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Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal and Career Management

Describe the purposes of performance appraisal in organizations Summarize the performance-appraisal process in organizations Identify and describe the most common methods that managers use for performance appraisalDiscuss other general issues involving performance appraisal in organizations Learning Outcomes

Describe the nature of careers in organizationsDiscuss human resource management and career management Identify and discuss basic career-development issues and challenges Learning Outcomes (Continued)

Performance Appraisal and Performance Management Performance appraisal : Specific and formal evaluation of an employeeHelps determine the degree to which an employee is performing his or her job effectivelyPerformance management: General set of activities carried out by the organization to change (improve) employee performance LO 1

Importance of Performance AppraisalProvides a benchmark to assess adequacy of recruitment and selection processes Important for legal reasons Plays a role as part of the larger performance-management processBasis of incentive pay systems designed to improve motivation and performance LO 1

Goals of Performance AppraisalProvide valid and reliable measure of employee performance in relevant dimensions Documentation Improve job performance, which requires that employees receive:Accurate feedback Guidance LO 1

Performance Appraisal Process Rate performance Document or record observed performance LO 2 Inspect or observe performance Establish and communicate performance standards Establish job duties

Roles in the Performance-Appraisal Process Develop the appraisal process Determine timing of appraisals Ensure availability of clear and specific standards Role of the organization Observe performance and process information gained from observation Communicate results and consequences Prepare ratee to perform at desired levels Role of the rater LO 2

Roles in the Performance-Appraisal Process (Continued) Role of the ratee Maintain a clear and unbiased view of performance Collect adequate information to avoid disagreements during the process LO 2

10.2 Sources of Information for Performance Appraisal LO 2 © Cengage Learning®

Methods for Appraising Performance Ranking methods versus rating methods Simple ranking method: Manager gives a rank-order to each member of a particular work group from top to bottom or from best to worstPaired-comparison method: Each individual employee is compared with every other individual employee, two at a timeForced-distribution method : G rouping employees into predefined frequencies of performance ratings LO 3

Methods for Appraising Performance (Continued 1) Specific rating methods Graphic rating scale: Statement or question about some aspect of an individual’s job performanceCritical incident method: Relies on instances of especially good or poor performance on the part of the employeeBehaviorally anchored rating scale (BARS): Combination of the graphic rating scale and the critical incident method LO 3

Methods for Appraising Performance (Continued 2) Behavioral observation scale (BOS) : Developed from critical incidents like a BARSUses more critical incidents to define specifically all measures necessary for effective performanceManagement-by-objectives (MBO): System is based largely on the extent to which individuals meet their personal performance objectives LO 3

10.3 Examples of Graphic Rating Scales LO 3 © Cengage Learning®

10.4 Behaviorally Anchored Rating Scales LO 3 © Cengage Learning®

Rating Errors in Performance AppraisalContrast error : W hen people are compared against one another instead of against an objective standardDistributional errors: When rater tends to use only one part of the rating scaleSeverity Leniency Central tendency LO 4

Rating Errors in Performance Appraisal (Continued) Halo error : One positive performance characteristic may cause the manager to rate all other aspects of performance positivelyHorns error: When the manager downgrades other aspects of an employee’s performance because of a single performance dimension LO 4

Contextual PerformanceTasks an employee does on the job that are not required as part of the job but that still benefit the organization Organizational citizenship behaviors include:Willingness to stay late at work to finish deadlinesHelping co-workersPerforming tasks that help the organization LO 4

Evaluating the Performance-Appraisal Process Most firms claim to have dropped performance appraisal since the usage of stack ratings have led to: BackstabbingLow levels of teamworkFeelings of frustration Performance-management technologies enable collection of real-time performance data LO 4

Legal Issues in Performance Appraisal Appraisals showing evidence of disparate impact must be validated in the same manner as any selection techniqueShow that rating is job related Demonstrate that raters:Can observe rated behaviorsHave training to help them appraise performance better LO 4

Career Set of experiences and activities that people engage in related to their job and livelihood over the course of their working life Specific jobs performed by a person Responsibilities and activities that constitute the job Movements and transitions between jobsIndividual’s overall assessmentFeelings of job satisfaction LO 5

10.5 The Traditional Model of Career Stages LO 5 Source: Adapted from Careers in Organizations, by Douglas T. Hall. Copyright © 1976 by Scott, Foresman , and Co. Reprinted by permission of Douglas T. Hall and Lyman Porter.

Older Workers and Decision to RetireCurvilinear relationship exists between age and performance Performance is highest when workers are youngest and older Retired individuals are most likely to retire when:Adequate financial resources are availableHealth makes it difficult to continue work LO 5

10.6 Individual and Organizational Perspectives on Career Planning LO 6 © Cengage Learning®

10.7 Steps in Career Planning LO 6 © Cengage Learning®

Career-Development Issues and ChallengesCareer-counseling programs Include formal and informal programs Concern over family-friendly work practicesDual-career and work-family issuesBalancing family needs with work demandsWork stress and family stress are connected LO 7

360-degree appraisal Behavioral observation scale (BOS)Behaviorally anchored rating scale (BARS) Career Career counseling Contextual performance Contrast error Key Terms Critical incident method Disengagement Distributional error Establishment Exploration Forced-distribution method Graphic rating scale Halo error Horns error

Key Terms (Continued) Individual assessment phase MaintenanceManagement-by-objectives (MBO) Paired-comparison method Performance appraisal Performance management Simple ranking method

Summary Performance appraisal is the specific and formal evaluation of an employee’s job performance Involves establishing job duties, establishing and communicating performance standards, inspecting performance, documenting observed performance, and rating performanceRanking and rating methods are used to appraise performance