CHAPTER 10
Evaluating Employee
Performance
DeCenzo and Robbins HRM 7th
Edition
1
CHAPTER 10 TOPICS:
1:
2:
3:
4:
5:
6:
7:
8:
9:
Performance management system purpose
Appraisal process steps
Absolute standards
Relative standards
MBO
Performance appraisal distortions
More effective performance appraisal
Alternative appraisal methods
Global issues
DeCenzo and Robbins HRM 7th
Edition
2
1: PERFORMANCE
EVALUATION PURPOSES
Performance
Management Systems
Feedback
Development
Documentation
DeCenzo and Robbins HRM 7th
Edition
3
1: PERFORMANCE
EVALUATION PROBLEMS
Focus on individual
personality
Emotions, anger,
resentment,
satisfaction
Expectations
Focus on process
Tied to budget
Training
AND….
DeCenzo and Robbins HRM 7th
Edition
4
1: PERFORMANCE
EVALUATION PROBLEMS
EEO requirements
Reliable
valid
DeCenzo and Robbins HRM 7th
Edition
5
2: APPRAISAL PROCESS
STEPS
1. Establish
performance
appraisal standards
2. Mutually set
measurable goals
3. Measure actual
performance
AND….
DeCenzo and Robbins HRM 7th
Edition
6
2: APPRAISAL PROCESS
STEPS
4. Compare actual
with standard
5. Discuss appraisal
with employee
6. Corrective action
Basic
Immediate
DeCenzo and Robbins HRM 7th
Edition
7
2: APPRAISAL METHODS
Absolute standards
Measure against
external reference
Relative standards
Evaluate employees
against each other
Objectives
Measure against goals
DeCenzo and Robbins HRM 7th
Edition
8
3: ABSOLUTE STANDARDS
Essay
Critical incident
Checklist
Adjective rating scale
Forced-choice
Behaviorally-Anchored
Rating Scale (BARS)
DeCenzo and Robbins HRM 7th
Edition
9
3: ESSAYS
Subjective
Hard to compare with
others
Simple
Strengths
Weaknesses
Potential
Suggestions for
improvement
DeCenzo and Robbins HRM 7th
Edition
10
3: CRITICAL INCIDENT
Essay about what was
most effective or
ineffective in a key
job situation
Focus on behavior,
not personality
Weekly is timeconsuming
DeCenzo and Robbins HRM 7th
Edition
11
3: CHECKLIST
Yes or No
Predefined behaviors
or qualities
Items may be
irrelevant
Helps reduce bias
DeCenzo and Robbins HRM 7th
Edition
12
3: ADJECTIVE RATING
SCALE
Factors present
Job knowledge
Cooperation
Quality and quantity
of work
5 to 10 points on a
continuum
• See Exhibit 10-3
DeCenzo and Robbins HRM 7th
Edition
13
Exhibit 10-3: Sample Adjective Rating Items and Format
DeCenzo and Robbins HRM 7th
Edition
14
3: FORCED-CHOICE
Bias and distortion
reduced
Frustration about lack
of feedback
Simple
Like a multiple choice
test question
DeCenzo and Robbins HRM 7th
Edition
15
3: B.A.R.S.
Simple
Reduces rating errors
Definite, observable
job behaviors
– See Exhibit 10-4
DeCenzo and Robbins HRM 7th
Edition
16
Exhibit 10-4: Sample BARS for an Employee Relations Specialist
DeCenzo and Robbins HRM 7th
Edition
17
4: RELATIVE STANDARDS
Group order ranking
Quartiles
Individual ranking
Best to worst
Paired comparison
Similar to job ranking
Compare each one to
all others
DeCenzo and Robbins HRM 7th
Edition
18
5: MANAGEMENT BY
OBJECTIVE (MBO)
STEPS
Goal setting
Action planning
Self control
Periodic review
DeCenzo and Robbins HRM 7th
Edition
?
19
5: MBO ISSUES
Advantages
Results oriented
Commitment
Problems
Trust needed
Satisfaction
Time-consuming
Important to followup
Frustration builder
DeCenzo and Robbins HRM 7th
Edition
20
6: PERFORMANCE
APPRAISAL DISTORTIONS
Leniency
Halo
Similarity
Central tendency
Inflationary pressures
Inappropriate
substitutes
AND….
DeCenzo and Robbins HRM 7th
Edition
21
6: PERFORMANCE
APPRAISAL DISTORTIONS
Attribution theory
Varies by control
Internal
External
Impression
management
DeCenzo and Robbins HRM 7th
Edition
22
7: TO IMPROVE
APPRAISALS
Behavior based
measures
Combine absolute
and relative measures
Provide ongoing
feedback
Have multiple raters
Rate selectively
Train appraisers
DeCenzo and Robbins HRM 7th
Edition
23
8: MORE EFFECTIVE
APPRAISALS - PEERS
Positives
Constructive criticism
Specific feedback
Negatives
Fear
Halo, leniency error
Training
Upward appraisal
DeCenzo and Robbins HRM 7th
Edition
24
8: MORE EFFECTIVE
APPRAISAL (360-DEGREE)
Multiple appraisers
Self
Boss
Peers
Team members
Customers
Suppliers
DeCenzo and Robbins HRM 7th
Edition
25
8: 360-DEGREE
APPRAISALS
Positives
Increase manager’s
awareness of own
actions
More accurate
feedback
Empowerment
Developing leadership
Reduces subjectivity
DeCenzo and Robbins HRM 7th
Edition
26
9: GLOBAL ISSUES
Does the cultural
environment vary
from host country to
corporate?
Who does evaluation?
Host country
supervisor
Home office
AND…
DeCenzo and Robbins HRM 7th
Edition
27
9: MORE GLOBAL ISSUES
What do numbers,
ranking mean?
Culture
Economic issues
Political realities
Evaluation format
AND….
DeCenzo and Robbins HRM 7th
Edition
28
9: GLOBAL SUGGESTIONS
Modify to suit
Site
Culture
Use an expatriate
DeCenzo and Robbins HRM 7th
Edition
29
REVIEW CHAPTER 10
How do we do
performance
appraisal in this
course?
Any suggestions to
improve it for next
semester?
Any suggestions for
this semester?
DeCenzo and Robbins HRM 7th
Edition
30
QUICK: REVIEW
CHAPTER 10
ANSWER THESE QUESTIONS ON A SHEET
OF PAPER.
1. THE MOST IMPORTANT THING WE DID IN
CLASS TODAY _______.
2. I STILL HAVE QUESTIONS ABOUT___.
3. THE BEST THING ABOUT CLASS TODAY WAS
_______________.
4. DON’T DO ____________ ANYMORE.
• TURN THEM IN, PLEASE. NO NAMES. WE’LL TALK
NEXT CLASS SESSION
DeCenzo and Robbins HRM 7th
Edition
31
PREVIEW: CHAPTER 11
Ask 3 people you know:
1 college student
1 40-60 year old worker
1 retiree
Why do/did you work?
Tell me about the best “reward” you
received from a job?
Write up their responses for 1 extra point on your final grade.
DeCenzo and Robbins HRM 7th
Edition
32
Exhibit 10-1: The Appraisal Process
DeCenzo and Robbins HRM 7th
Edition
33
Exhibit 10-2: Sample Checklist Items for Appraising
Customer Service Representative
DeCenzo and Robbins HRM 7th
Edition
34
Exhibit 10-5: Factors That Distort Appraisals
DeCenzo and Robbins HRM 7th
Edition
35
Exhibit 10-6: Towards a More Effective
Performance Management System
DeCenzo and Robbins HRM 7th
Edition
36
0
