Performance Appraisal

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Performance Appraisal

• Why?
• Facilitates making fair and equitable reward
  decisions pay and promotion decisions.
• Motivation Discipline reinforces good
  performance and eliminate or correct poor
  performance.
• Developmental career planning identification
  of strengths and weaknesses.

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• Who should do?
• Immediate Supervisors traditional role
• Peers
• Committees
• Self
• Subordinates
• 360 Degree multisource rating

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Basic Issues

• Done formally and informally
• Often one of managements most disliked activities
  Why?
• Identification and Measuring performance
  Criteria Trait-based, Behavior-based,
  results-based must be relevant to most
  important aspects of employees job.
• Standards benchmarks, goals, or targets
  to be effective must be realistic, measurable,
  clearly understood must be communicated to job
  incumbent.

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• Timing
• Methods (Figure 11-7 , page 351)
• Feedback The key to an effective performance
  appraisal
• Prepare, be direct and specific, and learn to
  deal with defensiveness.

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Common Appraisal Problems

• Unclear Standards
• Halo Effect
• Central Tendency
• Leniency or Strictness
• Bias

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Reasons Why Performance Appraisal Systems Fail
Legal Scrutiny

• Courts are quick to reject appraisal systems that
  are subjective and not related to job
  performance. Job Analysis key.
• Must Validate objective criteria easiest.
• Assess for adverse impact.
• Counseling to help poor performers improve.
• Review process checks and balance use
  multiple reviewers.
• Must Train Evaluators

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