Performance Management and Appraisal After studying this chapter, you should be able to: 1. Evaluate and improve the appraisal form in Figure 9–1. 2. Describe the appraisal process. 3. Develop, evaluate, and administer at least four performance appraisal tools. 4. Explain and illustrate the problems to avoid in appraising performance. 5. List and discuss the pros and cons of six appraisal methods. 6. Perform an effective appraisal interview. 7. Discuss the pros and cons of using different raters to appraise a person’s performance.
Basic Concepts in Performance Management and Appraisal [pic] Why Performance Management? [pic] Defining the Employee’s Goals and Work Standards [pic] Using MBO [pic] Appraising Performance: Problems and Solutions [pic] Appraising Performance: Problems and Solutions (cont’d) [pic] Who Should Do the Appraising? [pic] The Appraisal Interview [pic] The Appraisal Interview (cont’d) [pic] performance appraisal performance management graphic rating scale alternation ranking method paired comparison method orced distribution method critical incident method behaviorally anchored rating scale (BARS) management by objectives (MBO) electronic performance monitoring (EPM) unclear standards halo effect central tendency strictness/leniency bias appraisal interview ———————– Comparing Performance Appraisal and Performance Management Performance Management: An integrated approach to ensuring that an employee’s performance supports and contributes to the organization’s strategic aims.
Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance.
The Performance Management Approach Strategic Focus Appraisal Issues Total Quality Guidelines for Effective Goal Setting Assign Challenging but Doable Goals Assign Measurable Goals Encourage Participation Assign Specific Goals Time-consuming appraisal process Conflict with subordinates over objectives Setting unclear objectives Problems with MBO Bias Central Tendency Potential Rating Scale Appraisal Problems Halo Effect
Leniency or Strictness Unclear Standards Keep a Diary Train Supervisors How to Avoid Appraisal Problems Use the Right Tool Control Outside Influences Know Problems Rating Committee Peers Immediate Supervisor Potential Appraisers 360-Degree Feedback Subordinates Self-Rating Types of Appraisal Interviews Unsatisfactory—Uncorrectable Unsatisfactory—Correctable Satisfactory—Not Promotable Satisfactory—Promotable Guidelines for Conducting an Interview Encourage the person to talk. Don’t get personal. Don’t tiptoe around. Talk in terms of objective work data.
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