Evaluating Employee Performance CHAPTER 10 Evaluating Employee Performance DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition CHAPTER 10 TOPICS: 1: Performance management system purpose 2: Appraisal process steps 3: Absolute standards 4: Relative standards 5: MBO 6: Performance appraisal distortions 7: More effective performance appraisal 8: Alternative appraisal methods 9: Global issues DeCenzo and Robbins HRM 7th Edition

1: PERFORMANCE EVALUATION PURPOSES Performance Management Systems Feedback Development Documentation DeCenzo and Robbins HRM 7th Edition

1: PERFORMANCE EVALUATION PROBLEMS Focus on individual personality Emotions, anger, resentment, satisfaction Expectations Focus on process Tied to budget Training AND…. DeCenzo and Robbins HRM 7th Edition

1: PERFORMANCE EVALUATION PROBLEMS EEO requirements Reliable valid DeCenzo and Robbins HRM 7th Edition

2: APPRAISAL PROCESS STEPS 1. Establish performance appraisal standards 2. Mutually set measurable goals 3. Measure actual performance AND…. DeCenzo and Robbins HRM 7th Edition

2: APPRAISAL PROCESS STEPS 4. Compare actual with standard 5. Discuss appraisal with employee 6. Corrective action Basic Immediate DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 2: APPRAISAL METHODS Absolute standards Measure against external reference Relative standards Evaluate employees against each other Objectives Measure against goals DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: ABSOLUTE STANDARDS Essay Critical incident Checklist Adjective rating scale Forced-choice Behaviorally-Anchored Rating Scale (BARS) DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: ESSAYS Subjective Hard to compare with others Simple Strengths Weaknesses Potential Suggestions for improvement DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: CRITICAL INCIDENT Essay about what was most effective or ineffective in a key job situation Focus on behavior, not personality Weekly is time-consuming DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: CHECKLIST Yes or No Predefined behaviors or qualities Items may be irrelevant Helps reduce bias DeCenzo and Robbins HRM 7th Edition

3: ADJECTIVE RATING SCALE Factors present Job knowledge Cooperation Quality and quantity of work 5 to 10 points on a continuum See Exhibit 10-3 DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-3: Sample Adjective Rating Items and Format DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: FORCED-CHOICE Bias and distortion reduced Frustration about lack of feedback Simple Like a multiple choice test question DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 3: B.A.R.S. Simple Reduces rating errors Definite, observable job behaviors See Exhibit 10-4 DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-4: Sample BARS for an Employee Relations Specialist DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 4: RELATIVE STANDARDS Group order ranking Quartiles Individual ranking Best to worst Paired comparison Similar to job ranking Compare each one to all others DeCenzo and Robbins HRM 7th Edition

5: MANAGEMENT BY OBJECTIVE (MBO) STEPS Goal setting Action planning Self control Periodic review DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 5: MBO ISSUES Advantages Results oriented Commitment Problems Trust needed Satisfaction Time-consuming Important to followup Frustration builder DeCenzo and Robbins HRM 7th Edition

6: PERFORMANCE APPRAISAL DISTORTIONS Leniency Halo Similarity Central tendency Inflationary pressures Inappropriate substitutes AND…. DeCenzo and Robbins HRM 7th Edition

6: PERFORMANCE APPRAISAL DISTORTIONS Attribution theory Varies by control Internal External Impression management DeCenzo and Robbins HRM 7th Edition

7: TO IMPROVE APPRAISALS Behavior based measures Combine absolute and relative measures Provide ongoing feedback Have multiple raters Rate selectively Train appraisers DeCenzo and Robbins HRM 7th Edition

8: MORE EFFECTIVE APPRAISALS - PEERS Positives Constructive criticism Specific feedback Negatives Fear Halo, leniency error Training Upward appraisal DeCenzo and Robbins HRM 7th Edition

8: MORE EFFECTIVE APPRAISAL (360-DEGREE) Multiple appraisers Self Boss Peers Team members Customers Suppliers DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 8: 360-DEGREE APPRAISALS Positives Increase manager’s awareness of own actions More accurate feedback Empowerment Developing leadership Reduces subjectivity DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 9: GLOBAL ISSUES Does the cultural environment vary from host country to corporate? Who does evaluation? Host country supervisor Home office AND… DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 9: MORE GLOBAL ISSUES What do numbers, ranking mean? Culture Economic issues Political realities Evaluation format AND…. DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition 9: GLOBAL SUGGESTIONS Modify to suit Site Culture Use an expatriate DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition REVIEW CHAPTER 10 How do we do performance appraisal in this course? Any suggestions to improve it for next semester? Any suggestions for this semester? DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition QUICK: REVIEW CHAPTER 10 ANSWER THESE QUESTIONS ON A SHEET OF PAPER. 1. THE MOST IMPORTANT THING WE DID IN CLASS TODAY _______. 2. I STILL HAVE QUESTIONS ABOUT___. 3. THE BEST THING ABOUT CLASS TODAY WAS _______________. 4. DON’T DO ____________ ANYMORE. TURN THEM IN, PLEASE. NO NAMES. WE’LL TALK NEXT CLASS SESSION DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition PREVIEW: CHAPTER 11 Ask 3 people you know: 1 college student 1 40-60 year old worker 1 retiree Why do/did you work? Tell me about the best “reward” you received from a job? Write up their responses for 1 extra point on your final grade. DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-1: The Appraisal Process DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-2: Sample Checklist Items for Appraising Customer Service Representative DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-5: Factors That Distort Appraisals DeCenzo and Robbins HRM 7th Edition

DeCenzo and Robbins HRM 7th Edition Exhibit 10-6: Towards a More Effective Performance Management System DeCenzo and Robbins HRM 7th Edition