Performance Management and Appraisal
Performance Management and Appraisal
Appraisal
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Performance Management
• Performance Management – is the continuous
process of identifying, measuring, and developing
the performance of individuals and teams and
aligning their performance with the organization’s
goals.
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Basics of Performance Appraisal
• The performance appraisal process steps
1. Sets work standards
2. Assesses performance
3. Provides feedback to the employee
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Why Appraise Performance?
Five reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company
goals
3. The manager can correct deficiencies and
reinforce strengths
4. With appraisals employee’s can review career
plans
5. Training needs are identified
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Defining the Employee’s Goals and
Performance Standards
1. Goals
2. Job dimensions or Traits
3. Behaviors or Competencies
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Who Should Do the Appraising?
1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by Subordinates
5. 360-Degree Feedback
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Techniques for Appraising
Performance (1 of 2)
1. Graphic Rating Scale
2. Alternation Ranking
3. Paired Comparison
4. Forced Distribution
5. Critical Incident Method
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Techniques for Appraising
Performance (2 of 2)
6. Narrative Forms
7. Behavior Anchored Rating
Scale
8. Mixed Standards Scales
9. Management by
Objectives (MBO)
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Additional Techniques
• Conversation Days
• Appraisal in Practice
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Dealing with Rater Error Appraisal
Problems
• Potential appraisal problems
‒ Unclear standards
‒ Halo Effect
‒ Central Tendency
‒ Leniency or Strictness
‒ Recency Effects
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The Need for Fairness (1 of 4)
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The Need for Fairness (2 of 4)
• Make sure whoever conducts the reviews has
frequent opportunities to observe the employee’s
job performance.
• Either use multiple raters or have the rater’s
supervisor evaluate the appraisal results.
• Include an appeals mechanism.
• Document the appraisal review process and
results.
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The Need for Fairness (3 of 4)
• Discuss the appraisal results with the employee.
• Let the employees know ahead of time how you’re
going to conduct the reviews.
• Let the employee provide input regarding your
assessment of him or her.
• Indicate what the employee needs to do to
improve.
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The Need for Fairness (4 of 4)
• Train the supervisors who will be doing the
appraisals. Make sure they understand the
procedure to use, how problems (like leniency and
strictness) arise, and how to deal with them.
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Managing the Appraisal Interview
• Appraisal Interview – an interview in which the
supervisor and subordinate review the appraisal
and make plans to remedy deficiencies and
reinforce strengths.
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How to Conduct the Appraisal
Interview
• Prepare
• Plan
• Measure Success
• Date to Complete
• Coach
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Guidelines to Conducting the
Appraisal Interview
• Objective data
• Don’t get personal
• Encouragement
• Agreement
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How to Handle a Defensive
Subordinate
• Recognize behavior
• Never Attack defenses
• Postpone Action
• Recognize Limitations
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How to Criticize a Subordinate
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The Managers Role in Performance
Management
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