PERFORMANCE APPRAISAL

1. PERFORMANCE APPRAISAL

2. Performance Appraisal Defined • System of review and evaluation of job performance • Assesses accomplishments and evolves plans for development

3. Performance Management • Process that significantly affects organizational success • Managers and employees work together to set expectations, review results and reward performance.

4. Purposes of Performance Mangement • Strategic • Aligning employee performance with organizational objectives • Administrative • Making employment-related decisions • Developmental • Aiding employee growth

5. Appraiser Discomfort • Performance appraisal process cuts into manager’s time • Experience can be unpleasant when employee has not performed well

6. Employee Anxiety • Creates anxiety for appraised employee Rationale for Performance Appraisal • Provides legal and other benefits for employers

7. Designing a performance management system • Conduct job analysis • Set performance standards • Appraise performance • Feedback information to employee

8. Establish Performance Criteria • Traits • Behaviors • Competencies • Goal Achievement • Improvement Potential

9. Responsibility for Appraisal • Immediate supervisor • Subordinates • Peers • Rationale for evaluations conducted by team members • Self-appraisal • Customer appraisal

10. 360-Degree Valuation • Multi-rater evaluation • Input from multiple levels with firm and external sources • Focuses on skills needed across organizational boundaries • More objective measure of performance • Process more legally defensible

11. Performance Measure Standards • Strategic congruence • Reliability • Validity • Acceptability • Specificity

12. The Appraisal Period • Prepared at specific intervals • Usually annually or semiannually • Period may begin with employee’s date of hire • All employees may be evaluated at same time

13. Appraisal categories and types • Comparative • Ranking (Simple, alternation) • Forced distribution • Paired comparison • Attribute • Graphic rating scale • Behavioral • Critical incidents • BARS • BOS • Results • MBO • Quality

14. Problems in Performance Appraisal • Lack of objectivity • Halo error • Leniency/strictness • Central tendency • Recent behavior bias • Personal bias • Manipulating the evaluation

15. Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance. Improve employee’s eligibility for merit raises. Avoid airing department’s “dirty laundry.” Avoid creating negative permanent record that might haunt employee in the future. Protect good workers whose performance suffered because of personal problems. Reward employees displaying great effort even when results were relatively low. Avoid confrontation with hard-to-manage employees. Promote a poor or dislike employee up and out of the department. Scare better performance out of an employee. Punish a difficult or rebellious employee. Encourage a problem employee to quit. Create a strong record to justify a planned firing. Minimize the amount of merit increase a subordinate receives. Comply with an organizational edict that discourages managers from giving high ratings. Reasons for Intentionally Inflating or Lowering Ratings Inflating Ratings Lowering Ratings

16. Characteristics of an Effective Appraisal System • Job-related criteria • Performance expectations • Standardization • Trained appraisers • Continuous open communication • Performance reviews • Due process

17. Legal Implications • With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals

18. The Appraisal Interview • Scheduling the interview • Interview structure • Use of praise and criticism • Employees’ role • Use of software • Concluding the interview