1. 1 PERFORMANCE APPRAISAL (Management)

2. 2 Chapter Objectives  Define performance appraisal and identify the uses of performance management  Describe the performance appraisal process  Identify the various performance appraisal methods used  The reason behind appraisal discomfort  Explain the characteristics of an effective appraisal system

3. 3 Chapter Objectives (Continued)  Describe the legal implications of performance appraisal.  Discuss the responsibility of performance appraisal  Explain how the appraisal interview should be conducted.  Interview with Human Resources Manager about Performance Management Systems

4. 4 Performance Appraisal Defined  System of review and evaluation of job performance  Assesses accomplishments and evolves plans for development

5. 5 Performance Management  Process that significantly determines how organization performs  Managers and employees work together to set expectations, review results and reward performance.  Platform for assessing individual and team performance

6. 6 Appraiser Discomfort  Performance appraisal process cuts into manager’s time  Experience can be unpleasant when employee has not performed well

7. 7 Employee Anxiety  Creates anxiety for appraised employee Rationale for Performance Appraisal  Provides legal and other benefits for employers

8. 8 Uses of Performance Appraisal  Human resource planning  Recruitment and selection  Training and development  Career planning and development  Compensation programs  Internal employee relations  Assessment of employee potential

9. 9 Performance Appraisal Process Plan the Performance Identify Performance Goals Communicate Goals Establish Performance Criteria Determine: Responsibility for Appraisal Appraisal Period Appraisal Method(s) Computer Software Examine Work Performed Appraise the Results Conduct Appraisal Interview Discuss Goals for Next Period Anticipate and Consider Problems in PA Effective PA Systems Management Support Coaching and T&D

10. 10 Responsibility for Appraisal  Immediate supervisor  Subordinates  Peers  Self-appraisal  Customer appraisal

11. 11 Performance Appraisal Methods  360-Degree Feedback  Rating Scales  Critical Incidents  Essay  Work Standards  Ranking

12. 12 The Appraisal Period  Prepared at specific intervals  Usually annually or semiannually  Period may begin with employee’s date of hire  All employees may be evaluated at same time

13. 13 Effective Appraisal System  Job-related criteria  Performance expectations  Standardization  Trained appraisers  Continuous open communication  Performance reviews  Due process

14. 14 Legal Implications  Adverse impact on protected classes  The controlling of subordinate career  Should have someone review and approve appraisals  The rater must have personal knowledge of employee’s performance  The appraisal system must use predetermined criteria

15. 15 The Appraisal Interview  Scheduling the interview  Interview structure  Use of praise and criticism  Employees’ role  Concluding the interview