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Human Resource
Management
ELEVENTH EDITION

1

GARY DESSLER

Part 3 | Training and Development

Chapter 9

Performance Management and Appraisal
© 2008 Prentice Hall, Inc.
All rights reserved.

PowerPoint Presentation by Charlie Cook
The University of West Alabama
After studying this chapter, you should be able to:
1. Evaluate and improve the appraisal form in Figure 9–1.
2. Describe the appraisal process.
3. Develop, evaluate, and administer at least four
performance appraisal tools.
4. Explain and illustrate the problems to avoid in
appraising performance.
5. List and discuss the pros and cons of six appraisal
methods.
6. Perform an effective appraisal interview.
7. Discuss the pros and cons of using different raters to
appraise a person’s performance.
© 2008 Prentice Hall, Inc. All
rights reserved.
9–2
Basic Concepts in Performance
Management and Appraisal
Comparing
Performance Appraisal
and
Performance Management

Performance Appraisal:
Setting work standards, assessing
performance, and providing
feedback to employees to motivate,
correct, and continue their
performance.

© 2008 Prentice Hall, Inc. All
rights reserved.

Performance Management:
An integrated approach to ensuring
that an employee’s performance
supports and contributes to the
organization’s strategic aims.

9–3
Why Performance Management?

Total Quality

The
Performance
Management
Approach

Appraisal Issues

Strategic Focus

© 2008 Prentice Hall, Inc. All
rights reserved.

9–4
Defining the Employee’s Goals
and Work Standards
Guidelines for
Effective Goal Setting

Assign
Specific
Goals

Assign
Measurable
Goals

© 2008 Prentice Hall, Inc. All
rights reserved.

Assign
Challenging
but Doable
Goals

Encourage
Participation

9–5
Using MBO
Setting unclear
objectives

Time-consuming
appraisal process

Problems with
MBO

Conflict with
subordinates over
objectives

© 2008 Prentice Hall, Inc. All
rights reserved.

9–6
Appraising Performance:
Problems and Solutions
Potential Rating
Scale Appraisal
Problems

Unclear
Standards

Halo
Effect

Central
Tendency

© 2008 Prentice Hall, Inc. All
rights reserved.

Leniency or
Strictness

9–7

Bias
Appraising Performance:
Problems and Solutions (cont’d)
How to Avoid
Appraisal Problems

Know
Problems

Use the
Right Tool

Train
Supervisors

© 2008 Prentice Hall, Inc. All
rights reserved.

Control
Outside
Influences

9–8

Keep
a Diary
Who Should Do the Appraising?

Immediate
Supervisor

Peers

Self-Rating

Potential
Appraisers

Rating
Committee

© 2008 Prentice Hall, Inc. All
rights reserved.

Subordinates

360-Degree
Feedback

9–9
The Appraisal Interview

Satisfactory—Promotable

Satisfactory—Not Promotable

Types of Appraisal
Interviews
Unsatisfactory—Correctable

Unsatisfactory—Uncorrectable

© 2008 Prentice Hall, Inc. All
rights reserved.

9–10
The Appraisal Interview (cont’d)
Guidelines for
Conducting an Interview

Talk in terms
of objective
work data.

Don’t get
personal.

© 2008 Prentice Hall, Inc. All
rights reserved.

Encourage
the person to
talk.

Don’t tiptoe
around.

9–11
KEY TERMS
performance appraisal
performance management
graphic rating scale
alternation ranking method
paired comparison method
forced distribution method
critical incident method
behaviorally anchored rating
scale (BARS)

© 2008 Prentice Hall, Inc. All
rights reserved.

management by objectives (MBO)
electronic performance monitoring
(EPM)
unclear standards
halo effect
central tendency
strictness/leniency
bias
appraisal interview

9–12

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HRM Dessler CH# 09

  • 1. Human Resource Management ELEVENTH EDITION 1 GARY DESSLER Part 3 | Training and Development Chapter 9 Performance Management and Appraisal © 2008 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama
  • 2. After studying this chapter, you should be able to: 1. Evaluate and improve the appraisal form in Figure 9–1. 2. Describe the appraisal process. 3. Develop, evaluate, and administer at least four performance appraisal tools. 4. Explain and illustrate the problems to avoid in appraising performance. 5. List and discuss the pros and cons of six appraisal methods. 6. Perform an effective appraisal interview. 7. Discuss the pros and cons of using different raters to appraise a person’s performance. © 2008 Prentice Hall, Inc. All rights reserved. 9–2
  • 3. Basic Concepts in Performance Management and Appraisal Comparing Performance Appraisal and Performance Management Performance Appraisal: Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. © 2008 Prentice Hall, Inc. All rights reserved. Performance Management: An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims. 9–3
  • 4. Why Performance Management? Total Quality The Performance Management Approach Appraisal Issues Strategic Focus © 2008 Prentice Hall, Inc. All rights reserved. 9–4
  • 5. Defining the Employee’s Goals and Work Standards Guidelines for Effective Goal Setting Assign Specific Goals Assign Measurable Goals © 2008 Prentice Hall, Inc. All rights reserved. Assign Challenging but Doable Goals Encourage Participation 9–5
  • 6. Using MBO Setting unclear objectives Time-consuming appraisal process Problems with MBO Conflict with subordinates over objectives © 2008 Prentice Hall, Inc. All rights reserved. 9–6
  • 7. Appraising Performance: Problems and Solutions Potential Rating Scale Appraisal Problems Unclear Standards Halo Effect Central Tendency © 2008 Prentice Hall, Inc. All rights reserved. Leniency or Strictness 9–7 Bias
  • 8. Appraising Performance: Problems and Solutions (cont’d) How to Avoid Appraisal Problems Know Problems Use the Right Tool Train Supervisors © 2008 Prentice Hall, Inc. All rights reserved. Control Outside Influences 9–8 Keep a Diary
  • 9. Who Should Do the Appraising? Immediate Supervisor Peers Self-Rating Potential Appraisers Rating Committee © 2008 Prentice Hall, Inc. All rights reserved. Subordinates 360-Degree Feedback 9–9
  • 10. The Appraisal Interview Satisfactory—Promotable Satisfactory—Not Promotable Types of Appraisal Interviews Unsatisfactory—Correctable Unsatisfactory—Uncorrectable © 2008 Prentice Hall, Inc. All rights reserved. 9–10
  • 11. The Appraisal Interview (cont’d) Guidelines for Conducting an Interview Talk in terms of objective work data. Don’t get personal. © 2008 Prentice Hall, Inc. All rights reserved. Encourage the person to talk. Don’t tiptoe around. 9–11
  • 12. KEY TERMS performance appraisal performance management graphic rating scale alternation ranking method paired comparison method forced distribution method critical incident method behaviorally anchored rating scale (BARS) © 2008 Prentice Hall, Inc. All rights reserved. management by objectives (MBO) electronic performance monitoring (EPM) unclear standards halo effect central tendency strictness/leniency bias appraisal interview 9–12