Appraisal for HR

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Appraising Workrelated performance

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Performance Appraisal

After employees have been on the job for some time,

you should appraise their performance.

The purpose of this lecture is to cover the

performance appraisal process, appraisal methods,

appraisal performance problems and solutions,

performance management, and the appraisal interview.

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93

Basic Concepts in PerformanceManagement and Appraisal


Setting workstandards, assessing

performance, and

providing feedback to

employees to

motivate, correct, and

continue their

performance.

Performance

Management

An integrated

approach to ensuring

that an employees

performance supports

and contributes to the

organizations

strategic aims.


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Every manager needs some way to appraise employees

performance. If employees performance is good, youll want toreinforce it, and if its bad, youll want to take corrective action.

Performance appraisal means evaluating an employees

current and/or past performance relative to his or her

performance standards.

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Every manager needs some way to appraise employees

performance. If employees performance is good, youll want to

reinforce it, and if its bad, youll want to take corrective

action.

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Performance appraisal

Performance appraisal means evaluating an employees

current and/or past performance relative to his or herperformance standards.

Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 96


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Defining the Employees Goalsand Work Standards

Set

SMART

goals

Assign

challenging/

doable goals

Assign

specific

goals

Guidelines for Effective

Goal Setting

Assign

measurable

goals

Encourage

participation


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Setting SMART Goals

Specific, and clearly state the desired results.

Measurable in answering how much.

Attainable, and not too tough or too easy.

Relevant to whats to be achieved.

Timely in reflecting deadlines and milestones.


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Appraisals

Appraisals have several purposes that relate both to the

appraised employee and the organization.

It doesnt matter which tool you use if youre less than

candid when your subordinate is underperforming. A

supervisor who rates an employee too high is doing adisservice to them and to the company.

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Theres nothing worse than telling someone whos doing a

mediocre job that he or she is doing well.

Supervisors must therefore be familiar with appraisal

techniques, understand and avoid problems that cancripple appraisals, and know how to conduct appraisals

fairly.

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An Introduction to Appraising Performance

1

Is useful in career planning.

Plays an integral role in performance management.

Why Appraise Performance?

Is basis for pay and promotion decisions.

Helps in correcting deficiencies and reinforcing good

performance.

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3

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Performance Appraisal Roles

The Supervisors Role

Usually do the actualappraising

Must be familiar with basic

appraisal techniques

Must understand and avoid

problems that can cripple

appraisals

Must know how to conduct

appraisals fairly


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HR Policy making

The human resources department serves a policy-making

and advisory role.

The human resource team should also be responsible for

training supervisors to improve their appraisal skills, formonitoring the appraisal systems effectiveness, and for

ensuring that it complies with appropriate equality laws.

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Performance Appraisal Roles (contd)

The HR Departments Role

Serves a policy-making and advisory role.

Provides advice and assistance regarding the appraisal tool to use.

Trains supervisors to improve their appraisal skills.

Monitors the appraisal system effectiveness and compliance with

EEO laws.


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915

Effectively Appraising Performance

1

Appraising performance

Steps in Appraising Performance

Defining the job and performance criteria

Providing feedback session

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Appraisals

Effective appraisals should follow these three steps.

The manager generally conducts the actual appraisal usinga predetermined and formal tool like one or more of those

described next.

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Appraisals

The two basic questions in designing the actual appraisal

tool are

what to measureand

how to measure it.

Appraising performance requires choosing an appraisal

tool, form, or methodology that provides an effectivemeans for comparing a subordinates actual performance

to the standards for his or her job.

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Designing the Appraisal Tool

What to Measure?

Work output (quality and quantity)

Personal competencies

Goal (objective) achievement

How to Measure?

Generic dimensions

Actual job duties

Behavioral competencies


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Performance Appraisal Methods

1

2

3

4

5

Alternation ranking

Graphic rating scale

Paired comparison

Forced distribution

Critical incident

6

7

8

9

10

Behaviorally anchored rating

scales (BARS)

Narrative forms

Management by objectives (MBO)

Computerized and Web-based

performance appraisal

Merged methods

Appraisal Methodologies


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Written Appraisal

All or part of the written appraisal may be in narrative form

as shown in Figure 9-7 which follows .

The supervisors narrative assessment aids the employee

in understanding where his or her performance was good

or bad, and how to improve that performance.

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FIGURE 97

Appraisal-Coaching

Worksheet


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MBO

Employers use management by objectives (MBO) for one of

two things.

Many use it as the primary appraisal method.

Others use it to supplement to a graphic rating or otherappraisal method.

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MBO

MBO generally refers to the comprehensive and formal

organization wide goal-setting and appraisal program.

In using MBO, it is best to keep the guidelines for goalsetting (SMART, specific, and so on) in mind.

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Setting objectives with the subordinate sometimes turnsinto a tug-of-war, with the supervisor pushing for higher

quotas and the subordinate pushing for lower ones.

The more that is known about the job and the persons

ability, the more confident a supervisor can be aboutsetting standards.

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Management by Objectives (MBO)

A comprehensive and formal organizationwide

goal-setting and appraisal program requiring:

1. Setting of organizations goals

2. Setting of departmental goals

3. Discussion of departmental goals

4. Defining expected results (setting individual goals)

5. Conducting periodic performance reviews

6. Providing performance feedback


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Using MBO

Setting unclear

objective

Conflict with

subordinates over

objectives

Potential Problems with MBO

Time-consuming

appraisal process


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Computerized and Web-BasedPerformance Appraisal Systems

Allow managers to keep notes on subordinates.

Notes can be merged with employee ratings.

Software generates written text to support appraisals.

Allows for employee self-monitoring and self-evaluation.

Electronic Performance Monitoring (EPM) Systems

Use computer network technology to allow managers access to

their employees computers and telephones. Managers can monitor the employees rate, accuracy, and time

spent working online.


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Dealing with PerformanceAppraisal Problems

Unclear

standards

Leniency or

strictness

Halo

effect

Potential Rating Scale

Appraisal Problems

Central

tendencyBias


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Unclear standards problem.

Table 9-2 which follows illustrates the unclear

standards problem. This graphic rating scale seems objective. However, it

would probably result in unfair appraisals, because the

traits and degrees of merit are ambiguous.

The best way to fix this problem is to include descriptivephrases that define or illustrate each trait.

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930

TABLE 92 A Graphic Rating Scale with Unclear Standards


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Guidelines for Effective Appraisals

Know the

problems

Get

agreement on

a plan

Use the

right tool

How to Avoid

Appraisal Problems

Keep a

diary

Be

fair


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Using the right appraisal toolorcombination of tools.

Each has its own pros and cons. For example, the ranking method avoids central tendency but

can cause bad feelings when employees performances are

in fact all high.

Table 9-3 which follows summarizes each tools pros andcons.

In practice, employers choose an appraisal tool based on

several criteria.

Accessibility and ease-of-use are probably first. Employers (and supervisors) prefer to avoid thepush-back

from employees who resist certain appraisal methods.

For other employers, accuracyis a great concern.

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TABLE 93 Important Advantages and Disadvantages of Appraisal Tools

Tool Advantages Disadvantages

Graphic rating scale Simple to use; provides a quantitative

rating for each employee.

Standards may be unclear; halo

effect, central tendency, leniency,bias can also be problems.

BARS Provides behavioral anchors. BARS

is very accurate.

Difficult to develop.

Alternation ranking Simple to use (but not as simple as

graphic rating scales). Avoids central

tendency and other problems of rating

scales.

Can cause disagreements among

employees and may be unfair if all

employees are, in fact, excellent.

Forced distribution

method

End up with a predetermined number

or % of people in each group.

Employees appraisal results

depend on your choice of cutoff

points.

Critical incident

method

Helps specify what is right and

wrong about the employees

performance; forces supervisor toevaluate subordinates on an ongoing

basis.

Difficult to rate or rank employees

relative to one another.

MBO Tied to jointly agreed-upon

performance objectives.

Time-consuming.


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Choosing the Right Appraisal Tool

Accessibility AccuracyEase-of-useEmployee

acceptance

Criteria for Choosing an

Appraisal Tool


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Best Practice

One study found that a number of best practices, such

as have an appeal mechanism, distinguish fairappraisals.

Figure 9-10 which follows summarizes these.

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Who Should Do the Appraising?

Self-rating

Subordinates

360-degree

feedback

PotentialAppraisers

Immediate

supervisor

Peers

Rating

committee


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937

The Appraisal Interview

SatisfactoryPromotable

SatisfactoryNot Promotable

UnsatisfactoryCorrectable

UnsatisfactoryUncorrectable

Types of AppraisalInterviews


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Form

Figure 9-12 which follows presents a form that can be

used when the persons performance is unsatisfactory

but correctable and the interview objective is to lay out anaction plan for correcting the unsatisfactory performance.

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FIGURE 912 Sample Employee Development Plan


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4 things

These are four main things to keep mind when actually

conducting the interview.

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Appraisal Interview Guidelines

Talk in terms of

objective work

data

Get

agreement

Dont get

personal

Encourage the

person to talk

Guidelines for Conducting

an Interview

Documents

Appraisal for HR