Part 3 | Training and Development
Chapter 9
Performance Management and Appraisal
2008 Prentice Hall, Inc.
All rights reserved.
After studying this chapter, you should be able to:
[Link] the appraisal process.
[Link], evaluate, and administer at least four
performance appraisal tools.
[Link] and illustrate the problems to avoid in
appraising performance.
[Link] and discuss the pros and cons of six
appraisal methods.
[Link] an effective appraisal interview.
[Link] the pros and cons of using different
raters to appraise a persons performance.
2008 Prentice Hall, Inc. All rights reserved.
92
Performance Appraisal
Evaluating an employees current and/or past
performance relative to his or her performance
standards.
o Setting work standards
o Assessing the employees actual performance
relative to those standards
o Providing feedback
2008 Prentice Hall, Inc. All rights reserved.
93
Defining the Employees Goals
and Work Standards
Guidelines for Effective Goal
Setting
Assign
Specific
Goals
2008 Prentice Hall, Inc. All rights reserved.
Assign
Measurable
Goals
Assign
Challenging
but Doable
Goals
Encourage
Participation
94
An Introduction to Appraising
Performance
Why appraise performance?
o Appraisals play an integral role in the employers
performance management process.
o Appraisals help in planning for correcting
deficiencies and reinforce things done correctly.
o Appraisals, in identifying employee strengths and
weaknesses, are useful for career planning
2008 Prentice Hall, Inc. All rights reserved.
95
Performance Appraisal Roles
Supervisors
o Usually do the actual appraising.
o Must be familiar with basic appraisal techniques.
o Must understand and avoid problems that can
cripple appraisals.
o Must know how to conduct appraisals fairly.
2008 Prentice Hall, Inc. All rights reserved.
96
Performance Appraisal Roles (contd)
HR department
o Serves a policy-making and advisory role.
o Provides advice and assistance regarding the
appraisal tool to use.
o Prepares forms and procedures and insists that all
departments use them.
o Responsible for training supervisors to improve
their appraisal skills.
o Responsible for monitoring the system to ensure
that appraisal formats and criteria comply with
relavents laws and are up to date.
2008 Prentice Hall, Inc. All rights reserved.
97
Steps in Appraising Performance
Defining the job
o Making sure that you and your subordinate agree
on his or her duties and job standards.
Appraising performance
o Comparing your subordinates actual performance
to the standards that have been set; this usually
involves some type of rating form.
Providing feedback
o Discussing the subordinates performance and
progress, and making plans for any development
required.
2008 Prentice Hall, Inc. All rights reserved.
98
Performance Appraisal Methods
Graphic rating scale
o A scale that lists a number of traits and a range of
performance for each that is used to identify the
score that best describes an employees level of
performance for each trait.
2008 Prentice Hall, Inc. All rights reserved.
99
Graphic
Rating
Scale with
Space for
Comments
Figure 93
2008 Prentice Hall, Inc. All rights reserved.
910
Portion of an Administrative Secretarys
Sample Performance Appraisal Form
Source: James Buford Jr., Bettye Burkhalter, and Grover Jacobs, Link Job Description
to Performance Appraisals, Personnel Journal, June 1988, pp. 135136.
2008 Prentice Hall, Inc. All rights reserved.
Figure 94
911
Source: [Link].
2008 Prentice Hall, Inc. All rights reserved.
Figure 95a
912
Source: [Link].
2008 Prentice Hall, Inc. All rights reserved.
Figure 95b
913
Source: [Link].
2008 Prentice Hall, Inc. All rights reserved.
Figure 95c
914
Performance Appraisal Methods (contd)
Alternation ranking method
o Ranking employees from best to worst on a
particular trait, choosing highest, then lowest, until
all are ranked.
2008 Prentice Hall, Inc. All rights reserved.
915
Alternation Ranking Scale
Figure 96
2008 Prentice Hall, Inc. All rights reserved.
916
Alternation Ranking Scale (contd.)
Productivity
Quality
Job Knowledge
Overall Ranking = (1 + 6 + 5) /3 = 4
2008 Prentice Hall, Inc. All rights reserved.
917
Performance Appraisal Methods (contd)
Paired comparison method
o Ranking employees by making a chart of all possible
pairs of the employees for each trait and indicating
which is the better employee of the pair.
2008 Prentice Hall, Inc. All rights reserved.
918
Ranking Employees by the
Paired Comparison Method
Note: + means better than. means worse than. For each chart, add up
the number of 1s in each column to get the highest-ranked employee.
Figure 97
2008 Prentice Hall, Inc. All rights reserved.
919
Performance Appraisal Methods (contd)
Forced distribution method
o Similar to grading on a curve; predetermined
percentages of ratees are placed in various
performance categories.
40 students in
o Example:
MGT 301
15% high performers
15% * 40 = 6 A
20% high-average performers
20% * 40 = 8 B
30% average performers
20% low-average performers
15% low performers
30% * 40 = 12 C
20% * 40 = 8 D
15% * 40 = 6 F
2008 Prentice Hall, Inc. All rights reserved.
920
Performance Appraisal Methods (contd)
Critical Incident Method
o Keeping record of uncommonly good or undesirable
examples of an employees work-related behavior
and reviewing it with the employee at predetermined
times.
2008 Prentice Hall, Inc. All rights reserved.
921
Examples of Critical Incidents for
an Assistant Plant Manager
Table 91
2008 Prentice Hall, Inc. All rights reserved.
922
Narrative
Forms
Source: Reprinted with permission of
the publisher, [Link]; copyright
[Link], 2003.
Figure 98
2008 Prentice Hall, Inc. All rights reserved.
923
Performance Appraisal Methods (contd)
Behaviorally Anchored Rating Scale (BARS)
o An appraisal method that uses quantified scale
with specific narrative examples of good and poor
performance.
2008 Prentice Hall, Inc. All rights reserved.
924
Job: Call Centre Agent
Factors can be:
Promptness of service - Includes receiving calls within a
stipulated number of rings
7 Picks up phone in 1 ring.
Picks up phone in 2 rings.
Picks up phone in 3 rings.
Picks up phone in 4 rings.
Picks up phone in 5 rings.
Picks up phone most of the time.
Does not pick up phone.
2008 Prentice Hall, Inc. All rights reserved.
925
Factor 2
Customer Complaint Management: The time spent on resolving
customer complaint
7 Resolves issue in under 1 minute.
Resolves issue in under 2 minutes.
Resolves issue in under 3 minutes.
Resolves issue in under 4 minutes.
Resolves issue in over 5 minutes.
Resolve issue most of the time.
Does not resolve any customer complaint.
2008 Prentice Hall, Inc. All rights reserved.
926
Factor 3
Ability to sell new features: Is the person persuasive enough to
sell new features of the company to customers.
7 Is able to sell a new feature in every call.
Is able to sell a new feature in every 2/3 calls.
Is able to sell a new feature in every 4/5 calls.
Is able to sell a new feature in every hour.
Is able to sell some new features in a day.
Is able to sell some new features in a week.
Is not able to sell any new features in a week.
2008 Prentice Hall, Inc. All rights reserved.
927
Management By Objectives (MBO)
Involves setting specific measurable goals with
each employee and then periodically reviewing
the progress made.
[Link] the organizations goals. No. 1 in terms of service quality
[Link] departmental goals. All depts. (consumer banking, corporate
banking etc.) to focus on quality customer service
[Link] departmental goals.
[Link] expected results (set individual goals).
Attend service seminars, achieve 90% customer satisfaction scores etc.
[Link] reviews.
[Link] feedback.
2008 Prentice Hall, Inc. All rights reserved.
928
Advantages and Disadvantages of Appraisal Tools
Table 93
2008 Prentice Hall, Inc. All rights reserved.
929
Appraising Performance:
Problems and Solutions
Potential Rating Scale
Appraisal Problems
Unclear
Standards
Halo
Effect
2008 Prentice Hall, Inc. All rights reserved.
Central
Tendency
Leniency or
Strictness
Bias
930
Appraising Performance:
Problems and Solutions (contd)
How to Avoid Appraisal
Problems
Know
Problems
Use the
Right Tool
2008 Prentice Hall, Inc. All rights reserved.
Train
Supervisors
Control
Outside
Influences
Keep
a Diary
931
Who Should Do the Appraising?
Immediate
Supervisor
Peers
Rating
Committee
2008 Prentice Hall, Inc. All rights reserved.
Self-Rating
Potential
Appraisers
Subordinates
360-Degree
Feedback
932
