Chapter 7
Appraising and Managing Performance
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Chapter Challenges
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How to effectively carry out each of the steps in performance appraisal
Have familiarity with challenges to effective performance measurement
Develop competence in managing performance
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What Is Performance Appraisal?
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Uses of Performance Appraisals
Administrative Purposes
Developmental Purposes
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Identifying Performance Dimensions
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Dimension
Quality of work
Quantity of work
Interpersonal effectiveness
Competencies
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Benefits of Performance Appraisal
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Measuring Performance: Type of Judgment
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Relative Judgment
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Absolute Judgment
o Rank order
o No absolute information
o Based on performance standards
o Lessens conflict among workers
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Measuring Performance
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Trait Appraisal
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Behavioral Appraisal
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Outcome Data
o Worker characteristics
o Worker behavior
o BARS
o Results
o MBO
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Sample Trait Scale
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Assessing Ethical Behavior
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Measurement
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Self-rating
Peer review
Subordinate review
Customer review
360° feedback
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Challenges to Effective Performance Measurement
Rater errors and bias
The influence of liking
Organizational politics
Individual or group focus
Legal issues
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Rater Errors
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Halo Error
Restriction of Range Error
Leniency Error
Central Tendency Error
Severity Error
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Performance Measurement Difficulties
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Comparability
Frame-of-Reference
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The Appraisal Interview
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Performance Discussion
Salary Discussion
Performance Improvement
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Situational Factors of Performance
Issues
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How to Determine and Remedy Shortfalls
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Effective Performance Appraisal
Developing an Action Plan and Empowering Workers
Directing Communication at Performance
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Summary and Conclusions
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What Is Performance Appraisal?
Identifying Performance Dimensions
Measuring Performance
Managing Performance
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