PowerPoint Presentation Design by Charlie Cook The University of West Alabama Prepared by Joseph B. Mosca, Monmouth University and Marla M. Kameny, Baton Rouge Community College © 2012 South-Western, Cengage Learning, Inc. All rights reserved.

10–2 Learning Objectives After studying this chapter, you should be able to: 1.Describe the purposes of performance appraisal in organizations 2.Summarize the performance-appraisal process in organizations 3.Identify and describe the most common methods that managers use for performance appraisal 4.Discuss other general issues involving performance appraisal in organizations 5.Describe the nature of careers in organizations 1.Describe the purposes of performance appraisal in organizations 2.Summarize the performance-appraisal process in organizations 3.Identify and describe the most common methods that managers use for performance appraisal 4.Discuss other general issues involving performance appraisal in organizations 5.Describe the nature of careers in organizations

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–3 Learning Objectives (cont’d) After studying this chapter, you should be able to: 6.Discuss human resource management and career management 7.Identify and discuss basic career-development issues and challenges 6.Discuss human resource management and career management 7.Identify and discuss basic career-development issues and challenges

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–4 Performance Appraisal and Management Performance Appraisal  The specific and formal evaluation of an employee conducted to determine the degree to which the employee is performing his or her job effectively Performance Management  The general set of activities carried out by the organization to change (improve) employee performance Performance Appraisal  The specific and formal evaluation of an employee conducted to determine the degree to which the employee is performing his or her job effectively Performance Management  The general set of activities carried out by the organization to change (improve) employee performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–5 Importance of Performance Appraisal Provide a benchmark to assess the adequacy of recruiting and selection processes Validate legal aspects of the appraisal process decisions Provide information for HR planning Fostering employee motivation Support compensation decisions Provide a benchmark to assess the adequacy of recruiting and selection processes Validate legal aspects of the appraisal process decisions Provide information for HR planning Fostering employee motivation Support compensation decisions

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–6 Goals of Performance Appraisal To provide a measure of employee performance. To provide information in support of HR and performance management activities To improve job performance To provide a measure of employee performance. To provide information in support of HR and performance management activities To improve job performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–7 The Performance Management Process in a Typical Organization

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–8 Performance Appraisal Process Role of the Organization Role of the Rater Role of the Ratee Role of the Organization Role of the Rater Role of the Ratee

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–9 Sources of Information for Performance Appraisal 360-Degree Feedback  Involves gathering performance information from people on all sides of the manager 360-Degree Feedback  Involves gathering performance information from people on all sides of the manager

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–10 Performance Appraisal Issues What Gets Rated?What Gets Rated?  Traits  Behaviors  Outcomes Who Should Be Rated?Who Should Be Rated?  Individual performance  Team performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–11 Beyond the Book: Two Ways to Assess Behaviors Give separate behavior and results ratings Use the 360-degree assessment to set behavior goals for each employee Give separate behavior and results ratings Use the 360-degree assessment to set behavior goals for each employee

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–12 Which Rating Method to Use? Simple ranking Paired comparison Forced distribution Methods for Rating Performance

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–13 Specific Rating Methods Graphic rating scale Behaviorally anchored rating scale (BARS) Behavioral observation scale (BOS) Management-by- objectives (MBO) Critical incident method

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–14 Examples of Graphic Rating Scales

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–15 Beyond the Book: Management by Objectives

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–16 Behaviorally Anchored Rating Scales

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–17 Which System Is Best? It is difficult to predict how a set of employees will react to a given system

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–18 Beyond the Book: Are Most Workers Motivated by Money? YESYES Money is an objective way of measuring an employee’s value to a firm.Money is an objective way of measuring an employee’s value to a firm. Money motivates some employees because they have a use or need for it.Money motivates some employees because they have a use or need for it. Studies indicate that the piece- rate system improves employee productivity while increasing take-home pay.Studies indicate that the piece- rate system improves employee productivity while increasing take-home pay. Money is an objective way of measuring an employee’s value to a firm.Money is an objective way of measuring an employee’s value to a firm. Money motivates some employees because they have a use or need for it.Money motivates some employees because they have a use or need for it. Studies indicate that the piece- rate system improves employee productivity while increasing take-home pay.Studies indicate that the piece- rate system improves employee productivity while increasing take-home pay. NONO There are other ways to reward employees.There are other ways to reward employees. After deductions, a pay raise is always less than the employee expected.After deductions, a pay raise is always less than the employee expected. Research indicates that work factors, recognition and achievement are motivators for most workers.Research indicates that work factors, recognition and achievement are motivators for most workers. There are other ways to reward employees.There are other ways to reward employees. After deductions, a pay raise is always less than the employee expected.After deductions, a pay raise is always less than the employee expected. Research indicates that work factors, recognition and achievement are motivators for most workers.Research indicates that work factors, recognition and achievement are motivators for most workers.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–19 Beyond the Book: Possible Merit Increase Guidelines

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–20 Contrast error Distributional error Halo error Horns error Common Rater Bias Errors Rating Errors

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–21 Legal Issues in Performance Appraisal When performance appraisals are used as the basis for HR decisions, they are considered the same as any other test under the law.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–22 The Nature of Careers CareerCareer  The set of experiences and activities that people engage in related to their job and livelihood over the course of their working life. Traditional Stages of CareersTraditional Stages of Careers  Exploration  Establishment  Maintenance  Disengagement

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–23 The Traditional Model of Career Stages

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–24 New Views of Career Stages and the Decision to Retire Older Workers May:Older Workers May:  Find themselves ready to disengage from the organization at a relatively young age.  Begin working again by seeking opportunities with a better work and family balance.  Retire if they have the financial resources to maintain their pre-retirement lifestyles.  Retire if their health makes work burdensome. Copyright ©2012 by Cengage Learning. All rights reserved.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–25 HRM and Career Management Limitations and Pitfalls in Career PlanningLimitations and Pitfalls in Career Planning  Predicting future levels of talent, expertise, motivation, or interest of an individual is difficult.  Unexpected business changes may result in changes in career opportunities.  Careers do not simply happen–they must be planned and managed.  Responsibility for career planning resides with both the organization and the individual.

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–26 Individual and Organizational Perspectives on Career Planning

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–27 Steps in Career Planning

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.10–28 Career Planning and Development Challenges Career Counseling  Involves interaction between an individual employee or manager in the organization and either a line manager or an HR manager Dual-Career and Work-Family Issues Career Counseling  Involves interaction between an individual employee or manager in the organization and either a line manager or an HR manager Dual-Career and Work-Family Issues