Performance Management & Appraisal, Part II • Challenges to effective performance management • Performance evaluation feedback • Motivation and performance appraisal • Continuous improvement and performance management
Challenges to Effective Measurement • Rater errors -- halo, restriction of range, frame of reference • Influence of liking (hot processing) • Organizational politics • Individual Vs group focus • Recency effect
Performance Feedback • The appraisal interview – A conversation with a goal – Diminish defensive talking & listening • Pre Interview • The interview • Post interview
Pre Interview Steps • Communicate often • Reflect on your own standards • Encourage employee to prepare
The Interview and After • Encourage participation, • Judge performance, • Be specific, • Take a problem solving approach, • Set goals • Follow-up with feedback and communication
Motivation & Performance Appraisal • Motivational theories and appraisal – Expectancy theory – Equity theory • Performance appraisal as an outcome
Who Should Diagnose Performance • • • The supervisor Peers Self-appraisal Subordinates Customers 360 Degree Feedback
Performance Improvement • Performance problems – Actor-observer bias – Direct attention to causes of performance • Developing plans to improve workers – Action plans – Communicate on performance
Backwards & Forwards • Summing up: Today we considered challenges to fair performance appraisal including rater biases, issues in the evaluation interview, the role of appraisal in motivating workers, and linking appraisal to continuous improvement • Looking ahead: Next time we begin our study of compensation and reward systems