Chapter 12 Evaluating Employee Performance Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved

Chapter 12Chapter 12

Evaluating Employee Performance

Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved.

HUMAN RESOURCES MANAGEMENTTempler • Cattaneo • De Cenzo • RobbinsTempler • Cattaneo • De Cenzo • Robbins

John Wiley & Sons Canada, Ltd

Performance Appraisals Performance Appraisals and the Motivation Processand the Motivation Process



Purposes of Performance Purposes of Performance Management SystemsManagement Systems

• Feedback

• Development

• Documentation



Difficulties in Performance Difficulties in Performance Management SystemsManagement Systems

• Focus on the individual

• Focus on the process



Performance Appraisals Performance Appraisals and Employment Equityand Employment Equity

• Must be bias-free, objective, and job-related

• Should be conducted at regular intervals by trained appraisers



The Appraisal ProcessThe Appraisal Process



Appraisal Methods:Appraisal Methods:Absolute StandardsAbsolute Standards

(Employees are measured against a set benchmark)

• Essay appraisal

• Critical incident appraisal

• Adjective rating appraisal

• Forced choice appraisal

• Behaviourally anchored rating scales (BARS)



Sample Checklist Items for Appraising Sample Checklist Items for Appraising Customer Service RepresentativeCustomer Service Representative



Sample of Adjective Rating Sample of Adjective Rating Scale Items and FormatScale Items and Format



Sample BARS for an Sample BARS for an Employee Relations SpecialistEmployee Relations Specialist



Appraisal Methods:Appraisal Methods:Relative StandardsRelative Standards

(Individuals compared to each other)

• Group order ranking

• Individual ranking

• Paired comparison



Appraisal Methods:Appraisal Methods:Management by ObjectivesManagement by Objectives

(Employees evaluated on how well they achieve specific objectives)

Steps of MBO:Steps of MBO:

1.1. Goal setting

2.2. Action planning

3.3. Self-control

4.4. Periodic reviews



Factors Distorting AppraisalsFactors Distorting Appraisals

• Leniency/harshness error

• Halo error

• Similarity error

• Low appraiser motivation

• Central tendency

• Inflationary pressures

• Inappropriate substitutes for performance

• Attribution errors



Factors Leading to More Effective Factors Leading to More Effective Performance Management SystemsPerformance Management Systems

• Behaviour-based measures

• Combination of absolute and relative standards

• Ongoing feedback

• Multiple raters

• Selective rating

• Trained appraisers

• Rewards for accurate appraisers



Conducting the Conducting the Performance Appraisal InterviewPerformance Appraisal Interview

• Prepare for, and schedule, the appraisal in advance

• Create a supportive environment

• Describe the purpose of the appraisal to employees

• Have the employees complete a self-evaluation

• Focus discussion on work behaviour

• Support your evaluation with specific examples

• Give both positive and negative feedback

• Make sure the employees understand what was discussed

• Generate a development plan



Issues in International Issues in International Performance AppraisalPerformance Appraisal

• Who performs the evaluation?

• Which evaluation format will be used?

Documents

Chapter 12 Evaluating Employee Performance Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved