BARS) An appraisal method that combines the benefits of

narratives, critical incidents and quantified scales by

anchoring a rating scale with specific behavioral

examples of good and poor performance.

Developing a BARS:

Generate critical incidents

Develop performance dimensions

Reallocate incidents Scale the incidents

Develop a final instrument


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930


Advantages of using a BARS

A more accurate gauge

Clearer standards

Feedback

Independent dimensions Consistency


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Management by Objectives (MBO)

A comprehensive and formal organizationwide goal-

setting and appraisal program requiring:

1. Setting of organizations goals

2. Setting of departmental goals

3. Discussion of departmental goals

4. Defining expected results (setting individual goals)

5. Conducting periodic performance reviews

6. Providing performance feedback


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Using MBO

Setting unclear

objective

Conflict with

subordinates

over objectives

Potential Problems with

MBO

Time-consuming

appraisal process


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Computerized and Web-Based

Performance Appraisal Systems

Allow managers to keep notes on subordinates.

Notes can be merged with employee ratings.

Software generates written text to support appraisals.

Allows for employee self-monitoring and self-evaluation.

Electronic Performance Monitoring (EPM) Systems

Use computer network technology to allow managers accessto their employees computers and telephones.

Managers can monitor the employees rate, accuracy, and

time spent working online.


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Dealing with Performance

Appraisal Problems

Unclear

standards

Leniency or

strictness

Halo

effect

Potential Rating Scale

Appraisal Problems

Central

tendency

Bias


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A Graphic Rating Scale with Unclear

Standards

Note: For example, what exactly is meant by

good, quantity of work, and so forth?

Potential Rating Scale Appraisal Problems

Unclear standards

An appraisal that is too open to interpretation.


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Potential Rating Scale Appraisal

Problems (contd)

Halo effect

Occurs when a supervisors rating of a subordinate on

one trait biases the rating of that person on other

traits.

Central tendency

A tendency to rate all employees the same way, such

as rating them all average.


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Potential Rating Scale Appraisal

Problems (contd)

Strictness/leniency

The problem that occurs when a supervisor has a

tendency to rate all subordinates either high or low.

Bias

The tendency to allow individual differences such as

age, race, and sex to affect the appraisal ratings

employees receive.


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Guidelines 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


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Choosing the Right Appraisal Tool

Accessibility AccuracyEase-of-useEmployee

acceptance

Criteria for Choosing an

Appraisal Tool


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Who Should Do the Appraising?

Self-rating

Subordinates

360-degree

feedback

PotentialAppraisers

Immediate

supervisor

Peers

Rating

committee


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The Appraisal Interview

SatisfactoryPromotable

SatisfactoryNot Promotable

UnsatisfactoryCorrectable

UnsatisfactoryUncorrectable

Types of AppraisalInterviews


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Appraisal Interview Guidelines

Talk in terms

of objective

work data

Get

agreement

Dont get

personal

Encourage

the person to

talk

Guidelines for Conducting

an Interview


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Handling Defensive Responses

1

Recognize your own limitations.

Never attack a persons defenses.

How to Handle a Defensive Subordinate

Recognize that defensive behavior is normal.

Postpone action.

2

3

4


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How to Deliver Criticism

1

2

3

4

5

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.


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The Appraisal Interview (contd)

How to ensure the interview leads to improved

performance

Dont make the subordinate feel threatened during the

interview.

Give the subordinate the opportunity to present his or

her ideas and feelings and to influence the course of the

interview.

Have a helpful and constructive supervisor conduct the

interview.

Offer the subordinate the necessary support for

development and change.


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954

Formal Written Warnings

Purposes of a Written Warning

To shake your employee out of bad habits.

To help you defend your rating, both to your own boss

and (if needed) to the courts.

A Written Warning Should:

Identify standards by which employee is judged.

Make clear that employee was aware of the standard.

Specify deficiencies relative to the standard.

Indicate employees prior opportunity for correction.


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955

Creating the Total Performance

Management Process

What is our strategy and what are our goals?

What does this mean for the goals we set for

our employees, and for how we train, appraise,promote, and reward them?

What will be the technological support

requirements?


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956

Performance Management


Is the continuous process of identifying, measuring, and

developing the performance of individuals and teams and

aligning their performance with the organizations goals.

How Performance Management Differs FromPerformance Appraisal

A continuous process for continuous improvement

A strong linkage of individual and team goals to strategicgoals

A constant reevaluation and modification of work processes


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Basic Building Blocks of


Direction SharingGoal

Alignment

Ongoing

Performance

Monitoring

Rewards,

Recognition, and

Compensation

Coaching and

Development

Support

Ongoing

Feedback


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Why Performance Management?

Total Quality Management

Resolution of Appraisal Issues

Strategic Goal Alignment

The

PerformanceManagement

Approach


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Using Information Technology to

Support Performance Management

Assign financial and nonfinancial goals to each

teams activities along the strategy map chain of

activities leading up to the companys overall

strategic goals. Inform all employees of their goals.

Use IT-supported tools like scorecard software and

digital dashboards to continuously monitor andassess each teams and employees performance.

Take corrective action at once.


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K E Y T E R M S

performance appraisal

graphic rating scalealternation ranking method

paired comparison method

forced distribution method

critical incident methodbehaviorally anchored rating scale (BARS)

electronic performance monitoring (EPM)

unclear standards

halo effect

central tendency

strictness/leniency

bias

appraisal interview

Documents

Dessler Hrm Ppt 09