HRM 150 Performance Appraisal Quiz

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.