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PERFORMANCE APPRAISAL (Management)

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Chapter Objectives

Define performance appraisal and identify the uses of performance management

Describe the performance appraisal process

Identify the various performance appraisal methods used

The reason behind appraisal discomfort Explain the characteristics of an effective

appraisal system

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Chapter Objectives (Continued)

Describe the legal implications of performance appraisal.

Discuss the responsibility of performance appraisal

Explain how the appraisal interview should be conducted.

Interview with Human Resources Manager about Performance Management Systems

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Performance Appraisal Defined

System of review and evaluation of job performance

Assesses accomplishments and evolves plans for development

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Performance Management

Process that significantly determines how organization performs

Managers and employees work together to set expectations, review results and reward performance.

Platform for assessing individual and team performance

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Appraiser Discomfort Performance appraisal

process cuts into manager’s time

Experience can be unpleasant when employee has not performed well

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Employee Anxiety

Creates anxiety for appraised employee

Rationale for Performance Appraisal

Provides legal and other benefits for employers

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Uses of Performance Appraisal

Human resource planning Recruitment and selection Training and development Career planning and development Compensation programs Internal employee relations Assessment of employee potential

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Performance Appraisal ProcessPlan the Performance

Identify Performance Goals Communicate Goals

Establish Performance Criteria

Determine: Responsibility for Appraisal

Appraisal Period Appraisal Method(s)

Computer Software

Examine Work Performed

Appraise the Results

Conduct Appraisal Interview Discuss Goals for Next Period

Anticipate and Consider Problems in PA Effective PA Systems

Management Support Coaching and T&D

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Responsibility for Appraisal Immediate supervisor Subordinates Peers Self-appraisal Customer appraisal

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Performance Appraisal Methods

360-Degree Feedback Rating Scales Critical Incidents Essay Work Standards Ranking

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The Appraisal Period Prepared at specific

intervals Usually annually or

semiannually Period may begin with

employee’s date of hire All employees may be

evaluated at same time

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Effective Appraisal System

Job-related criteria Performance expectations Standardization Trained appraisers Continuous open communication Performance reviews Due process

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Legal Implications

Adverse impact on protected classes The controlling of subordinate career Should have someone review and approve

appraisals The rater must have personal knowledge

of employee’s performance The appraisal system must use

predetermined criteria

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The Appraisal Interview

Scheduling the interview

Interview structure Use of praise and

criticism Employees’ role Concluding the

interview