Performance Appraisal

Performance Appraisal
The process by which an employees contribution to the organization during a specified period of time is assessed.

Performance Feedback
Lets employees know how well they have performed in comparison with the standards of the organization

STRATEGIC IMPORTANCE
Consistency between job behavior and
Organizational strategy
Organization values

Performance Management as an
Employee

development tool

Administrative

tool

A GOOD APPRAISAL SYSTEM

Criteria
Validity
Reliability Freedom from bias: errors Practicality

PA and other HRM Functions

Training & Development
Recruitment

P A
Selection

Compensation

Labor Relations

Why PA May Fail

Unclear Language Mgr not honest or sincere Mgr not taking PA seriously

Lack appraisal skills

Mgr not prepared

No ongoing feedback
Ineffective discussio n Mgr Lacks Infor.

Insuff. Rewards

Alternative Sources of Appraisal

SUPERIOR
CUSTOMERS

PEERS

TEAM SELF
SUBORDINATES

Training Appraisers
Common Appraisal Errors to Address in Training

Error of Central Tendency Leniency or Strictness Error

Recency Error

Contrast Error
Similar-to-Me Error

Types of Performance to Measure

Measurement Methods Objective
Production Rs. Sales Performance Tests

3 Types of Methods
Trait based
Behavior based

Subjective Comparative Procedures Ranking Forced Distribution

Results based

Trait Methods
Graphic Rating Scale Mixed Standard Scale Common Trait Methods of Appraisal

Forced-Choice
Essay

Behavioral Methods
Critical Incidents Behaviorally Anchored Rating Scale (BARS) Common Behavioral Appraisal Methods

Behavioral Checklist
Behavior Observation Scales

Results-based Methods
Used when
It

is not important how results are achieved There are many different ways to succeed
Practicality Contamination Deficiency

Teamwork

PA Methods Vary upon Task Types

Knowledge of the transformation process

High
High
Behavioral / Result Ex: assembly workers

Low
Result Ex: sales

Low

Behavioral Ex: reporters

Extensive selection/ training Ex: researchers

Reliability and Validity of PA Measurement

Contemporary PA Concepts
Management by objectives (MBO)

360-degree feedback

Self-managed teams

PA under a MBO Program

Step 1: Org. goals & metrics Step 2: Dpt. Goals & metrics Step 3: Spvr lists goals & metrics Step 3: Sbt. proposes goals & metrics

Step 5a: Inappropriate goals/metrics deleted Step 5b: New inputs are then provided

Step 4: Mutual agreement

Step 7: Review org. performance

Step 6: Final review

Step 5: Interim review

Self-Managed Teams
Characteristics Focusing group result Larger Span of control More part-time/contract workers More cross-functional workers Challenges Measuring individual result Unfair & Hard Quality and commitment std. Diverse Measure crossfunctional performance Tough

360 Feedback

Example
Personal Development

Communication

Leadership

Adaptability

Development of Others Production Task Management

Relationships

CONCLUSION
Purposes of performance appraisal Characteristics of an effective appraisal Different sources of appraisal information Various methods used for evaluation