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    Chapter-7: Performance Management and Appraisal

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    Md. Golam Rabby Rifat
    Performance appraisal involves evaluating employee performance against standards, while performance management is the process of ensuring employees work towards goals. An effective performance management process includes regular feedback, coaching, assessment, and rewards. There are various performance appraisal methods like rating scales, rankings, and management by objectives that each have their own advantages and disadvantages. It is important to select the right method and train supervisors to conduct appraisals accurately and avoid common rating errors.

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    Chapter-7: Performance Management and Appraisal

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    Md. Golam Rabby Rifat
    139 views21 pages
    Performance appraisal involves evaluating employee performance against standards, while performance management is the process of ensuring employees work towards goals. An effective performance management process includes regular feedback, coaching, assessment, and rewards. There are various performance appraisal methods like rating scales, rankings, and management by objectives that each have their own advantages and disadvantages. It is important to select the right method and train supervisors to conduct appraisals accurately and avoid common rating errors.

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    Performance appraisal involves evaluating employee performance against standards, while performance management is the process of ensuring employees work towards goals. An effective performance management process includes regular feedback, coaching, assessment, and rewards. There are various performance appraisal methods like rating scales, rankings, and management by objectives that each have their own advantages and disadvantages. It is important to select the right method and train supervisors to conduct appraisals accurately and avoid common rating errors.

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    © All Rights Reserved
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    Download as ppt, pdf, or txt
    139 views21 pages

    Chapter-7: Performance Management and Appraisal

    Uploaded by

    Md. Golam Rabby Rifat
    Performance appraisal involves evaluating employee performance against standards, while performance management is the process of ensuring employees work towards goals. An effective performance management process includes regular feedback, coaching, assessment, and rewards. There are various performance appraisal methods like rating scales, rankings, and management by objectives that each have their own advantages and disadvantages. It is important to select the right method and train supervisors to conduct appraisals accurately and avoid common rating errors.

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    of 21

    Chapter-7

    PERFORMANCE
    MANAGEMENT AND
    APPRAISAL
    Comparing Performance Appraisal and
    Performance Management
     Performance appraisal
    – Evaluating an employee’s current and/or past
    performance relative to his or her performance
    standards.
     Performance management
    – The process employers use to make sure
    employees are working toward organizational
    goals.
    The Components of an Effective
    Performance Management Process
     Direction sharing
     Role clarification
     Goal alignment
     Developmental goal setting
     Ongoing performance monitoring
     Ongoing feedback
     Coaching and support
     Performance assessment (appraisal)
     Rewards, recognition, and compensation
     Workflow and process control and return
    Figure 9–2
    Steps in Appraising Performance
     Defining the job
    – Making sure that you and your subordinate agree
    on his or her duties and job standards.
     Appraising performance
    – Comparing your subordinate’s actual performance
    to the standards that have been set; this usually
    involves some type of rating form.
     Providing feedback
    – Discussing the subordinate’s performance and
    progress, and making plans for any development
    required.
    Designing the Appraisal Tool
     What to measure?
    – Work output (quality and quantity)
    – Personal competencies
    – Goal (objective) achievement
     How to measure?
    – Graphic rating scales
    – Alternation ranking method
    – MBO
    Performance Appraisal Methods
     Graphic rating scale
    – A scale that lists a number of traits and a range of
    performance for each that is used to identify the
    score that best describes an employee’s level of
    performance for each trait.
    Graphic
    Rating Scale
    with Space
    for
    Comments

    Figure 9–3
    Performance Appraisal Methods (cont’d)
     Alternation ranking method
    – Ranking employees from best to worst on a
    particular trait, choosing highest, then lowest,
    until all are ranked.
     Paired comparison method
    – Ranking employees by making a chart of all
    possible pairs of the employees for each trait and
    indicating which is the better employee of the
    pair.
    Alternation Ranking Scale

    Figure 9–6
    Ranking Employees by the
    Paired Comparison Method

    Note: + means “better than.” − means “worse than.” For each chart, add up
    the number of 1’s in each column to get the highest-ranked employee.
    Figure 9–7
    Performance Appraisal Methods (cont’d)
     Forced distribution method
    – Similar to grading on a curve; predetermined
    percentages of ratees are placed in various
    performance categories.
    – Example:
    • 15% high performers
    • 20% high-average performers
    • 30% average performers
    • 20% low-average performers
    • 15% low performers
     Narrative Forms
    Performance Appraisal Methods (cont’d)
     Behaviorally anchored rating scale (BARS)
    – An appraisal method that uses quantified scale
    with specific narrative examples of good and poor
    performance.
     Developing a BARS:
    – Generate critical incidents
    – Develop performance dimensions
    – Reallocate incidents
    – Scale the incidents
    – Develop a final instrument
    Performance Appraisal Methods (cont’d)
     Advantages of using a BARS
    – A more accurate gauge
    – Clearer standards
    – Feedback
    – Independent dimensions
    – Consistency
    Examples of Critical Incidents for
    an Assistant Plant Manager

    Table 9–1
    Example of a
    Behaviorally
    Anchored Rating
    Scale for the
    Dimension
    Salesmanship Skill

    Source:Walter C. Borman, “Behavior


    Based Rating,” in Ronald A. Berk (ed.),
    Performance Assessment: Methods and
    Applications (Baltimore, MD: Johns
    Hopkins University Press, 1986), p. 103.
    Figure 9–9
    Management by Objectives (MBO)
     Involves setting specific measurable goals
    with each employee and then periodically
    reviewing the progress made.
    1. Set the organization’s goals.
    2. Set departmental goals.
    3. Discuss departmental goals.
    4. Define expected results (set individual goals).
    5. Performance reviews.
    6. Provide feedback.
    Computerized and Web-Based
    Performance Appraisal
     Performance appraisal software programs
    – Keep notes on subordinates during the year.
    – Electronically rate employees on a series of
    performance traits.
    – Generate written text to support each part of the
    appraisal.
     Electronic performance monitoring (EPM)
    – Having supervisors electronically monitor the
    amount of computerized data an employee is
    processing per day, and thereby his or her
    performance.
    Who Should Do the Appraising?
     The immediate supervisor
     Peers
     Rating committees
     Self-ratings
     Subordinates
     360-Degree feedback
    Advantages and Disadvantages of Appraisal Tools

    Table 9–3
    How to Avoid Appraisal Problems
     Learn and understand the potential problems,
    and the solutions for each.
     Use the right appraisal tool. Each tool has its
    own pros and cons.
     Train supervisors to reduce rating errors such
    as halo, leniency, and central tendency.
     Have raters compile positive and negative
    critical incidents as they occur.

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