EVALUATING EMPLOYEE PERFORMANCE

Evaluating Employee Performance

• Introduction• Performance Management System• Performance Appraisals And EEO• The Appraisal Process• Appraisal Methods• Factors That Can Distort Appraisals• Creating More Effective Performance Management

Systems• International Performance Appraisal

Performance Management Systems

• What Are the Purposes of a Performance Management System?

• What Difficulties Exist in Performance Management Systems?

– Focus on the Individual– Focus on the Process

Performance Appraisals & EEO• Performance evaluations are an integral part of most

organizations. Properly developed and implemented, the performance appraisal process can help an organization achieve its goals by developing productive employees.

• Although there are many types of performance evaluation systems, each with its own advantages and disadvantages

• Performance evaluations must e objective and job related. That is they must be reliable and valid.

• Performance appraisals must also be able to measure”reasonable” performance success. To assist these matters, two factors arise;1. The performance appraisal must be conducted

according to some established intervals; and2. Appraisers must be trained in the process.

The Appraisal Process

1. Establish performance standards with employees.

2. Mutually set measurable goals.

3. Measure actual performance

4. Compare actual performance with standards.

5. Discuss the appraisal with employee.

6. If necessary, initiate corrective action

Appraisal Methods

• In What Ways Can One Evaluate Absolute Stands?– The Essay Appraisal

– The Critical Incident Appraisal

– The Checklist Appraisal

– The Adjective Rating Scale Appraisal

– The Forced-Choice Appraisal

– The Behaviorally Anchored Rating Scales

• What Are the Relative Standards Methods?– Group Order Ranking

– Individual Ranking

– Paired Comparison

• How Can Objectives Be Used to Evaluate Employees?

Factors That Can Distort Appraisals

• Leniency Error• Halo Error• Similarity Error• Low Appraiser Motivation• Central Tendency• Inflationary Pressures• Inappropriate Substitute for Performance• Attribution Theory

Creating More Effective Performance Management Systems

• Use Behavior-based Measures• Combine Absolute and Relative Standards• Provide Ongoing Feedback• Have Multiple Raters

– Use Peer Evaluations

– 360-Degree Appraisals

• Rate Selectively• Train Appraisers

International Performance Appraisal

• Who Performs the Evaluation?• Which Evaluation Format Will Be Use?

Appraising Customer Service Representative

Yes No1 Are supervisor’s orders usually followed? -------- ----------

2 Does the individual approach customers promptly? ______ _______

3 Does the individual suggest additional merchandise to

customers? ______ _______

4 Does the individual keep busy when not servicing a

customer? _____ _______

5 Does the individual lose his or her temper in public? _____ _______

6 Does the individual volunteer to help other employees? _____ _______

Employee Relations SpecialistPerformance dimension scale development under BARS for the dimension “Ability to

Absorb and Interpret Policies for an Employee Relations Specialist”.

This employee relations specialist

Could be expected to be aware quicklyof program changes and explain theseto employees

Could be expected serve as an information source concerning new and changed pollicies for others in the organization

9

8

7 Could be expected to reconcile conflicting policies and procedures correctly to meet HRM goals

Could be expected to recognize the need for additional information to gain a better understanding of policy changes

6

5 Could be expected to complete various HRM forms correctly after receiving instruction on them

4Could be expected require some help and practice in mastering new policies and procedures

3 Could be expected to know that there is always a problem,but go down many

2Could be expected to incorrectly interpret guidelines, creating problems for line managers 1 Could be expected to be unable to

learn new procedures even after repeated explanations

Factors That Distort Appraisals

Haloerror

Similarityerror

Centraltendency

Inflationarypressures

Inappropriatesubstitutes

Leniencyerror

Towards a More Effective Performance Management System

SUCCESS

=Train appraisers

+Rate Selectively

+Have multiple raters

+Provide ongoing feedback

+Combine absolute and relative standards

+Use behavior-based measures

Conducting The Performance Evaluation

• Prepare for and schedule the appraisal in advance

• Create a supportive environment to put employees at ease.

• Describe the purpose of the appraisal to employees.

• Involve the employee in the appraisal discussion, including a self evaluation

• Focus discussion on work behaviors, not on the employees

• Support your evaluation with specific examples

• Give both positive and negative feedback

• Ensure employees understand what was discussed in he appraisal

• Generate a development plan

Summary• Identify the three purposes of performance management

systems and who is served by them

• Explain the sox steps in the appraisal process

• Discuss what is meant by absolute standards in performance management systems

• Describe what is meant by relative standards in performance management systems

• Discuss how MBO can be used as an appraisal method

• Explain why performance appraisals might be distorted

• Identify ways to make performance management systems more effective

• Describe what is meant by he term 360-degree appraisal

THANK YOU…….!