Performance Management & Apprasial
MN 301 – Human Resource Management
Craig W. Fontaine, Ph.D.
Pine Manor College
Fall 2014
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Performance Management versus
Performance Appraisal
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The Nature of Performance Management
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Performance Management Linkage
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Global Cultural Differences
in Performance Management
• In some cultures:
• It is uncommon for managers to rate employees or to give direct
feedback
• Younger subordinates do not engage in joint discussions with
their managers
• Criticism from superiors is viewed as personally devastating
rather than as useful feedback
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Components of a Performance-Focused
Culture
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Identifying and Measuring Employee
Performance
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Identifying and Measuring Employee
Performance
• Job duties
• Important elements in a given job as identified from job
descriptions
• What an organization pays an employee to do
• Weight
• Used to show the relative importance of different duties in one
job
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Types of Performance Information
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Performance Standards
• Define the expected levels of employee performance
• Should be realistic, measurable, and clearly understood
• Benefit both organizations and employees
• Ensure that everyone involved knows the levels of
accomplishment expected
• Can be both numerical and non-numerical
• Assessing non numerical standards can be difficult
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Example: Performance Standards for Speaking Proficiency
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Difficulties in Measuring Service Performance
• Services are individualized for customers
• Great variation in the services that can be offered
• Perception of quality is subjective
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Difficulties in Measuring Service Performance
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Performance Appraisals
• Assess an employee’s performance
• Provide a platform for feedback
• Help administering wages and salaries
• Help identifying individual employee strengths and
weaknesses
• Provide answers to work-related questions
• Help improve job performance
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Uses for Performance Appraisals
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Decisions About the Performance
Appraisal Process
Designing Appraisal Systems
Appraisal
Responsibilities
Informal vs.
Systematic
Processes
Timing of
Appraisals
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Typical Division of HR Responsibilities:
Performance Appraisal
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Who Conducts Appraisals?
Supervisors rating
their employees
Multisource or
360° feedback
Sources of
Performance
Appraisals
Outside sources
rating employees
Employees rating
their superiors
Team members
rating each other
Employees rating
themselves
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Multisource Appraisal (360 degree)
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Category Scaling Methods
• Graphic rating scale: Allows the rater to mark an employee’s
performance on a continuum indicating low to high levels of a
particular characteristic (1-5; 1-7)
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Category Scaling Methods
Aspects of Performance
Measured
Descriptive
Categories
Job
Duties
Behavioral
Dimensions
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Concerns with Graphic Rating
Scales
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Sample Terms for Defining Standards
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Category Scaling Methods
• Behaviorally Anchored Rating Scale (BARS)
• 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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Behaviorally-Anchored Rating Scale for
Customer Service Skills
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Comparative Methods
• Ranking: Listing of all employees from highest to lowest in
performance
• Drawbacks
• Does not show size of differences in performance between
employees
• Implies that lowest-ranked employees are unsatisfactory performers
• Becomes an unwieldy process if the group to be ranked is large
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Comparative Methods
• Forced distribution: Causes ratings of employees to be
distributed along a bell-shaped curve
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Forced Distribution
Advantages
• Helps deal with “rater inflation”
• Makes manages identify high,
average, and low performers
• Ensures that compensation
increases reflect performance
differences among individuals
Disadvantages
• Managers resist placing people in
the lowest or highest groups
• Explanation for placement can be
difficult
• Performance may not follow
normal distribution
• Managers may make false
distinctions between employees
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Narrative Methods
• Critical incident - Manager keeps a written record of highly
favorable and unfavorable employee actions
• Drawbacks
• Variations in how managers define a critical incident
• Time involved in documenting employee actions
• Most employee actions are not observed and may become different
if observed
• Employee concerns about manager’s black books
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Narrative Methods
• Essay - Manager writes a short essay describing an employee’s
performance
• Drawback - Depends on the supervisors’ writing skills and their
ability to express themselves
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Management by Objectives (MBO)
• Management by objectives: Performance appraisal method
that specifies the performance goals that an individual and
manager identify together
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Stages in the MBO Process
1. Job review and
agreement
2. Development of
performance standards
3. Setting of objectives
4. Continuing performance
discussions
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Combinations of Methods
• No single appraisal method is best for all situations
• Performance measurement system that uses a combination of
methods may be sensible
• Managers can choose and mix methods to accomplish what
they want a performance appraisal system
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Training Of Managers And Employees in
Performance Appraisal
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Types of Rater Errors
•
•
•
•
•
•
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Varying standards
Recency and primacy effects
Central tendency, leniency, and strictness errors
Rater bias
Halo and horns effects
Contrast error
Similar-to-me/different-from-me errors
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Providing Effective Feedback
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Effective Performance Management
Consistent with the
strategic mission
Effectively
documents
performance
Effective
Performance
Management
System
Viewed as fair by
employees
Beneficial as a
development tool
Useful as an
administrative tool
Is legal and job
related
© 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.