PERFORMANCE APPRAISAL EVALUATION APPRAISAL POPULARITY Large Organizations 95

PERFORMANCE APPRAISAL & EVALUATION

APPRAISAL POPULARITY Large Organizations: 95% n Small Organizations: 84% n All Private Organizations: 89% n City Governments: 76% n State Governments: 100% n

TQM VIEW OF APPRAISAL n n – n n

RESPONSE TO DEMING n n n

KEYS TO BETTER APPRAISAL Increase objectivity n Improve appraisal interview session n Emphasize Performance Management n

OBJECTIVITY Recommendation 1: Reality: n Appraisals should be n objective, rational, and – accurate – –

Scale Orientations Traits n Behaviors n Results n

SCALE FORMAT n Comparative (Comparison among workers) – – – n Comparison among anchors – n Forced Choice Graphic Rating Scales (Compare to anchors) – – n Forced Distribution Rank Paired Comparison BARS BOS (summated scale) MBO

Common Rater Errors n n n n n Negative and positive skew (LENIENCY/severity) Halo/Horn Central Tendency (Dilbert) Attribution error Stereotyping (representativeness) First Impression (anchoring) Recency (Dilbert) Contrast Effect Similar/dissimilar to me Effect

REDUCING RATER ERRORS Memory aids n Frame of reference training (rater training) n Rater accountability n Increased frequency n

OBJECTIVITY Reality: Recommendation: n Subjectivity and n Appraisals should be inaccuracy often objective, rational, and dominates the appraisal process accurate – Subjective methods – Manager’s unconscious bias/rater errors – Deliberate manipulation » » » Why? Impact? Overcoming this

KEYS TO BETTER APPRAISAL Increase objectivity n Improve appraisal interview session n Emphasize Performance Management n

IMPROVING APPRAISAL: APPRAISAL SESSION n n Put Employee at Ease Participation – – n n Performance Focus Sensitivity – – n n Appeal Self-evaluation Tone Positive Feedback Examples Performance plans

KEYS TO BETTER APPRAISAL Increase objectivity n Improve appraisal interview session n Emphasize Performance Management n

PERFORMANCE MANAGEMENT Goal Setting Formal Feedback Session Coaching And feedback Rate and Evaluate

PERFORMANCE MANAGEMENT & MBO 1. Clarify goals/expectations – jointly determined – cascading 2. Periodic review and feedback – based on input from multiple sources – 360 degree feedback 3. Coaching based on developmental sessions 4. Performance-based rewards

IMPLEMENTING MBO Formulate overall objectives n Allocate among departments n Specific objectives for department members n Implement action plans n Review progress and provide feedback n Provide performance-based rewards n

ADVANTAGES OF MBO n n