DeCenzo and Robbins HRM 7th Edition1 CHAPTER 10 Evaluating Employee Performance.

DeCenzo and Robbins HRM 7th Edition

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CHAPTER 10

Evaluating Employee Performance


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CHAPTER 10 TOPICS:

1: Performance management system purpose

2: Appraisal process steps 3: Absolute standards 4: Relative standards 5: MBO 6: Performance appraisal distortions 7: More effective performance appraisal 8: Alternative appraisal methods 9: Global issues


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1: PERFORMANCE EVALUATION PURPOSES

Performance Management Systems

FeedbackDevelopmentDocumentation


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1: PERFORMANCE EVALUATION PROBLEMS

Focus on individual personality Emotions, anger,

resentment, satisfaction

Expectations

Focus on process Tied to budget Training AND….


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1: PERFORMANCE EVALUATION PROBLEMS

EEO requirements Reliable valid


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2: APPRAISAL PROCESS STEPS

1. Establish performance appraisal standards

2. Mutually set measurable goals

3. Measure actual performance

AND….


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2: APPRAISAL PROCESS STEPS

4. Compare actual with standard

5. Discuss appraisal with employee

6. Corrective action Basic Immediate


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2: APPRAISAL METHODS

Absolute standards Measure against

external reference

Relative standards Evaluate

employees against each other

Objectives Measure against

goals


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3: ABSOLUTE STANDARDS

Essay Critical incident ChecklistAdjective rating

scaleForced-choiceBehaviorally-

Anchored Rating Scale (BARS)


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3: ESSAYS

SubjectiveHard to compare

with othersSimple

Strengths Weaknesses Potential Suggestions for

improvement


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3: CRITICAL INCIDENT

Essay about what was most effective or ineffective in a key job situation

Focus on behavior, not personality

Weekly is time-consuming


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3: CHECKLIST

Yes or NoPredefined

behaviors or qualities

Items may be irrelevant

Helps reduce bias


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3: ADJECTIVE RATING SCALE

Factors present Job knowledge Cooperation Quality and

quantity of work

5 to 10 points on a continuum

• See Exhibit 10-3


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Exhibit 10-3: Sample Adjective Rating Items and Format


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3: FORCED-CHOICE

Bias and distortion reduced

Frustration about lack of feedback

SimpleLike a multiple

choice test question


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3: B.A.R.S.

SimpleReduces rating

errorsDefinite,

observable job behaviors

– See Exhibit 10-4


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Exhibit 10-4: Sample BARS for an Employee Relations Specialist


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4: RELATIVE STANDARDS

Group order ranking Quartiles

Individual ranking Best to worst

Paired comparison Similar to job ranking Compare each one to

all others


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5: MANAGEMENT BY OBJECTIVE (MBO)

STEPSGoal settingAction planningSelf controlPeriodic review

?


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5: MBO ISSUES

Advantages Results oriented Commitment

Problems Trust needed

Satisfaction Time-consuming Important to followup Frustration builder


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6: PERFORMANCE APPRAISAL DISTORTIONS

LeniencyHaloSimilarityCentral tendency Inflationary

pressures Inappropriate

substitutesAND….


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6: PERFORMANCE APPRAISAL DISTORTIONS

Attribution theoryVaries by control

Internal External

Impression management


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7: TO IMPROVE APPRAISALS

Behavior based measures

Combine absolute and relative measures

Provide ongoing feedback

Have multiple ratersRate selectivelyTrain appraisers


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8: MORE EFFECTIVE APPRAISALS - PEERS

Positives Constructive

criticism Specific feedback

Negatives Fear Halo, leniency error Training

Upward appraisal


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8: MORE EFFECTIVE APPRAISAL (360-DEGREE)

Multiple appraisers Self Boss Peers Team members Customers Suppliers


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8: 360-DEGREE APPRAISALS

Positives Increase manager’s

awareness of own actions

More accurate feedback

Empowerment Developing

leadership Reduces subjectivity


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9: GLOBAL ISSUES

Does the cultural environment vary from host country to corporate?

Who does evaluation? Host country

supervisor Home office

AND…


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9: MORE GLOBAL ISSUES

What do numbers, ranking mean? Culture Economic issues Political realities

Evaluation formatAND….


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9: GLOBAL SUGGESTIONS

Modify to suit Site Culture

Use an expatriate


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REVIEW CHAPTER 10

How do we do performance appraisal in this course?

Any suggestions to improve it for next semester?

Any suggestions for this semester?


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QUICK: REVIEW CHAPTER 10

ANSWER THESE QUESTIONS ON A SHEET OF PAPER. 1. THE MOST IMPORTANT THING WE DID IN

CLASS TODAY _______.2. I STILL HAVE QUESTIONS ABOUT___. 3. THE BEST THING ABOUT CLASS TODAY

WAS _______________.4. DON’T DO ____________ ANYMORE.

• TURN THEM IN, PLEASE. NO NAMES. WE’LL TALK NEXT CLASS SESSION


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PREVIEW: CHAPTER 11

Ask 3 people you know: 1 college student 1 40-60 year old worker 1 retiree

Why do/did you work?Tell me about the best “reward” you

received from a job?

Write up their responses for 1 extra point on your final grade.


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Exhibit 10-1: The Appraisal Process


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Exhibit 10-2: Sample Checklist Items for Appraising Customer Service Representative


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Exhibit 10-5: Factors That Distort Appraisals


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Exhibit 10-6: Towards a More Effective Performance Management System

DeCenzo and Robbins HRM 7th Edition1 CHAPTER 10 Evaluating Employee Performance.

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