Appraising and Managing Performance

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Chapter 7

• Appraising and Managing Performance

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In-the-News

• Click here to Evaluate 1st In-the-News Assignment
• Click here to Evaluate 2nd In-the-News Assignment

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Performance Appraisal
The identification, measurement, and management
of human performance in organizations.
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A Model of Performance Appraisal
Identification
Measurement
Management
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Dimension
An aspect of performance that determines
effective job performance.
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The Benefits of Performance Appraisal

• Employer Perspective
• Despite imperfect measurement techniques,
  individual differences in performance can make a
  difference to company performance.
• Documentation of performance appraisal and
  feedback may be needed for legal defense.
• Appraisal provides a rational basis for
  constructing a bonus or merit system.
• Appraisal dimensions and standards can help to
  implement strategic goals and clarify performance
  expectations.
• Providing individual feedback is part of the
  performance management process.
• Despite the traditional focus on the individual,
  appraisal criteria can include teamwork and the
  teams can be the focus of the appraisal.

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The Benefits of Performance Appraisal (cont.)

• Employee Perspective
• Performance feedback is needed and desired.
• Improvement in performance requires assessment.
• Fairness required that differences in performance
  levels across workers be measured and have an
  effect on outcomes.
• Assessment and recognition of performance levels
  can motivate workers to improve their performance.

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Measurement Tools

• The type of judgment that is required
• Relative or absolute
• The focus of the measure
• Trait, behavior, or outcome

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Relative and Absolute Judgment
Relative Judgment
An appraisal format that asks supervisors to
compare an employee's performance to the
performance of other employees doing the same job.
Absolute Judgment
An appraisal format that asks supervisors to make
judgments about an employees performance based
solely on performance standards.
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Rankings and Performance Levels Across Work Teams
Actual
Ranked Work
Ranked Work
Ranked Work
10 (High) 9 8 7 6 5 4 3 2 1 (Low)
Marcos (1) Uma (2) Joyce (3) Bill (4) Richard
(5)
Jill (1) Tom (2) Sue (3) Greg (4) Ken (5)
Frank (1) Julien (2) Lisa (3) Jolie (4) Steve
(5)
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Trait Appraisal, Behavioral Appraisal, and
Outcome Appraisal Instruments
Trait Appraisal
An appraisal tool that asks a supervisor to make
judgments about worker characteristics that tend
to be consistent and enduring.
Behavioral Appraisal
An appraisal tool that asks managers to assess a
workers behaviors.
Outcome Appraisal
An appraisal tool that asks managers to assess
the results achieved by workers.
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Sample Trait Scales
Rate each worker using the scales below.
Decisiveness 1 2 3 4 5
6 7 Very low Moderate Very
high
Reliability 1 2 3 4 5
6 7 Very low Moderate Very
high
Energy 1 2 3 4 5
6 7 Very low Moderate Very high
Loyalty 1 2 3 4 5
6 7 Very low Moderate Very high
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Evaluation of Major Appraisal Formats
Legal Defensibility
Appraisal Format
Administrative Use
Developmental Use
- - 0
Absolute Relative Trait Behavior Outcome
0 0 0
0 - --
-- Very Poor
- Poor
Good
Very good
0 Unclear or mixed
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Challenges to Effective Performance Measurement

• Rater errors and bias
• The influence of liking
• Organizational politics
• Whether to focus on the individual or the group
• Legal issues

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Legal Issues

• A recent analysis of 295 court cases involving
  performance appraisal found judges decisions to
  be favorably influenced by the following
  additional factors
• Use of job analysis
• Providing written instructions
• Allowing employees to review appraisal results
• Agreement among multiple raters (if more than one
  was used)
• The presence of rater training

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Situational (System) Factors to Consider in
Determining the Causes of Performance Problems

• Poor coordination of work activities among
  workers.
• Inadequate information or instructions needed to
  perform a job.
• Low-quality materials.
• Lack of necessary equipment.
• Inability to obtain raw materials, parts, or
  supplies.
• Inadequate financial resources.
• Poor supervision.
• Uncooperative coworkers and/or poor relations
  among people.
• Inadequate training.
• Insufficient time to produce the quantity or
  quality of work required.
• A poor work environment (for example, cold, hot,
  noisy, frequent
• interruptions.)
• Equipment breakdown.

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How to Determine and Remedy Performance Shortfalls
Cause
Questions to Ask
Possible Remedies

• Has the worker ever been
• able to perform adequately?
• Can others perform the job
• adequately, but not this worker?
• Is the workers performance
• level declining?
• Is performance lower on all
• tasks?
• Is performance erratic?
• Are performance problems
• showing up in all workers,
• even those who have adequate
• supplies and equipment?

• Train
• Transfer
• Redesign job
• Terminate
• Clarify linkage between
• performance and rewards
• Recognize good performance
• Streamline work process
• Clarify needs to suppliers
• Change suppliers
• Eliminate conflicting
• signals or demands
• Provide adequate tools

Ability Effort Situation
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360 Feedback
The combination of peer, subordinate, and
self-review
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Key Steps in Implementing 360 Appraisal

• Top management communicates the goals of and need
  for 360 appraisal.
• Employees and managers are involved in the
  development of the appraisal criteria and
  appraisal process.
• Employees are trained in how to give and receive
  feedback.
• Employees are informed of the nature of the 360
  appraisal instrument and process.
• The 360 system undergoes pilot testing in one
  part of the organization.
• Management continuously reinforces the goals of
  the 360 appraisal and is ready to change the
  process when necessary.

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Shortcuts-4 easy steps to Effective Performance
Appraisal

• Encourage Discussion
• Constructive Intention
• Set Performance GOALS
• Appraiser Credibility

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QUIZ 6

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• We will go over the answers after everyone
  finishes!