2. PERFORMANCE APPRAISAL & EVALUATION

3. APPRAISAL POPULARITY n Large Organizations: 95% n Small Organizations: 84% n All Private Organizations: 89% n City Governments: 76% n State Governments: 100%

4. TQM VIEW OF APPRAISAL n n – n n

5. RESPONSE TO DEMING n n n

6. KEYS TO BETTER APPRAISAL n Increase objectivity n Improve appraisal interview session n Emphasize Performance Management

7. OBJECTIVITY Recommendation 1: n Appraisals should be objective, rational, and accurate Reality: n – – –

8. Scale Orientations n Traits n Behaviors n Results

9. SCALE FORMAT n Comparative (Comparison among workers) – Forced Distribution – Rank – Paired Comparison n Comparison among anchors – Forced Choice n Graphic Rating Scales (Compare to anchors) – BARS – BOS (summated scale) n MBO

10. Common Rater Errors n Negative and positive skew (LENIENCY/severity) n Halo/Horn n Central Tendency (Dilbert) n Attribution error n Stereotyping (representativeness) n First Impression (anchoring) n Recency (Dilbert) n Contrast Effect n Similar/dissimilar to me Effect

11. REDUCING RATER ERRORS n Memory aids n Frame of reference training (rater training) n Rater accountability n Increased frequency

12. OBJECTIVITY Recommendation: n Appraisals should be objective, rational, and accurate Reality: n Subjectivity and inaccuracy often dominates the appraisal process –Subjective methods –Manager’s unconscious bias/rater errors –Deliberate manipulation »Why? »Impact? »Overcoming this

13. KEYS TO BETTER APPRAISAL

14. IMPROVING APPRAISAL: APPRAISAL SESSION n Put Employee at Ease n Participation – Appeal – Self-evaluation n Performance Focus n Sensitivity – Tone – Positive Feedback n Examples n Performance plans

15. KEYS TO BETTER APPRAISAL

16. PERFORMANCE MANAGEMENT Goal Setting Coaching And feedback Rate and Evaluate Formal Feedback Session

17. PERFORMANCE MANAGEMENT & MBO 1. Clarify goals/expectations –jointly determined –cascading 2. Periodic review and feedback –based on input from multiple sources –360 degree feedback 3. Coaching based on developmental sessions 4. Performance-based rewards

18. IMPLEMENTING MBO n Formulate overall objectives n Allocate among departments n Specific objectives for department members n Implement action plans n Review progress and provide feedback n Provide performance-based rewards

19. ADVANTAGES OF MBO n n n n