3. Rational Perspective Political Perspective
Assumes the value of each employee’s
performance can be evaluated
Assumes that the value of each employee’s
performance depends on the agenda or goals
of the supervisor
Focus is measuring performance Focus is managing performance
Performance is clearly defined Performance is ambiguous to allow flexibility
in promoting supervisor’s agenda
Supervisors make dimensional and overall
assessments based on behavioral
observations
Overall assessment is used to derive and
justify specific assessments
5. Components of Performance Appraisal
• Dimensions
• An aspect of performance that determines effective job performance
• Job analysis is the mechanism by which dimensions should be identified
• Competencies – characteristics associated with successful job performance
• Competency model -set of competencies associated with a job
• Quality ofWork
• Quantity ofWork
• Interpersonal Effectiveness
8. MeasurementTools
• Relative judgement - an appraisal format that asks supervisors to compare an employee’s
performance to the performance of other employees doing the same job
• Absolute judgement -an appraisal format that asks supervisors to make judgements about
an employee’s performance based solely on performance standards
• Trait appraisal instrument - an appraisal tool that asks a supervisor to make judgments
about worker characteristics that tend to be consistent and enduring
• Behavioral appraisal instrument- an appraisal tool that asks managers to asses a worker’s
behaviors
• Outcome appraisal instrument - an appraisal tool that asks managers to assess the results
achieved by workers
• Management by objectives (MBO) – a goal directed approach to performance appraisal in
which workers and their supervisors set goals together for the upcoming evaluation period
10. MeasurementTools: Summary and Conclusions
• Choice of appraisal system is determined by purpose of appraisal and
organization culture
• Appraisal format does not have much impact on ratings
• Ratings quality is driven by rater
• Source of rating is more important than rating format
11. Challenges to Effective Measurement
• Rater error – an error in performance appraisals that reflects consistent
biases on the part of the rater
• Comparability – in performance ratings the degree to which the
performance ratings given by various supervisors in an organization are
based on similar standards
12. Influence of Liking
• Studies show a strong correlation between liking and bias
• Bias perception can hinder effectiveness in managing performance
13. • Frame-of-reference (FOR) training – a type of training that presents
supervisors with fictitious examples of worker performance, asks the
supervisors to evaluate the workers in the examples and then tells what
their ratings should have been
• Journal of behavioral incidents
64. Performance Reviews
The Most Abused Business Process
Not Done Right
• Few organizations and managers know
how to do them the right way
• Nobody takes them seriously
• A good process that isn't enabled with
skilled and willing practitioners will fail
Done Right
• Taking performance management
seriously
• Those at the top of an organization ensure
the requisite time, effort, resources and
training necessary to yield a successful
and meaningful results
• Successful performance management lies
within the ability of the organization to
unequivocally support it; and with people
in the organization to commit to making
the process meaningful, personal and a
part of daily life.
.
Eric Britten
Atlantic Business Monthly May 2011
65. “Blowing Up the Annual Performance Review”
Thomas Walsh
Central NewYork Business Journal 24 June 2011
Page 15
Case Against Performance Appraisal
66. On the positive side, we can conclude the following:
1. The interviews contain a diversity of topics which incites the
employees to reflect profoundly on obvious, but also less obvious,
aspects of their jobs and since these topics are based on the four
competencies of the organization, this possibly urges the employees to
internalize these competencies and the interview process may help them
to put these skills into practice in their daily work routine.
2. The use of a well-defined agenda that is identified a long time before
the actual interview has a structuring function, especially since it helps
the interlocutors to break down abstract notions into smaller, graspable
chunks
“A Discourse Analytical Perspective on the Professionalization of the Performance Appraisal Interview”
DorienVan De Mieroop and EvelineVrolix
International Journal of BusinessCommunication 2014,Vol. 51(2) 159–182
67. Ethnographic Study of the Performance Interview
On the negative side, we can conclude the following:
1. The whole process, both regarding preparatory and interviewing time, seems
very time consuming, and this is also confirmed in the ethnographic interview.
2. The focus is sometimes quite strongly on the transfer of information and it is particularly
at these points that the employees’ role is reduced to that of a passive recipient to whom
information, but also institutional norms and expectations, are transferred
3. The terminology is sometimes needlessly difficult, which also entails a lot of local
explanatory work and terminological disambiguation
4. The amount of the employees’ participation in the interaction fluctuates & this seems
causally related to the orientation of the talk - shifts from the personal level to the
organizational level; former entails high employee involvement, the latter often does not.
70. “For managers, it was
time-consuming and not
adding value. For HR, it
was a high
administrative burden.
For
the employee, it was a
disengaging
conversation around a
numerical rating.”
Because it happens in the here-and-
now, continuous feedback is
more likely to be honest and fair.
Research by insight firm CEB
revealed that almost 90 per cent of HR
professionals felt conventional
appraisals were inaccurate.
According to Sheila Heen, coauthor of
Thanks for the Feedback, people require
three types of feedback: appreciation,
coaching and evaluation.
Traditional appraisals tend to muddle
them together, so staff find it difficult to
learn from coaching because they feel
criticized from evaluation. Regular catch-
ups allow bosses to concentrate on
development.
71. GE Kills Annual Performance Reviews
Why GE had to kill its annual performance reviews after more than three decades
Max Nisen
August 13, 2015
http://qz.com/428813/ge-performance-review-strategy-shift/
General Electric practiced a rigid system of ranking
employees hinged on the annual performance review. It
boiled the employees’ performance down to a number on
which they were judged and ranked against peers. A bottom
percentage (10% in GE’s case) of underperformers were then
fired.
Along with its rank and yank
policy, GE also subscribed Six
Sigma, a protocol known for
ruthlessly boosting quality
control by eliminating mistakes.
72. Numerical rankings and pay
differentiation are the most
damaging parts of the
system, and that any
regime that preserves them
can’t hope to truly change
Instead of drills on
Six Sigma,
executives can
now take courses
on mindfulness.
Star employee is clearly
defined as someone who
does great work and who
helps others succeed as
well
73. Conclusions
• Performance management needs to be geared to employee’s future
potential
• Performance management requires resources
• Performance management requires commitment
