Eval ua ting Emp lo yee

Perfor man ce
 PERFORMANCE
APPRAISAL
❘ 1: Performance management system
purpose
❘ 2: Appraisal process steps
❘ 3: Absolute standards
❘ 4: Relative standards
❘ 5: MBO
❘ 6: Performance appraisal distortions
❘ 7: More effective performance appraisal
❘ 8: Alternative appraisal methods
❘ 9: Global issues
 PERFORMANCE
EVALUATION PURPOSES

❚ Performance
Management
Systems

❚ Feedback
❚ Development
❚ Documentation
 PERFORMANCE
EVALUATION PROBLEMS

❚ Focus on individual
personality
❙ Emotions, anger,
resentment,
satisfaction
❙ Expectations
❚ Focus on process
❙ Tied to budget
❙ Training
❙ AND….
APPRAISAL PROCESS
STEPS

❚ 1. Establish
performance
appraisal
standards
❚ 2. Mutually set
measurable goals
❚ 3. Measure actual
performance
❚ AND….
APPRAISAL PROCESS
STEPS

❚ 4. Compare actual
with standard
❚ 5. Discuss
appraisal with
employee
❚ 6. Corrective
action
❙ Basic
❙ Immediate
 APPRAISAL METHODS

❚ Absolute standards
❙ Measure against
external reference
❚ Relative standards
❙ Evaluate
employees against
each other
❚ Objectives
❙ Measure against
goals
ABSOLUTE STANDARDS

❚ Essay
❚ Critical incident
❚ Checklist
❚ Adjective rating
scale
❚ Forced-choice
❚ Behaviorally-
Anchored Rating
Scale (BARS)
ESSAYS

❚ Subjective
❚ Hard to compare
with others
❚ Simple
❙ Strengths
❙ Weaknesses
❙ Potential
❙ Suggestions for
improvement
CRITICAL INCIDENT

❚ Essay about what

was most effective
or ineffective in a
key job situation
❚ Focus on behavior,
not personality
❚ Weekly is time-
consuming
CHECKLIST

❚ Yes or No
❚ Predefined
behaviors or
qualities
❚ Items may be
irrelevant
❚ Helps reduce bias
ADJECTIVE RATING
SCALE

❚ Factors present
❙ Job knowledge
❙ Cooperation
❙ Quality and
quantity of work
❚ 5 to 10 points on a
continuum
Sample Adjective Rating Items and Format
FORCED-CHOICE

❚ Bias and distortion

reduced
❚ Frustration about
lack of feedback
❚ Simple
❚ Like a multiple
choice test
question
B.A.R.S.

❚ Simple
❚ Reduces rating
errors
❚ Definite,
observable job
behaviors
Sample BARS for an Employee Relations Specialist
 RELATIVE STANDARDS

❚ Group order
ranking
❙ Quartiles
❚ Individual ranking
❙ Best to worst
❚ Paired comparison

❙ Similar to job
ranking
❙ Compare each one
to all others
 MANAGEMENT BY
OBJECTIVE (MBO)

❚ STEPS
❚ Goal setting
❚ Action planning ?
❚ Self control
❚ Periodic review
MBO ISSUES

❚ Advantages
❙ Results oriented
❙ Commitment
❚ Problems
❙ Trust needed
❚ Satisfaction
❙ Time-consuming
❙ Important to
followup
❙ Frustration builder
 PERFORMANCE
APPRAISAL DISTORTIONS

❚ Leniency
❚ Halo
❚ Similarity
❚ Central tendency
❚ Inflationary
pressures
❚ Inappropriate
substitutes
❚ AND….
 PERFORMANCE
APPRAISAL DISTORTIONS

❚ Attribution theory
❚ Varies by control
❙ Internal
❙ External
❚ Impression
management
TO IMPROVE APPRAISALS

❚ Behavior based
measures
❚ Combine absolute
and relative
measures
❚ Provide ongoing
feedback
❚ Have multiple
raters
❚ Rate selectively
 MORE EFFECTIVE
APPRAISALS - PEERS

❚ Positives
❙ Constructive
criticism
❙ Specific feedback
❚ Negatives
❙ Fear
❙ Halo, leniency error
❙ Training
❚ Upward appraisal
 MORE EFFECTIVE
APPRAISAL (360-DEGREE)

❚ Multiple
appraisers
❙ Self
❙ Boss
❙ Peers
❙ Team members
❙ Customers
❙ Suppliers
360-DEGREE APPRAISALS

❚ Positives
❙ Increase manager’s
awareness of own
actions
❙ More accurate
feedback
❙ Empowerment
❙ Developing
leadership
❙ Reduces
subjectivity