Performance Management Appraisal Part I The purposes and

Performance Management & Appraisal, Part I • The purposes and requirements of an effective performance management and appraisal system • Legal and strategic issues in performance appraisal • Appraisal formats: Advantages and disadvantages

Performance Management & Appraisal • Performance management – Defines performance – Facilitates Performance – Encourages performance • Performance Appraisal – Measures performance – Evaluates performance – Feeds back the evaluation

Legal & Strategic Issues • Legal issues – Performance appraisal is open to adverse impact – Criteria must be applied equally • Strategic issues – Organizations get what they reward – Need to align strategy with performance management system

Using Performance Appraisal • Developmental – Improving performance – Career development • Administrative – Salary decisions – Promotion – Retention

Relative & Absolute Judgments • Relative – Ranking – Forced distribution • Absolute – Graphic rating scales – Behavioral checklists – Critical incidents

Scale Formats Graphic Rating Scale Quality of Work 1 Poor 2 Below Average Graphic Rating Scale clearer anchors 3 Average 4 5 Good Excellent Quality of Work 1 2 Frequent Passable Errors 3 Usually accurate 4 Errors rare 5 Accurate

Trait and Behavioral Data • Traits – Personality – Individual traits • Behavioral data – BARS (create dimensions, write critical incidents, rate critical incidents, form scales with incidents as anchors – BOS

Scale Formats Behaviorally Anchored Rating Scale For Supervision 5: Can train and develop subordinates 4: Exhibits respect towards subordinates 3: Critical of personnel in front of others 2: Sets a poor example 1: Reneges on promises

Outcome Data • Meeting goals • Quantitative data – sales – scrappage – productivity

Backwards & Forwards • Summing up: We began with distinguishing performance management from performance appraisal. Legal and strategic issues were considered and the balance of the session reviewed different rating formats, their advantages and disadvantages. • Looking ahead Next time we complete our discussion of performance management by looking at challenges to effective performance management, the appraisal interview, motivation, and performance improvement.