1. Evaluating Employee Performance
CHAPTER 10
Evaluating Employee Performance
DeCenzo and Robbins HRM 7th Edition

2. DeCenzo and Robbins HRM 7th Edition
CHAPTER 10 TOPICS:
1: Performance management system purpose
2: Appraisal process steps
3: Absolute standards
4: Relative standards
5: MBO
6: Performance appraisal distortions
7: More effective performance appraisal
8: Alternative appraisal methods
9: Global issues
DeCenzo and Robbins HRM 7th Edition

3. 1: PERFORMANCE EVALUATION PURPOSES
Performance Management Systems
Feedback
Development
Documentation
DeCenzo and Robbins HRM 7th Edition

4. 1: PERFORMANCE EVALUATION PROBLEMS
Focus on individual personality
Emotions, anger, resentment, satisfaction
Expectations
Focus on process
Tied to budget
Training
AND….
DeCenzo and Robbins HRM 7th Edition

5. 1: PERFORMANCE EVALUATION PROBLEMS
EEO requirements
Reliable
valid
DeCenzo and Robbins HRM 7th Edition

6. 2: APPRAISAL PROCESS STEPS
1. Establish performance appraisal standards
2. Mutually set measurable goals
3. Measure actual performance
AND….
DeCenzo and Robbins HRM 7th Edition

7. 2: APPRAISAL PROCESS STEPS
4. Compare actual with standard
5. Discuss appraisal with employee
6. Corrective action
Basic
Immediate
DeCenzo and Robbins HRM 7th Edition

8. DeCenzo and Robbins HRM 7th Edition
2: APPRAISAL METHODS
Absolute standards
Measure against external reference
Relative standards
Evaluate employees against each other
Objectives
Measure against goals
DeCenzo and Robbins HRM 7th Edition

9. DeCenzo and Robbins HRM 7th Edition
3: ABSOLUTE STANDARDS
Essay
Critical incident
Checklist
Adjective rating scale
Forced-choice
Behaviorally-Anchored Rating Scale (BARS)
DeCenzo and Robbins HRM 7th Edition

10. DeCenzo and Robbins HRM 7th Edition
3: ESSAYS
Subjective
Hard to compare with others
Simple
Strengths
Weaknesses
Potential
Suggestions for improvement
DeCenzo and Robbins HRM 7th Edition

11. DeCenzo and Robbins HRM 7th Edition
3: CRITICAL INCIDENT
Essay about what was most effective or ineffective in a key job situation
Focus on behavior, not personality
Weekly is time-consuming
DeCenzo and Robbins HRM 7th Edition

12. DeCenzo and Robbins HRM 7th Edition
3: CHECKLIST
Yes or No
Predefined behaviors or qualities
Items may be irrelevant
Helps reduce bias
DeCenzo and Robbins HRM 7th Edition

13. 3: ADJECTIVE RATING SCALE
Factors present
Job knowledge
Cooperation
Quality and quantity of work
5 to 10 points on a continuum
See Exhibit 10-3
DeCenzo and Robbins HRM 7th Edition

14. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-3: Sample Adjective Rating Items and Format
DeCenzo and Robbins HRM 7th Edition

15. DeCenzo and Robbins HRM 7th Edition
3: FORCED-CHOICE
Bias and distortion reduced
Frustration about lack of feedback
Simple
Like a multiple choice test question
DeCenzo and Robbins HRM 7th Edition

16. DeCenzo and Robbins HRM 7th Edition
3: B.A.R.S.
Simple
Reduces rating errors
Definite, observable job behaviors
See Exhibit 10-4
DeCenzo and Robbins HRM 7th Edition

17. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-4: Sample BARS for an Employee Relations Specialist
DeCenzo and Robbins HRM 7th Edition

18. DeCenzo and Robbins HRM 7th Edition
4: RELATIVE STANDARDS
Group order ranking
Quartiles
Individual ranking
Best to worst
Paired comparison
Similar to job ranking
Compare each one to all others
DeCenzo and Robbins HRM 7th Edition

19. 5: MANAGEMENT BY OBJECTIVE (MBO)
STEPS
Goal setting
Action planning
Self control
Periodic review
DeCenzo and Robbins HRM 7th Edition

20. DeCenzo and Robbins HRM 7th Edition
5: MBO ISSUES
Advantages
Results oriented
Commitment
Problems
Trust needed
Satisfaction
Time-consuming
Important to followup
Frustration builder
DeCenzo and Robbins HRM 7th Edition

21. 6: PERFORMANCE APPRAISAL DISTORTIONS
Leniency
Halo
Similarity
Central tendency
Inflationary pressures
Inappropriate substitutes
AND….
DeCenzo and Robbins HRM 7th Edition

22. 6: PERFORMANCE APPRAISAL DISTORTIONS
Attribution theory
Varies by control
Internal
External
Impression management
DeCenzo and Robbins HRM 7th Edition

23. 7: TO IMPROVE APPRAISALS
Behavior based measures
Combine absolute and relative measures
Provide ongoing feedback
Have multiple raters
Rate selectively
Train appraisers
DeCenzo and Robbins HRM 7th Edition

24. 8: MORE EFFECTIVE APPRAISALS - PEERS
Positives
Constructive criticism
Specific feedback
Negatives
Fear
Halo, leniency error
Training
Upward appraisal
DeCenzo and Robbins HRM 7th Edition

25. 8: MORE EFFECTIVE APPRAISAL (360-DEGREE)
Multiple appraisers
Self
Boss
Peers
Team members
Customers
Suppliers
DeCenzo and Robbins HRM 7th Edition

26. DeCenzo and Robbins HRM 7th Edition
8: 360-DEGREE APPRAISALS
Positives
Increase manager’s awareness of own actions
More accurate feedback
Empowerment
Developing leadership
Reduces subjectivity
DeCenzo and Robbins HRM 7th Edition

27. DeCenzo and Robbins HRM 7th Edition
9: GLOBAL ISSUES
Does the cultural environment vary from host country to corporate?
Who does evaluation?
Host country supervisor
Home office
AND…
DeCenzo and Robbins HRM 7th Edition

28. DeCenzo and Robbins HRM 7th Edition
9: MORE GLOBAL ISSUES
What do numbers, ranking mean?
Culture
Economic issues
Political realities
Evaluation format
AND….
DeCenzo and Robbins HRM 7th Edition

29. DeCenzo and Robbins HRM 7th Edition
9: GLOBAL SUGGESTIONS
Modify to suit
Site
Culture
Use an expatriate
DeCenzo and Robbins HRM 7th Edition

30. DeCenzo and Robbins HRM 7th Edition
REVIEW CHAPTER 10
How do we do performance appraisal in this course?
Any suggestions to improve it for next semester?
Any suggestions for this semester?
DeCenzo and Robbins HRM 7th Edition

31. DeCenzo and Robbins HRM 7th Edition
QUICK: REVIEW CHAPTER 10
ANSWER THESE QUESTIONS ON A SHEET OF PAPER.
1. THE MOST IMPORTANT THING WE DID IN CLASS TODAY _______.
2. I STILL HAVE QUESTIONS ABOUT___.
3. THE BEST THING ABOUT CLASS TODAY WAS _______________.
4. DON’T DO ____________ ANYMORE.
TURN THEM IN, PLEASE. NO NAMES. WE’LL TALK NEXT CLASS SESSION
DeCenzo and Robbins HRM 7th Edition

32. DeCenzo and Robbins HRM 7th Edition
PREVIEW: CHAPTER 11
Ask 3 people you know:
1 college student
year old worker
1 retiree
Why do/did you work?
Tell me about the best “reward” you received from a job?
Write up their responses for 1 extra point on your final grade.
DeCenzo and Robbins HRM 7th Edition

33. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-1: The Appraisal Process
DeCenzo and Robbins HRM 7th Edition

34. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-2: Sample Checklist Items for Appraising
Customer Service Representative
DeCenzo and Robbins HRM 7th Edition

35. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-5: Factors That Distort Appraisals
DeCenzo and Robbins HRM 7th Edition

36. DeCenzo and Robbins HRM 7th Edition
Exhibit 10-6: Towards a More Effective Performance Management System
DeCenzo and Robbins HRM 7th Edition