Chapter 8 Performance Appraisal

1. Chapter 8Performance Appraisal

2. Performance Appraisal • Definition • Functions • Basic Components • Performance Appraisal Techniques • Performance Appraisal Errors • Effective Performance Appraisal System • Issues & Conflicts

3. Performance Appraisal A means for determining how well your employees is doing in achieving the criteria considered essential for success in his/her position.

4. Purposes • Administration purposes • Pay raise • Promotion • Lay off • Training/development purposes • Training • Development

5. Uses of Performance Appraisal Data Identify training needs ------------------------- “Does X need training?” Set criteria for new employees ---------------------- “What does this job require?” Appraise training effectiveness ------------------------ “Does this training work?” Identify individuals for raises, honors --------------------------- “Who should be rewarded?” Divide merit budget ------------------------- “Who should get how much?” Employee Appraisal Data Identify individuals for promotion/transfer -------------------------- “Who can do this job?” Give employees feedback ------------------------- “How am I doing?” Identify individuals to be laid off or fired ------------------------- “Who should go first?” Appraise organization effectiveness -------------------------- “Are we achieving our goals?”

6. 2-Review progress & revise work expectation as necessary Observe, describe & document performance Performance Appraisal Process COACHING 1-Establish work expectations (Job Analysis) 3-Complete performance & development appraisal forms 5-Determine salary actions 4-Conduct formal performance and development appraisal discussion & establish development plans 6-Conductsalary discussions

7. Establish performance standards Set measurable goals Measure actual performance Compare actual performance with standards Discuss the appraisal with the employee If necessary, initiate corrective action

8. Benefits of PA • To manager • Build better communication • Show the importance of meeting standards • Pinpoint training needs

9. Benefits of PA • To employee • Identify their strengths weakness • Identify employees’ contributions to the organization • Consider long-range career plans

10. Basic Components of a PA System • Establishing Performance Standards • Job Analysis/Job Description • Results/ Behaviors/Traits • Making Performance Observation (data collection) • Productivity records: results-oriented data • Observation rating: behavior/trait-oriented data

11. Basic Components of a PA System (con’t) • Making Performance Judgments (PA techniques/methods) • Individual evaluation methods (absolute standards) • Multiple employee evaluation methods (relative standards) • Performance Feedback • Administration decision • Training & development

12. PA criterion 績效效標 • Trait-oriented PA criterion (50’) • 著重個人特質 (忠誠，積極) • Result-oriented PA criterion (60’) • 著重工作的結果 (# of room sold, profits) • Behavior-oriented PA criterion (70’) • 著重於完成工作前所須具備的行為(溝通，規劃，按時上下班）

13. Relative Standards 相對標準評估法 An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job. Absolute Standards 絕對標準評估法 An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. Performance Appraisal Techniques

14. Individual Evaluation MethodsAbsolute Standards • Essay Appraisals 敘述法 • Critical Incident Technique 重要事件法 • Traditional Rating Scale傳統評分法 • Behaviorally Anchored Rating Scale (BARS) 行為定向法 • Management by Objectives (MBO)

15. Essay Appraisals敘述法 • The simplest PA method • Raters answer some general questions about employees’ performance • Provides qualitative data (屬質資料)

16. Example: Essay Appraisals • 員工是否遵從工作指令? 評論: • 員工是否準時完成指派的工作? 評論: • 員工的工作品質是否有達到公司要求? 評論: • 員工是否願意主動承擔額外的工作量? 評論: • 員工是否與其他同事維持良好的互動關係? 評論:

17. Critical Incidents Appraisals 重要事件法 • Supervisors keep a diary about employee’s critical (key) behavior • Critical incidents could be good or bad (effective or ineffective) • Provides qualitative data (屬質資料)

18. Example: Critical Incidents Technique • 十月二號: 小華熱心為視力不佳的客人詳細解說菜單內容 • 十月八號: 顧客詢問主菜(魚)是於可否用其他方式烹調，小華沒有詢問廚房就一口回答說不。 • 十月十九日:小華 upsell 一瓶很貴的wine • 十月二十八日: 小華上班領節忘了打並且穿白色襪子

19. Forced-choice Appraisal 強迫選擇法 • Require rater to choose between two similar statements (both good or bad) • Rater needs to identify which statement best describe his/her employees • Provides quantitative data (屬量資料)

20. Example: Forced-Choice Method 1a. Works hard 1b. Works quickly 2a. Is responsive to customers 2b. Shows initiative 3a. Produces poor quality 3b. Lacks good work habits Instruction: please choose one statement that best describe your employee from each paired statements.

21. Traditional Rating • The oldest and most popular evaluation method • Shows both the performance dimension (i.e., work quality) and the rating scale (i.e., very good to very bad) • Provides quantitative data (屬量資料)

23. Behavior Anchored Rating Scale (BARS) • BARS-行為定位法 • BARS=Rating Scale + Critical Incidents • Rating scales allow supervisor to “rates” on employee’s behavior • Critical incidents provide clear idea of desired and undesired behavior • Provides quantitative data (屬量資料)

25. Multiple Employee Evaluation MethodsRelative Judgment • Ranking排序法 • 依表現高低排序 • Paired Comparison兩兩相比法 - 兩個兩個進行比較 • Forced Distribution強迫分配法 - Normal distribution

26. Rankings and Performance Levels Across Work Teams Actual Ranked Work Ranked Work Ranked Work 10 (High) 9 8 7 6 5 4 3 2 1 (Low) Marcos (1) Uma (2) Joyce (3) Bill (4) Richard (5) Jill (1) Tom (2) Sue (3) Greg (4) Ken (5) Frank (1) Julien (2) Lisa (3) Jolie (4) Steve (5)

29. Developing BARS • Step 1: 列出並定義工作的基本構面 • Step 2: 針對每一構面收集critical incidents • Step 3: 擬定每一構面的高中低績效標準並指派適合的critical incident • Step 4: 整合評估

30. Management by Objective (MBO) • Result-oriented Appraisal • 依據公司經營目標，員工充分參與其工作目標之制定，達成目標的分法，及事後工作成效考核方法(self-appraisal)。 • Four steps • Goal setting • measurable and consistent at each level (Organization, dept., mger, ee) • Action planning • Self-control • Periodic review

31. MBO • Employee proposes goals • Employee and manager discuss goals and reach an agreement on specific goals • Employee and manager agree on specific action plan to attain goals by when • Manager encourages goal attainment informally from time to time • At the end of evaluation period, employees and manager meet again to discuss results

32. MBO • 優 • Emphasize on the results • ee participates in setting goals would increase performance • Improve supervisor-ee relationship • 缺 • Doesn’t work if mger can’t trust ee • Time-consuming to set up goals with individual ee • Difficult to make a comparison among ees

33. PAIssues of Validity and Reliability • PA Validity • PA 內容需與工作清單或工作說明書一致(performance standards must be based on Job Analysis) • 績效評估須針對不同的績效構面(performance dimension)來進行評估(evaluation should be based on specific dimensions of job) • Performance standards should be objective(公正）and observable（可觀察）

34. PA Reliability • 與員工清楚溝通評估的標準(performance standards should be communicated to and understood by the employees) • 進行績效評估的主管需接受訓練以避免評估上有誤差產生(Train evaluators to avoid rating errors) • 採用多位評估人員以得到較公正的結果(Use more than one evaluator whenever possible)

35. PA-Problems with the Evaluator Leniency/ Severity Error : 寬鬆/嚴厲錯誤 Central Tendency Errors: 中央趨勢錯誤 Similarity Error: 相似性錯誤 Halo Error: 月暈效應 Recency Errors: 近期效應 Past Anchoring Errors: 受到過去PA結果影響來評定現在PA結果 Bias/Prejudices: 偏見錯誤

36. Who does PA • Supervisor-appraisal 主管評量 • Self-appraisal自我評量 • Peer-appraisal同齊評量 • Customer-appraisal顧客評量 • 360 degree appraisal360度全方位評量

37. When Things Go Wrong(Design & Operating Problems) Poor Design • Improper performance criteria • Technique (tool) cumbersome • Technique (tool) time‑consuming • Resistance to writing or documentation Lack of Top Management Support Dual Purpose Use • Administrative & development use (coach & judge) • Employee can’t take negative feedback easily

38. Effective PA System • Establish & communicate clear performance standard • Use behavior-based measures • Combine absolute and relative standards • Provide ongoing feedback • Have multiple raters • 360 degree appraisal • Train appraisers

39. Performance Review Step 1: Preparation Step 2: Initiation Step 3: Content Step 4: Feedback

40. Step 1: 績效考核會談準備事項 • Review Job description (performance standard) • 持續性觀察員工表現 • 完成績效考核表 • Key strength & weakness • 分析缺點原因 • 思考可能改進方法 • 告知員工績效考核會談時間 • 事先給於員工一份自我審核表

41. Step 2: 面談出始期 • 建立正面溝通氣氛 • PA Review地點具私密性(privacy) • 鼓勵員工發表意見 • 主管了解會談目的 • 例舉優良行為與事蹟 • 詢問員工自我評量結果

42. Step 3: Content • 清楚具體的溝通考核結果 • 由general to specific • Focus on “behavior” • 釐清員工表現與 performance standard 之間的差距 • 重述desired behavior • 讓員工有申辯的機會

43. Step 4: Feedback • Suggestions for Improvement • Personal Growth • Set up next performance goals • 總結討論內容 (action plan for Employee & Supervisor) • Determine next PA review time • DOCUMENT