Chapter 11 Appraising Performance of Office Employees Administrative

Chapter 11 Appraising Performance of Office Employees Administrative Office Management, 8/e by Zane Quible 1 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Current Uses of Performance Appraisal (1 of 2) Helps identify subordinates’ strengths and weaknesses. Provides input for making decisions about salary increases, promotions, and transfers. Provides input in workforce planning. Helps strengthen communication between supervisors and subordinates. Improves quality of communication between supervisors and subordinates. Administrative Office Management, 8/e by Zane Quible 2 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Current Uses of Performance Appraisal (2 of 2) Improves quality of supervision. Has a positive impact on career growth and development of employees. Administrative Office Management, 8/e by Zane Quible 3 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Characteristics of Performance Appraisal Programs (1 of 2) 1. Must elicit a change in employee behavior. 2. Must provide a basis for making compensation 3. 4. 5. 6. decisions. Must provide information for making decisions about promotion, transfer, or termination. Must enhance employee motivation. Must provide feedback for use in validating various phases of the personnel program. Must facilitate supervisor-subordinate communication. Administrative Office Management, 8/e by Zane Quible 4 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Characteristics of Performance Appraisal Programs (2 of 2) 7. Must use appropriate evaluation base in relation to intended use of appraisal results. 8. Must use clearly stated, objective, and wellunderstood performance standards. Administrative Office Management, 8/e by Zane Quible 5 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Performance Standards Are critical to the success of the program. Standards must be shared with employees at the time of hire. Appraisal criteria involving standards are determined by intended use of results. Administrative Office Management, 8/e by Zane Quible 6 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Methods of Performance Appraisal (1 of 2) Graphic Rating Scale Paired Comparison Appraisal Checklist Simple Ranking Forced Choice Critical Incidents Peer Rating Group Rating Self-Appraisal Narrative Appraisal Administrative Office Management, 8/e by Zane Quible 7 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Methods of Performance Appraisal (2 of 2) Field Staff Review Results-oriented Appraisal Behaviorally Anchored Rating Scales Appraisal Mixed Standards Scale Computerized Appraisal Administrative Office Management, 8/e by Zane Quible 8 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Graphic Rating Scale Is most widely used technique. Rater indicates degree to which ratee possesses each specific characteristic or trait found on the rating form. Forms Use Three Methods Descriptive Phrases Descriptive Words Numerical Scales Administrative Office Management, 8/e by Zane Quible 9 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Traits Must Be Measurable Shortcomings 1. All traits are of equal importance unless they are 2. 3. 4. 5. weighted. Subject to certain errors. Rates past performance after it is too late to change. May not give employees incentive to overcome their weaknesses. Some forms contain too many traits; others, too few. Administrative Office Management, 8/e by Zane Quible 10 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Paired Comparison Appraisal Technique involves comparing one individual with each of the other individuals in a work group. Evaluation can be based on specific traits or overall performance. Uses a grid in the evaluation process. Shortcoming Is limited as to number of employees who can be effectively rated. Administrative Office Management, 8/e by Zane Quible 11 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Checklist Uses a form that contains a series of statements about various traits. Rater appraises ratee by responding to each statement. It rates specific items, not overall performance. Shortcoming It tends to treat all items of equal weight. Administrative Office Management, 8/e by Zane Quible 12 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Simple ranking Ranks individuals from the best to worst. Is simple and accommodates a fairly large number of employees. It tends to rate overall performance. Shortcoming Although all employees may be performing well, someone has to be rated the worst. Administrative Office Management, 8/e by Zane Quible 13 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Forced Choice Consists of 25 -40 sets of statements. From a list of 5 statements, rater chooses statement most descriptive and least descriptive about person being rated; other 3 statements are neutral. Is an objective process because rater doesn’t know which statements affect the ratee’s performance. Shortcomings Is costly to develop and install. Doesn’t lend itself to employee counseling. Administrative Office Management, 8/e by Zane Quible 14 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Critical Incidents Involves formulating a list of critical job requirements for each position. Supervisor then observes subordinates for favorable or unfavorable displays of these requirements. Requirements are recorded on a record sheet. Shortcoming Employee may have impression that supervisor keeps a “little black book. ” Administrative Office Management, 8/e by Zane Quible 15 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Peer Rating Uses co-workers to evaluate the performance of an individual. Peers often see different things than does the supervisor. Administrative Office Management, 8/e by Zane Quible 16 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Group Rating Uses a group to appraise the performance of an individual. Tends to be fairly objective because of multiple individuals used. Administrative Office Management, 8/e by Zane Quible 17 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Self-Appraisal Using a rating form, the employee rates himself/herself. Supervisor also rates the employee. During appraisal interview, results are compared, trait by trait. Employees feel they are more involved in the process because they rate themselves. Administrative Office Management, 8/e by Zane Quible 18 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Narrative Appraisal Supervisor prepares a written report about the employee’s performance. Typically includes an improvement plan identifying how employee will improve his/her performance in deficient areas. Shortcoming Makes it impossible to compare performance of individuals. Administrative Office Management, 8/e by Zane Quible 19 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Field Staff Review Uses an objective outsider in the evaluation process. Employee being evaluated and his/her supervisor are questioned orally by the appraiser. Shortcoming Makes it difficult to provide appraisals as often as may be necessary. Administrative Office Management, 8/e by Zane Quible 20 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Results-Oriented Appraisal Is closely aligned with management by objectives. Is often used in conjunction with another appraisal technique. Is advantageous because it takes into consideration future, not past, performance. Shortcoming Some work cannot be quantified to make the process work well. Administrative Office Management, 8/e by Zane Quible 21 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Well-Defined Steps 1. Measurable performance goals are set jointly by the 2. 3. 4. 5. supervisor and the subordinate. Specific courses of action are agreed upon to accomplish these goals. At interim intervals, supervisor and subordinate discuss progress made toward achieving goals. At end of rating period, supervisor and subordinate officially evaluate the extent to which goals are achieved. Goals for next evaluation period are set. Administrative Office Management, 8/e by Zane Quible 22 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Behaviorally Anchored Rating Scales Technique uses a series of 5 -10 scales. Each important job dimension is reflected in a separate scale. Within each scale, varying degrees of job performance are reflected. Produces objective results. Shortcoming Developing scales is a time-consuming process. Administrative Office Management, 8/e by Zane Quible 23 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Mixed Standard Scales Is tailored to specific positions. Regarding each standard, the rater indicates whether the employee’s performance is better than, comparable, or worse than the performance level expressed in the statement. Shortcoming Cannot determine how an employee’s performance compares to that of other employees. Administrative Office Management, 8/e by Zane Quible 24 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Computerized Appraisal Uses software programs to facilitate the appraisal process. Supervisor identifies important traits for each subordinate. Supervisors evaluate subordinate on the basis of these traits. Program contains a vast number of traits. Shortcoming Many of the traits listed are likely to be irrelevant for a given position. Administrative Office Management, 8/e by Zane Quible 25 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Rating Errors (1 of 2) Halo-Horns Effect Influence of Recent Performance Bias Administrative Office Management, 8/e by Zane Quible Results when the rating on one trait influences an employee’s rating on all other traits. Supervisor’s objectivity is clouded by employee’s recent favorable or unfavorable performance. Involves allowing unconscious bias or prejudice to enter appraisal process. 26 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Rating Errors (2 of 2) Extreme Ratings Administrative Office Management, 8/e by Zane Quible Tendency of some supervisors to rate their subordinates at the extremes (high or low). 27 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Analysis of Appraisal Results Involves determining the reliability and validity of appraisal results. Administrative Office Management, 8/e by Zane Quible 28 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Appraisers of Employee Performance Immediate Supervisor Self-rating Rating Committees Peer Ratings 360 -degree Feedback Administrative Office Management, 8/e by Zane Quible 29 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Appraisal Interviews Process involves discussing appraisal results with ratees. Helps ratees learn where they need to improve their performance. Administrative Office Management, 8/e by Zane Quible 30 © 2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458