9 Performance Management and Appraisal Copyright 2013 Pearson

9 Performance Management and Appraisal Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall Chapter 9 -4

Define performance management and discuss how it differs from performance appraisal. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall Chapter 9 -6

Review • • The process Why do it? Continuous feedback Performance management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -7

Describe the appraisal process. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -8

The Performance Appraisal Process • Why appraise performance? • Continuous feedback • Performance management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -9

Review • • • Pay and promotions Planning Career planning Training and development Ongoing feedback Teamwork and change Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -10

Set effective performance appraisal standards. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall Chapter 9 -12

Employee’s Goals and Performance Standards • Basing appraisal standards on required competencies • The role of job descriptions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -13

Who Should Do the Appraising? • • • Peer appraisals Rating committees Self-ratings Appraisal by subordinates 360 -degree feedback Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -14

Techniques for Appraising Performance • Graphic rating scale method • What to rate? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -15

Review • • Effective goals Competencies Job descriptions Appraisers Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -16

Develop, evaluate, and administer at least four performance appraisal tools. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall 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, Inc. Publishing as Prentice Hall Chapter 9 -19

Explain and illustrate the problems to avoid in appraising performance. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -20

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, Inc. Publishing as Prentice Hall Chapter 9 -21

Discuss the pros and cons of using different raters to appraise a person’s performance. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -22

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, Inc. Publishing as Prentice Hall Chapter 9 -23

Review • • • Problems Tools Records Fairness Legal Ethics Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -24

Perform an effective appraisal interview. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -25

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, Inc. Publishing as Prentice Hall Chapter 9 -26

Managing the Appraisal Interview • • Handling a defensive subordinate Criticizing a subordinate The formal written warning Realistic appraisals Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -27

Performance Management • Performance management vs. appraisals • Information technology • Talent management • Appraisal and active management • Segmenting employees Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -28

Performance Management Summary • • • Direction sharing Goal alignment Ongoing performance monitoring Ongoing feedback Coaching and developmental Recognition and rewards Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -29

Review • • Type of interviews Defensiveness Criticism Warnings Realism Performance management vs. appraisals Talent management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Chapter 9 -30