Performance Appraisal and Career Management

10

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LEARNING OUTCOMES

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1 Describe the purposes of performance appraisal in organizations

2 Summarize the performance appraisal process in organizations

3 Identify and describe the most common methods that managers use for performance appraisal

4 Discuss other general issues involving performance appraisal in organizations

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LEARNING OUTCOMES (continued)

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5 Describe the nature of careers in organizations

6 Discuss human resource management and career management

7 Identify and discuss basic career-development issues and challenges

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The Importance of Performance Appraisal

• Provide a benchmark for assessing the extent to which recruiting and selection processes are adequate

• Important for legal reasons

• Play a role as a part of the larger performance appraisal

• Basis of incentive pay systems

• Designed to improve motivation and performance

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Figure

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10.1 The Performance Management Process

in a Typical Organization

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Figure

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10.2 Sources of Information for Performance

Appraisal

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Methods for Appraising Performance

• Ranking methods versus rating methods• Simple ranking method

• Paired-comparison method

• Forced distribution method

• Specific rating methods• Graphic rating scale

• Critical incident method

• Behaviorally anchored rating scale (BARS)

• Behavioral observation scale (BOS)

• Management-by-objectives (MBO)

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Figure

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10.3 Examples of Graphic Rating Scales

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Figure

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10.4 Behaviorally Anchored Rating Scales

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Issues in Performance Appraisal

• Rating errors• Contrast error

• Distributional errors

• Halo error

• Horns error

• Contextual performance

• Evaluating the performance appraisal process

• Legal issues

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The Nature of Careers

• Career: Set of experiences and activities that people engage in related to their job and livelihood over the course of their working life

• People have thought of the various components making up a person’s career as having some degree of interrelation

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Figure

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10.5 The Traditional Model of Career Stages

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Figure

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10.6 Individual and Organizational

Perspectives on Career Planning

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Figure

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10.7 Steps in Career Planning

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Career-Development Issues and Challenges

• Career-counseling programs

• Dual-career and work-family issues

• Evaluating career-management activities

SUMMARY

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• Performance appraisal: Specific and formal evaluation of an employee to determine the degree to which employee is performing his or her job effectively

• Performance management: General set of activities carried out by the organization to change employee performance

• People have thought of the various components making up a person’s career as having some degree of interrelation

KEY TERMS

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• 360-degree appraisal (p. 225)• Behavioral observation scale (BOS [p. 230])• Behaviorally anchored rating scale (BARS [p. 229])• Career (p. 233)• Career counseling (p. 238)• Contextual performance (p. 232)• Contrast error (p. 231)• Critical incident method (p. 229)• Disengagement (p. 234)• Distributional error (p. 231)• Establishment (p. 234)• Exploration (p. 234)

KEY TERMS

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• Forced-distribution method (p. 228)• Graphic rating scale (p. 228)• Halo error (p. 231)• Horns error (p. 232)• Individual assessment phase (p. 237)• Maintenance (p. 234)• Management-by-objectives (MBO [p. 230])• Paired-comparison method (p. 228)• Performance appraisal (p. 220)• Performance management (p. 220)• Simple ranking method (p. 227)

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