Session10PerformanceAppraisalChapter3•Identifythevalueofperformanceevaluations•Responsibilitiesinaperformanceappraisalsystem•Examinetypesofperformanceappraisalsystems•Performanceappraisalobservations•IdentifytypesofratererrorsValueofPerformanceEvaluations•Motivateemployeestoperformbetter•Helpemployeesidentifywaysinwhichtheycandevelopandgrow•Improvetherespectemployeeshavefortheirmanagers•Fostergoodcommunicationsbetweenmanagerandemployee•Identifypoorperformersandguidethembackontrack•Documentingpoorperformanceasatooltolawfullyandfairlyterminateemploymentifperformancedoesn’timproveTheCompany•Createsstrategicplan•Providessupport&resourcesTheManager•Identifiesjobrequirements•Observes&documentsemployeeperformance•Providesongoingfeedbacktotheemployee•Providessupport&resourcesManager&Employeetogether•Identifyjobgoals•Createactionplansformeetinggoals•EngageinongoingdialogueaboutperformanceTheEmployee•Listensto&actsonfeedbackfromthemanager•Performsbymeetingrequirements&goals•ProvidesfeedbackabouttheworkenvironmentResponsibilitiesinaPerformanceAppraisalSystemManager’sPerspectiveOnPerformanceAppraisals•Toomuchpaperwork•Uncomfortableroledifferentiatingperformance•DealingwithpoorperformersWhatarewereallytryingtodetermine?•Differencesinperformancebetweenemployees•Howmuchtopayemployees•Improveemployeeperformance•MonitorprogressagainstgoalsGenerallyAcceptedPurposesOfPerformanceAppraisals•Administrative•EmployeeGrowth&Development•LegalReasonsConflictAdministrative•Needtodifferentiatebetweenindividuals•TiedtopayincreasesEmployeeDevelopment•ImproveperformanceHR’sRoleinthePerformanceAppraisalProcessDevelopment•Fulfillit’sroleofoptimizingtheutilizationofpersonnelwithintheorganizationAdministrative•DevelopingsystemsandprocessestosupporttheachievementofstrategicbusinessgoalsBayer’sPerformanceAppraisalSystemPerformanceAppraisalSystems•Traitsystems•Comparisonsystems•Behavioralsystems•Goal-orientedsystemsTraitSystemsCharacteristicsTraitsystemsRatersevaluateeachemployee’straitsorcharacteristics.QualityofworkJudgmentQuantityofworkLeadershipresponsibilityDependabilityDecision-makingabilityCooperationCreativityInitiativeTraitAppraisalExampleExample:Copyright©2013PearsonEducation,Inc.PublishingasPrenticeHallComparisonsystems•Employee’sperformanceevaluatedagainsttheperformanceofotheremployees.•Ratesandranksperformance•Types•Forceddistribution•PairedcomparisonsComparisonSystemsForcedDistributionExampleExample:Copyright©2013PearsonEducation,Inc.PublishingasPrenticeHallPairedComparisonExampleExample:Copyright©2013PearsonEducation,Inc.PublishingasPrenticeHallBehavioralSystemsBehavioralsystemsRateemployeesontheextenttowhichtheydisplaysuccessfuljobperformancebehaviors.Types:•Critical-incidenttechnique(CIT)•Behaviorally-anchoredratingscales(BARS)•Behavioralobservationscales(BOS)CriticalIncidentTechnique(CIT)•Employeesandsupervisorsidentifyandlabeljobbehaviorsandresults•Supervisorsobserveandrecord•RequiresextensivedocumentationCriticalIncidentsExampleExample:Copyright©2013PearsonEducation,Inc.PublishingasPrenticeHallBehaviorally-AnchoredRatingScales(BARS)•Basedon8–10expectedjobbehaviors•Employeesratedonabilitytoperformeachbehavior•Ratingshighlydefensible•EncouragesallraterstomakeevaluationsinsimilarwaysBehaviorally-AnchoredExampleExample:Copyright©2013PearsonEducation,Inc.PublishingasPrenticeHallBehavioralObservationScales(BOS)•Documentspositiveperformancebehaviorsonjobdimensions•Employeesratedonexhibitedbehaviors•RatingsaveragedforoverallratingBOSExampleGoal-orientedSystemsGoal-orientedsystemsTypicallyusedtoevaluateemployees’progresstowardstrategicplanningobjectives.Management-by-Objectives•Supervisorsandemployeessetobjectives•Highlyeffectivetechnique•Ratedonhowwellobjectivesaremet•MainlyforprofessionalsandmanagersFeatures&AdvantagesofMBO•Motivation–involvingemployeesingoalsettingandincreasingemployeeempowermentandsatisfactionandcommitment•BetterCommunication&Coordination–increasesinteractionsandhelpsmaintainrelationshipswhileworkingtowardcommongoals•ClarityofGoals–employeeshaveahighercommitmenttoobjectivestheyhelpsetandarelinkedtotheorganization’sobjectivesSettingSMARTObjectivesEveryobjectivemustmeetthesecriteria:•IsitSpecific?•IsitMeasurable?•IsitAppropriate?•IsitRealistic?•IsitTime-bound?ObjectivesforYear-Example360DegreePerformanceAppraisalorMulti-ratedFeedback•Includedirectfeedbackfromanemployee'ssubordinates,peers,andsupervisor(s),aswellasaself-evaluation•Canalsoincludefeedbackfromexternalsources,suchascustomersandsuppliersorotherinterestedstakeholders•Providesabroaderperspectiveonemployees•Helpstoimproveemployeeperformancebecauseithelpstheemployeeseedifferentperspectivesoftheirperformance•Appropriateforworkteamevaluations360DegreeEvaluationExampleMajorTypesofRaterErrors•Biaserrors•Contrasterrors•Errorsofcentraltendency•Errorsoflen