HRM Dessler 9 Appraisal

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chapter 9: Appraisal

Transcript of HRM Dessler 9 Appraisal

CBEB 1104 Human Resource Management Lecture 7Dessler 2013

Chapter 9: Performance Management & Appraisal

1.2. 3. 4.

Define performance management and discuss how it differs from performance appraisal. Describe the appraisal process. Set effective performance appraisal standards. Develop, evaluate, and administer at least four performance appraisal tools.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 92

5. Explain and illustrate the problems to avoid in appraising performance. 6. Discuss the pros and cons of using different raters to appraise a persons performance. 7. Perform an effective appraisal interview.

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Chapter 93

Define performance management and discuss how it differs from performance appraisal.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 9-4

Basic Concepts in Performance Management and AppraisalPerformance Appraisal Performance ManagementAn integrated approach to ensuring that an employees performance supports and contributes to the organizations strategic aims.

Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance.

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Describe the appraisal process.

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Chapter 9-6

Appraising PerformanceSteps in Appraising Performance1

Defining the job and performance criteria Appraising performance

23

Providing feedback session

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Appraising PerformanceWhy Appraise Performance?1 2 3

Is basis for pay and promotion decisions. Plays an integral role in performance management.

Helps in correcting deficiencies and reinforcing good performance.Is useful in career planning. Identify training and development needs.

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Set effective performance appraisal standards.

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Chapter 9-9

Setting SMART Goals Specific, and clearly state the desired results.

Measurable in answering how much. Attainable, and not too tough or too easy.

Relevant to whats to be achieved. Timely in reflecting deadlines and milestones.

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Defining the Employees Goals and Work StandardsGuidelines for Effective Goal Setting

Set SMART goals

Assign specific goals

Assign measurable goals

Assign challenging/ doable goals

Encourage participation

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Employees Goals and Performance Standards Basing appraisal standards on required competencies The role of job descriptionsCopyright 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9-12

Who Should Do the Appraising?

Immediate supervisor

Self-rating

Peers

Potential Appraisers

Subordinates

Rating committee

360-degree feedback

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913

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

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Chapter 9-14

Performance Appraisal MethodsAppraisal Methodologies1

Graphic rating scale Alternation ranking Paired comparison Forced distribution Critical incident

6

Narrative forms

23 4 5

78 9 10

Behaviorally anchored rating scales (BARS)Management by objectives (MBO)

Computerized and Web-based performance appraisalMerged methods

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FIGURE 93 Sample Graphic Rating Performance Rating Form

FIGURE 94

One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties

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FIGURE 95

Appraisal Form for Assessing Both Competencies and Specific Objectives

918Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 95 Appraisal Form for Assessing Both Competencies and Specific Objectives (contd)

919Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 96

Scale for Alternate Ranking of Appraisee

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FIGURE 97

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.

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TABLE 91

Examples of Critical Incidents for Assistant Plant Manager

Continuing DutiesSchedule production for plant

Targets90% utilization of personnel and machinery in plant; orders delivered on time

Critical IncidentsInstituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month Let inventory storage costs rise 15% last month; over-ordered parts A and B by 20%; underordered part C by 30% Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part

Supervise procurement Minimize inventory costs of raw materials and while keeping adequate on inventory control supplies on hand Supervise machinery maintenance No shutdowns due to faulty machinery

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FIGURE 9/8 Appraisal-Coaching Worksheet

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Behaviorally Anchored Rating Scale (BARS)Developing a BARS1. Write critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument

Advantages of BARS A more accurate gauge

Clearer standards Feedback Independent dimensions Consistency924

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FIGURE 99 Example of a Behaviorally Anchored Rating Scale for the Dimension Salesmanship Skills

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Mixed Standard Scales Similar to BARS, but list only a few behavioural examples (about 3 high/medium/low) as opposed to 5-10 Mix the good and bad behavioural examples, as opposed to good to bad

Examine several performance dimensions (e.g. Quality of Work, Conscientiousness, Gets Along with others) Mix for statements across dimensions. Ideal answer less obviousCopyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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Management by Objectives (MBO) A comprehensive and formal organizationwide goal-setting and appraisal program requiring:1. Setting of organizations goals 2. Setting of departmental goals 3. Discussion of departmental goals 4. Defining expected results (setting individual goals) 5. Conducting periodic performance reviews 6. Providing performance feedbackCopyright 2011 Pearson Education, Inc. publishing as Prentice Hall

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Using MBOPotential Problems with MBO

Setting unclear objective

Time-consuming appraisal process

Conflict with subordinates over objectives

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Computerized and Web-Based Performance Appraisal Systems Allow managers to keep notes on subordinates. Notes can be merged with employee ratings. Software generates written text to support appraisals. Allows for employee self-monitoring and selfevaluation.o Use computer network technology to allow managers access to their employees computers and telephones. o Managers can monitor the employees rate, accuracy, and time spent working online (e.g. data entry staff) o Can induce Stress - monitored

Electronic Performance Monitoring (EPM) Systems

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929

Explain and illustrate the problems to avoid in appraising performance.

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Chapter 9-30

Dealing with Performance Appraisal ProblemsPotential Rating Scale Appraisal Problems

Unclear standards

Halo effect

Central tendency

Leniency or strictness

Bias

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TABLE 92

A Graphic Rating Scale with Unclear Standards

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Discuss the pros and cons of using different raters to appraise a persons performance.

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Chapter 9-33

Guidelines for Effective AppraisalsHow to Avoid Appraisal Problems

Know the problems

Use the right tool

Keep a diary

Get agreement on a plan

Be fair

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TABLE 93 Tool

Important Advantages and Disadvantages of Appraisal Tools