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 & Appraisal Performance management –Defines performance –Facilitates Performance –Encourages performance Performance Appraisal –Measures performance –Evaluates performance –Feeds back the evaluation

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 Poor Below Average Good Excellent Average Graphic Rating Scale clearer anchors Quality of Work 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 1: Reneges on promises 2: Sets a poor example

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.