Performance Appraisals Systems

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    Strategies for Effective

    Performance AppraisalSystems

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    Performance Appraisals

    Performance appraisals are useful

    tool not only for evaluating the

    work of employees but also for

    developing and motivatingemployees.

    Performance appraisals can be

    thought of as means to verify that

    individuals are meetingperformance standards that have

    been set.

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    Strategic Choices

    Managers should decide on the

    objectives and purpose for the

    performance appraisal.

    Managers can choose between formaland informal procedures for the

    performance appraisal.

    Performance appraisal formats can

    emphasize more objectivity versus

    subjectivity. Managers must decide on the frequency

    of the performance appraisals.

    Managers must decide who conducts the

    performance appraisal.

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    Performance Appraisal

    Objectives

    To determine who should be promoted,

    demoted, transferred, or terminated.

    To determine who needs formal trainingand development opportunities.

    To motivate and improve performance.

    Encourage individuals to work together asa team.

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    Who Conducts The Performance

    Appraisal ?

    The most common evaluator is theemployees immediate supervisor.

    More than 90 percent of all performanceappraisals are completed only by theimmediate supervisor.

    Co workers may evaluate their peers

    performance. If the contact betweensupervisor and employee is limitedorganizations may chose to encouragePeer evaluation.

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    Who Conducts The Performance

    Appraisal ?

    Employees are given the opportunity toassess their own performance. This isalso called Self Rating orSelf evaluation.

    Subordinates are valuable sources ofinformation when examining theperformance supervisory employees.

    Computers-aided management involves theuse of computer to monitor , superviseand evaluate employee performanceelectronically.

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    Formal Versus Informal

    Performance Appraisal

    Formal performance appraisals usuallyoccur at specified time periods once or

    twice a year to evaluate employeesperformance.

    Informal performance appraisals canoccur whenever the supervisor feelscommunication is needed.

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    Other Performance

    Feedback Systems

    Peers

    Only effective when political considerationsand consequences are minimized, and

    employees have sense of trust Subordinates

    Insights into interpersonal and managerialstyles

    Excellent measures of individual leadership

    capabilities

    Same political problems as peer evaluations

    Customers

    Feedback most free from bias

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    Other Performance

    Feedback Systems

    Self-evaluations

    Allow employees to participate in critical employment

    decisions

    More holistic assessment of performance Multi-rater systems or 360-degree feedback systems

    Can be very time-consuming

    More performance data collected, greater overall

    facilitation of assessment and development of employee

    Costly to collect and process

    Consistent view of effective performance relative to

    strategy

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    Types Of Performance

    Appraisal Methods

    Behavioral Performance Appraisal Methods.

    Check lists

    Weighted Check list

    Graphic Rating Scale

    Mixed-Standard Scale

    Critical Incident Method Behaviorally Anchored Rating Scale

    (BARS)

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    Checklists

    Checklist is a list of descriptive statements

    describing job related behavior.

    If Evaluator perceives the employee as

    possessing this trait, the item is checked.

    If Evaluator does not perceive the employee as

    possessing this trait the item is left blank.

    Each item listed reflects either a positive or

    negative quality that an employee could possess.

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    Example Of A Checklist

    Appraisal Form

    Asks for assistance when encounteringproblems.

    Maintains good relations with otherworkers.

    Take initiatives when faced with a newsituation.

    Requires an excessive amount ofinstructions when confronted with a newsituation.

    Continually meets deadlines.

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    Weighted Checklists

    A checklist used for performance

    evaluation that places weighted values on

    each response the weighted response arethen summed up to provide an overall

    rating.

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    Example Of A Weighted

    Checklist

    Is asked for advise by others 3.0

    Follows directions well 2.0

    Does not work well in groups -1.0 Works well without supervision 2.5

    Continually misses deadlines -2.0

    Treats others fairly 1.0

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    Graphic Rating Scale

    Most widely used performance evaluation

    formats.

    Evaluators can rate a large number ofindividuals in a short amount of time.

    Simple to develop and change when

    needed.

    Easy to understand and explain to ratees.

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    Example of Graphic Rating

    Scales

    1----2----3----4----5----6----7----8----9

    Poor Exceptional

    ----------------------------------------------Needs Improvement Outstanding

    1----------------2-------------------3------------------4--------------------5

    Inadequate Below Average Average Above Average OS

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    Mixed Standard Scale

    Variation of a graphic rating scale.

    Instead of rating a behavior such as

    attendance the evaluator is given threeconceptually compatible statements

    describing the behavior at High Medium

    and Low levels.

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    Example Of A Mixed

    Standard Format

    + This employees performance is better

    than the behavior described.

    0 This employees performance is asgood as the behavior described.

    - This employees performance is worse

    than the behavior described.

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    Statements

    Always at work unless a critical emergency has arisen. Always volunteers for difficult assignments. Misses work less than twice a month. Mistakes are present in virtually all work completed by

    this individual. Requests only assignments he or she has performed in

    the past. While rare, corrections sometimes must be made to

    work submitted. Will take on challenging assignments if required to do

    so. Has more than two absences a week. Assignments are always accurate.

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    Critical Incident Method

    It is a written description of a highlyeffective or highly ineffective

    performance. The evaluator keeps a journal of critical

    incidents for each individual beingevaluated.

    Incidents to be recorded as soon as theyhappens.

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    Behaviorally Anchored

    Rating Scale (BARS)

    BARS is a sophisticated method of

    evaluating employee performance based

    on employee behavior rather thanattitudes or assumptions about motivation

    or potential.

    BARS is a difficult and time consuming

    scale to develop. Each job must be analyzed and a list of

    critical incidents developed by experts in

    the job.

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    Behavioral Observation Scale (BOS)

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    Types Of Performance Review

    Closed Reporting. A method of performancereview in which the appraisee has very littleinput into the discussion.

    Open Reporting. A method of performancereview in which after the reporting is completethe appraiser listens to the reactions of theappraisee.

    Coaching. A method of performance review inwhich the appraisee evaluates his or her ownperformance which the appraiser serves ascoach not a critic.

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    Tips for a Successful

    Performance Review

    Give the employee fair notice about when thereview is to take place.

    Ask the employee to think and evaluate his or her

    own performance prior to the review session. Prepare for the review by examining information

    and seek additional information if needed.

    Begin the session on a positive tone to set the

    employee at ease. Explain the format of the performance review

    session.

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    Tips for a Successful Performance

    Review

    Make the employee aware of the uses ofperformance appraisal results.

    If needed set a second meeting to discussnon-performance related issues.

    Encourage the employee to participate.

    Review the standards to which the

    employee will be compared. Make sure to praise the employee for his

    or her accomplishments during theevaluation period.

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    Tips for a Successful Performance

    Review

    High light but do not dwell on areas inwhich performance did not meet the

    standards. Discuss ways to improve performance in

    the areas in which the employee wasweak.

    Make sure that the employee fullyunderstands the appraisal.

    End the discussion on a positive note.

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    Perceptual Errors In

    Evaluation

    Halo Effect

    Stereotyping

    Attributions Recency Effects

    Leniency/StrictnessErrors

    Central TendencyErrors

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    Halo Effect

    The halo effect occurs when the rater

    allows one trait or characteristic either

    positive or negative of the employee tooverride a realistic appraisal of other traits

    or characteristics.

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    Stereotyping

    Stereotyping occurs when the rater places

    an employee into a class or category

    based on one or a few traits orcharacteristics.

    For example an old worker may be

    stereotyped as being slower, more difficult

    to train and unwilling to learn approaches.

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    Attributions

    Another perceptual error that can effect

    the validity of the performance appraisal

    involves the attributions the rater makesabout employee behavior.

    Making an attribution means to assign

    causation for another's behavior.

    For example attribute an employees goodperformance to external or internal causes

    such as luck. Holding an easy job, or

    receiving help from co workers.

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    Recency Effects

    Recency errors occur when performance

    is evaluated based on performance

    information that occurred most recently. Recency errors are most likely to occur

    when there is a long period of time

    between performance evaluations (such

    as a year).

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    Leniency/Strictness Error

    These errors occurs when the ratertends to use one of the extremes of a

    rating scale. In Leniency most of the employees

    receive very favorable ratings.

    Strictness error occurs when the rater

    erroneously evaluates most employeesunfavorably as raters simply wants toappear tough or they may haveunrealistic expectations of performance.

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    Central Tendency Errors

    Central tendencyerror occurs when the rater

    avoids the extremes of the performance

    scale and evaluates most employeessomewhere near the middle of the scale.

    This error results in most employees

    being rated asAverage.

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    Common Problems With Unsuccessful

    Performance Appraisal Systems

    A poorly defined appraisal system

    A poorly communicated appraisal system

    An inappropriate appraisal systemA poorly supported appraisal system

    An unmonitored appraisal system

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    Management Guidelines

    Performance appraisals should be based on athorough job analysis that is current regardingboth JD & JS

    Performance appraisals should be developedfrom the job analysis as input into theperformance appraisal.

    The performance appraisals should evaluate a

    number of specific behaviors. The performance review discussion should be a

    two way communication between theevaluator and the employee.

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    Management Guidelines

    The performance appraisal should be used notonly as a means of evaluating performance butalso as a means of motivating and developing the

    employee. The purpose of the performance appraisal and

    the objectives of the organization must beconsidered carefully before deciding on aperformance appraisal method.

    Training programs should be implemented tohelp raters avoid common perceptual errors inevaluation and help raters with their performancereview/feedback skills.

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    QUESTIONS