1. Performance Management and Appraisal
Chapter 8
Performance Management and Appraisal
Explain the purpose of performance appraisal.
Answer the question, “Who should do the appraising?”
Discuss the pros and cons of at least eight performance appraisal methods.
Give examples of five potential appraisal problems.
Explain how to conduct an appraisal feedback interview.
Explain how to install a performance management program.
Illustrate examples of segmenting and actively managing a company’s talent.

2. Basic Concepts in Performance Management and Appraisal
Performance Appraisal
Evaluating an employee’s current and/or past performance relative to his or her performance standards
Why appraise performance?

3. Basic Concepts in Performance Management and Appraisal
The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals.

4. Basic Concepts in Performance Management and Appraisal
The Appraisal Process
Setting work
standards
Provide
feedback
Define the job
Comparing the
Employees’
Performance to the standards

5. Basic Concepts in Performance Management and Appraisal
What to Appraise (performance criteria)?
Defining the Employee’s Goals and Performance Standards 1 2
Performance, Competencies, and Achievements
Quantitative
Qualitative
Mix
Traits and behavior
Observable
Non-observable

6. Basic Concepts in Performance Management and Appraisal
How to Setting Effective Goals and Objectives (Standards)?
Using MBO perspective – SMART goals and objectives (SMARTER) 1
Assign specific goals 2
Assign measurable goals 3
Assign challenging but doable goals 4
Encourage participation
Talent management: Basing appraisal standards on required competencies
The role of job descriptions

7. Who Should Do the Appraising?1
The immediate supervisor 2
Peer appraisals 3
Rating committees 4
Self rating 5
Appraisal by subordinates 6
360 Degree feedback 7
Crowd appraisals

8. Appraisal Methods 1 Graphic rating scale method 2
Alternation ranking method 3
Paired comparison method 4
Forced distribution method 5
Critical incident method 6
Narrative forms

9. Appraisal Forms in Practice: Merging the Methods
Appraisal Methods 7
Behaviorally anchored rating scales (BARS) 8
Management by objectives / Results based systems 9
Computerized and web based performance appraisal 10
Electronic performance monitoring
Appraisal Forms in Practice: Merging the Methods
Conversation Days

10. Dealing with Appraisal Problems and the Appraisal Interviews
Potential Appraisal Problems 1
Unclear standards 4
Leniency or strictness 2
Halo effect 5
Bias 3
Central tendency 6
Initial impressions / Last impressions
Ensure Fairness and Effective Supervision
Avoid the Middle
Clarify Standards
Addressing Legal Issues in Appraisal
Avoid Bias
Avoid Halo Effect Ratings
Don’t Be Lenient or Strict

11. Dealing with Appraisal Problems and the Appraisal Interviews
Handling the Appraisal Interview 1
Preparing for the appraisal interview 2
Conducting the interview
Building Your Communications Skills 1
Pay attention 2
Make yourself clear 3
Be an active listener

12. Dealing with Appraisal Problems and the Appraisal Interviews
Performance Management Versus Performance Appraisal 1
Continuous, daily, or weekly interactions and feedback to ensure continuous improvement 2
It is always goal-directed 3
Continuously re-evaluating and (if need be) modifying how the employee and team get their work done
Using Information Technology to Support Performance Management

13. Talent Management Practices and Employee Appraisal
Appraising and Actively Managing Employees
Segmenting and Actively Managing Employees in Practice