Human resource 1e by denisi griffin chapter 10

Prepared by Joseph B. Mosca, Monmouth University and
© 2012 South-Western, Cengage Learning, Inc.
All rights reserved.

Marla M. Kameny, Baton Rouge Community College

PowerPoint Presentation Design by Charlie Cook
The University of West Alabama


Learning Objectives
After studying this chapter, you should be able to:

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
5. Describe the nature of careers in organizations

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–2


Learning Objectives (cont’d)
After studying this chapter, you should be able to:

6. Discuss human resource management and career
management
7. Identify and discuss basic career-development issues and
challenges

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–3


Performance Appraisal and
Management
• Performance Appraisal
Performance Appraisal

 The specific and formal evaluation of an

employee conducted to determine the degree
to which the employee is performing his or her
job effectively

• Performance Management
 The general set of activities carried out by the

organization to change (improve) employee
performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–4

Importance of Performance
Appraisal
• Provide a benchmark to assess the

Provide a benchmark to assess the
adequacy of recruiting and selection
processes
• Validate legal aspects of the appraisal
process decisions
• Provide information for HR planning
• Fostering employee motivation
• Support compensation decisions

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–5


Goals of Performance Appraisal
• To provide a measure of employee
performance.
• To provide information in support of HR
and performance management activities
• To improve job performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–6

The Performance
Management Process
in a Typical
Organization

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10–7


Performance Appraisal Process
• Role of the Organization
• Role of the Rater
• Role of the Ratee

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–8


Sources of Information for Performance
Appraisal

• 360-Degree Feedback
 Involves gathering performance information

from people on all sides of the manager
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–9


Performance Appraisal Issues
• What Gets Rated?
 Traits
 Behaviors
 Outcomes

• Who Should Be Rated?
 Individual performance
 Team performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

1010–10
10


Beyond the Book:
Two Ways to Assess Behaviors

• Give separate behavior and results ratings
• Use the 360-degree assessment to set
behavior goals for each employee

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–11

Which Rating Method to Use?
Methods
Methods for
for Rating
Rating
Performance
Performance

Simple
Simple
ranking
ranking

Paired
Paired
comparison
comparison

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Forced
Forced
distribution
distribution

10–12

Specific Rating Methods
Graphic
Graphicrating
rating
scale
scale

Critical
Criticalincident
incident
method
method

Behavioral
Behavioral
observation
observationscale
scale
(BOS)
(BOS)

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

Behaviorally
Behaviorally
anchored
anchoredrating
rating
scale
(BARS)

scale (BARS)

Management-byManagement-byobjectives
objectives(MBO)
(MBO)

10–13


Examples of Graphic Rating Scales

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–14


Beyond the Book:
Management by Objectives

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–15


Behaviorally Anchored Rating Scales

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–16

Which System Is Best?
• It is difficult to predict how a set of
employees will react to a given system

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–17


Beyond the Book:
Are Most Workers Motivated by Money?
YES

NO

• Money is an objective way of
measuring an employee’s value
to a firm.
• Money motivates some
employees because they have
a use or need for it.
• Studies indicate that the piecerate system improves employee
productivity while increasing
take-home pay.

• There are other ways to reward
employees.
• After deductions, a pay raise is
always less than the employee

expected.
• Research indicates that work
factors, recognition and
achievement are motivators for
most workers.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–18


Beyond the Book:
Possible Merit Increase Guidelines

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10–19


Rating Errors
Common
Common Rater
Rater
Bias
Bias Errors
Errors

Contrast
Contrast
error

error

Distributional
Distributional
error
error

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Halo
Halo
error
error

Horns
Horns
error
error

10–20


Legal Issues in Performance
Appraisal

• When performance appraisals are used
as the basis for HR decisions, they are
considered the same as any other test
under the law.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–21


The Nature of Careers
• Career
 The set of experiences and activities that

people engage in related to their job and
livelihood over the course of their working life.

• Traditional Stages of Careers
 Exploration
 Establishment
 Maintenance
 Disengagement

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

1010–22
22


The Traditional Model of Career Stages

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–23

New Views of Career Stages
and the Decision to Retire
• Older Workers May:
 Find themselves ready to disengage from the

organization at a relatively young age.
 Begin working again by seeking opportunities

with a better work and family balance.
 Retire if they have the financial resources to

maintain their pre-retirement lifestyles.
 Retire if their health makes work burdensome.
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Cengage
Learning.
Learning,
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rights
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rights reserved.

10–24


HRM and Career Management
• Limitations and Pitfalls in Career Planning

 Predicting future levels of talent, expertise,

motivation, or interest of an individual is
difficult.
 Unexpected business changes may result in

changes in career opportunities.
 Careers do not simply happen–they must be

planned and managed.
 Responsibility for career planning resides with

both the organization and the individual.
© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–25