Chapter 12 Evaluating Employee Performance Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved.

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Performance Appraisals and the Motivation Process

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Purposes of Performance Management Systems Feedback Development Documentation

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Difficulties in Performance Management Systems Focus on the individual Focus on the process

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Performance Appraisals and Employment Equity Must be bias-free, objective, and job- related Should be conducted at regular intervals by trained appraisers

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd The Appraisal Process

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Absolute Standards (Employees are measured against a set benchmark) Essay appraisal Critical incident appraisal Adjective rating appraisal Forced choice appraisal Behaviourally anchored rating scales (BARS)

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Sample Checklist Items for Appraising Customer Service Representative

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Sample of Adjective Rating Scale Items and Format

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Sample BARS for an Employee Relations Specialist

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Relative Standards (Individuals compared to each other) Group order ranking Individual ranking Paired comparison

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Management by Objectives (Employees evaluated on how well they achieve specific objectives) Steps of MBO: Goal setting Action planning Self-control Periodic reviews

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Factors Distorting Appraisals Leniency/harshness error Halo error Similarity error Low appraiser motivation Central tendency Inflationary pressures Inappropriate substitutes for performance Attribution errors

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Factors Leading to More Effective Performance Management Systems Behaviour-based measures Combination of absolute and relative standards Ongoing feedback Multiple raters Selective rating Trained appraisers Rewards for accurate appraisers

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Conducting the Performance Appraisal Interview Prepare for, and schedule, the appraisal in advance Create a supportive environment Describe the purpose of the appraisal to employees Have the employees complete a self-evaluation Focus discussion on work behaviour Support your evaluation with specific examples Give both positive and negative feedback Make sure the employees understand what was discussed Generate a development plan

HUMAN RESOURCES MANAGEMENT Templer Cattaneo De Cenzo Robbins John Wiley & Sons Canada, Ltd Issues in International Performance Appraisal Who performs the evaluation? Which evaluation format will be used?