Performance Appraisal Methods Quiz

Human Resource Management - Chapter 9: Performance Management and Appraisal

• The chapter focuses on performance management and appraisal, part of training and development within human resource management.
• The text outlines the progression of employee management, from recruitment and training to appraisal and reward, emphasizing the role of human resources in global and entrepreneurial environments.
• Performance Management is a continuous process for identifying, measuring, and developing individual and team performance, aligning it with organizational goals.
• Performance management differs from performance appraisal in its continuous nature, strong linkage of individual and team goals to broader strategic goals, and continuous reevaluation and modifications to work processes.
• Core building blocks of performance management include direction sharing, goal alignment, ongoing feedback, coaching and development support, ongoing performance monitoring, and rewards, recognition, and compensation.

Learning Outcomes

• Define performance management and highlight its distinctions from performance appraisal.
• Establish effective performance appraisal standards.
• Detail the performance appraisal process.
• Develop, evaluate, and implement at least four performance appraisal tools.
• Explain and illustrate problems to avoid during performance appraisals.
• Discuss the advantages and disadvantages of using various raters for performance appraisal.
• Execute an effective performance appraisal interview.

Basic Concepts

• Performance Appraisal: The process of setting work standards, evaluating performance, and providing feedback to motivate, correct, and maintain employee performance.
• Performance Management: An integrated approach to ensure employee performance supports organizational strategic aims.

Defining Performance Goals and Work Standards

• SMART Goals: Specific, Measurable, Achievable, Relevant, and Timely goals are crucial for effective performance management.
• Effective goal setting is crucial for successful appraisal.

Unrealistic Appraisals

• Soft appraisals are appraisals that avoid critical evaluation and may obscure or avoid true issues.
• Hazards of soft appraisals include an employee losing the opportunity for improvement before dismissal and potential legal issues arising from inaccurate appraisals.

Performance Appraisal Roles

• Supervisor's Role: Conducting appraisals, familiarity with appraisal techniques, and knowledge of appraisal procedures.
• HR Department's Role: Policy-making, advisory services for appraisal tools, training supervisors, and monitoring appraisal system effectiveness, ensuring compliance with laws.

Effectively Appraising Performance

• Steps in appraising performance: Defining the job and its criteria, evaluating the performance of employees, and providing employee feedback.

Designing the Appraisal Tool

• Traits to measure: Work output, quality and quantity, personal competencies, and goal achievement.
• Methods of Measurement: Generic dimensions, actual job duties, and behavioral competencies.

Performance Appraisal Methods

• Various methods for performance appraisal, such as graphic rating scale, alternation ranking, paired comparison, forced distribution, critical incident, behaviorally anchored rating scales (BARS), Management by Objectives (MBO), Computerized and Web-based performance appraisal, and merged methods.

Graphic Rating Scale

• Utilizes a scale to assess traits and performance, with values ranging from unsatisfactory to outstanding or below/role model expectations.

Application Examples

• Appraisal form examples illustrated the specific duties for the job (pizza chef) with criteria and evaluation categories for proper job appraisal and performance management.
• A comprehensive performance appraisal form assesses both competencies (e.g., problem-solving, teamwork) and specific objectives.

Management by Objectives (MBO)

• A comprehensive, organization-wide goal-setting and appraisal program that involves: setting organizational goals, departmental goals, departmental goal discussions, setting individual goals, conducting performance reviews, and providing performance feedback.
• Potential problems with MBO: unclear objectives, time-consuming appraisal process, conflicts over objectives.

Computerized and Web-Based Systems

• Automated appraisal systems help managers record notes on subordinates, combine notes with employee ratings, facilitate written appraisals, support employee self-monitoring, and self-evaluation.
• Electronic Performance Monitoring (EPM) systems allow for real-time performance monitoring, including the amount of time, accuracy, and location spent working.

Dealing with Appraisal Issues

• Potential rating scale appraisal problems: unclear standards, halo effect (positive or negative bias), central tendency (avoiding extreme ratings), leniency/strictness, and bias.
• Guidelines for avoiding appraisal problems include understanding the problems, using the right tools, keeping a diary, agreeing on a plan, and maintaining fairness.

Choosing the Right Appraisal Tool

• Criteria for selecting an appraisal tool: accessibility, ease of use, employee acceptance, and accuracy.

Administering Fair Appraisal

• Best practices for fair performance appraisals: Use job analysis for standards, base feedback on observable behaviors, establish clear expectations ahead of time, have a standard process for all, ensure consistent observation, utilize multiple raters, document appraisals, discuss results with the employee, plan a conduct, give input to the employee, address employee needs for improvement, and properly train supervisors.

Who Should Do The Appraising?

• Various parties can do the appraising, including the immediate supervisor, peers, subordinates, rating committees, and self-rating. These systems may be combined to provide 360-degree feedback.

Appraisal Interview

• Interview types for appraisals: Satisfactory—Promotable, Satisfactory—Not Promotable, Unsatisfactory—Correctable, Unsatisfactory—Uncorrectable.

Employee Development Plan

• This plan enables employee growth and alignment with company objectives. It involves listing key business objectives, position core competencies, identifying competency gap areas, outlining action plans, setting a schedule for closing the gaps, and utilizing the plan in the manager/employee review process.

Appraisal Interview Guidelines

• Talk about objective work data, avoid personal matters, encourage the appraises to express thoughts, and reach an agreement on the appraisal.

Checklists During the Appraisal Interview

• Checklist items ensure thoroughness in addressing all key components of the employee appraisal interview to ensure clarity and to measure success.

Using Information Technology for Performance Management

• IT tools can allocate team and individual goals. Using scorecards, software, and/or dashboards to monitor and assess performance continually. Quickly taking corrective action as well.

Performance Management Report

• Detailed information on individual and group performance within a specific timeframe and department.

Key Terms

• Definitions of key terms (performance appraisal, graphic rating scale, alternation ranking, paired comparison, etc.)