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Performance Management & Appraisal, Part I. The purposes and requirements of an effective performance management and appraisal system Legal and strategic issues in performance appraisal Appraisal formats: Advantages and disadvantages. Performance management Defines performance
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Performance Management & Appraisal, Part I • The purposes and requirements of an effective performance management and appraisal system • Legal and strategic issues in performance appraisal • Appraisal formats: Advantages and disadvantages
Performance management Defines performance Facilitates Performance Encourages performance Performance Appraisal Measures performance Evaluates performance Feeds back the evaluation Performance Management & Appraisal
Legal & Strategic Issues • Legal issues • Performance appraisal is open to adverse impact • Criteria must be applied equally • Strategic issues • Organizations get what they reward • Need to align strategy with performance management system
Using Performance Appraisal • Developmental • Improving performance • Career development • Administrative • Salary decisions • Promotion • Retention
Relative & Absolute Judgments • Relative • Ranking • Forced distribution • Absolute • Graphic rating scales • Behavioral checklists • Critical incidents
Scale Formats Graphic Rating Scale Quality of Work 1 2 3 4 5 Poor Below Average Good Excellent Average Graphic Rating Scale clearer anchors Quality of Work 1 2 3 4 5 Frequent Passable Usually Errors Accurate Errors accurate rare
Trait and Behavioral Data • Traits • Personality • Individual traits • Behavioral data • BARS (create dimensions, write critical incidents, rate critical incidents, form scales with incidents as anchors • BOS
Scale Formats Behaviorally Anchored Rating Scale For Supervision 5: Can train and develop subordinates 4: Exhibits respect towards subordinates 3: Critical of personnel in front of others 2: Sets a poor example 1: Reneges on promises
Outcome Data • Meeting goals • Quantitative data • sales • scrappage • productivity
Backwards & Forwards • Summing up: We began with distinguishing performance management from performance appraisal. Legal and strategic issues were considered and the balance of the session reviewed different rating formats, their advantages and disadvantages. • Looking ahead Next time we complete our discussion of performance management by looking at challenges to effective performance management, the appraisal interview, motivation, and performance improvement.