Human resrouce management 12th mathis jacson chapter 0011
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CHAPTER 11
Performance Management
and Appraisal
Section 3 Developing Human Resources
© 2008 Thomson/South-Western All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Chapter
Chapter Objectives
Objectives
After you have read this chapter, you should be able to:
■ Identify the components of performance management systems.
■ Distinguish between performance management and performance
appraisal.
■ Explain the administrative and developmental uses of performance
appraisal.
■ Describe the advantages and disadvantages of multisource (360°)
appraisals.
■ Discuss the importance of training managers and employees about
performance appraisal and give examples of several rater errors.
■ Identify several concerns about appraisal feedback and ways to
make it more effective.
© 2008 Thomson/South-
11–2
The Nature of Performance Management
Provide performance
information to
employees
Make clear what the
organization expects
Effective
Performance
Management
System
Identify areas of
success and needed
development
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Document
performance for
personnel records
11–3
FIGURE 11-1
Performance
Management
Linkage
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11–4
Performance Management versus
Performance Appraisal
Performance Management
Performance Appraisal
Processes used to identify,
encourage, measure,
evaluate, improve, and
reward employee
performance
The process of evaluating how
well employees perform their
jobs and then communicating
that information to the
employees
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11–5
FIGURE 11-2
Components of a Performance-Focused Culture
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11–6
Identifying and Measuring
Employee Performance
Common
Performance
Measures
Quantity of
Output
Quality of
Output
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Timeliness of
Output
Presence at
Work
11–7
Identifying and Measuring Employee
Performance (cont’d)
• Job Duties
Important elements in a given job as identified from
job descriptions.
What an organization pays an employee to do.
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11–8
FIGURE 11-3
Types of Performance Information
Subjective
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Objective
11–9
Relevance of Performance Criteria
Factors Affecting Relevance
Deficient
Measures
Contaminated
Measures
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Overemphasized
Measures
11–10
FIGURE 11-4
ACTFL Performance Standards for Speaking Proficiency
Source: Adapted from American Counsel on the Teaching of Foreign Languages (ACTFL)
Oral Proficiency Interview Tester Training Manual (Stamford, CT: ACTFL Inc., 2006), 81–109.
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11–11
Performance Metrics in
Service Businesses
Common Sources
of Performance
Differences
Regional
Labor Cost
Differences
Service
Agreement
Differences
Equipment/
Infrastructure
Differences
Work
Volume
Performance that is measured can be managed.
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11–12
FIGURE 11-5
Conflicting Uses for Performance Appraisal
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11–13
Decisions About the Performance Appraisal
Process
Designing Appraisal Systems
Appraisal
Responsibilities
Informal vs.
Systematic
Processes
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Timing of
Appraisals
11–14
Legal Concerns and Performance Appraisals
Legally Defensible Performance Appraisal System:
• Appraisal criteria based on job analysis (i.e., job-related)
• Absence of disparate impact and evidence of validity
• Formal evaluation criterion that limit managerial discretion
• Formal rating instrument linked to job duties and responsibilities
• Personal knowledge of and contact with ratee
• Training of supervisors in conducting appraisals
• Review process to prevent undue control of careers
• Counseling to help poor performers improve
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11–15
FIGURE 11-6
Typical Division of HR Responsibilities: Performance Appraisal
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11–16
Who Conducts Appraisals?
Supervisors rating
their employees
Multisource, or
360°, feedback
Employees rating
their superiors
Sources of
Performance
Appraisals
Outside sources
rating employees
Team members
rating each other
Employees rating
themselves
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11–17
Employee Rating of Managers
Advantages
• Helps in identifying
competent managers
• Serves to make managers
more responsive to
employees
• Contributes to the career
development of managers
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Disadvantages
• Negative reactions by
managers to ratings
• Subordinates’ fear of
reprisals may inhibit them
from giving realistic
(negative) ratings
• Ratings are useful only for
self-improvement purposes
11–18
Team/Peer Rating
Advantages
Disadvantages
• Helps improve performance
of lower-rated individuals
• Can negatively affect working
relationships
• Peers have opportunity to
observe other peers
• Can create difficulties for
managers in determining
individual performance
• Peer appraisals focus on
individual contributions to
teamwork and team
performance
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• Organizational use of
individual performance
appraisals can hinder the
development of teamwork
11–19
FIGURE 11-7
Performance
Management
Linkage
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FIGURE 11-8
Multisource Appraisal
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Category Scaling Methods
• Graphic Rating Scale
A scale that allows the rater to indicate an employee’s
performance on a continuum of job behaviors.
Aspects of Performance
Measured
Descriptive
Categories
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Job
Duties
Behavioral
Dimensions
11–22
FIGURE 11-9
Sample
Performance
Appraisal
Form
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Category Scaling Methods
Differences in rater
interpretations of
scale item meanings
and scale ranges
Restrictions on the
range and type of
rater responses
Graphic
Rating Scale
Drawbacks
Rating form
deficiencies limit
effectiveness of the
appraisal
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Poorly designed
scales that encourage
rater errors
11–24
Category Scaling Methods (cont’d)
• Behaviorally Anchored Rating Scale (BARS)
A rating scale composed of job dimensions (specific
descriptions of important job behaviors) that “anchor”
performance levels on the scale.
• Developing a BARS
Identify important job dimensions
Write short statements of job behaviors
Assign statements (anchors) to job dimensions
Set scales for anchors
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11–25
