Chapter 8 Performance Appraisal Performance Appraisal Definition Functions

Chapter 8 Performance Appraisal

Performance Appraisal Definition Functions Basic Components Performance Appraisal Techniques Performance Appraisal Errors Effective Performance Appraisal System Issues & Conflicts 2021/9/7 2

Performance Appraisal A means for determining how well your employees is doing in achieving the criteria considered essential for success in his/her position. 2021/9/7 3

Purposes Administration purposes – Pay raise – Promotion – Lay off Training/development purposes – Training – Development 2021/9/7 4

Uses of Performance Appraisal Data Identify training needs ------------“Does X need training? ” Set criteria for new employees -----------“What does this job require? ” Appraise training effectiveness ------------“Does this training work? ” Identify individuals for raises, honors -------------“Who should be rewarded? ” Identify individuals for promotion/transfer -------------“Who can do this job? ” Identify individuals to be laid off or fired ------------“Who should go first? ” 2021/9/7 Employee Appraisal Data Appraise organization effectiveness -------------“Are we achieving our goals? ” Divide merit budget ------------“Who should get how much? ” Give employees feedback ------------“How am I doing? ” 5

Performance Appraisal Process C O A C H I N G 1 -Establish work expectations (Job Analysis) 3 -Complete performance & development appraisal forms 4 -Conduct formal performance and development appraisal discussion & establish development plans 2021/9/7 2 -Review progress & revise work expectation as necessary Observe, describe & document performance 5 -Determine salary actions 6 -Conduct salary discussions 6

Establish performance standards Set measurable goals Measure actual performance Compare actual performance with standards Discuss the appraisal with the employee If necessary, initiate corrective action 2021/9/7 7

Benefits of PA To manager – Build better communication – Show the importance of meeting standards – Pinpoint training needs 2021/9/7 8

Benefits of PA To employee – Identify their strengths weakness – Identify employees’ contributions to the organization – Consider long-range career plans 2021/9/7 9

Basic Components of a PA System Establishing Performance Standards – Job Analysis/Job Description Results/ Behaviors/Traits Making Performance Observation (data collection) – Productivity records: results-oriented data – Observation rating: behavior/trait-oriented data 2021/9/7 10

Basic Components of a PA System (con’t) Making Performance Judgments (PA techniques/methods) – Individual evaluation methods (absolute standards) – Multiple employee evaluation methods (relative standards) Performance Feedback – Administration decision – Training & development 2021/9/7 11

PA criterion 績效效標 Trait-oriented PA criterion (50’) – 著重個人特質 (忠誠，積極) Result-oriented PA criterion (60’) – 著重 作的結果 (# of room sold, profits) Behavior-oriented PA criterion (70’) – 著重於完成 作前所須具備的行為(溝通，規劃，按 時上下班） 2021/9/7 12

Performance Appraisal Techniques Absolute Standards 絕對標準評估法 An appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. Relative Standards 相對標準評估法 An appraisal format that asks supervisors to compare an employee's performance to the performance of other employees doing the same job. 2021/9/7 13

Individual Evaluation Methods Absolute Standards · Essay Appraisals 敘述法 · Critical Incident Technique 重要事件法 · Traditional Rating Scale傳統評分法 · Behaviorally Anchored Rating Scale (BARS) 行為 定向法 · Management by Objectives (MBO) 2021/9/7 14

Essay Appraisals敘述法 – The simplest PA method – Raters answer some general questions about employees’ performance – Provides qualitative data (屬質資料) 2021/9/7 15

Critical Incidents Appraisals 重要事件法 – Supervisors keep a diary about employee’s critical (key) behavior – Critical incidents could be good or bad (effective or ineffective) – Provides qualitative data (屬質資料) 2021/9/7 17

Forced-choice Appraisal 強迫選擇法 – Require rater to choose between two similar statements (both good or bad) – Rater needs to identify which statement best describe his/her employees – Provides quantitative data (屬量資料) 2021/9/7 19

Example: Forced-Choice Method Instruction: please choose one statement that best describe your employee from each paired statements. 1 a. Works hard 1 b. Works quickly 2 a. Is responsive to customers 2 b. Shows initiative 3 a. Produces poor quality 3 b. Lacks good work habits 2021/9/7 20

Traditional Rating – The oldest and most popular evaluation method – Shows both the performance dimension (i. e. , work quality) and the rating scale (i. e. , very good to very bad) – Provides quantitative data (屬量資料) 2021/9/7 21

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Behavior Anchored Rating Scale (BARS) BARS-行為定位法 BARS=Rating Scale + Critical Incidents Rating scales allow supervisor to “rates” on employee’s behavior Critical incidents provide clear idea of desired and undesired behavior Provides quantitative data (屬量資料) 2021/9/7 23

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Multiple Employee Evaluation Methods Relative Judgment · Ranking排序法 – 依表現高低排序 · Paired Comparison兩兩相比法 - 兩個兩個進行比較 · Forced Distribution強迫分配法 - Normal distribution 2021/9/7 25

Rankings and Performance Levels Across Work Teams Actual 10 (High) 9 8 7 6 5 4 3 2 1 (Low) 2021/9/7 Ranked Work Jill (1) Marcos (1) Uma (2) Joyce (3) Bill (4) Richard (5) Tom (2) Sue (3) Greg (4) Ken (5) Ranked Work Frank (1) Julien (2) Lisa (3) Jolie (4) Steve (5) 26

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Developing BARS Step 1: 列出並定義 作的基本構面 Step 2: 針對每一構面收集critical incidents Step 3: 擬定每一構面的高中低績效標準並指派 適合的critical incident Step 4: 整合評估 2021/9/7 29

Management by Objective (MBO) Result-oriented Appraisal 依據公司經營目標，員 充分參與其 作目標之制定， 達成目標的分法，及事後 作成效考核方法(selfappraisal)。 Four steps – Goal setting measurable and consistent at each level (Organization, dept. , mger, ee) – Action planning – Self-control – Periodic review 2021/9/7 30

MBO Employee proposes goals Employee and manager discuss goals and reach an agreement on specific goals Employee and manager agree on specific action plan to attain goals by when Manager encourages goal attainment informally from time to time At the end of evaluation period, employees and manager meet again to discuss results 2021/9/7 31

MBO 優 – Emphasize on the results – ee participates in setting goals would increase performance – Improve supervisor-ee relationship 缺 – Doesn’t work if mger can’t trust ee – Time-consuming to set up goals with individual ee – Difficult to make a comparison among ees 2021/9/7 32

PA Issues of Validity and Reliability PA Validity – PA 內容需與 作清單或 作說明書一致 (performance standards must be based on Job Analysis) – 績效評估須針對不同的績效構面(performance dimension)來進行評估(evaluation should be based on specific dimensions of job) – Performance standards should be objective(公正） and observable（可觀察） 2021/9/7 33

PA Reliability – 與員 清楚溝通評估的標準(performance standards should be communicated to and understood by the employees) – 進行績效評估的主管需接受訓練以避免評估上有誤 差產生(Train evaluators to avoid rating errors) – 採用多位評估人員以得到較公正的結果(Use more than one evaluator whenever possible) 2021/9/7 34

PA-Problems with the Evaluator Leniency / Severity Error : 寬鬆/嚴厲錯誤 Central Tendency Errors: 中央趨勢錯誤 Similarity Error: 相似性錯誤 Halo Error: 月暈效應 Recency Errors: 近期效應 Past Anchoring Errors: 受到過去PA結果影響來評定現 在PA結果 Bias/Prejudices: 偏見錯誤 2021/9/7 35

Who does PA Supervisor-appraisal 主管評量 Self-appraisal自我評量 Peer-appraisal同齊評量 Customer-appraisal顧客評量 360 degree appraisal 360度全方位評量 2021/9/7 36

When Things Go Wrong (Design & Operating Problems) Poor Design · · Improper performance criteria Technique (tool) cumbersome Technique (tool) time‑consuming Resistance to writing or documentation Lack of Top Management Support Dual Purpose Use · 2021/9/7 · Administrative & development use (coach & judge) Employee can’t take negative feedback easily 37

Effective PA System Establish & communicate clear performance standard Use behavior-based measures Combine absolute and relative standards Provide ongoing feedback Have multiple raters – 360 degree appraisal Train appraisers 2021/9/7 38

Performance Review Step 1: Preparation Step 2: Initiation Step 3: Content Step 4: Feedback 2021/9/7 39

Step 3: Content 清楚具體的溝通考核結果 – 由general to specific – Focus on “behavior” 釐清員 表現與 performance standard 之間的差 距 – 重述desired behavior 讓員 有申辯的機會 2021/9/7 42

Step 4: Feedback Suggestions for Improvement – Personal Growth Set up next performance goals 總結討論內容 (action plan for Employee & Supervisor) Determine next PA review time DOCUMENT 2021/9/7 43