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Chapter 10

Chapter 10. Appraising and Managing Performance. Learning Objectives. Understand the nature of performance evaluation Compare and contrast performance appraisal and job evaluation Explain different stages in evaluation Describe job evaluation process. Objectives of Appraisal.

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Chapter 10

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  1. Chapter 10 Appraising and Managing Performance Human Resource Management, 5E

  2. Learning Objectives • Understand the nature of performance evaluation • Compare and contrast performance appraisal and job evaluation • Explain different stages in evaluation • Describe job evaluation process Human Resource Management, 5E

  3. Objectives of Appraisal • To effect promotions based on competence and performance. • To confirm the services of probationary employees upon their completing the probationary period satisfactorily. • To assess the training and development needs of employees. • To decide upon a pay raise where (as in the unorganised sector) regular pay scales have not been fixed. Human Resource Management, 5E

  4. Objectives of Appraisal (contd..) • To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. • To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee. • Finally, performance appraisal can be used to determine whether HR programmes such as selection, training, and transfers have been effective or not. Human Resource Management, 5E

  5. Multiple Purposes of Appraisal Human Resource Management, 5E

  6. How Performance Appraisal can Contribute to Firm’s Competitive Advantage Improving Performance Strategy and Behaviour Making Correct Decisions Competitive Advantage Values and Behaviour Ensuring Legal Compliance Minimising Dissatisfaction and Turnover Human Resource Management, 5E

  7. The Performance Appraisal Process Objectives of Performance Appraisal Establish Job Expectations Design an Appraisal Programme Appraise Performance Performance Interview Use Appraisal Data for Appropriate Purposes Human Resource Management, 5E

  8. Problems of Rating • Leniency or severity • Central tendency • Halo error • Rater effect • Primacy and recency effects • Perceptual set • Spillover effect • Status effect Human Resource Management, 5E

  9. Methods of Performance Appraisal MBO Future-oriented Rating Scales Cost Accounting Checklists Essay Forced Choice AppraisalMethods ACRS 360 Degree Appraisal Assessment Centres Forced Distribution Tests and Observations Critical Incident Field Review BARS Psychological Appraisals Past-oriented Human Resource Management, 5E

  10. Challenges of Appraisal • Create a culture of excellence that inspires every employee to improve and lend himself or herself to be assessed • Align organisational objectives to individual aspirations • Clear growth paths for talented individuals • Provide new challenges to rejuvenate careers that have reached the plateau stage • Forge a partnership with people for managing their careers • Empower employees to make decisions without the fear of failing • Embed teamwork in all operational processes • Debureaucratise the organisation structure for ease of flow of information Human Resource Management, 5E

  11. Appraising Teams Set tangible targets for each KRA. Incorporate stretch elements for each target. Fix the minimum acceptable target Determine intangible parameters (like initiative), which indicate pockets of individual excellence with the team Identify KRAs critical to business during the year Evaluate performance of the team against pre-determined targets Communicate the results to ensure transparency Measure the performance of the team (actual versus targets) every month Identify individuals who have excelled. Discount subjective factors by including assessors from outside the team to identify outstanding individuals. Human Resource Management, 5E

  12. Legal Issues • Legally Defensible Appraisal Procedures • Legally Defensible Appraisal Content • Legally Defensible Documentation of Appraisal Results • Legally Defensible Raters Human Resource Management, 5E

  13. Deference Between Job Evaluation and Performance Appraisal Human Resource Management, 5E

  14. Job-evaluation Process Objectives of Job evaluation Job Analysis Job description Job specification Job evaluation programme Wage survey Employee classification Human Resource Management, 5E

  15. Methods of Job Evaluation • Analytical Methods • Point Ranking Method • Factor Comparison Method Job Evaluation • Non-Analytical Methods • Ranking Method • Job-Grading Method Human Resource Management, 5E

  16. Reality Check • Were you at any time a beneficiary or victim of halo-error? Recollect and write down the details. Human Resource Management, 5E

  17. Reality Check • In most family-owned business, sons or daughters join fathers’ business. In such scenarios, fathers are the bosses and off springs are the subordinates. How should such bosses rate performances of their subordinates? Which of these errors are likely to occur. Human Resource Management, 5E

  18. Reality Check • Why is job evaluation not so pervasive as performance appraisal? Human Resource Management, 5E

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