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Performance Appraisal I. An HRM perspective. Goals. Developing a Performance Appraisal system. Present diversity of processes. Putting together a viable process that achieves strategic goals and/or fit.
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Performance Appraisal I An HRM perspective
Goals • Developing a Performance Appraisal system. • Present diversity of processes. • Putting together a viable process that achieves strategic goals and/or fit
Expose to Diversity of forms.Then put it together at the end and compare different ways to do develop a PA system
Importance of PA • Related to Compensation • Retention • Training • Unions are an important constraint • Building organizational competencies and SHRM • Legal issue • Career development (not in book but more than training).
Purposes of Performance Appraisal • Motivation and productivity • Strategic planning and change • Legal issues
Motivation • Pay for performance (Extrinsic) • The power of feedback (Desire to do a better job—intrinsic). • Forshadow: Supervisors—do you give straight and honest feedback or tend to gloss over minor problems or even significant problems.
Strategic issues. • First, any change effort needs performance monitoring. • Second detecting problems (organizational not individual). • Third, linking PA to organizational competencies.
Legal issues • If PA is used for compensation, termination, or promotion and done poorly (low validity and reliability) then open to discrimination. • See text p 460.
Developing a system • Need to consider purposes of PA • Need to consider type of fit and culture • Need to consider what type of performance is most critical in an organization. Different approaches.
Deciding what to measure • Traits/values • Behaviors • Objective criteria. • Types of fit.
How does one measure each of these? • Take a job. Meet in teams. Discuss.
Important Issues • What are the best indicators of job performance. • What behaviors are critical for organizational effectiveness, group performance, individual performance. • Tradeoffs in general • Types of fit.
Cont. • Who is best able to evaluate job performance • Self, supervisor, electronic, peers subordinates, customers.
What is done on your job past job • What do you like? • What do you not like?
How do you know what to use • Legal issues • Strategic and type of fit. • Relevance of measurement
Side track • Biases in PA. • Largely Halo/horns effect • Lots of bias towards leniency • Lots of bias towards recency. • Prejudices (more than sex/race etc).
Normal supervisor PA • Saturated with biases and better not done that just the typical check list done by supervisor. • Not reliable • Not valid
Efforts to increase effectiveness • All in the forms and in assessor training.
Problems with Leniency • Forced distribution • Comparative rankings. • Not the best for all situations. But how you address it.
Problems with accuracy • So not get supervisor directly involved.
One approach • Objective indicators of performance. • These are not perfect either. Mortgage Loans. Total loan in collectable stage. What could be some problems.
Second approach • Customer evaluations of treatment. Each customer given a chance to complete. Based on total of all. • Mostly suited for service industry and direct customer contact. • Generally good when appropriate. • When could this be a problem?
Behavior approaches • Take job analysis. Take performance dimensions. Assess based on those performance dimensions. • While valid not necessarily reliable.
Behavior Check list • List desirable behaviors. Dichotomous. Usually done. Problems if scale. Open to bias. • Similar take same behavior. Order them in terms of doing a quality job. • Put into a scale. Hard to do. Takes a Team • BARS
Advantages and disadvantages of each • Type of fit, strategy, purpose of appraisal are all relevant to determine which to use.
Valid and Reliable PA • Outcomes better than processes • multiple raters better than single rater • Supervisory training
Content validity • PA systems based on systematic analysis of strategic competencies. PJ fit, PG, PO fit.
In teams • Hudson’s we have had a lot of information about the company and the type of work. • Customer driven company, values diversity. • Image of what it takes to do the job. • Some teaming but not that much.
Team to work on PJ fit--outcome based • PJ fit behavior based-2 • P-O fit Trait/values Make assumptions • P-G fit behavior
Report Back • Overhead • Describe aspects wish to assess and why. • Write an abbreviated PA document assessing at least 3 aspects of performance.
Summary • Largely looked PA system--what’s important. • Strategic implications • Consequently HR needs to have input into the development forms to reinforce the culture of the organization • HR perspective on PA.
Read the article on 360 degree PA • Have a lot of information. • Would 360 degree feedback be good in your organization/last employer • Why or why not. • If yes, what would be necessary to put it into place. • Next class Supervisor perspective. Training. • http://edis.ifas.ufl.edu/scripts/htmlgen.exe?DOCUMENT_HE749 copy it as role model. Bring it to class.