1. Purposes of Performance Appraisal
To improve, employees need to know how they are doing.
The supervisor and employee can plan how to improve weak areas.
An appraisal can help motivate employees.
Performance appraisals are part of the ongoing control process.
Performance appraisals provide important records for the organization.
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2. The Appraisal Process – Step 1
Establish and communicate expectations for performance.
List three to five major responsibilities of each position.
Focus the appraisal on these responsibilities.
Be sure employees know and understand what is expected of them.
Employee are most likely to understand and be committed to objectives they helped develop.
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3. The Appraisal Process – Step 2
Establish and communicate standards for measuring performance.
Each expectation should be measurable.
A supervisor’s task includes deciding how to measure employees’ performance and then making sure employees know what will be measured.
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4. The Appraisal Process – Step 3
Observe and measure individual performance against standards.
A supervisor should continuously gather information about each employee’s performance.
When preparing a performance appraisal, a supervisor compares this information with the standards for the employee being appraised.
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5. The Appraisal Process – Step 4
Reinforce performance or provide remedies.
Point out to employees where they have performed well.
Asking an employee to help solve a problem is often more effective than the supervisor simply stating a remedy.
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6. Possible Causes for Poor Performance
Inadequate skills
Lack of effort
Shortcomings of the process
External conditions
Personal problems
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7. What to Measure in an Appraisal
Do not label people with certain characteristics.
Focus on behavior and results.
When appraisals require supervisors to draw conclusions about the employee’s personal characteristics, try to base them on observations about behavior and results.
Record at least one specific example for each category rated.
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8. Qualities of Effective Performance Appraisal Measures
Objective
Job-related
Based on behaviors
Within employee’s control
Related to specific tasks
Communicated to employees
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9. EEOC Guidelines
The behaviors and characteristics measured by a performance appraisal should be related to the job and to succeeding on the job.
Appraisals should be based on the employee’s success in carrying out the essential tasks of a particular job.
The ratings in a performance appraisal should not be discriminatory.
An employee should know performance standards in advance.
Employees should be able to ask questions about their ratings.
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10. Performance Appraisals and Pay Reviews
Many organizations review an employee’s wage or salary level at the time of the performance appraisal.
Employees may focus on the issue of money, diminishing a supervisor’s motivating and coaching opportunities.
A supervisor who must review pay rates at performance appraisal time should make an extra effort to emphasize performance.
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11. Types of Appraisals Graphic rating scales: Paired-comparison approach:
Most commonly used; relatively easy to use
Rates the degree to which an employee has achieved various characteristics
Paired-comparison approach:
Measures the relative performance of employees in a group
Appropriate to find one outstanding employee in a group
Drawbacks: possible harm to morale and teamwork, and possible lawsuits
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12. Types of Appraisals (continued)
Forced-choice approach:
Appraisal form provides sets of statements describing employee behavior
Essay appraisal:
Often used with other types of appraisals, such as graphic rating scales
Drawback: depends on supervisor’s writing skills
Behaviorally Anchored Rating Scales (BARS):
Rate employee performance in several areas such as work quantity and quality
Drawbacks: can be tailored and less subjective
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13. Types of Appraisals (continued)
Checklist appraisal:
Contains a series of questions about an employee’s performance
Drawbacks: can be difficult to prepare and a supervisor has no way to adjust the answers for any special circumstances that affect performance
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14. Sample Checklist Appraisal
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15. Types of Appraisals (continued)
Critical-incident appraisal:
Written record of incidents that show positive and negative ways an employee has acted
Work-standards approach:
A supervisor compares employee’s actual performance with established standards
Management by Objectives (MBO):
A supervisor compares each employee’s accomplishments with the objectives for that employee
Assessments by someone other than supervisor:
360-degree feedback
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17. The Performance Appraisal Interview
Purpose of the interview
Preparing for the interview
Conducting the interview
Problem solving and coaching
Signatures
Follow-up
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18. The Process of Conducting a Performance Appraisal Interview
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