Questions and Answers
What is a Performance Appraisal?
Evaluating an employee's current and/or past performance relevant to his or her performance standards.
What are the steps in the Performance Appraisal Process?
Set work standards, assess the employee's performance on those standards, provide feedback to help or eliminate performance defects.
The main reasons for appraisal performances include pay, promotions, and __________.
retention
What is continuous Performance Management?
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What does 'SMART' stand for in defining employee's goals?
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Who is typically responsible for appraising employees?
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Peer appraisals are uncommon in modern organizations.
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What is a 360-Degree Feedback?
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Which appraisal method involves ranking employees from best to worst?
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What is the purpose of the Forced Distribution Method?
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Self-ratings tend to be lower than supervisor ratings.
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What are the advantages of using Behaviorally Anchored Rating Scales (BARS)?
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What does Management by Objectives (MBO) involve?
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What is a disadvantage of the Graphic Rating Scale?
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What should be avoided during an appraisal meeting?
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What is Turnover in HRM terms?
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Study Notes
Performance Appraisal
- Evaluates an employee's past and present performance relative to set standards.
- Fundamental for making decisions on pay and promotions, and influences employee retention.
Performance Appraisal Process
- Involves setting work standards, assessing performance, and providing constructive feedback to address performance issues.
Importance of Appraisal
- Essential for career planning, identifying training needs, and reinforcing good performance.
- Critical for effectively managing employee performance.
Performance Management
- An ongoing process that involves measuring and developing individual and team performance to align with organizational goals.
Goals and Performance Standards
- Goals should be "SMART": Specific, Measurable, Attainable, Relevant, and Timely.
Setting Effective Goals
- Goals must be specific, measurable, and sufficiently challenging, aligning with job description competencies to enhance employee engagement.
Performance Measurement
- Includes measurable goals such as increasing outreach, sales, and enhancing customer service.
Appraiser Selection
- Immediate supervisors ideally appraise subordinates due to their direct observation of performance.
Peer Appraisal
- In self-managing teams, employees select a chairperson to coordinate peer evaluations, influencing performance assessments.
Rating Committees
- Consist of multiple raters to mitigate biases and provide a comprehensive performance evaluation.
Self-Ratings
- Employees often rate themselves higher than supervisors or peers; however, self-assessment is encouraged for personal insight.
Upward Feedback
- Subordinates anonymously evaluate their supervisors, providing important insights into managerial performance.
360-Degree Feedback
- Collects ratings from various sources (supervisors, subordinates, peers) for comprehensive feedback, though it requires careful implementation and training.
Graphic Rating Scale
- Popular assessment method using a scale to rate employee traits, subject to issues like unclear standards and biases.
Ranking Methods
- Alternation Ranking ranks from best to worst; Pair Comparison involves comparing employees in pairs; Forced Distribution places a predetermined percentage in rating categories.
Critical Incident Method
- Maintains a record of exceptional or undesirable employee behaviors to provide focused feedback during reviews.
Narrative Forms Method
- Combines performance ratings with written examples and improvement strategies, enhancing clarity for employees.
Behaviorally Anchored Rating Scales (BARS)
- Integrates narratives and objective measures using behavioral examples, valued for accuracy and consistency.
Management by Objectives (MBO)
- Establishes specific, measurable goals collaboratively, reviewed periodically for performance tracking.
Electronic Performance Monitoring
- Involves managing employee performance via technology, tracking work metrics through computer access.
Appraisal Method Advantages and Disadvantages
- Graphic Rating Scale: Simple but prone to biases; BARS: Accurate but complex to develop; Alternation Ranking: Simple but may seem unfair; Forced Distribution: Ensures distribution, but depends on cutoff choices.
Performance Appraisal Challenges
- Issues like unclear standards, central tendency in ratings, strictness/leniency biases, and the halo effect can affect appraisal outcomes.
Conducting Effective Appraisals
- Requires preparation through data collection, setting the right environment, and ensuring objectivity during the appraisal meeting.
Turnover Insights
- Turnover incurs significant costs, necessitating a clear understanding of its causes (e.g., job dissatisfaction, poor benefits) and management strategies to enhance retention.
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Description
Test your knowledge on performance appraisal concepts with this HRM 150 quiz. Explore key definitions and processes involved in evaluating employee performance. Perfect for quick review or exam preparation.
