Performance
9 Management and
Appraisal
Copyright © 2013 Pearson Education Chapter 6-1
Learning Objectives
1. Define performance management
and discuss how it differs from
performance appraisal.
2. Describe the appraisal process.
3. Set effective performance appraisal
standards.
Copyright © 2013 Pearson Education Chapter 9-2
Learning Objectives
4. Develop, evaluate, and administer
at least four performance appraisal
tools.
5. Explain and illustrate the problems
to avoid in appraising performance.
Copyright © 2013 Pearson Education Chapter 9-3
Learning Objectives
6. Discuss the pros and cons of using
different raters to appraise a
person’s performance.
7. Perform an effective appraisal
interview.
Copyright © 2013 Pearson Education Chapter 9-4
Define performance
management and discuss
how it
differs from performance
appraisal.
Copyright © 2013 Pearson Education Chapter 9-5
Basic Concepts In Performance
Management and Appraisal
• The performance appraisal process
• Why appraise performance?
• The importance of continuous
feedback
• Performance management
o Definition
Copyright © 2013 Pearson Education Chapter 9-6
Review
• The process
• Why do it?
• Continuous feedback
• Performance management
Copyright © 2013 Pearson Education Chapter 9-7
Describe the appraisal
process.
Copyright © 2013 Pearson Education Chapter 9-8
The Performance Appraisal
Process
• Why appraise performance?
• Continuous feedback
• Performance management
Copyright © 2013 Pearson Education Chapter 9-9
Review
• Pay and promotions
• Planning
• Career planning
• Training and development
• Ongoing feedback
• Teamwork and change
Copyright © 2013 Pearson Education Chapter 9-10
Set effective performance
appraisal standards.
Copyright © 2013 Pearson Education Chapter 9-11
Employee’s Goals and
Performance Standards
• HR in practice: how to set effective
goals
o Assign specific goals
o Assign measurable goals
o Assign challenging but doable goals
o Encourage participation
Copyright © 2013 Pearson Education Chapter 9-12
Employee’s Goals and
Performance Standards
• Basing appraisal
standards on
required
competencies
• The role of job
descriptions
Copyright © 2013 Pearson Education Chapter 9-13
Who Should Do the Appraising?
• Peer appraisals
• Rating committees
• Self-ratings
• Appraisal by subordinates
• 360-degree feedback
Copyright © 2013 Pearson Education Chapter 9-14
Techniques for Appraising
Performance
• Graphic rating
scale method
• What to rate?
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Review
• Effective goals
• Competencies
• Job descriptions
• Appraisers
Copyright © 2013 Pearson Education Chapter 9-16
Develop, evaluate, and
administer at least four
performance appraisal tools.
Copyright © 2013 Pearson Education Chapter 9-17
Performance Appraisal
Tools
• Alternation ranking
• Paired comparison
• Forced distribution
• Critical incident
• Narrative forms
• Behaviorally Anchored Rating Scales
(BARS)
Copyright © 2013 Pearson Education Chapter 9-18
Performance Appraisal
Tools
• Mixed standard scales
• Management by objectives (MBO)
• Computerized and web-based
performance appraisal
• Electronic performance monitoring
(EPM)
Copyright © 2013 Pearson Education Chapter 9-19
Review
• Alternation • BARS
• Pairs • Scales
• Distribution • MBO
• Incidents • Computerized
• Narratives • EPM
Copyright © 2013 Pearson Education Chapter 9-20
Explain and illustrate the
problems to avoid in
appraising performance.
Copyright © 2013 Pearson Education Chapter 9-21
Dealing with Appraisal
Problems and Interviews
• Potential appraisal problems
o Unclear standards
o Halo effect
o Central tendency
o Leniency or strictness
o Recency effects
o Bias
Copyright © 2013 Pearson Education Chapter 9-22
Review
Halo
Effect Bias
Central
Unclear
Tendency
Standards
Leniency/
Recency Strictness
Effect
Copyright © 2013 Pearson Education Chapter 9-23
Discuss the pros and
cons of using different
raters to appraise a
person’s performance.
Copyright © 2013 Pearson Education Chapter 9-24
Guidelines for Effective
Appraisals
• Know the problems
• Use the right tool
• Keep a diary
• Get agreement on a plan
• Ensure fairness
• Appraisals and the law
Copyright © 2013 Pearson Education Chapter 9-25
Review
• Problems
• Tools
• Records
• Fairness
• Legal
• Ethics
Copyright © 2013 Pearson Education Chapter 9-26
Perform an effective
appraisal interview.
Copyright © 2013 Pearson Education Chapter 9-27
Managing the Appraisal
Interview
• Types of appraisal interviews
• How to conduct the appraisal
interview
o Objective data
o Don’t get personal
o Encouragement
o Agreement
Copyright © 2013 Pearson Education Chapter 9-28
Managing the Appraisal
Interview
• Handling a defensive subordinate
• Criticizing a subordinate
• The formal written warning
• Realistic appraisals
Copyright © 2013 Pearson Education Chapter 9-29
Performance Management
• Performance management vs.
appraisals
• Information technology
• Talent management
• Appraisal and active management
• Segmenting employees
Copyright © 2013 Pearson Education Chapter 9-30
Performance Management
Summary
• Direction sharing
• Goal alignment
• Ongoing performance monitoring
• Ongoing feedback
• Coaching and developmental
• Recognition and rewards
Copyright © 2013 Pearson Education Chapter 9-31
Review
• Type of interviews
• Defensiveness
• Criticism
• Warnings
• Realism
• Performance management vs. appraisals
• Talent management
Copyright © 2013 Pearson Education Chapter 9-32
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Copyright © 2013 Pearson Education Chapter 9-33
