Performance Management and Appraisal Chapter 9 Performance Management and Appraisal Describe the appraisal process. Develop, evaluate, and administer at least four performance appraisal tools. Explain and illustrate the problems to avoid in appraising performance. List and discuss the pros and cons of six appraisal methods. Perform an effective appraisal interview. Discuss the pros and cons of using different raters to appraise a person’s performance.

Basic Concepts in Performance Management and Appraisal Performance Appraisal Performance Management Evaluating an employee’s current and/or past performance relative to his or her performance standards A process that consolidates goal setting, performance appraisal, and development into a single common system, the aim of which is to ensure that the employee’s performance supports and contributes to the organization’s strategic aims Why Appraise Performance? Why Performance Management?

Basic Concepts in Performance Management and Appraisal Defining the Employee’s Goals and Work Standards 1 Assign specific goals 2 Assign measurable goals 3 Assign challenging but doable goals 4 Encourage participation

Basic Concepts in Performance Management and Appraisal “Appraisal Process” Provide feedback Plan the performance and identify it’s goals Define the job Setting work standards Establish performance goals Appraisal method Appraisal data sources Feedback & performance interview Comparing the Employees’ Performance to the standards Appealing Appraisal period

An Introduction to Appraising Performance 1 Why appraise performance? 2 Realistic appraisal 3 The supervisor’s role 4 Steps in appraising performance

An Introduction to Appraising Performance What to Appraise (performance criteria)? 1 2 Performance, Competencies, and Achievements Quantitative Qualitative Mix Traits and behavior Observable Non-observable

An Introduction to Appraising Performance Appraisal Methods 1 Graphic rating scale method 2 Alternation ranking method 3 Paired comparison method 4 Forced distribution method 5 Critical incident method

An Introduction to Appraising Performance Appraisal Methods 6 Narrative forms 7 Behaviorally anchored rating scales (BARS) 8 Management by objectives / Results based systems 9 Computerized and web based performance appraisal 10 Merging the methods

An Introduction to Appraising Performance Who Should Do the Appraising? 1 The immediate supervisor 2 Peer appraisals 3 Rating committees 4 Self rating 5 Appraisal by subordinates 6 360 Degree feedback

Appraising Performance: Problems and Solutions Performance Appraisal Problems 1 Unclear standards 2 Halo effect 3 Central tendency 4 Leniency or strictness 5 Bias 6 Initial impressions / Last impressions

Appraising Performance: Problems and Solutions Performance Appraisal Problems 7 Lack of objectivity 8 Personal bias 9 Etc …

Appraising Performance: Problems and Solutions How to Avoid Appraisal Problems 1 Know problems 2 Use right tool 3 Train Supervisors 4 Control outside influences 5 Keep a diary

The Appraisal Interview An interview in which the supervisors and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths

The Appraisal Interview Types of Appraisal Interview 1 Satisfactory—Promotable 2 Satisfactory—Not promotable 3 Unsatisfactory—Correctable 4 Unsatisfactory—Uncorrectable

The Appraisal Interview How to Conduct the Appraisal Interview Guide Lines 1 Talk in terms of objective work data 2 Don’t get personal 3 Encourage the person to talk 4 Don’t tiptoe around

The Appraisal Interview How to Conduct the Appraisal Interview How to Ensure the Interview Leads to Improved Performance? How to Conduct the Appraisal Interview How to Handle a Defensive Subordinate? 1 Recognize that defensive behavior is normal 2 Never attack a person’s defenses 3 Postpone action 4 Recognize your own limitations

The Appraisal Interview How to Conduct the Appraisal Interview How to Criticize a Subordinate? How to Conduct the Appraisal Interview How to Handle a Formal Written Warning? Appraisal in Practice

Creating the Total Performance Management Process Improving Productivity Through HRIS: TRW’s New Performance Management Systems