Chapter 10 14e Performance Management versus Performance Appraisal The Nature of Performance Management Figure 102 Components of a PerformanceFocused Culture Identifying and Measuring Employee Performance ID: 395686
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Slide1
Performance Management and Appraisal
Chapter 10
14eSlide2
Performance Management versus Performance AppraisalSlide3
The Nature of Performance ManagementSlide4
Figure 10.2 -
Components of a Performance-Focused CultureSlide5
Identifying and Measuring Employee PerformanceSlide6
Figure 10.3 -
Types of Performance InformationSlide7
Performance Standards
Define the expected levels of employee performance
Should be realistic, measurable, and clearly understood
Benefit both organizations and employees
Ensure that everyone involved knows the levels of accomplishment expected
Can be both numerical and non-numerical
Assessing non numerical standards can be
difficultSlide8
Figure
10.4 - ACTFL Performance Standards for Speaking ProficiencySlide9
Difficulties in Measuring Service PerformanceSlide10
Performance Appraisals
Assess an employee’s performance
Provide a platform for feedback
Help administering wages and salaries
Help identifying individual employee strengths and weaknesses
Provide answers to work-related questions
Help improve job
performanceSlide11
Figure 10.5 -
Uses for Performance AppraisalsSlide12
Decisions About the Performance Appraisal Process
Designing Appraisal Systems
Appraisal Responsibilities
Informal vs. Systematic Processes
Timing of AppraisalsSlide13
Figure 10.6 -
Typical Division of HR Responsibilities: Performance AppraisalSlide14
Who Conducts Appraisals?
Supervisors rating their employees
Employees rating their superiors
Multisource or
360° feedback
Outside sources rating employees
Team members rating each other
Employees rating themselves
Sources of Performance AppraisalsSlide15
Figure 10.7 - Multisource
AppraisalSlide16
10–
16
Category Scaling Methods
Graphic
rating scale
: Allows
the rater to mark an employee’s performance on a continuum indicating low to high levels of a particular
characteristicSlide17
10–
17
Category Scaling Methods
Aspects of Performance Measured
Descriptive Categories
Job
Duties
Behavioral DimensionsSlide18
Category Scaling Methods
Behaviorally Anchored Rating Scale (BARS)
Composed of job dimensions (specific descriptions of important job behaviors) that anchor performance levels on the scale
Developing a BARS
Identify important job dimensions
Write short statements of job behaviors
Assign statements (anchors) to job dimensions
Set scales for anchorsSlide19
Figure 10.10 - Behaviorally-Anchored
Rating Scale for Customer Service SkillsSlide20
Comparative Methods
Ranking: Listing
of all employees from highest to lowest in performance
Drawbacks
Does not show size of differences in performance between employees
Implies that lowest-ranked employees are unsatisfactory performers
Becomes an unwieldy process if the group to be ranked is
largeSlide21
Comparative Methods
Forced distribution
: Causes
ratings of employees to be distributed along a bell-shaped
curveSlide22
Forced Distribution
Advantages
Helps deal with “rater inflation”
Makes manages identify high, average, and low performers
Ensures that compensation increases reflect performance differences among individuals
Disadvantages
Managers resist placing people in the lowest or highest groups
Explanation for placement can be difficult
Performance may not follow normal distribution
Managers may make false distinctions between employeesSlide23
Figure 10.11 - Forced
Distribution on a Bell-Shaped CurveSlide24
Narrative Methods
Critical incident
- Manager keeps a written record of highly favorable and unfavorable employee actions
Drawbacks
Variations in how managers define a
critical incident
Time involved in documenting employee actions
Most employee actions are not observed and may become different if observed
Employee concerns about manager’s
black booksSlide25
Narrative Methods
Essay - Manager writes a short essay describing an employee’s performance
Drawback - Depends
on the supervisors’ writing skills and their ability to express
themselvesSlide26
Management by Objectives (MBO)
Management by objectives
: Performance
appraisal method that specifies the performance goals that an individual and manager identify
togetherSlide27
Stages in the MBO Process
4. Continuing performance discussions
3. Setting of objectives
2. Development of performance standards
1. Job review and agreementSlide28
Training Of Managers And Employees in Performance AppraisalSlide29
Types of Rater Errors
Varying standards
Recency and primacy effects
Central tendency, leniency, and strictness errors
Rater bias
Halo and horns effects
Contrast error
Similar-to-me/different-from-me errorsSlide30
Effective Performance Management
Consistent with the strategic mission
Beneficial as a development tool
Effectively documents performance
Viewed as fair by employees
Useful as an administrative tool
Is legal and job related
Effective Performance Management System