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7-1 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Appraising and Managing Performance Chapter 7
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7-2 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall What is a performance appraisal? Identifying Performance Dimensions Measuring Performance Challenges to Effective Performance Appraisals Managing Performance Managing the Cause of Problems Chapter 7 Overview
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7-3 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall What Is Performance Appraisal?
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7-4 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Uses of Performance Appraisal Administrative purposes Developmental purposes
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7-5 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Dimension—aspect of performance Determines effective job performance Should be based on job analysis E.g. quality, quantity, and interpersonal skills Identification Competencies Increasingly popular basis for performance appraisal dimensions
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7-6 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Relative judgment appraisal format Supervisors compare employees to each other Rank employees in a work area May not know actual performance levels Measurement: Type of Judgment Absolute judgment appraisal format Supervisors make judgments about workers Performance based standards Easier to defend in court
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7-7 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Measurement: Focus of Measure Trait appraisal instruments Focus is on individual, not performance Subject to perceptual biases Behavioral appraisal instruments Assess worker’s behaviors BARS (see Figure 7.7, p. 219) Outcome appraisal instruments Focus on specific outcomes MBO and Naturally Occurring outcomes
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7-8 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Measurement Tools
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7-9 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Person doing rating determines accuracy Tool used less important Measurement Most ratings “top-down” Also have: Self-rating Peer review Subordinate review Customer review 360 feedback
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7-10 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Rater errors Reflect underlying biases by the rater Halo effect Range restriction Personal bias Measurement: Pitfalls and Challenges Comparability Frame-of-reference (FOR) training Scenarios, role-playing, etc. To “calibrate” raters to same standards
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7-11 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall “Liking”—influence of personal feelings Measurement: Pitfalls and Challenges Precautions Keep records, regularly Reflect behavior, not opinions If problem exists, address it immediately Organizational Politics Worker’s appraisal depends on supervisor’s goals Most feel appraisals are political
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7-12 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Measurement: Groups and Teams Assess both group and indiv. contributions Use behavioral measures for individuals Develop individual measures with team input Keep team measurements balanced Financial outcomes are good, but not only measures Look at both outcome and process measures Team must be able to influence measurement criteria
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7-13 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Anti-discrimination laws apply to performance appraisals Measurement: Legal Issues Factors influencing judges’ decisions: Use of job analysis Providing written instructions Allow employees to review appraisal results Agreement among multiple raters Presence of rater training
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7-14 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Managing Performance The Appraisal Interview Helpful or Dreadful? Include Salary Discussion?
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7-15 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Performance from: Ability, motivation and situation factors Performance Improvement Performance mgmt should be an ongoing, day-to-day process When problems; explore causes Including situational or system factors Fundamental Attribution Error (Actor/Observer Bias)
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7-16 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Recognize two roles: Judge and Coach Four characteristics of effective managers Direct attention to cause of problem Develop action plan Empower workers to reach a solution Direct communication at performance Provide effective feedback Be as specific as possible Managing Performance: Effective Managers
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7-17 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall How to Determine and Remedy Performance Shortfalls
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7-18 Copyright ©2010 Pearson Education, Inc. publishing as Prentice Hall Summary and Conclusions Performance appraisals future oriented Identify the dimensions of the job that determine effective performance Rating quality function of raters Thus, train the raters Recognize and avoid rating biases Provide useful feedback Don’t save “laundry list” for annual appraisal Manage performance regularly
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