1. PERFORMANCE APPRAISAL

2. Performance Appraisal Defined
System of review and evaluation of job performance
Assesses accomplishments and evolves plans for development

3. Performance Management
Process that significantly affects organizational success
Managers and employees work together to set expectations, review results and reward performance.

4. Purposes of Performance Mangement
Strategic
Aligning employee performance with organizational objectives
Administrative
Making employment-related decisions
Developmental
Aiding employee growth

5. Appraiser Discomfort
Performance appraisal process cuts into manager’s time
Experience can be unpleasant when employee has not performed well

6. Rationale for Performance Appraisal
Employee Anxiety
Creates anxiety for appraised employee
Rationale for Performance Appraisal
Provides legal and other benefits for employers

7. Designing a performance management system
Conduct job analysis
Set performance standards
Appraise performance
Feedback information to employee

8. Establish Performance Criteria
Traits
Behaviors
Competencies
Goal Achievement
Improvement Potential

9. Responsibility for Appraisal
Immediate supervisor
Subordinates
Peers
Rationale for evaluations conducted by team members
Self-appraisal
Customer appraisal

10. 360-Degree Valuation Multi-rater evaluation
Input from multiple levels with firm and external sources
Focuses on skills needed across organizational boundaries
More objective measure of performance
Process more legally defensible

11. Performance Measure Standards
Strategic congruence
Reliability
Validity
Acceptability
Specificity

12. The Appraisal Period Prepared at specific intervals
Usually annually or semiannually
Period may begin with employee’s date of hire
All employees may be evaluated at same time

13. Appraisal categories and types
Comparative
Ranking (Simple, alternation)
Forced distribution
Paired comparison
Attribute
Graphic rating scale
Behavioral
Critical incidents
BARS
BOS
Results
MBO
Quality

14. Problems in Performance Appraisal
Lack of objectivity
Halo error
Leniency/strictness
Central tendency
Recent behavior bias
Personal bias
Manipulating the evaluation

15. Reasons for Intentionally Inflating or Lowering Ratings
Inflating Ratings
Lowering Ratings
Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance.
Improve employee’s eligibility for merit raises.
Avoid airing department’s “dirty laundry.”
Avoid creating negative permanent record that might haunt employee in the future.
Protect good workers whose performance suffered because of personal problems.
Reward employees displaying great effort even when results were relatively low.
Avoid confrontation with hard-to-manage employees.
Promote a poor or dislike employee up and out of the department.
Scare better performance out of an employee.
Punish a difficult or rebellious employee.
Encourage a problem employee to quit.
Create a strong record to justify a planned firing.
Minimize the amount of merit increase a subordinate receives.
Comply with an organizational edict that discourages managers from giving high ratings.

16. Characteristics of an Effective Appraisal System
Job-related criteria
Performance expectations
Standardization
Trained appraisers
Continuous open communication
Performance reviews
Due process

17. Legal Implications
With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals

18. The Appraisal Interview
Scheduling the interview
Interview structure
Use of praise and criticism
Employees’ role
Use of software
Concluding the interview