Performance Management and Appraisal

"management means, in the last analysis, the substitution of thought for brawn and muscle, of knowledge for folkways and superstition, and of cooperation for force. It means the substitution of responsibility for obedience to rank, and of authority of performance for the authority of rank. Whenever you see a successful business, someone once made a courageous decision.“ 

Peter Drucker

Performance Appraisal

Performance Appraisal means evaluating an employee’s current and/or past performance relative to his or her performance standards.

deficiencies or to continue to perform above par.

Performance appraisal involves:1. Setting work standards2. Assessing the employee’s

actual performance relative to those standards

3. Providing feedback to the employee with the aim of motivating him or her to eliminate performance

Why Appraise Performance• First, from a practical point of view,

most employers still base pay promotional decisions on the employee’s appraisal.

• Second, the appraisal lets the boss and subordinate develop a plan for correcting any deficiencies, and to reinforce the things the subordinate dose right.

• Third, appraisals should serve a useful career planning purpose. They provide an opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses

• Fourth, we’ll see later in this chapter that appraisals play an integral role in the employer’s performance management process.

Techniques for Appraising Performance

• Graphic Rating Scale Method• Alternation Ranking Method• Paired Comparison Method• Forced Distribution Method• Critical Incident Method• Narrative Form • Behaviorally Anchored Rating Scales• Management by Objectives• Computerized and Web-Based Performance

Appraisal• Electronic Performance Monitoring

Graphic Rating Scale Method: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait.

Alternation Ranking Method: ranking employees form best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

©2005 Prentice Hall Inc. All rights reserved.

Graphic Rating Scale

with Space for Comments

Portion of an Administrative Secretary’s Sample Performance Appraisal Form

Source: James Buford Jr., Bettye Burkhalter, and Grover Jacobs, “Link Job Description to Performance Appraisals,” Personnel Journal, June 1988, pp. 135–136.

Performance Management Outline

Performance Management Outline

Source: www.cwru.edu.

Performance Management

Outline (cont’d)

Performance Management

Outline (cont’d)

Source: www.cwru.edu.

Alternation Ranking Scale

Ranking Employees by the Paired Comparison Method

Note: + means “better than.” − means “worse than.” For each chart, add up the number of 1’s in each column to get the highest-ranked employee.

Paired Comparison Method: Ranking employees by Making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Forced Distribution Method: Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories.

Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times

Behaviorally Anchored Rating Scales (BARS): An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.

Management by Objectives: Employers use management by objectives (MBO) for one of two things

Computerized and Web-Based Performance Appraisal

Electronic Performance Monitoring: Having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance.

©2005 Prentice Hall Inc. All rights reserved.

Example of a Behaviorally

Anchored Rating Scale for the Dimension

Salesmanship Skill

Source:Walter C. Borman, “Behavior Based Rating,” in Ronald A. Berk (ed.),

Performance Assessment: Methods and Applications (Baltimore, MD: Johns

Hopkins University Press, 1986), p. 103.

Potential Appraisal Problems

• Unclear Standard• Halo Effect• Central Tendency• Leniency or Strictness• Recency Effects

Unclear Standard: An appraisal that is too open to interpretation.

Halo effect: In performance appraisal, the problem that occurs when a supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits.

Central Tendency: A tendency to rate all employees the same way, such as rating them all average.

Leniency or Strictness: The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.

Recency effects: Means letting what the employee has done recently blind you to what his or her performance has been over the year.

©2005 Prentice Hall Inc. All rights reserved.

A Graphic Rating Scale with Unclear Standards

Table 9–2

Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth?

©2005 Prentice Hall Inc. All rights reserved.

9–19

Advantages and Disadvantages of Appraisal Tools

Table 9–3

Who Should Do the Appraising?• The Immediate

Supervisor• Peer Appraisals• Rating committees• Self-Rating• Appraisal by

Subordinates • 360-Degree

Feedback

The Appraisal Interviews

• An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

Type of Appraisal Interviews

— Satisfactory-problems: the person’s performance is satisfactory and there is a promotion ahead. Your objective is to discuss the person’s career plans and to develop a specific action plan for educational and professional development.

— Satisfactory-Not promotable: is for employees whose performance is satisfactory but for whom promotion is not possible. The objective here is to maintain satisfactory performance.

How to Conduct the Appraisal Interview

• Talk in terms of objective work data• Don’t get personal• Encourage the person to talk• Get agreement

Performance Management

• The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals.

Performance Appraisal Versus Performance

Management• First, performance management never means just meeting

with a subordinate once or twice a year to “review your performance.” it means continuous, daily or weekly interactions and feedback to ensure continuous improvement.

• Second, performance management is always goal-directed. The continuing performance reviews always involve comparing the employee’s or team’s performance against goals that specifically stem from and link to the company’s strategic goals.

• Third, performance management means continuously reevaluating and (if need be) modifying how the employee and team get their work done. Depending on the issue, this may mean additional training, changing work procedures, or instituting new incentive plans, for instance.

) برای نزدیک به PEدر شرکت بوئینگ ارزیابی عملکرد ( نفر پرسنل یک فرآیند روتین است که بطور 108000

سالیانه اجرا میگردد و در آن اهداف کاری افراد مشخص میگردد و میزان موفقیت آنان در رسیدن به این اهداف

تعیین میگردد. اما اخیرا سیستم جدیدی عالوه بر این Integrated Performance Assessment (IPA)تحت عنوان

توسعه یافته است که به ارزیابی عملکرد کارکنان در .مقایسه با همرده های آنان می پردازد

جهت بررسی و ممیزی عملکرد افراد و انجام امر اصالحی فدکس از شیوه های متفاوتی بهره می جوید که مهم ترین آن در شرکت فدرال اکپرس فرایند بازرسی –

)Survey - Feedback – Action – SFA( بازخور – عمل است.

“Performance is your reality. Forget everything else.”

Harold S. Geneen (American Businessman, He was CEO of ITT (International Telephone and Telegraph) (1959-77), 1910-1997)

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