Human Resource Management
Fifteenth Edition
Chapter 9
Performance Management and
Appraisal
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)
9-1. Describe the performance appraisal process.
9-2. Define the pros and cons of at least eight performance appraisal methods.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives (2 of 2)
9-3. Give examples of potential appraisal problems and how to deal with them.
9-4. List steps to take in the appraisal interview.
9-5. Explain key points in how to use the appraisal interview to boost employee
engagement.
9-6. Explain how you would take a performance management approach to appraisal.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
I.
Describe the appraisal process.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Basics of Performance Appraisal
•
The performance appraisal process steps
1.
2.
3.
Sets work standards
Assesses performance
Provides feedback to the employee
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Why Appraise Performance?
Five reasons:
1.
Used for pay, promotion, and retention decisions
2.
Links performance management to company goals
3.
The manager can correct deficiencies and reinforce strengths
4.
With appraisals employee’s can review career plans
5.
Training needs are identified
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Defining the Employee’s Goals and Performance Standards
1.
Goals
2.
Job dimensions or Traits
3.
Behaviors or Competencies
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: HR as a Profit Center
Setting Performance Goals at Ball Corporation
Let’s talk about it…
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: HR Tools for Line Managers and Small
Businesses
How to set Effective Goals
Let’s talk about it…
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Who Should Do the Appraising?
1.
Peer Appraisals
2.
Rating Committees
3.
Self Ratings
4.
Appraisal by Subordinates
5.
360-Degree Feedback
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
II.
Discuss the pros and cons of at least eight
performance appraisal methods.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Techniques for Appraising Performance (1 of 2)
1.
Graphic Rating Scale
2.
Alternation Ranking
3.
Paired Comparison
4.
Forced Distribution
5.
Critical Incident Method
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Techniques for Appraising Performance (2 of 2)
6.
Narrative Forms
7.
Behavior Anchored Rating Scale
8.
Mixed Standards Scales
9.
Management by Objectives (MBO)
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Computerized and Web-Based Performance Appraisal
Many employers today make use of
computerized or online appraisals for
evaluating employee performance.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Electronic Performance Monitoring
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Additional Techniques
•
Conversation Days
•
Appraisal in Practice
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Trends Shaping HR: Customized Talent Management
Appraisal Methods being Customized
Let’s take a look…
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Improving Performance: The Strategic Context
TRW’s New Global Performance Appraisal / Management System
Let’s take a look…
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
III.
Give examples of potential appraisal problems and
how to deal with them.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Dealing with Rater Error Appraisal Problems
•
Potential appraisal problems
‒
‒
‒
‒
‒
Unclear standards
Halo Effect
Central Tendency
Leniency or Strictness
Recency Effects
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Diversity Counts The Problem of Bias
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Need for Fairness (1 of 4)
Figure 9-10 Checklist of Best Practices for Administering Fair Performance
Appraisals
•
Base the performance review on duties and standards from a job analysis.
•
Try to base the performance review on observable job behaviors or objective performance data.
•
Make it clear ahead of time what your performance expectations are.
•
Use a standardized performance review procedure for all employees.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Need for Fairness (2 of 4)
•
Make sure whoever conducts the reviews has frequent opportunities to observe the
employee’s job performance.
•
Either use multiple raters or have the rater’s supervisor evaluate the appraisal results.
•
Include an appeals mechanism.
•
Document the appraisal review process and results.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Need for Fairness (3 of 4)
•
Discuss the appraisal results with the employee.
•
Let the employees know ahead of time how you’re going to conduct the reviews.
•
Let the employee provide input regarding your assessment of him or her.
•
Indicate what the employee needs to do to improve.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
The Need for Fairness (4 of 4)
•
Train the supervisors who will be doing the appraisals. Make sure they understand the
procedure to use, how problems (like leniency and strictness) arise, and how to deal
with them.
Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved