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Ch9 hr
1.
PowerPoint Presentation by
Charlie CookPowerPoint Presentation by Charlie Cook The University of West AlabamaThe University of West Alabama 1 Human ResourceHuman Resource ManagementManagement ELEVENTH EDITIONELEVENTH EDITION G A R Y D E S S L E RG A R Y D E S S L E R © 2008 Prentice Hall, Inc.© 2008 Prentice Hall, Inc. All rights reserved.All rights reserved. Performance Management and AppraisalPerformance Management and Appraisal Chapter 9Chapter 9 Part 3 | Training and DevelopmentPart 3 | Training and Development
2.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–2 After studying this chapter, you should be able to: 1.1. Evaluate and improve the appraisal form in Figure 9–1.Evaluate and improve the appraisal form in Figure 9–1. 2.2. Describe the appraisal process.Describe the appraisal process. 3.3. Develop, evaluate, and administer at least fourDevelop, evaluate, and administer at least four performance appraisal tools.performance appraisal tools. 4.4. Explain and illustrate the problems to avoid inExplain and illustrate the problems to avoid in appraising performance.appraising performance. 5.5. List and discuss the pros and cons of six appraisalList and discuss the pros and cons of six appraisal methods.methods. 6.6. Perform an effective appraisal interview.Perform an effective appraisal interview. 7.7. Discuss the pros and cons of using different raters toDiscuss the pros and cons of using different raters to appraise a person’s performance.appraise a person’s performance.
3.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–3 Basic Concepts in PerformanceBasic Concepts in Performance Management and AppraisalManagement and Appraisal Performance Appraisal: Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. Performance Management: An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims. Comparing Performance Appraisal and Performance Management
4.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–4 FIGURE 9–1 Classroom Teaching Appraisal by Students Source: Richard I. Miller, Evaluating Faculty for Promotion and Tenure (San Francisco: Jossey-Bass Publishers, 1987), p. 164–165. © 1987, Jossey-Bass Inc., Publishers. All rights reserved. Reprinted with permission of John Wiley & Sons, Inc.
5.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–5 Why Performance Management?Why Performance Management? Total Quality Appraisal Issues Strategic Focus The Performance Management Approach
6.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–6 FIGURE 9–2 The Building Blocks of an Effective Performance Management Process Direction sharing Role clarification Goal setting and planning Goal alignment Developmental goal setting Ongoing performance monitoring Ongoing feedback Coaching and support Performance assessment (appraisal) Rewards, recognition, and compensation Workflow, process control, and return on investment management
7.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–7 Defining the Employee’s GoalsDefining the Employee’s Goals and Work Standardsand Work Standards Assign Specific Goals Encourage Participation Assign Measurable Goals Assign Challenging but Doable Goals Guidelines for Effective Goal Setting
8.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–8 Setting GoalsSetting Goals • SMART Goals:SMART Goals: SSpecific, and clearly state the desired results.pecific, and clearly state the desired results. MMeasurable in answering “how much.”easurable in answering “how much.” AAttainable, and not too tough or too easy.ttainable, and not too tough or too easy. RRelevant to what’s to be achieved.elevant to what’s to be achieved. TTimely in reflecting deadlines and milestones.imely in reflecting deadlines and milestones.
9.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–9 Performance Appraisal RolesPerformance Appraisal Roles • SupervisorsSupervisors Usually do the actualUsually do the actual appraising.appraising. Must be familiar withMust be familiar with basic appraisalbasic appraisal techniques.techniques. Must understand andMust understand and avoid problems that canavoid problems that can cripple appraisals.cripple appraisals. Must know how toMust know how to conduct appraisals fairly.conduct appraisals fairly.
10.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–10 Performance Appraisal Roles (cont’d)Performance Appraisal Roles (cont’d) • The HR DepartmentThe HR Department Serves a policy-making and advisory role.Serves a policy-making and advisory role. Provides advice and assistance regarding theProvides advice and assistance regarding the appraisal tool to use.appraisal tool to use. Trains supervisors to improve their appraisal skills.Trains supervisors to improve their appraisal skills. Monitors the appraisal system effectiveness andMonitors the appraisal system effectiveness and compliance with EEO laws.compliance with EEO laws.
11.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–11 An Introduction to Appraising PerformanceAn Introduction to Appraising Performance 1 Is useful in career planning. Plays an integral role in performance management. Why Appraise Performance? Is basis for pay and promotion decisions. Helps in correcting deficiencies and reinforcing good performance. 2 3 4
12.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–12 (Un)Realistic Appraisals(Un)Realistic Appraisals • Motivations for Soft AppraisalsMotivations for Soft Appraisals The fear of having to hire and train someone new.The fear of having to hire and train someone new. The unpleasant reaction of the appraisee.The unpleasant reaction of the appraisee. An appraisal process that’s not conducive to candor.An appraisal process that’s not conducive to candor. • Hazards of Soft AppraisalsHazards of Soft Appraisals Employee loses the chance to improve before beingEmployee loses the chance to improve before being forced to change jobs.forced to change jobs. Lawsuits arising from dismissals involving inaccurateLawsuits arising from dismissals involving inaccurate performance appraisals.performance appraisals.
13.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–13 An Introduction to Appraising PerformanceAn Introduction to Appraising Performance 1 Appraising performance Steps in Appraising Performance Defining the job Providing feedback 2 3
14.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–14 Designing the Appraisal ToolDesigning the Appraisal Tool • What to Measure?What to Measure? Work output (quality and quantity)Work output (quality and quantity) Personal competenciesPersonal competencies Goal (objective) achievementGoal (objective) achievement • How to Measure?How to Measure? Generic dimensionsGeneric dimensions Actual job dutiesActual job duties Behavioral competenciesBehavioral competencies
15.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–15 FIGURE 9–3 Sample Performance Rating Form Source: Elaine Pulakos, Performance Management (SHRM Foundation, 2004) p. 16–17. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center.
16.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–16 FIGURE 9–3 Sample Performance Rating Form (cont’d) Source: Elaine Pulakos, Performance Management (SHRM Foundation, 2004) p. 16–17.
17.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–17 FIGURE 9–4 Portion of an Administrative Secretary’s Performance Appraisal Form Showing Task(s) to Appraise
18.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–18 FIGURE 9–5 Appraisal Form for Assessing Both Competencies and Specific Objectives Source: http://www.case.edu/finadmin/humres/policies/perfExempt.pdf. Accessed May 17, 2007.
19.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–19 FIGURE 9–5 (continued) Source: http://www.case.edu/finadmin/humres/policies/perfExempt.pdf. Accessed May 17, 2007.
20.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–20 FIGURE 9–5 (continued) Source: http://www.case.edu/finadmin/humres/policies/perfExempt.pdf. Accessed May 17, 2007.
21.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–21 FIGURE 9–5 (continued) Source: http://www.case.edu/finadmin/humres/policies/perfExempt.pdf. Accessed May 17, 2007.
22.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–22 Performance Appraisal MethodsPerformance Appraisal Methods 1 2 3 4 5 Alternation Ranking Method Graphic Rating Scale Method Paired Comparison Method Forced Distribution Method Critical Incident Method 6 7 8 9 10 Behaviorally Anchored Rating Scales (BARS) Narrative Forms Management by Objectives (MBO) Computerized and Web-Based Performance Appraisal Merged Methods Appraisal Methodologies
23.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–23 FIGURE 9–6 Scale for Alternate Ranking of Appraisees
24.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–24 FIGURE 9–7 Ranking Employees by the Paired Comparison Method Note: + means “better than.” – means “worse than.” For each chart, add up the number of +’s in each column to get the highest-ranked employee.
25.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–25 TABLE 9–1 Examples of Critical Incidents for a Plant Manager Continuing Duties Targets Critical Incidents Schedule production for plant 90% utilization of personnel and machinery in plant; orders delivered on time Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month Supervise procurement of raw materials and inventory control Minimize inventory costs while keeping adequate supplies on hand Let inventory storage costs rise 15% last month; overordered parts “A” and “B” by 20%; underordered part “C” by 30% Supervise machinery maintenance No shutdowns due to faulty machinery Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part
26.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–26 FIGURE 9–8 Appraisal- Coaching Worksheet Source: Reprinted from www.HR.BLR.com with permission of the publisher Business and Legal Reports, Inc. 141 Mill Rock Road East, Old Saybrook, CT © 2004.
27.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–27 Behaviorally Anchored Rating Scale (BARS)Behaviorally Anchored Rating Scale (BARS) Developing a BARSDeveloping a BARS 1.1. Generate criticalGenerate critical incidentsincidents 2.2. Develop performanceDevelop performance dimensionsdimensions 3.3. Reallocate incidentsReallocate incidents 4.4. Scale the incidentsScale the incidents 5.5. Develop a finalDevelop a final instrumentinstrument Advantages of BARSAdvantages of BARS A more accurateA more accurate gaugegauge Clearer standardsClearer standards FeedbackFeedback IndependentIndependent dimensionsdimensions ConsistencyConsistency
28.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–28 FIGURE 9–9 Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills
29.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–29 Management by Objectives (MBO)Management by Objectives (MBO) • A comprehensive and formal organizationwideA comprehensive and formal organizationwide goal-setting and appraisal program requiring:goal-setting and appraisal program requiring: 1.1. Setting of organization’s goals.Setting of organization’s goals. 2.2. Setting of departmental goals.Setting of departmental goals. 3.3. Discussion of departmental goals.Discussion of departmental goals. 4.4. Defining expected results (setting individualDefining expected results (setting individual goals).goals). 5.5. Conducting periodic performance reviews.Conducting periodic performance reviews. 6.6. Providing performance feedback.Providing performance feedback.
30.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–30 Using MBOUsing MBO Problems with MBO Setting unclear objectives Conflict with subordinates over objectives Time-consuming appraisal process
31.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–31 Appraising Performance:Appraising Performance: Problems and SolutionsProblems and Solutions Unclear Standards Leniency or Strictness Halo Effect Potential Rating Scale Appraisal Problems Central Tendency Bias
32.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–32 TABLE 9–2 A Graphic Rating Scale with Unclear Standards Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth? Excellent Good Fair Poor Quality of work Quantity of work Creativity Integrity
33.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–33 FIGURE 9–10 Sample Rating Errors Focusing on one or two critical incidents Lower rating for less challenge Nobody can be that good (Strictness) Similarity Being influenced by prior performance Rating for retention Style differences Emotional rating Recent performance only Friendships
34.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–34 Appraising Performance:Appraising Performance: Problems and Solutions (cont’d)Problems and Solutions (cont’d) Know Problems Control Outside Influences Use the Right Tool How to Avoid Appraisal Problems Train Supervisors Keep a Diary
35.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–35 TABLE 9–3 Important Advantages and Disadvantages of Appraisal Tools Tool Advantages Disadvantages Graphic rating scale Simple to use; provides a quantitative rating for each employee. Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. BARS Provides behavioral “anchors.” BARS is very accurate. Difficult to develop. Alternation ranking Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent. Forced distribution method End up with a predetermined number or % of people in each group. Employees’ appraisal results depend on your choice of cutoff points. Critical incident method Helps specify what is “right” and “wrong” about the employee’s performance; forces supervisor to evaluate subordinates on an ongoing basis. Difficult to rate or rank employees relative to one another. MBO Tied to jointly agreed-upon performance objectives. Time-consuming.
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© 2008 Prentice
Hall, Inc. All rights reserved. 9–36 Who Should Do the Appraising?Who Should Do the Appraising? Self-Rating Subordinates 360-Degree Feedback Potential Appraisers Immediate Supervisor Peers Rating Committee
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© 2008 Prentice
Hall, Inc. All rights reserved. 9–37 The Appraisal InterviewThe Appraisal Interview Satisfactory—Promotable Satisfactory—Not Promotable Unsatisfactory—Correctable Unsatisfactory—Uncorrectable Types of Appraisal Interviews
38.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–38 The Appraisal Interview (cont’d)The Appraisal Interview (cont’d) Talk in terms of objective work data. Don’t tiptoe around. Don’t get personal. Encourage the person to talk. Guidelines for Conducting an Interview
39.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–39 The Appraisal Interview (cont’d)The Appraisal Interview (cont’d) 1 Recognize your own limitations. Never attack a person’s defenses. How to Handle a Defensive Subordinate Recognize that defensive behavior is normal. Postpone action. 2 3 4
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© 2008 Prentice
Hall, Inc. All rights reserved. 9–40 The Appraisal Interview (cont’d)The Appraisal Interview (cont’d) 1 2 3 4 5 How to Criticize a Subordinate Criticize in private, and do it constructively. Do it in a manner that lets the person maintain his or her dignity and sense of worth. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases.
41.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–41 The Appraisal Interview (cont’d)The Appraisal Interview (cont’d) 1 2 3 4 5 How to Ensure Improved Performance Give the subordinate the opportunity to present his or her ideas and feelings. Don’t make the subordinate feel threatened during the interview. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases.
42.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–42 FIGURE 9–11 Performance Contract Source: David Antonion, “Improving the Performance Management Process Before Discontinuing Performance Appraisals,” Compensation and Benefits Review May–June 1994, p. 33, 34. Reprinted by permission of Sage Publications, Inc.
43.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–43 FIGURE 9–12 Checklist During the Appraisal Interview
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© 2008 Prentice
Hall, Inc. All rights reserved. 9–44 Formal Written WarningsFormal Written Warnings • Purposes of a Written WarningPurposes of a Written Warning To shake your employee out of bad habits.To shake your employee out of bad habits. To help you defend your rating, both to your ownTo help you defend your rating, both to your own boss and (if needed) to the courts.boss and (if needed) to the courts. • A Written Warning Should:A Written Warning Should: Identify standards by which employee is judged.Identify standards by which employee is judged. Make clear that employee was aware of theMake clear that employee was aware of the standard.standard. Specify deficiencies relative to the standard.Specify deficiencies relative to the standard. Indicate employee’s prior opportunity for correction.Indicate employee’s prior opportunity for correction.
45.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–45 Creating the Total PerformanceCreating the Total Performance Management ProcessManagement Process • ““What is our strategy and what are our goals?”What is our strategy and what are our goals?” • ““What does this mean for the goals we set forWhat does this mean for the goals we set for our employees, and for how we train, appraise,our employees, and for how we train, appraise, promote, and reward them?”promote, and reward them?”
46.
© 2008 Prentice
Hall, Inc. All rights reserved. 9–46 FIGURE 9–13 Information Required for TRW’s Web-Based Performance Management System Page 1 biographical data Identification information Education Experience summary Pages 2–3 performance summary Accomplishments against previous year goals TRW behaviors TRW initiatives Legal and ethical conduct/diversity and cultural sensitivity Previous year’s professional development activities Employee comments Overall performance—manager’s overall rating and comments Page 4 development summary Demonstrated strengths Improvement opportunities Performance goals for the upcoming year Professional development activities for the upcoming year Future potential/positions (employee perspective) Future potential/positions (manager perspective) Electronic sign-off from both employee and manager Page 1 biographical data Identification information Education Experience summary Pages 2–3 performance summary Accomplishments against previous year goals TRW behaviors TRW initiatives Legal and ethical conduct/diversity and cultural sensitivity Previous year’s professional development activities Employee comments Overall performance—manager’s overall rating and comments Page 4 development summary Demonstrated strengths Improvement opportunities Performance goals for the upcoming year Professional development activities for the upcoming year Future potential/positions (employee perspective) Future potential/positions (manager perspective) Electronic sign-off from both employee and manager Source: D. Bradford Neary, “Creating a Company-Wide, Online, Performance Management System: A Case Study at TRW, Inc.,” Human Resource Management 41, no. 4 (Winter 2002), p. 495. Reprinted by permission of Society for Human Resource Management via Copyright Clearance Center.
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© 2008 Prentice
Hall, Inc. All rights reserved. 9–47 K E Y T E R M S performance appraisalperformance appraisal performance managementperformance management graphic rating scalegraphic rating scale alternation ranking methodalternation ranking method paired comparison methodpaired comparison method forced distribution methodforced distribution method critical incident methodcritical incident method behaviorally anchored ratingbehaviorally anchored rating scale (BARS)scale (BARS) management by objectives (MBO)management by objectives (MBO) electronic performance monitoringelectronic performance monitoring (EPM)(EPM) unclear standardsunclear standards halo effecthalo effect central tendencycentral tendency strictness/leniencystrictness/leniency biasbias appraisal interviewappraisal interview
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