Appraising Performance

I. Monitoring and Measuring Performance A. Critical Job Dimensions and Performance Standards B. Types of Performance Criteria Trait-Based Behavior-Based Results-oriented C. Establishing Useful Performance Standards II. Performance Appraisal A. Administrative Uses B. Development Uses C. Informal Vs. Systematic Appraisal

The Linkage between Strategy, Outcomes, and Organizational Results Employee Performance Organizational Results: Goal met or not met Organizational Strategy Performance Management Outcomes: Development Productivity Advancement Discipline Pay Raises Termination Others

Conflicting Roles for Performance Appraisal? Performance Appraisal Administrative Uses Compensation Promotion Dismissal Downsizing Layoffs Development Uses Identifying Strengths Identifying areas for growth Development planning Coaching and career Planning

III. Who Conducts Appraisals Supervisors who rate their employees Employees who rate their supervisors Team members who rate each other Outside sources Employee self-appraisal Multisource (360º) appraisal A. Supervisory Rating of Subordinates B. Employee Rating of Managers C. Team/Peer, Ratings D. Self-Ratings E. Outside Raters F. Multisource Rating

IV. Methods for Appraising Performance A. Graphic Rating Method B. Comparative Method 1. Ranking 2. Forced Distribution C. Narrative Methods D. Behavioral Rating E. Management by Objectives (MBO) Process: Job Review and Agreement Development of Performance Standards Guided Objective Setting Ongoing Performance

Forced Distribution on a Bell-Shaped Curve

V. Rater Errors A. Problems of Varying Standards B. Regency Effect C. Rating Patterns D. Rater Bias E. Halo Effect VI. The Appraisal Feedback Interview A. Reactions of Managers

VII. Performance Appraisals and the Law Elements of a legally defensible performance appraisal: Based on job analysis Absence of adverse impact on minority persons Formal evaluation criteria that limits managerial discretion A formal rating instrument Personal knowledge and contact with the person being rated Supervisory training to use the instrument A review process Counseling to help poor performers overcome their difficulties

Hints for Managers in the Appraisal Interview Lecture the employee Mix performance appraisal and salary or promotion issues Concentrate only on the negative Do all the talking Be overly critical or “harp-on” a failing Feel it is necessary that both parties agree in all areas Compare the employee with others Prepare in advance Focus on performance and development Be specific about reasons for ratings Decide on specific steps to be taken for improvement Consider the supervisor’s role in the subordinate’s performance Reinforce desired behaviors Focus on future performance DON’TDO