ls 7 ch 9 mgt351 qti.pptx
- 1. 1– 1 MGT-351 Human Resource Management Chapter-9 Performance Management and Appraisal
- 2. 9–2 Basic Concepts in Performance Management and Appraisal Performance Appraisal: Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance. 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 Comparing Performance Appraisal and Performance Management
- 3. 9–3 Defining the Employee’s Goals and Work Standards Assign Specific Goals Encourage Participation Assign Measurable Goals Assign Challenging but Doable Goals Guidelines for Effective Goal Setting
- 4. 9–4 Effective goals are SMART • SMART Goals: ⮚ Specific, and clearly state the desired results. ⮚ Measurable in answering “how much.” ⮚ Attainable, and not too tough or too easy. ⮚ Relevant to what’s to be achieved as per org goal. ⮚ Timely in reflecting deadlines and milestones.
- 5. 9–5 Who should do the Performance Appraisal? • Supervisors/ Line Manager ⮚ Usually do the actual appraising. ⮚ Must be familiar with basic appraisal techniques. ⮚ Must understand and avoid problems that can cripple appraisals. ⮚ Must know how to conduct appraisals fairly.
- 6. 1. PEER APPRAISALS: With more firms using self-managing teams, appraisal of an employee by his or her peers peer appraisal is popular. Employees seem to be motivated to meet their colleagues expectations. 2. RATING COMMITTEES A rating committee is usually composed of the employee s immediate supervisor and three or four other supervisors. 3. SELF-RATINGS Some employers obtain employees self-ratings, usually in conjunction with supervisors ratings. 4. APPRAISAL BY SUBORDINATES Many employers have subordinates rate their managers, usually for developmental rather than for pay purposes. Anonymity affects the feedback. 5. 360-DEGREE FEEDBACK With 360-degree feedback, the employer collects performance information all around an employee from his or her supervisors, subordinates, peers, and internal or external customers for developmental purpose. © 2008 Prentice Hall, Inc. All rights reserved. 9–6
- 7. 9–7 Performance Appraisal Roles (cont’d) • The HR Department ⮚ Serves a policy-making and advisory role. ⮚ Provides advice and assistance regarding the appraisal tool to use. ⮚ Trains supervisors to improve their appraisal skills. ⮚ Monitors the appraisal system effectiveness and compliance with EEO laws.
- 8. 9–8 An Introduction to Appraising Performance 1 Is useful in career planning. Plays an integral role in performance management. Why Appraise Performance? Is basis for pay and promotion decisions. Helps in correcting deficiencies and reinforcing good performance. 2 3 4
- 9. 9–9 An Introduction to Appraising Performance 1 Appraising performance Steps in Appraising Performance Defining the job Providing feedback 2 3
- 10. 9–10 Designing the Appraisal Tool • What to Measure? ⮚ Work output (quality and quantity) ⮚ Personal competencies ⮚ Goal (objective) achievement • How to Measure? ⮚ Generic dimensions ⮚ Actual job duties ⮚ Behavioral competencies
- 11. TECHNIQUES FOR APPRAISING PERFORMANCE 1. Graphic rating scale: 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. 2. Alternation Ranking Method: Ranking employees from best to worst on a trait or traits is another option. Since it is usually easier to distinguish between the worst and best employees, an alternation ranking method is most popular. 3. Forced Distribution Method: The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. 4. 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. 5. Behaviorally anchored rating scale (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. 6.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
- 12. 9–12 FIGURE 9–6 Scale for Alternate Ranking of Appraisees
- 13. 9–13 FIGURE 9–7 Ranking Employees by the Paired Comparison Method Note: + means “better than.” – means “worse than.” For each chart, add up the number of +’s in each column to get the highest-ranked employee.
- 14. FIGURE 9-9 Example of a Behaviorally Anchored Rating Scale for grocery check out clerks © 2008 Prentice Hall, Inc. All rights reserved. 9–14 RESEARCH INSIGHT Three researchers developed a BARS for grocery checkout clerks. They collected many critical incidents, and then grouped or clustered these into eight performance dimensions: 1.Knowledge and Judgment 2.Conscientiousness 3.Skill in Human Relations 4.Skill in Operation of Register 5.Skill in Bagging 6.Organizational Ability of Checks and Work 7.Skill in Monetary Transactions 8.Observational Ability They then developed behaviorally anchored rating scales for each of these dimensions. Each BARS contained a scale (ranging from 1 to 9) for rating performance from extremely poor to extremely good. Then a specific critical incident (such as by knowing the price of items, this checker would be expected to look for mismarked and unmarked items ) helped anchor or specify what was meant by extremely good (9) performance. Similarly, they used several other critical incident anchors along the performance scale from (8) down to (1). To illustrate, Figure 9-9 shows a BARS for one performance dimension for a car sales person the dimension automobile salesmanship skills.
- 15. 9–15 7. Management by Objectives (MBO) : A comprehensive and formal organization wide goal-setting and appraisal program requiring: 1. Setting of organization’s goals. 2. Setting of departmental goals. 3. Discussion of departmental goals. 4. Defining expected results (setting individual goals). 5. Conducting periodic performance reviews. 6. Providing performance feedback. 8. Electronic performance monitoring (EPM) systems use computer network technology to allow managers to monitor their employees computers. They thus allow managers to monitor the employees rate, accuracy, and time spent working online. 9. Mixed Standard Scales: Mixed standard scales are somewhat similar to behaviorally anchored scales. However, mixed scales generally list just a few (usually 3) behavioral examples (or standards ) for each of, say, 3 performance dimensions.
- 16. 9–16 Appraising Performance: Problems and Solutions 1. Unclear standards: An appraisal that is too open to interpretation. 1. Central tendency: A tendency to rate all employees the same way, such as rating them all average. 1. Strictness/leniency: The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low. 1. 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. 1. Recency Effects: The recency effect means letting what the employee has done recently blind you to what his or her performance has been over the year. 1. Bias: The number of things that can lead to bias during appraisals is limitless. The bottom line is that the appraisal often says more about the appraiser than about the appraisee
- 17. 9–17 TABLE 9–2 A Graphic Rating Scale with Unclear Standards Note: For example, what exactly is meant by “good,” “quantity of work,” and so forth? Excellent Good Fair Poor Quality of work Quantity of work Creativity Integrity
- 18. 9–18 The Appraisal Interview: appraisal interview An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths. Satisfactory—Promotable Satisfactory—Not Promotable Unsatisfactory—Correctable Unsatisfactory—Uncorrectable Types of Appraisal Interviews
- 19. 9–19 The Appraisal Interview (cont’d) Talk in terms of objective work data. Don’t tiptoe around. Don’t get personal. Encourage the person to talk. Guidelines for Conducting an Interview
- 20. 9–20 The Appraisal Interview (cont’d) 1 Recognize your own limitations. Never attack a person’s defenses. How to Handle a Defensive Subordinate Recognize that defensive behavior is normal. Postpone action. 2 3 4
- 21. 9–21 The Appraisal Interview (cont’d) 1 2 3 4 5 How to Criticize a Subordinate Criticize in private, and do it constructively. Do it in a manner that lets the person maintain his or her dignity and sense of worth. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases.
- 22. 9–22 The Appraisal Interview (cont’d) 1 2 3 4 5 How to Ensure Improved Performance Give the subordinate the opportunity to present his or her ideas and feelings. Don’t make the subordinate feel threatened during the interview. Give daily feedback so that the review has no surprises. Never say the person is “always” wrong. Criticism should be objective and free of biases. Quazi Tafsirul Islam. Find more at www.quazitafsir.com