1. Performance Management & Appraisal, Part II Challenges to effective performance management Performance evaluation feedback Motivation and performance appraisal Continuous improvement and performance management

2. Challenges to Effective Measurement Rater errors -- halo, restriction of range, frame of reference Influence of liking (hot processing) Organizational politics Individual Vs group focus Recency effect

3. Performance Feedback The appraisal interview –A conversation with a goal – Diminish defensive talking & listening Pre Interview The interview Post interview

4. Pre Interview Steps Communicate often Reflect on your own standards Encourage employee to prepare

5. The Interview and After Encourage participation, Judge performance, Be specific, Take a problem solving approach, Set goals Follow-up with feedback and communication

6. Motivation & Performance Appraisal Motivational theories and appraisal –Expectancy theory –Equity theory Performance appraisal as an outcome

7. Who Should Diagnose Performance The supervisor Peers Self-appraisal Subordinates Customers 360 Degree Feedback

8. Performance Improvement Performance problems –Actor-observer bias –Direct attention to causes of performance Developing plans to improve workers –Action plans –Communicate on performance

9. Backwards & Forwards Summing up: Today we considered challenges to fair performance appraisal including rater biases, issues in the evaluation interview, the role of appraisal in motivating workers, and linking appraisal to continuous improvement Looking ahead: Next time we begin our study of compensation and reward systems