CH. 3 APPROACHES TO APPRAISAL

Author: Dick Grote

Presented by: Nick Grisak and Teresa Castillo

IN THIS CHAPTER WE WILL…

Analyze various approaches based on unique

forms used to appraise performance

With the exceptions of rare cases, each

organization that uses performance appraisals

will have a combination of these approaches

Companies mix-and-match forms to create the

performance appraisal that fits their needs,

values, and culture

Appraisal process—itself—is the most important not the forms used

Many people think strictly of the forms used when referring to performance appraisals simply because they are the most visible example of the process (p.36)

In fact, companies are not legally obligated to create and use performance appraisals

Only that they not commit unlawful discrimination

Forms stand to specify the

values of the company with

it focuses its energies and

weight

-Think: visual report card

(p.36)

-Listing of acceptable

behaviors, processes, and

results the company seeks

to make standard practice

JOB PERFORMANCE MODEL

PERFORMER SITUATION BEHAVIORS RESULTS

Performance appraisal forms focus on Performer,

Behavior, and Results

Situation is taken into account for accuracy and

incorporated into appraisal summary (if need be) but not

included on the form (p. 39)

Example: Salesman “exceeding” quota given market

changes

PERFORMER-FOCUSED APPROACH

Focuses only on an individual’s traits and personal characteristics to gain satisfactory job performance

Does not ask:

What does his/her job entail?

What results are being generated?

Simple check mark or rating scale to indicate the degree of the trait

Example of purest appraisal form (p.41)

THE GOOD AND BAD OF TRAIT-BASED

Pros:

Ease of construction: check, check

Ensure individuals meet the culture of the company

Hiring decisions: “What are we looking for in an

employee?”

THE GOOD AND BAD OF TRAIT-BASED

Cons:

Whether one exhibits a traits tells little about how

they will perform a task

No usable data for change in employee

performance

Does not accurately convey the importance of some

tasks over others

Would not survive legal scrutiny

Impossible to demonstrate validity and reliability

BEHAVIOR-BASED APPRAISAL

Concentrates on behaviors, competencies, and

skills to assess what the employee does.

B.A.R.S (Behaviorally Anchored Rating Scale):

Developed in 1963 by Nat’l League of Nursing

Identify specific factors to be assessed, catalog

descriptions and dimensions of job, and scale

rating in accordance to quality of performance

Scale from superior performance (5) to non-existent

(1), for example

Pros:

Contains no judgment for performance: performance is identified among listing of possible behaviors

People feel the appraisal system is fair—employees and employer work together to determine criteria

High reliability and validity

Sparks conversation with discussion of behavior—greater effect on change

Immediate performance improvements

Cons:

Hard to identify middle ground for performance

Identifying complete dimensions with no overlap

Requires keeping logs of each employees

behavior—time extensive

Expensive

Appraisal training to fine tune behavioral

observations and opinions

RESULTS-FOCUSED APPRAISAL

Management by objectives (MBO)

Most common results-based approach.

More of an Organization's philosophy of

management

Set of beliefs about how an enterprise should be

organized, managed, and controlled.

MBO emphasizes predicting and influencing the

future rather than responding to the past.

Eight major steps to the MBO process

1. Long range goals and strategic plans

Involves an investigation of the organization’s strengths,

weaknesses, opportunities, and threats. From this comes

the mission statement!

2. Develop Organizational Objectives

Objectives are in key areas of productivity, profitability,

market share, etc.

MBO CONTINUED

MBO CONTINUED

3. Establish objectives for major units

Each department should create their own objectives that

are very specific as to how they will help achieve the

organization’s objectives.

4. Set realistic and challenging objectives

and standards of performance.

All personnel should establish their own goals and

objectives and relate to department’s goals.

MBO CONTINUED

5. Action plans for achieving stated goals

Establish how the goals from step 4 will be acheived. This

includes determining major activities, identifying resources

needed, and creating checkpoints and deadlines.

6. Implement action plans and corrective

action

Managers should give freedom to their subordinates to try

to achieve their own goals on their terms. Managers should

be supportive and offer guidance rather than direct them.

MBO CONTINUED

7. Periodically review performance

Compare performance to the goals and give feedback

periodically. Meaning, review performance more than once

a year.

8. Appraise overall performance, reinforce

behavior, and strengthen motivation

Appraise overall performance at the end of the term and

measure achievement and success of individuals.

RESULTS-FOCUSED APPRAISAL

Accountabilities and Measures Approach

This form of results-focused appraisal is conducted with upper management determining objectives for job incumbents.

Consists of a new job description, a new weekly activity report, and predetermined measures used to assess individuals performance.

No negotiations of objectives

Seems rigid but because of the rigidity, managers know what is expected.

ADVANTAGES OF RESULTS-BASED APPRAISAL

1. Improved short and long term planning

2. Focus on results, communicates to all members

the importance of achieving results

3. More effective performance

4. Accepted as fair

5. Results in increased commitment to organization

6. Leads to improved clarity of role

7. Highly defensible

DISADVANTAGES OF RESULTS-BASED

APPRAISAL

1. Excessively results oriented

2. Inflexible

3. Not easy to create or use

4. May not provide incentive for improvement

5. May not fit all aspects of a job

GLOBAL PERFORMANCE APPRAISAL

Simplest of all appraisal systems

Essay based describing strengths and weaknesses,

achievements, and development needs

GLOBAL PERFORMANCE APPRAISAL

1. Appraisers must be skilled in how to observe

behavior and skilled essayists

2. Suffer from lack of reliability and validity

3. Susceptible to rater error

4. Information gathered is only useful to ratee

5. Qualitative