Performance is determined by three factors³n y control M. En C. Eduardo Bustos Farías 8 Performance Appraisal Methods 5. Critical incident appraisals: a. Supervisor keeps a written

Supervisión y control M. En C. Eduardo Bustos Farías 2

What is Performance?• Performance is determined by three factors:

1. Effort: how hard a person works2. Ability: how capable the person is3. Direction: how well the person understands

what is expected on the job• Performance should be evaluated on results

achieved not effort expended• Performance may be affected by working

conditions outside the employee’s control


Job Description and Job Specification

• These are two of the best means for enhancing employee direction1. A job description states the characteristics of a job and the types of work required2. A job specification gives the qualifications necessary to perform the job, including experience, training, education, knowledge, skills, and abilities


Performance Appraisal Defined• It communicates to an employee how well they are

performing the job and what they can do to improve• It is used for wage and salary administration, promotions or

demotions, transfers, layoffs, discharges, counseling, and human resources planning

• It has three main purposes:– Improve employee performance in the present job– Prepare employees for future opportunities in the

organization– Provide a record of employee performance to be used as

a basis for future management decisions


Performance Appraisal Methods

• Creating satisfactory measures of job success can be difficult– The type of job may make measuring

performance difficult– Performance may be influenced by factors

outside the employee’s control– Using personal characteristics and other

subjective factors is a common practice, but has potential problems



1. Graphic rating scale:a. Employee is rated on factors such as initiative, dependability,

cooperativeness, and quality of workb. Supervisors tend to evaluate everyone a little above averagec. Method provides same information on all employees and is

inexpensive to develop

2. Essay appraisals:a. Supervisor writes a series of statements about an employee’s past

performance, potential for promotion, strengths, and weaknessesb. Evaluations vary considerably from supervisor to supervisorc. Method depends on the writing skills of the supervisor



3. Checklist:a. Supervisor records performance by checking yes or no to a

series of questionsb. Method is easy to usec. Assembling the questions can be difficult and usually

requires a different set for each job category

4. Forced-choice rating:a. Supervisor chooses most applicable from set of two statementsb. Methods attempts to eliminate bias by using statements where the

supervisor cannot determine which answer is bestc. Method may frustrate supervisors and may be expensive to

develop



5. Critical incident appraisals:a. Supervisor keeps a written record of unusual incidents that show

both positive and negative actions by an employeeb. Employees should be given a chance to state their viewsc. Method is time consuming and tends to stress negative incidents

6. Work standards approach:a. Establish objectives measures such as number of pieces produced

or sales quotab. Used most frequently for operative workers in productionc. Standards must be fair and viewed as fair by the employees



7. Ranking methods:a. Alternation ranking is a method of creating a list of employees

from most to least valuable by alternatively selecting the most and least valuable employees out of a group

b. Paired comparison ranking compares the performance of each employee with the performance of every other employee in the group to determine their rank in the group

c. Forced distribution ranking distributes employee performance according to a bell shaped or normal curve. This may be applicable to small groups of employees

8. Management by Objectives:a. The supervisor and employee jointly agree on the employee’s

work objectives and how they will be accomplishedb. The employee’s appraisal is based on the degree to which the

work objectives are accomplished


Frequency of Performance Appraisals

• Appraisals should be done as frequently as necessary to let employees know how they are doing

• Many organizations require formal appraisals at least once a year

• Supervisors should do at least two or three reviews each year in addition to the formal annual performance appraisal

• New employees or those being retrained need more frequent appraisals


Supervisor Biases in Performance Appraisals

• Supervisors who rate everyone near the high end or group everyone in the middle make it difficult to distinguish good performers from poor performers and make it difficult to compare ratings between different raters

• The halo effect occurs when supervisors allow a single prominent characteristic of an employee to influence their judgment on each of the items in the performance appraisal

• Personal preferences and prejudices can cause error in performance appraisals


Overcoming Biases in Performance Appraisals

• Raters should be given training to observe behavior more accurately and judge it fairly. They should receive training in the following:– The performance appraisal methods used by the

company– Rater biases and causes of those biases– The importance of the rater’s role in the total appraisal

process– The use of performance appraisal information– The communication skills necessary to provide feedback

to the employee


Conducting Performance Appraisal Interviews

• The purposes of communicating the appraisal are to:– Provide the employee with a clear understanding of how the

supervisor feels the employee is performing– Clear up any misunderstandings about what is expected– Establish a program of improvement– Improve the working relationship between the supervisor and

the employee

• Interview– Interview should be planned ahead of time– The interview should be in a private room and confidential– The supervisor should be specific– The supervisor should ask the employee for feedback


Preparing for Your Own Performance Appraisal Interview

• Evaluate your own performance• Outline ways in which your boss can help

you do your job better• Determine any additional training you feel

you need• Suggest any changes that would make you

more effective


Handling the Poor Performer• The supervisor’s alternatives are:

– Improve the employee’s performance to an acceptable level

– Transfer the employee to a job that better fits the abilities– Demote the employee to a job that can be handled– Attempt to terminate the employee– The supervisor should document all steps and work

closely with the HR department– Unacceptable performance should be dealt with

immediately


Performance Appraisal and the Law

• Title VII of the Civil Rights Act permits the use of a bona fide performance appraisal system


Performance Appraisal and the Law

Many suggestions have been offered for making performance appraisal systems more legally acceptable

1. Driving the content of the appraisal system from job analyses2. Emphasizing work behaviors rather than personal traits3. Ensuring that the results of appraisals are communicated to

employees4. Ensuring that employees are allowed to give feedback during the

appraisal interview5. Training managers in how to conduct proper evaluations6. Ensuring that appraisals are written, documented, and retained7. Ensuring that personnel decisions are consistent with the

performance appraisals


Rewarding Performance

Intrinsic rewards• Sense of achievement• Feelings of

accomplishment• Informal recognition• Job satisfaction• Personal growth• Status

Extrinsic rewards• Formal recognition• Fringe benefits• Incentive payments• Base wages• Promotion• Social relationships


Relating Rewards to PerformancePreconditions have been identified and generally

accepted for implementing a merit pay program:1. Trust in management2. Absence of performance constraints3. Trained managers4. Good measurement systems5. Ability to pay6. Clear distinction among cost of living, seniority, and

merit pay7. Well-communicated total pay policy8. Flexible reward schedule


What Are Protected Groups?

• Protected groups are classifications of people who are specifically protected from discrimination in the workplace

• These classifications include: race, color, gender, age, religion, national origin, and mental and physical handicaps

• It is no longer legal to use most non-job related factors for making decisions affecting people in organizations


Effects of Discrimination

• Examining the human resources makeup of most large organizations generally shows the results of past discrimination

• The gap between the incomes of women and men who work full time is large and increasing

• The percentage of African-Americans and Hispanics in supervisory and management positions is still relatively small


Anti-discrimination Laws That Affect Organizations

• Management is responsible for upholding laws affecting the organization.

• The number of employees and the amount of business that the organization does with the federal government determine which of these laws affect the organization.

A. Title VII of the Civil Rights Act of 19641. Prohibits discrimination based on race, color, gender,

or national origin in any term, condition, or privilege of employment

2. Applies to private employment of 15 or more people and most public employment



B. Title VI1. Prohibits discrimination based on race, color, or

national origin in all programs or activities that receive federal financial aid in order to provide employment

C. Equal Pay Act1. Requires that employers provide equal pay to men

and women who perform work that is similar in skill, effort, and responsibility

2. In general the act applies to individuals employed in interstate commerce; in organizations producing goods for interstate commerce



D. Education Amendments Act1. Prohibits gender discrimination against employees or students of

any educational institution receiving financial aid from the federal government

E. Age Discrimination in Employment Act1. Prohibits discrimination against people 40 years of age and older

in any area of employment2. Applies to employers of 20 or more people

F. Affirmative Action1. Executive order 11246 requires federal contractors and

subcontractors to have affirmative action programs2. The purpose of these programs is to increase employment

opportunities for women and minorities in all areas of employment



G. Veterans Readjustment Act1. Requires government contractors and subcontractors take

affirmative action to hire and promote Vietnam veterans and disabled veterans

H. Rehabilitation Act of 19731. Prohibits employers from denying jobs to individuals

merely because of a handicap2. Applies to government contractors and subcontractors with

contracts in excess of $2,5003. Contractors must make reasonable and necessary

accommodations for handicapped employees



I. Americans with Disabilities Act (ADA)1. Gives the disabled sharply increased access too services and jobs2. Employers must provide reasonable accommodations to the

disabledJ. Civil Rights Act of 1991

1. Permits women, minorities, person with disabilities, and persons who are religious minorities to have a jury trial and sue forpunitive damages if they can prove that they are victims of intentional hiring or workplace discrimination

2. Covers all employers with 15 or more employeesK. Other anti-discrimination legislation

1. Discrimination in employment has been prohibited by court rulings under the Civil Rights Acts of 1866 and 1870, the 14th

Amendment, the National Labor Relations Act, and many state and local government laws


Enforcement Agencies• There are two major federal enforcement agencies:

1. Equal Employment Opportunity Commission (EEOC)2. Office of Federal Contract Compliance (OFCC)

The trend is toward consolidation of enforcement activities


Interpretation and Application of Title VII and Affirmative Action

Title VII of the Civil Rights Act of 19641. Has been widely interpreted2. Employers intention to discriminate is not an important factor3. The employer must prove that the discrimination is essential to

the safety, efficiency, and operation of the business and that no alternatives exist

4. Seniority or merit systems that exclude protected groups or perpetuate past discrimination are illegal

5. Employment parity exists when the proportion of protected employees employed by an organization equals the proportion in the organization’s relevant labor

6. Occupational parity exists when the proportion of protected employees employed in various occupations in the organization isequal to their proportion in the organization’s relevant labor market


Effect of Anti-Discrimination Laws on the Supervisor

Hiring practices1. The employer must be able to show that the information

requested from a person prior to hiring is being obtained for non-discriminatory purposes

2. Employment application forms that solicit non-job related information may result in charges of discrimination

3. Any test that adversely affects the employment opportunity of protected groups must be professionally validated

4. In an interview, a supervisor must be aware of the actual job requirements and not use unrelated criteria as a basis for a decision


Effect of Anti-Discrimination Laws on the Supervisor

A. Job assignments1. Assigning the more popular or pleasant tasks to one group of employees may

result in charges of discrimination2. Not requiring people from the protected groups to perform all of the tasks of

the job may result in charges of reverse discriminationB. Performance evaluation and upward mobility

1. Subjective performance evaluations can result in discriminatory practices2. The supervisor must make an effort to consider all subordinates for

advancementC. Disciplinary action

1. Discipline must be based on objective considerations2. Discipline must be thoroughly documented for all employees3. Standards for determining disciplinary action must be the same for all

employees4. Disciplinary action against an employee for filing a Title VII complaint is

illegal


A Positive Approach to Equal Employment Opportunity and Affirmative Action

• Organizations can benefit from the reservoir of talent represented by groups that have been excluded or underutilized

• Establishing and using job related factors for employment decisions should allow only the most qualified to be employed and promoted

• Equal employment opportunity benefits society• The supervisor’s attitude is important in the

achievement of EEO and affirmative action goals• EEO and affirmative action programs do not

require an employer to hire unqualified employees


Preventing Sexual Harassment in the Workplace

• Unwelcome sexual advances, requests for sexual favors, and otherverbal or physical conduct of a sexual nature are considered sexual harassment under the following conditions:

1. Submission is a condition of employment2. Submission or rejection is used as a basis of employment decisions3. The conduct interferes with the employee’s work performance or

creates an intimidating, hostile, or offensive work environment4. Organizations are responsible for the acts of their managers and

supervisors5. Prevention is the best tool for elimination of sexual harassment

a. raise the subject in employee meetingsb. Express strong disapprovalc. Describe the disciplinary actions that will be takend. Take the appropriate disciplinary action when necessarye. Inform employees of their right to raise sexual harassment claims


Other Areas of Employment Discrimination

• Religion: Title VII as originally enacted, prohibited discrimination based on religion but did not define the term. Amendments to Title VII were added in 1972 to clarify the term

• Native Americans (Indians): courts have found Native Americans to be protected by Title VII

• HIV-Positive: these individuals are considered disabled and entitled to the protection of the Americans with Disabilities Act (ADA)

• Sexual orientation: people who fall under this category are protected only when a local or state statute is enacted to protect them. Title VII currently does not protect them

Documents

Performance is determined by three factors³n y control M. En C. Eduardo Bustos Farías 8 Performance Appraisal Methods 5. Critical incident appraisals: a. Supervisor keeps a written