12–1
Supervision in Organizations
Chapter 12
Appraising Employee Performance
11–2
12–3
Learning OutcomesAfter reading this chapter, I will be able to:
1. Describe the purposes of the performance appraisal.
2. Identify the performance appraisal process
3. Explain the different types of measurement tools
4. Distinguish human errors that can distort performance appraisal ratings.
5. Describe key legal concerns with performance appraisals.
Performance Appraisal defined….
• Performance Appraisal:
A tool that reviews past job performance, emphasizing positive accomplishments as well as deficiencies, as a means for helping employees improve future performance.
• Purposes: Feedback Raises Development Documentation (Termination)
12–4
12-5
Appraisal Process
1. Establish performance appraisal standards
2. Mutually set measurable goals
3. Measure actual performance
AND….
12-6
Appraisal Process cont…
4. Compare actual with standard
5. Discuss appraisal with employee
6. Corrective actionBasic Immediate
Measurement Tools
• Focus of the measureTrait, behavior, or outcome
• Type of judgment requiredRelative, absolute, or outcome
12-6
Focus: Trait, Behavior, & Outcome
• Trait An appraisal tool that asks a supervisor to make judgments about
worker characteristics that tend to be consistent and enduring.Ex. Dependable, confident, loyal
• Behavior An appraisal tool that asks managers to assess a worker’s
behaviors. Ex. Average number of sales calls
• Outcome An appraisal tool that asks managers to assess the results achieved
by workers. Ex. Overall sales volume, new accounts
12-8
Sample Trait ScalesRate each worker using the scales below.
Dependable:1 2 3 4 5 6 7Very low Moderate Very high
Reliability:1 2 3 4 5 6 7Very low Moderate Very high
Energy:1 2 3 4 5 6 7Very low Moderate Very high
Loyalty:1 2 3 4 5 6 7Very low Moderate Very high
Judgment: Absolute, Relative, or Objective
Absolute “Supervisors make judgments about an employee’s
performance based solely on performance standards”
Relative “Compares an employee's performance to the performance of
other employees doing the same job”Objective “Measurement against a goal established between the supervisor
and employee”
Appraisal criteria, methods, and documentation must be job related!!!
12–10
11
Absolute Standard Approaches
• Essay
• Critical incident
• Checklist
• Adjective rating scale
12-12
Absolute: ESSAYS
• Simplest Approach Write a narrative
describing the Strengths Weaknesses Potential Suggestions for
improvement
• Results reflect the ability of the writers
12-13
Absolute: CRITICAL INCIDENT
• Essay about what was most effective or ineffective in a key job situation
• Focus on behavior, not personality
• Time-consuming
12-14
Absolute: CHECKLIST
• Yes or No• Predefined behaviors
or qualities• Items may be
irrelevant
12-15
Absolute: ADJECTIVE RATING SCALE
• Oldest & most popular approach
• Factors present Job knowledgeCooperationQuality and quantity
of work
• 5 to 10 points on a continuum
12-16
Sample Adjective Rating Items and Format
12-17
Relative Standards
• Group order rankingQuartiles
• Individual rankingBest to worst
• Paired comparison Similar to job rankingCompare each one to
all others
12-18
Objective: MANAGEMENT BY OBJECTIVE (MBO)
• STEPS• Goal setting• Action planning• Self control• Periodic review
?
12-19
Objective: MBO ISSUES
• AdvantagesResults orientedCommitment
• ProblemsTrust needed
• SatisfactionTime-consuming Important to follow-upFrustration builder
Human Errors & Appraisals
12-20
• Halo EffectTendency to rate employee high or low on
all factors
• SimilarityGiving special consideration to qualities
that appraisers perceive in themselves
• RecencyGives greater importance to job behaviors
near the end of the measurement period
• Central tendencyThe reluctance to assign extreme ratings
12-20
Tips for Legal Performance Appraisal
• Focus on behavior, not the individual
• Bias Free – remember Appraisal Errors
• Consistent / Continuous Feedback
• Document ~ Document ~ Document
• Do you have what you need for Fact Finding?
• Published appraisal procedures = Binding contract in court
12-21
During Evaluation Meeting
First ask for employee comments and suggestions
Be sincere, stay job oriented and objective
Summarize previous memos/suggestions
Suggest new approaches with timelines
Use good 2-way communicationsActive listening, paraphrasing and restating
Use different approach for different employees
12-22
After Evaluation Meeting
Finalize Form - Add your comments and signature
Give to employee for comments and signature Give copy to supervisor for review Give copy to employee Send signed original to Human Resources for
employee file Set date for planning meeting for next year
How to Determine and Remedy Performance Shortfalls
Cause Questions to Ask
Ability
Effort
Situation
Possible Remedies
•Has the worker ever beenable to perform adequately?
•Can others perform the jobadequately, but not this worker?
• Is the worker’s performance level declining?
• Is performance lower on all tasks?
• Is performance erratic?•Are performance problemsshowing up in all workers,even those who have adequatesupplies and equipment?
•Train•Transfer•Redesign job•Terminate•Clarify linkage betweenperformance and rewards
•Recognize good performance
•Streamline work process•Clarify needs to suppliers•Change suppliers•Eliminate conflicting signals or demands
•Provide adequate tools
12-23