Chapter 8 Evaluating and Controlling Performance Management: A Skills Approach, 2/e by Phillip L. Hunsaker Copyright © 2005 Prentice-Hall Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall Learning Objectives Conduct Performance Appraisal Interviews Create Appraisal Criteria from Stated Goals Determine What to Appraise in a Given Situation Apply the Most Effective Performance Measures Utilize Performance Appraisals as Control Devices Provide Meaningful Feedback for Development Avoid Rating Errors Appraise Team Effectiveness Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall Skill Concepts Performance Appraisal Helps Managers Develop and Obtain the Best Performance from Employees Meet Organization Goals Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall Control – process of Monitoring activities to ensure they are accomplishing planned goals And correcting significant deviations Copyright © 2005 Prentice-Hall

Performance Appraisal Process of periodically measuring employees’ progress toward agreed-upon objectives, providing constructive feedback, and taking corrective action if goals are not being achieved Copyright © 2005 Prentice-Hall

Performance Appraisal as a Control Process Focus on Objectives What Performance Should Be Measured? Personal observation Statistical reports Oral reports Written reports Computerized-accessed databases Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall EEOC Guidelines Behaviors or characteristics measured by a performance appraisal should be related to the job and to job success Copyright © 2005 Prentice-Hall

Performance Appraisal Criteria Individual task outcomes Behaviors Traits Copyright © 2005 Prentice-Hall

Rating Methods for Comparing Performance to Standards Checklists Written Essays Critical Incidents Graphic Rating Scales Behaviorally Anchored Rating Scales Multi-person comparisons Computer Managed Appraisals Copyright © 2005 Prentice-Hall

Checklist Appraisal Questions Yes No 1. Does the employee willingly cooperate with others in completing work assignments? ___ ___ 2. Does the employee have adequate job knowledge to perform duties in a satisfactory manner? ___ ___ 3. In terms of quality, is the employee’s work acceptable? ___ ___ 4. Does the employee meet deadlines for the completion of work assignments? ___ ___ Does the employee’s record indicate ___ ___ unexcused absences? 6. Does the employee follow safety rules and regulations? ___ ___ Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall Graphic Rating Scale Name_____________________________ Dept.___________________________ Date_______________ Outstanding Good Satisfactory Fair Unsatisfactory Quantity Volume of acceptable of work work under normal conditions ___ ___ ___ ___ ___ Comments: Quality Thoroughness, neatness, and ___ ___ ___ ___ ___ of work accuracy of work Knowledge Clear understanding of the facts ___ ___ ___ ___ ___ of job or factors pertinent to the job Personal qualities Personality, appearance, ___ ___ ___ ___ ___ sociability, leadership, integrity Copyright © 2005 Prentice-Hall

Behaviorally Anchored Rating Scale (BARS) Engineer’s Name: _________________________ 9 ___ This engineer applies a full range of technical skills and can be expected to perform all assignments in an excellent manner. 8 ___ 7 ___ This engineer is able to apply in most situations a good range of technical skills and can be expected to perform most assignments well. 6 ___ 5 ___ This engineer is able to apply some technical skills and can be expected to complete most assignments adequately. Copyright © 2005 Prentice-Hall

Performance Appraisal Multi-person comparison Group order ranking Individual ranking Paired comparison Copyright © 2005 Prentice-Hall

Performance Appraisal Things to Watch Out for When Rating Performance Bias Leniency Central Tendency Recency Emphasis Copyright © 2005 Prentice-Hall

Copyright © 2005 Prentice-Hall Recency Emphasis Rushing Focusing on Activities Halo effect Horns effect Copyright © 2005 Prentice-Hall

Performance Appraisal Taking Managerial Action Correct Actual Performance Revise the Standard Copyright © 2005 Prentice-Hall

Performance Appraisal as a Means of Providing Constructive Feedback The Value of Feedback in a Performance Appraisal Positive Versus Negative Feedback Copyright © 2005 Prentice-Hall

Performance Appraisal Feedback Interview Process Preparation Schedule the interview in advance and be prepared Opening Put the employee at ease Be sure the employee understands the purpose of the appraisal interview Copyright © 2005 Prentice-Hall

Performance Appraisal Feedback Interview Process Questioning and Discussion Keep it goal-oriented Make it well-timed Minimize threats Obtain employee participation Encourage the employee to engage in self-evaluation Criticize performance but not the person Focus on specific behaviors Copyright © 2005 Prentice-Hall

The Performance Appraisal Feedback Interview Process Questioning and Discussion (continued) When criticizing, soften the tone but not the message Don’t exaggerate Give positive as well as negative feedback Tailor the feedback to fit the person Copyright © 2005 Prentice-Hall

The Performance Appraisal Feedback Interview Process Conclusion Ensure Understanding Detail a Future Plan of Action Copyright © 2005 Prentice-Hall

Team Performance Appraisals Tie the team’s results to the organization’s goals. Begin with the team’s customers and the work process the team follows to satisfy its needs. Measure both team and individual performance. Train the team to create its own measures. Copyright © 2005 Prentice-Hall

Guidelines for Improving Performance Appraisal Interviews Review evaluations written by other experienced supervisors to see what works and what doesn’t. Keep notes throughout the evaluation period. Don’t rely on recall at the end of the time. Seek input from other observers when appropriate. Base written evaluations on multiple, firsthand observations. Know what you’re looking for. Evaluate the right things. Concentrate exclusively on factors directly related to job performance. Don’t include rumors, allegations, or guesswork as part of your written evaluations. Be complete. Include the good, the bad, and the ugly. Copyright © 2005 Prentice-Hall