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Human Resource Management

This lecture focuses on performance appraisal, an ongoing process of evaluating and managing employee behavior and outcomes. It explores the reasons for measuring performance, what is measured, how it is measured, who measures performance, and when it is measured. The lecture also discusses the objectives of performance appraisal, including staffing decisions, compensation decisions, and evaluating the effectiveness of selection systems. It highlights the importance of well-defined performance standards and provides an overview of the appraisal process, including choosing appropriate methods, training supervisors, discussing appraisals with employees, and setting future performance goals. Various performance appraisal methods are explored, such as rating scales, graphic scales, comparative methods, and critical incidents. The lecture also covers the concept of forced distribution, behaviorally anchored rating scales (BARS), and management by objectives (MBO). It concludes by discussing different types of appraisal interviews and the potential biases and errors that can occur in the performance appraisal process.

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Human Resource Management

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  1. Human Resource Management Lecture-26

  2. Performance Appraisal • The ongoing process of evaluating and managing both the behavior and outcomes in the workplace. • Its goal is to provide an accurate picture of past and / or future employee performance. • To achieve this, performance standards are established.

  3. WHY is performance measured? (use) • WHAT is measured? (criteria) • HOW is it measured? • WHO measures performance? • WHEN is it measured? (timing) Organization...

  4. Objectives of Performance Appraisal Evaluation Developmental

  5. Evaluating Objectives • Staffing decisions • Compensation decisions • Evaluate selection system

  6. Developmental Objectives • Performance feedback. • Decision for future performance. • Identify training & development needs.

  7. What to evaluate? • Traits • Behaviors • Task Outcomes

  8. Performance Standards • Expected levels of performance • Benchmarks • Goals • Targets • Should relate back to the job description details

  9. Characteristics of Well-defined Standards • Realistic • Measurable • Clearly understood

  10. Appraisal process • Determine performance requirements. • Choose an appropriate appraisal method. • Train supervisors.

  11. Discuss methods with employees. • Appraise according to Job standards. • Discuss appraisal with employees. • Determine future performance goals.

  12. Performance Appraisal methods • Rating Scales • Graphic Scales • Comparative Methods • Ranking • Forced Distribution • Paired Comparison

  13. Critical Incidents • Annual Review • Checklist • Behaviorally Anchored Rating Scale (BARS) • Essay • MBO • Combination Methods

  14. Graphic Rating Scale Quantity of Work X 1(Low) 2 3 4 5 6 7 (High)

  15. Simple Ranking 1. Aziz Ahmad 2. Summer Abbas 3. Arshad Butt 4. Hamid Ali

  16. Forced Distribution on a Bell-Shaped Curve

  17. Forced Distribution Lowest Next Lowest Middle Next Highest 10% 20% 40% 20% 10% 5 10 20 10 5 employees employees employees employees employees

  18. BARS Dimension: Quality of Group Member Input 5 Group member has read all agreed-upon material Effective 4 Group member participates in discussions, though not always prepared 3 2 Group member does little work and offers no valuable ideas or feedback Ineffective 1

  19. Management-By-Objectives Goal Setting Planning Evaluation

  20. Model of the MBO Process

  21. Step 1: Setting Goals Step 2: Developing Action Plans Corporate Strategic Goals Departmental Goals Individual Goals Action Plans Review Progress Step 3: Reviewing Progress Appraisal of Overall Performance Corrective Action Step 4: Appraising Overall Performance

  22. Appraisal Interviews Ask for Self- Assessment Follow Up Day by Day Invite Participation Express Appreciation Establish Goals Minimize Criticism Be Supportive Focus on Problem Solving Change the Behavior, not the Person

  23. Supervisors Peer Evaluation Customer/Client Evaluation Self Rating Reverse Appraisal Team Appraisal Multiple (360) Who Should Do the Rating?

  24. Supervisor Team Peers Self Customers Subordinates

  25. 360 Degree Feedback superiors self-rating outside observers peers employee customers subordinates

  26. Supervisory Bias Halo Effect Central Tendency Leniency Strictness Recency Overall Rating Common Rater Errors in PA’s

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