Performance Management & Appraisal, Part I

• The purposes and requirements of an effective performance management and appraisal system

• Legal and strategic issues in performance appraisal

• Appraisal formats: Advantages and disadvantages

Performance Management & Appraisal

• Performance management– Defines

performance– Facilitates

Performance– Encourages

performance

• Performance Appraisal– Measures

performance– Evaluates

performance– Feeds back the

evaluation

Legal & Strategic Issues

• Legal issues– Performance appraisal is open to

adverse impact– Criteria must be applied equally

• Strategic issues– Organizations get what they reward– Need to align strategy with performance

management system

Using Performance Appraisal

• Developmental– Improving performance– Career development

• Administrative– Salary decisions– Promotion– Retention

Relative & Absolute Judgments

• Relative– Ranking– Forced distribution

• Absolute– Graphic rating scales– Behavioral checklists– Critical incidents

Scale FormatsGraphic Rating Scale

Quality of Work

1 2 3 4 5 Poor Below Average Good Excellent Average

Graphic Rating Scaleclearer anchors Quality of Work

1 2 3 4 5 Frequent Passable Usually Errors Accurate Errors accurate rare

Trait and Behavioral Data

• Traits– Personality– Individual traits

• Behavioral data– BARS (create dimensions, write critical

incidents, rate critical incidents, form scales with incidents as anchors

– BOS

Scale Formats

Behaviorally Anchored Rating Scale For Supervision

5: Can train and develop subordinates

4: Exhibits respect towards subordinates

3: Critical of personnel in front of others

1: Reneges on promises

2: Sets a poor example

Outcome Data

• Meeting goals

• Quantitative data– sales– scrappage– productivity

Backwards & Forwards• Summing up: We began with distinguishing

performance management from performance appraisal. Legal and strategic issues were considered and the balance of the session reviewed different rating formats,

their advantages and disadvantages.• Looking ahead Next time we complete our discussion of

performance management by looking at challenges to effective performance management, the appraisal interview, motivation, and performance improvement.