Gary Dessler - Performance Management and Appraisal

8/20/2019 Gary Dessler - Performance Management and Appraisal

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PowerPoint Presentation by Charlie CookThe University o !est Alaba"a

t e n t h e d i t i o n

GaryGary

DesslerDessler

Cha#ter Cha#ter $$ PartPart %% Training and &evelo#"ent Training and &evelo#"ent

Performance ManagementPerformance Management

and Appraisaland Appraisal


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After studying this chapter, After studying this chapter,

you should be able to: you should be able to:

1. Describe the appraisal process.

2. Develop, evaluate, and administer at least four performance appraisal tools.

3. Explain and illustrate the problems to avoid inappraising performance.

4. List and discuss the pros and cons of six appraisalmethods.

5. erform an effective appraisal intervie!.

". Discuss the pros and cons of using different ratersto appraise a person#s performance.

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Comparing Performance Appraisal

and Performance Managementerformance appraisal – Evaluating an employee’s current and/or

past performance relative to his or her

performance standards.erformance management

– The process employers use to make sureemployees are orking toard

organi!ational goals.


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"hy Performance Management#

$ncreasing use b% emplo%ers of performancemanagement reflects&

– The popularity of the total $ualitymanagement %T&M' concepts.

– The (elief that traditional performanceappraisals are often not )ust useless (utcounterproductive.

– The necessity in today’s glo(ally

competitive industrial environment for everyemployee’s e*orts to focus on helping thecompany to achieve its strategic goals.


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An +ntroduction to Appraising

Performance'h% appraise performance(– Appraisals play an integral role in the

employer’s performance managementprocess.

– Appraisals help in planning for correctingde,ciencies and reinforce things donecorrectly.

– Appraisals- in identifying employee strengthsand eaknesses- are useful for careerplanning

– Appraisals a*ect the employer’s salary raisedecisions.


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Classroom Teaching

Appraisal ytudents

*ig+re $',

)ource& Richard I. Miller, Evaluating *acult%

for romotional and +enure (San Francisco:

Jossey-ass P!"lishers, #$%&', pp. #)*#+.

opyright #$%&, Jossey-ass Inc.,

P!"lishers. All rights resered. Reprinted /ith

permission.


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0ealistic Appraisals

otivations for soft -lessthancandid/appraisals

– The fear of having to hire and train someonene

– The unpleasant reaction of the appraisee– A company appraisal process that’s not

conducive to candor

0aards of giving soft appraisals

– Employee loses the chance to improve(efore (eing forced to change )o(s.

– 1asuits arising from dismissals involvinginaccurate performance appraisals.


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Continuous improvement

management philosoph% that reuiresemplo%ers to continuousl% set and

relentlessl% meet everhigher ualit%, cost,

deliver%, and availabilit% goals b%&

– Eradicating the seven astes2

0 oerprod!ction, defectie prod!cts, and !nnecessary

do/ntime, transportation, processing costs, motion, and

inentory.

– 0e$uiring each employee to continuouslyimprove his or her on personalperformance- from one appraisal period tothe ne3t.


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The Components of an E*ectivePerformance Management Process

1irection sharing

Role clarification

2oal alignment

1eelopmental goal setting

3ngoing performance monitoring

3ngoing feed"ac4

oaching and s!pport

Performance assessment (appraisal'

Re/ards, recognition, and compensation

5or4flo/ and process control and ret!rn*ig+re $'2


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4e,ning 5oals and "ork E*orts

uidelines for effective goals– Assign speci,c goals

– Assign measura(le goals

– Assign challenging (ut doa(le goals

– Encourage participation)+ goals are&

– Speci,c- and clearly state the desired results.

– Measura(le in ansering 6ho much.7

– Attaina(le- and not too tough or too easy.

– Relevant to hat’s to (e achieved.

– Timely in re8ecting deadlines and milestones.


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Performance Appraisal 0oles

)upervisors– 9sually do the actual appraising.

– Must (e familiar ith (asic appraisaltechni$ues.

– Must understand and avoid pro(lems thatcan cripple appraisals.

– Must kno ho to conduct appraisals fairly.


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Performance Appraisal 0oles%cont’d'

0 department – erves a policy:making and advisory role.

– Provides advice and assistance regardingthe appraisal tool to use.

– Prepares forms and procedures and insiststhat all departments use them.

– 0esponsi(le for training supervisors toimprove their appraisal skills.

– 0esponsi(le for monitoring the system toensure that appraisal formats and criteriacomply ith EE; las and are up to date.


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teps in Appraising Performance

Defining the 6ob– Making sure that you and your su(ordinate

agree on his or her duties and )o( standards.

ppraising performance

– Comparing your su(ordinate’s actualperformance to the standards that have(een set< this usually involves some type ofrating form.

roviding feedbac7 – 4iscussing the su(ordinate’s performance

and progress- and making plans for anydevelopment re$uired.


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4esigning the Appraisal Tool

'hat to measure(– "ork output %$uality and $uantity'

– Personal competencies

– 5oal %o()ective' achievement0o! to measure(

– 5raphic rating scales

– Alternation ranking method– M;


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Performance Appraisal Methods

raphic rating scale– A scale that lists a num(er of traits and a

range of performance for each that is usedto identify the score that (est descri(es an

employee’s level of performance for eachtrait.


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5raphic0ating

cale ithpace for

Comments

*ig+re $'%


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Portion of an Administrative ecretary’sample Performance Appraisal =orm

*ig+re $'()ource& James !ford Jr., ettye !r4halter, and 2roer Jaco"s, 67in4 Jo"

1escription to Performance Appraisals,8 ersonnel 8ournal , J!ne #$%%, pp. #9+*#9.


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Performance

Management;utline

*ig+re $'5a)ource& ///.c/r!.ed!.


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*ig+re $'5b

PerformanceManagement

;utline

%cont’d'

)ource& ///.c/r!.ed!.


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PerformanceManagement

;utline%cont’d'

*ig+re $'5c)ource& ///.c/r!.ed!.


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Performance Appraisal Methods%cont’d'

lternation ran7ing method – 0anking employees from (est to orst on a

particular trait- choosing highest- thenloest- until all are ranked.

aired comparison method– 0anking employees (y making a chart of all

possi(le pairs of the employees for eachtrait and indicating hich is the (etter

employee of the pair.


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Alternation 0anking cale

*ig+re $')


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0anking Employees (y thePaired Comparison Method

*ig+re $'-

Note: + means “better than.” / means “worse than.” For each chart, add up

the number of 1’s in each column to get the highest-raned emplo!ee.


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*orced distribution method – imilar to grading on a curve<

predetermined percentages of ratees areplaced in various performance categories.

– E3ample20 #+ high performers

0 ;


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:ehaviorall% anchored rating scale -:)/– An appraisal method that uses $uanti,ed

scale ith speci,c narrative e3amples ofgood and poor performance.

Developing a :)&– 5enerate critical incidents

– 4evelop performance dimensions

– 0eallocate incidents

– cale the incidents

– 4evelop a ,nal instrument


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dvantages of using a :)– A more accurate gauge

– Clearer standards

– =eed(ack

– +ndependent dimensions– Consistency


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Appraisal:Coaching"orkshee

t

*ig+re $'

)ource& Reprinted /ith permission of

the p!"lisher, =Rne>t.com? copyright

=Rne>t.com, ;


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E3amples of Critical +ncidents foran Assistant Plant Manager

Table $',


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E3ample of aehaviorally

Anchored 0atingcale for the4imension

SalesmanshipSkill

*ig+re $'$

)ource&5alter . orman, 6ehaior

ased Rating,8 in Ronald A. er4 (ed.',

erformance ssessment& ethods and

pplications (altimore, M1: Johns

=op4ins @niersity Press, #$%', p. #


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Management (y ;()ectives %M;'

$nvolves setting specific measurable goals!ith each emplo%ee and then periodicall%

revie!ing the progress made.

>. et the organi!ation’s goals.

?. et departmental goals.@. 4iscuss departmental goals.

. 4e,ne e3pected results %set individualgoals'.

B. Performance revies.

. Provide feed(ack.


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Computeri!ed and "e(:asedPerformance Appraisalerformance appraisal soft!are programs

– Deep notes on su(ordinates during the year.

– Electronically rate employees on a series of

performance traits.– 5enerate ritten te3t to support each part

of the appraisal.

Electronic performance monitoring -E/

– aving supervisors electronically monitorthe amount of computeri!ed data anemployee is processing per day- andthere(y his or her performance.


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Potential 0ating cale AppraisalPro(lems

;nclear standards– An appraisal that is too open tointerpretation.

0alo effect

– ;ccurs hen a supervisor’s rating of asu(ordinate on one trait (iases the rating ofthat person on other traits.


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A 5raphic 0ating cale ith 9ncleartandards

Table $'2

9ote& For e>ample, /hat e>actly is meant "y

6good,8 6!antity of /or4,8 and so forthB


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Potential 0ating cale AppraisalPro(lems %cont’d')trictness=lenienc%

– The pro(lem that occurs hen a supervisorhas a tendency to rate all su(ordinateseither high or lo.

:ias

– The tendency to allo individual di*erencessuch as age- race- and se3 to a*ect the

appraisal ratings employees receive.


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o to Avoid Appraisal Pro(lems

Learn and understand the potential problems,and the solutions for each.

;se the right appraisal tool. Each tool has its

o!n pros and cons.

+rain supervisors to reduce rating errors such

as halo, lenienc%, and central tendenc%.

0ave raters compile positive and negativecritical incidents as the% occur.


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The Appraisal +ntervie

+%pes of appraisal intervie!s– atisfactoryFPromota(le

– atisfactoryFGot promota(le

– 9nsatisfactoryFCorrecta(le

– 9nsatisfactoryF9ncorrecta(le

0o! to conduct the appraisal intervie!

– Talk in terms of o()ective ork data.

– 4on’t get personal.

– Encourage the person to talk.

– 4on’t tiptoe around.


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PerformanceContract

*ig+re $',0

)ource& 1aid Antonion, 6Improing the

Performance Management Process efore

1iscontin!ing Performance Appraisals,8


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Checklist4uring the

Appraisal+ntervie

*ig+re $',,

)ource& Reprinted /ith permission of

the p!"lisher, =Rne>t.com. opyright

=Rne>t.com, ;


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The Appraisal +ntervie %cont’d'

0o! to handle a defensive subordinate– 0ecogni!e that defensive (ehavior isnormal.

– Gever attack a person’s defenses.

– Postpone action.– 0ecogni!e your on limitations.


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0o! to criticie a subordinate– 4o it in a manner that lets the person

maintain his or her dignity and sense oforth.

– Critici!e in private- and do it constructively.

– Avoid once:a:year 6critical (roadsides7 (ygiving feed(ack on a daily (asis- so that theformal revie contains no surprises.

– Gever say the person is 6alays7 rong

– Criticism should (e o()ective and free of anypersonal (iases on your part.


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0o! to ensure the intervie! leads toimproved performance

– 4on’t make the su(ordinate feel threatenedduring the intervie.

– 5ive the su(ordinate the opportunity topresent his or her ideas and feelings and toin8uence the course of the intervie.

– ave a helpful and constructive supervisor

conduct the intervie.

– ;*er the su(ordinate the necessary supportfor development and change.


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0o! to handle a formal !ritten !arning – Purposes of the ritten arning

0 Co sha4e yo!r employee o!t of "ad ha"its.

0 =elp yo! defend yo!r rating, "oth to yo!r o/n "oss and

(if needed' to the co!rts.

– "ritten arnings should2

0 Identify standards "y /hich employee is D!dged.

0 Ma4e clear that employee /as a/are of the standard.

0 Specify deficiencies relatie to the standard.

0 Indicates employeeEs prior opport!nity for correction.


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Creating the Total PerformanceManagement Process ?'hat is our strateg% and !hat are our

goals(@

?'hat does this mean for the goals !e set for

our emplo%ees, and for ho! !e train,appraise, promote, and re!ard them(@

'hat !ill be the technological support

reuirements(


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+nformation 0e$uired for T0"’s "e(:ased Performance Management ystem

*ig+re $',2)ource& 1. radford eary,6reating a ompany-5ide, 3nline, Performance Management System:

A ase St!dy at CR5, Inc.,8 0uman esource anagement )#, no ) (5inter ;


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*ig+re ',%

0 corecardfor otel

Paris

+nternationalCorporationH

9ote& A-n abbreviated example sho!ing selected

0 practices and outcomes aimed at implementing

the competitive strateg%, ?+o use superior guest

services to differentiate the 0otel aris properties

and thus increase the length of sta%s and the return

rate of guests and thus boost revenues and

profitabilit%@/


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Dey Terms

#eror"ance a##raisal

#eror"ance "anage"ent

gra#hic rating scale

alternation ranking "ethod

#aired co"#arison "ethod

orced distrib+tion "ethod

critical incident "ethod

behaviorally anchored rating

scale 1A34

"anage"ent by obectives6174

electronic #eror"ance

"onitoring 8P64

+nclear standards

halo eect

central tendency

strictness9leniency

bias

a##raisal interview

Gary Dessler - Performance Management and Appraisal

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