Performance Appraisal

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Performance Appraisal
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Performance Appraisal
Performance appraisal is the process by which
organizations evaluate employee job performance.
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Uses of Performance Appraisals

• Performance Improvement.
• Compensation Adjustments.
• Placement decisions.

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Uses of Performance Appraisals

• Training and development needs.
• Career planning and development.
• Deficiencies in staffing process.

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Uses of Performance Appraisals

• Informational inaccuracies.
• Job design error.
• Avoidance of discrimination.

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Uses of Performance Appraisals

• External challenges.

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Performance Standards
Performance Standards. The benchmark against
which performance is measured.
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Performance Measures
Performance Measures. The ratings used to
evaluate employee performance
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Subjective vs. Objective Measures
SUBJECTIVE OBJECTIVE
Not verifiable by others Based on raters opinions Accuracy and usefulness low Verifiable by others Usually quantitative and therefore more precise Raters opinion of ratee cant change rating
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Direct vs. Indirect Observation
DIRECT INDIRECT
Rater actually sees the employees performance Examples? Rater must evaluate substitutes for performance Examples?
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Types and Accuracy of Performance Measures
Relative Degree of Accuracy Relative Degree of Accuracy
Types of Performance Measures Direct Indirect
Objective Very high High
Subjective Low Very low
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Rater Biases

• The halo effect
• The error of central tendency
• The leniency and strictness biases
• Personal prejudice
• The recency effect

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Past-Oriented Appraisal Methods

• Rating scale (1 to 10)
• Checklist
• Forced choice method (yes or no)
• Critical incident method
• Behaviourally anchored rating scales (agree
  disagree

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360 Degree Performance Appraisal
360 Degree Performance. Combination of self,
peer, supervisor, and subordinate performance
evaluation
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Evaluation Interviews
Evaluation Interviews. Performance review
sessions that give employees feedback about their
past performance or future potential
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In Class Assignment

• Individually or in groups design a performance
  appraisal
• Use the Text and Your notes to define, describe
  your appraisal
• Pick a job or role you are interested in to
  create performance standards and measures

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Guidelines for Effective Performance Evaluation
Interviews

• Emphasize positive aspects of employees
  performance
• Tell each employee that the evaluation session is
  to improve performance, not to discipline
• Conduct the performance review session in private
  with minimum interruptions

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Guidelines for Effective Performance Evaluation
Interviews

• Review performance formally at least annually and
  more frequently for new employees or those who
  are performing poorly
• Make criticisms specific, not general and vague
• Focus criticisms on performance, not on
  personality characteristics

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Guidelines for Effective Performance Evaluation
Interviews

• Stay calm and do not argue with the person being
  evaluated
• Identify specific actions the employee can take
  to improve performance

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Guidelines for Effective Performance Evaluation
Interviews

• Emphasize the evaluators willingness to assist
  the employees efforts and to improve performance
• End the evaluation session by stressing the
  positive aspects of the employees performance
  and reviewing plans to improve performance