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PERFORMANCE APPRAISAL. Performance Appraisal Defined. System of review and evaluation of job performance Assesses accomplishments and evolves plans for development. Performance Management. Process that significantly affects organizational success

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PERFORMANCE APPRAISAL


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Presentation Transcript
performance appraisal defined
Performance Appraisal Defined
  • System of review and evaluation of job performance
  • Assesses accomplishments and evolves plans for development
performance management
Performance Management
  • Process that significantly affects organizational success
  • Managers and employees work together to set expectations, review results and reward performance.
purposes of performance mangement
Purposes of Performance Mangement
  • Strategic
    • Aligning employee performance with organizational objectives
  • Administrative
    • Making employment-related decisions
  • Developmental
    • Aiding employee growth
appraiser discomfort
Appraiser Discomfort
  • Performance appraisal process cuts into manager’s time
  • Experience can be unpleasant when employee has not performed well
employee anxiety
Employee Anxiety
  • Creates anxiety for appraised employee

Rationale for Performance Appraisal

  • Provides legal and other benefits for employers
designing a performance management system
Designing a performance management system
  • Conduct job analysis
  • Set performance standards
  • Appraise performance
  • Feedback information to employee
establish performance criteria
Establish Performance Criteria
  • Traits
  • Behaviors
  • Competencies
  • Goal Achievement
  • Improvement Potential
responsibility for appraisal
Responsibility for Appraisal
  • Immediate supervisor
  • Subordinates
  • Peers
  • Rationale for evaluations conducted by team members
  • Self-appraisal
  • Customer appraisal
360 degree valuation
360-Degree Valuation
  • Multi-rater evaluation
  • Input from multiple levels with firm and external sources
  • Focuses on skills needed across organizational boundaries
  • More objective measure of performance
  • Process more legally defensible
performance measure standards
Performance Measure Standards
  • Strategic congruence
  • Reliability
  • Validity
  • Acceptability
  • Specificity
the appraisal period
The Appraisal Period
  • Prepared at specific intervals
  • Usually annually or semiannually
  • Period may begin with employee’s date of hire
  • All employees may be evaluated at same time
appraisal categories and types
Appraisal categories and types
  • Comparative
    • Ranking (Simple, alternation)
    • Forced distribution
    • Paired comparison
  • Attribute
    • Graphic rating scale
  • Behavioral
    • Critical incidents
    • BARS
    • BOS
  • Results
    • MBO
  • Quality
problems in performance appraisal
Problems in Performance Appraisal
  • Lack of objectivity
  • Halo error
  • Leniency/strictness
  • Central tendency
  • Recent behavior bias
  • Personal bias
  • Manipulating the evaluation
reasons for intentionally inflating or lowering ratings
Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance.

Improve employee’s eligibility for merit raises.

Avoid airing department’s “dirty laundry.”

Avoid creating negative permanent record that might haunt employee in the future.

Protect good workers whose performance suffered because of personal problems.

Reward employees displaying great effort even when results were relatively low.

Avoid confrontation with hard-to-manage employees.

Promote a poor or dislike employee up and out of the department.

Scare better performance out of an employee.

Punish a difficult or rebellious employee.

Encourage a problem employee to quit.

Create a strong record to justify a planned firing.

Minimize the amount of merit increase a subordinate receives.

Comply with an organizational edict that discourages managers from giving high ratings.

Reasons for Intentionally Inflating or Lowering Ratings

Inflating Ratings

Lowering Ratings

characteristics of an effective appraisal system
Characteristics of an Effective Appraisal System
  • Job-related criteria
  • Performance expectations
  • Standardization
  • Trained appraisers
  • Continuous open communication
  • Performance reviews
  • Due process
legal implications
Legal Implications
  • With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals
the appraisal interview
The Appraisal Interview
  • Scheduling the interview
  • Interview structure
  • Use of praise and criticism
  • Employees’ role
  • Use of software
  • Concluding the interview