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Performance Management and Appraisal. Myrna Gusdorf, MBA, SPHR 2009 . Learning Objectives. At the end of this module, students will: Relate individual performance appraisal to the organizationwide performance management process. Identify a variety of appraisal methods.

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performance management and appraisal

Performance Management and Appraisal

Myrna Gusdorf, MBA, SPHR 2009

learning objectives
Learning Objectives
  • At the end of this module, students will:
    • Relate individual performance appraisal to the organizationwide performance management process.
    • Identify a variety of appraisal methods.
    • Explain HR’s role in the performance management process.
    • Revise performance appraisal statements.
    • Practice performance appraisal interviewing techniques.
    • Have the skills necessary to use the performance appraisal process as a positive enhancement to employee performance.

©SHRM 2009

performance management and performance appraisal
Performance Management and Performance Appraisal
  • Performance management:
    • Dynamic, continuous process.
    • Improves organizational effectiveness.
    • Strategic goals.
  • Performance appraisal:
    • Periodic (usually annual) event.
    • Formal review.
    • Last step in performance management process.

Mondy, R. (2008). Human resource management, 10th ed. New Jersey: Pearson Prentice Hall, 224-225.

©SHRM 2009

who s involved what are their needs
Who’s Involved? What Are Their Needs?
  • Organization:
    • Information.
    • Documentation.
  • Supervisor:
    • Documentation.
    • Motivation.
  • Employee:
    • Feedback.
    • Support for career growth.
    • Increased compensation.

©SHRM 2009

performance management goals
Performance Management Goals
  • Communication between supervisor and

employee.

  • Feedback on performance.
  • Documentation.
  • Development Goals.
  • Alignment with strategic planning goals.

©SHRM 2009

hr s role in performance management
HR’s Role in Performance Management
  • Participate in strategic planning.
  • Conduct job analysis.
  • Support performance management.
  • Design appraisal system.
  • Train and support managers.
  • Maintain documents.
  • Provide employee due process.
  • Ensure integrity of the system.
  • Ensure compliance with nondiscrimination laws.

©SHRM 2009

performance management process
Performance Management Process

1. Prerequisites.

2. Performance planning.

3. Performance execution.

4. Performance assessment.

5. Performance review.

6. Performance renewal and re-contracting.

Planning

Renewal

Execution

Assessment

Review

©SHRM 2009

1 prerequisites
1. Prerequisites
  • Prerequisites:
    • Strategic planning.
    • Job analysis.

©SHRM 2009

2 performance planning
2. Performance Planning
  • Employees must have thorough knowledge of the performance management system.
  • Meeting between employee and manager.
  • Set SMART goals and measurement standards:
    • Results.
    • Behavior.
    • Developmental plans.

©SHRM 2009

writing smart performance objectives
Writing SMART Performance Objectives
  • Practice writing SMART performance objectives:
    • S – Specific.
    • M – Measurable.
    • A – Attainable.
    • R – Realistic.
    • T – Timely.

©SHRM 2009

3 performance execution
3. Performance Execution
  • Shared responsibility
    • Employee responsibility:
      • Commitment to established goals.
      • Communication and update with manager.
    • Manager responsibility:
      • Feedback, coaching and reinforcement.
      • Resource support.
      • Accurate observation and documentation.

©SHRM 2009

4 performance assessment and appraisal
4. Performance Assessment and Appraisal
  • Who should appraise?
    • Supervisors.
    • Peers and team members.
    • Subordinates.
    • 360 degree feedback.

©SHRM 2009

what about the employee
What About the Employee?

Should employees do self-appraisals?

©SHRM 2009

performance appraisal methods
Performance Appraisal Methods
  • Graphic rating scale.
  • Ranking method.
  • Forced distribution method.
  • Critical incident method.
  • Essay method.
  • BARS–behaviorally anchored rating scale.
  • MBO–management by objectives.

©SHRM 2009

performance appraisal problems
Performance Appraisal Problems
  • Appraiser discomfort.
  • Strictness/leniency.
  • Bias and lack of objectivity.
  • Manipulating the evaluation.
  • Halo/horns effect.
  • Central tendency error.
  • Recent behavior.
  • Supervisor unable to observe behavior.

©SHRM 2009

writing the appraisal review document
Writing the Appraisal Review Document

Are your comments accurate and meaningful to the employee or just clichés?

©SHRM 2009

getting ready for the interview
Getting Ready for the Interview

Before you start that interview, what do you need?

©SHRM 2009

5 conducting the performance interview
5. Conducting the Performance Interview
  • Explain the purpose of the interview.
  • Discuss self-appraisal.
  • Share ratings and explain rationale.
  • Discuss development plans.
  • Employee summary.
  • Rewards discussion (if appropriate).
  • Set follow-up meeting.
  • Employee signature.
  • Supervisor recap.
  • Appeals process.

©SHRM 2009

6 performance renewal and re contracting
6. Performance Renewal and Re-Contracting
  • Final step in performance management process.
  • Readjust based on insight from completed process.
  • Plan for next performance management cycle.

©SHRM 2009

problems with assessment appraisal
Problems With Assessment/Appraisal
  • Tied to compensation.
  • Employees lack motivation.
  • Manager and employee don’t agree on results.
  • Management reluctance.
  • No performance documentation.

©SHRM 2009

issues with performance management
Issues With Performance Management
  • Legal issues.
  • Untrained raters.
  • Rater errors.
  • Rater distortion.
  • No grievance procedure.

©SHRM 2009

poorly implemented pm systems
Poorly Implemented PM Systems
  • False and misleading information.
  • Increased turnover.
  • Wasted time and money.
  • Damaged relationships.
  • Decreased motivation.
  • Job dissatisfaction.
  • Risk of litigation.
  • Unfair standards.

©SHRM 2009

performance management skills
Performance Management Skills
  • Communication.
  • Coaching.
  • Giving feedback.
  • Empathy.
  • Teamwork.

©SHRM 2009