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Performance Management and Appraisal 9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 6-1
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Learning Objectives 1.Define performance management and discuss how it differs from performance appraisal. 2.Describe the appraisal process. 3.Set effective performance appraisal standards. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-2
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Learning Objectives 4.Develop, evaluate, and administer at least four performance appraisal tools. 5.Explain and illustrate the problems to avoid in appraising performance. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-3
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Learning Objectives 6.Discuss the pros and cons of using different raters to appraise a person’s performance. 7.Perform an effective appraisal interview. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-4
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Define performance management and discuss how it differs from performance appraisal. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-5
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Basic Concepts In Performance Management and Appraisal The performance appraisal process Why appraise performance? The importance of continuous feedback Performance management o Definition Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-6
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Review The process Why do it? Continuous feedback Performance management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-7
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Describe the appraisal process. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-8
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The Performance Appraisal Process Why appraise performance? Continuous feedback Performance management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-9
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Review Pay and promotions Planning Career planning Training and development Ongoing feedback Teamwork and change Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-10
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Set effective performance appraisal standards. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-11
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Employee’s Goals and Performance Standards HR in practice: how to set effective goals o Assign specific goals o Assign measurable goals o Assign challenging but doable goals o Encourage participation Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-12
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Employee’s Goals and Performance Standards Basing appraisal standards on required competencies The role of job descriptions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-13
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Who Should Do the Appraising? Peer appraisals Rating committees Self-ratings Appraisal by subordinates 360-degree feedback Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-14
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Techniques for Appraising Performance Graphic rating scale method What to rate? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-15
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Review Effective goals Competencies Job descriptions Appraisers Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-16
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Develop, evaluate, and administer at least four performance appraisal tools. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-17
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Performance Appraisal Tools Alternation ranking Paired comparison Forced distribution Critical incident Narrative forms Behaviorally Anchored Rating Scales (BARS) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-18
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Performance Appraisal Tools Mixed standard scales Management by objectives (MBO) Computerized and web-based performance appraisal Electronic performance monitoring (EPM) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-19
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Explain and illustrate the problems to avoid in appraising performance. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-20
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Dealing with Appraisal Problems and Interviews Potential appraisal problems o Unclear standards o Halo effect o Central tendency o Leniency or strictness o Recency effects o Bias Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-21
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Discuss the pros and cons of using different raters to appraise a person’s performance. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-22
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Guidelines for Effective Appraisals Know the problems Use the right tool Keep a diary Get agreement on a plan Ensure fairness Appraisals and the law Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-23
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Review Problems Tools Records Fairness Legal Ethics Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-24
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Perform an effective appraisal interview. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-25
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Managing the Appraisal Interview Types of appraisal interviews How to conduct the appraisal interview o Objective data o Don’t get personal o Encouragement o Agreement Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-26
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Managing the Appraisal Interview Handling a defensive subordinate Criticizing a subordinate The formal written warning Realistic appraisals Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-27
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Performance Management Performance management vs. appraisals Information technology Talent management Appraisal and active management Segmenting employees Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-28
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Performance Management Summary Direction sharing Goal alignment Ongoing performance monitoring Ongoing feedback Coaching and developmental Recognition and rewards Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-29
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Review Type of interviews Defensiveness Criticism Warnings Realism Performance management vs. appraisals Talent management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice HallChapter 9-30
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