Chapter 11

Appraising Performance of
Office Employees

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
1 Upper Saddle River, NJ 07458
 Current Uses of Performance Appraisal
(1 of 2)
Helps identify subordinates’ strengths and
weaknesses.
Provides input for making decisions about
salary increases, promotions, and transfers.
Provides input in workforce planning.
Helps strengthen communication between
supervisors and subordinates.
Improves quality of communication between
supervisors and subordinates.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
2 Upper Saddle River, NJ 07458
 Current Uses of Performance Appraisal
(2 of 2)

Improves quality of supervision.

Has a positive impact on career growth and
development of employees.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
3 Upper Saddle River, NJ 07458
 Characteristics of Performance
Appraisal Programs
(1 of 2)
1. Must elicit a change in employee behavior.
2. Must provide a basis for making compensation
decisions.
3. Must provide information for making decisions
about promotion, transfer, or termination.
4. Must enhance employee motivation.
5. Must provide feedback for use in validating
various phases of the personnel program.
6. Must facilitate supervisor-subordinate
communication.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
4 Upper Saddle River, NJ 07458
 Characteristics of Performance
Appraisal Programs
(2 of 2)
7. Must use appropriate evaluation base in
relation to intended use of appraisal results.
8. Must use clearly stated, objective, and well-
understood performance standards.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
5 Upper Saddle River, NJ 07458
 Performance Standards

Are critical to the success of the program.

Standards must be shared with employees

at the time of hire.

Appraisal criteria involving standards are

determined by intended use of results.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
6 Upper Saddle River, NJ 07458
 Methods of Performance Appraisal
(1 of 2)
Graphic Rating Scale
Paired Comparison Appraisal
Checklist
Simple Ranking
Forced Choice
Critical Incidents
Peer Rating
Group Rating
Self-Appraisal
Narrative Appraisal
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
7 Upper Saddle River, NJ 07458
 Methods of Performance Appraisal
(2 of 2)
Field Staff Review
Results-oriented Appraisal
Behaviorally Anchored Rating Scales Appraisal
Mixed Standards Scale
Computerized Appraisal

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
8 Upper Saddle River, NJ 07458
 Graphic Rating Scale

Is most widely used technique.

Rater indicates degree to which ratee possesses
each specific characteristic or trait found
on the rating form.

Forms Use Three Methods

Descriptive Phrases
Descriptive Words
Numerical Scales
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
9 Upper Saddle River, NJ 07458
 Traits Must Be Measurable

Shortcomings

1. All traits are of equal importance unless they are

weighted.
2. Subject to certain errors.
3. Rates past performance after it is too late to change.
4. May not give employees incentive to overcome
their weaknesses.
5. Some forms contain too many traits; others, too
few.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
10 Upper Saddle River, NJ 07458
 Paired Comparison Appraisal

Technique involves comparing one individual with

with each of the other individuals in a work group.
Evaluation can be based on specific traits or overall
performance.
Uses a grid in the evaluation process.

Shortcoming
Is limited as to number of employees who can be
effectively rated.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
11 Upper Saddle River, NJ 07458
 Checklist

Uses a form that contains a series of statements

about various traits.
Rater appraises ratee by responding to each
statement.
It rates specific items, not overall performance.

Shortcoming

It tends to treat all items of equal weight.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
12 Upper Saddle River, NJ 07458
 Simple ranking

Ranks individuals from the best to worst.

Is simple and accommodates a fairly large number
of employees.
It tends to rate overall performance.

Shortcoming
Although all employees may be performing well,
someone has to be rated the worst.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
13 Upper Saddle River, NJ 07458
 Forced Choice

Consists of 25-40 sets of statements.

From a list of 5 statements, rater chooses statement
most descriptive and least descriptive about person
being rated; other 3 statements are neutral.
Is an objective process because rater doesn’t know
which statements affect the ratee’s performance.

Shortcomings
Is costly to develop and install.
Doesn’t lend itself to employee counseling.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
14 Upper Saddle River, NJ 07458
 Critical Incidents

Involves formulating a list of critical job requirements

for each position.
Supervisor then observes subordinates for favorable or
unfavorable displays of these requirements.
Requirements are recorded on a record sheet.

Shortcoming
Employee may have impression that supervisor keeps
a “little black book.”
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
15 Upper Saddle River, NJ 07458
 Peer Rating

Uses co-workers to evaluate the performance of an

individual.
Peers often see different things than does the super-
visor.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
16 Upper Saddle River, NJ 07458
 Group Rating

Uses a group to appraise the performance of an

individual.
Tends to be fairly objective because of multiple
individuals used.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
17 Upper Saddle River, NJ 07458
 Self-Appraisal

Using a rating form, the employee rates himself/herself.

Supervisor also rates the employee.
During appraisal interview, results are compared,
trait by trait.
Employees feel they are more involved in the process
because they rate themselves.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
18 Upper Saddle River, NJ 07458
 Narrative Appraisal

Supervisor prepares a written report about the

employee’s performance.
Typically includes an improvement plan identifying
how employee will improve his/her performance in
deficient areas.
Shortcoming

Makes it impossible to compare performance of

individuals.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
19 Upper Saddle River, NJ 07458
 Field Staff Review

Uses an objective outsider in the evaluation process.

Employee being evaluated and his/her supervisor are
questioned orally by the appraiser.

Shortcoming
Makes it difficult to provide appraisals as often
as may be necessary.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
20 Upper Saddle River, NJ 07458
 Results-Oriented Appraisal

Is closely aligned with management by objectives.

Is often used in conjunction with another appraisal
technique.
Is advantageous because it takes into consideration
future, not past, performance.

Shortcoming
Some work cannot be quantified to make the process
work well.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
21 Upper Saddle River, NJ 07458
 Well-Defined Steps
1. Measurable performance goals are set jointly by the
supervisor and the subordinate.
2. Specific courses of action are agreed upon to
accomplish these goals.
3. At interim intervals, supervisor and subordinate
discuss progress made toward achieving goals.
4. At end of rating period, supervisor and
subordinate officially evaluate the extent to which
goals are achieved.
5. Goals for next evaluation period are set.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
22 Upper Saddle River, NJ 07458
 Behaviorally Anchored Rating Scales

Technique uses a series of 5-10 scales.

Each important job dimension is reflected in a separate
scale.
Within each scale, varying degrees of job performance
are reflected.
Produces objective results.

Shortcoming

Developing scales is a time-consuming process.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
23 Upper Saddle River, NJ 07458
 Mixed Standard Scales

Is tailored to specific positions.

Regarding each standard, the rater indicates whether
the employee’s performance is better than, compara-
ble, or worse than the performance level expressed
in the statement.

Shortcoming
Cannot determine how an employee’s performance
compares to that of other employees.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
24 Upper Saddle River, NJ 07458
 Computerized Appraisal

Uses software programs to facilitate the appraisal

process.
Supervisor identifies important traits for each
subordinate.
Supervisors evaluate subordinate on the basis of these
traits.
Program contains a vast number of traits.
Shortcoming
Many of the traits listed are likely to be irrelevant for
a given position.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
25 Upper Saddle River, NJ 07458
 Rating Errors
(1 of 2)
Results when the rating on one
trait influences an employee’s
Halo-Horns Effect rating on all other traits.
Supervisor’s objectivity is
clouded by employee’s recent
Influence of Recent favorable or unfavorable
Performance performance.
Involves allowing unconscious
Bias bias or prejudice to enter
appraisal process.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
26 Upper Saddle River, NJ 07458
 Rating Errors
(2 of 2)

Tendency of some
Extreme Ratings
supervisors to rate their
subordinates at the extremes
(high or low).

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
27 Upper Saddle River, NJ 07458
 Analysis of Appraisal Results

Involves determining the reliability and validity of

appraisal results.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
28 Upper Saddle River, NJ 07458
 Appraisers of Employee Performance

Immediate Supervisor
Self-rating
Rating Committees
Peer Ratings
360-degree Feedback

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
29 Upper Saddle River, NJ 07458
 Appraisal Interviews

Process involves discussing appraisal results with

ratees.
Helps ratees learn where they need to improve
their performance.

Administrative Office Management, 8/e ©2005 Pearson Education, Inc.

by Zane Quible Pearson Prentice Hall
30 Upper Saddle River, NJ 07458
 Employee Promotion

Is an effective technique for helping employees

achieve their needs, especially esteem and
self-actualization.
Two Types of Promotion

Employee receives a new job

Major title.
Employee moves from one level
Minor to another within the same job
Administrative Office Management, 8/e
title. ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
31 Upper Saddle River, NJ 07458
Practices that Help Assure Nondiscriminatory
Promotion Practices

1. Allow employees to bid on job openings.

2. Base written performance appraisal on written
job-related performance standards.
3. Discuss written performance appraisal results
with subordinates.
4. Track promotions of employees categorized as
members of a protected group.
5. Have supervisors keep a log of subordinates’
work performance.
Administrative Office Management, 8/e ©2005 Pearson Education, Inc.
by Zane Quible Pearson Prentice Hall
32 Upper Saddle River, NJ 07458