performance management

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Chapter 8 Performance Appraisal
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PERFORMANCE APPRAISAL
CHAPTER OBJECTIVES
After studying this chapter, you should be able to:
Explain the purpose of performance management.
Describe the characteristics of an effective performance measurement.
Identify the issues that influence the selection of a performance appraisal system.
Discuss rater biases in performance appraisals.
Describe commonly used appraisal methods.
Explain how the results of performance appraisal affect human resource management.
Rate the performance appraisal mechanism in your organization.
Describe the guidelines for effective performance evaluation interviews.
POWERPOINT® SLIDES
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(Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the
lecture outline that follows, a reference to the relevant PowerPoint slide for this chapter is placed beside the
corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip
slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number
and hit the Enter or Return key.)
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Chapter 8 Performance Appraisal
®
LECTURE OUTLINE (with PowerPoint slides)
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Performance
Management
Slide 1
Performance
Management
Slide 2
Uses of Performance
Data
Slide 3
Characteristics of
Effective Performance
Management
Slide 2
PERFORMANCE MANAGEMENT
Performance management involves much more than just performance
appraisal. To meet the organization’s strategic objectives, individual
employees need to meet their individual performance goals; collectively
employees meeting their goals help the organization to meet its goals.
Performance management involves using performance data to mutually
inform:
 corporate culture
 organizational benchmarks
 human capital potential
 systems and processes
 resources
 current policies
 program directions
 sharing results with shareholders
 asking for shareholder's input
EFFECTIVE PERFORMANCE MANAGEMENT HAS
SEVERAL CHARACTERISTICS





Performance Objectives. This is a critical aspect of the
organization’s overall strategy; if not fulfilled may result in
undesirable organizational results
Performance Goals. Achievable and realistic targets to which
actual outcomes can be compared
Performance Measurement. Assessing the efficiency of
transforming resources into goods and services, their quality,
client satisfaction, quality of decision making, and efficiency and
effectiveness of management contributions
Output Measures. Quantity and quality assessment
Outcome Measures. Results of programs compared to preset
targets
PERFORMANCE MANAGEMENT SYSTEM GOALS
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Chapter 8 Performance Appraisal
Performance
Management System
Goals
Slide 5
Organizations concerned with running an efficient and effective
performance management system will try to achieve the following
objectives:
 Transform organizational objectives into clearly understood,
measurable outcomes that define success and are shared with
stakeholders in and outside the organization
 Provide instruments for measuring, managing, and improving the
overall health and success of the organization
 Include measures of quality, cost, speed, customer service, and
employee satisfaction, motivation, and skills to provide an indepth, predictive performance management system

Shift from prescriptive, audit- and compliance-based
management to an ongoing, forward -looking strategic
partnership between top and middle management and employees
PERFORMANCE MANAGEMENT AS PART OF MANAGERIAL
STRATEGY
Performance
Management as part of
managerial strategy
Slide 6
Uses of Performance
Appraisal
Slide 7
An important part of the performance management process is the
assessment of strengths and weaknesses of the human resources in the
organization
• Performance appraisal is the process by which organizations
evaluate employee job performance
-- Provides data to assess the current skill, experience and
performance level of every employee
-- Impacts human resource planning, training & developing, career
development, and compensation expense forecasts
-- An effective performance appraisal system (valid performance
appraisals) is critical in the performance management process

Balanced Scorecard
-- Has become a very popular performance management approach
-- Combines the performance measures of the total organization,
integrating financial measures with other key performance
indicators such as customer satisfaction, internal processes,
learning, and innovation
USES OF PERFORMANCE APPRAISAL
• Feedback and performance improvement
-- Performance feedback allows the employee, the manager, and
human resource specialists to take appropriate action to improve
performance

Administrative decisions
-- Helps decision-makers determine who should receive pay raises,
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


•
Key Elements
Slide 8
Appraisal Systems
Slide 9
promotions, transfers, demotions, dismissals, etc.
Employee development and career planning
-- Poor performance may indicate the need for training; good
performance may indicate untapped potential
-- Helps to guide a conversation around the employee’s desired
career path and goals
Criteria for test validation
-- We assess the success of training, recruitment, and selection
efforts based on whether employees perform well
Training program objectives
-- Set training objectives based on employee performance in specific
domains
Job re-design
-- Poor performance may indicate errors in job analysis information
or other information that has resulted in inappropriate hiring,
training, or counselling decisions, or may be a symptom of illconceived job designs
ELEMENTS OF THE PERFORMANCE APPRAISAL SYSTEM

The human resource department usually develops performance
appraisals for employees in all departments
-- This centralization is meant to ensure uniformity in order to
provide for useful results
-- The employee’s immediate supervisor performs the actual
evaluation 95% of the time
The appraisal system should create an accurate picture of an
individual’s job performance. To achieve this goal appraisal systems
should be:

Job-related
-- The system evaluates critical behaviours that constitute job
success
-- If the system is not job-related it is invalid and probably unreliable

Practical
-- Is understood by evaluators and employees

Have performance standards
-- Performance evaluation requires performance standards which are
the benchmarks against which performance is measured
-- Collected through job analysis

Have performance measures
-- Performance evaluation also requires performance measures
which are the ratings used to evaluate performance
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Chapter 8 Performance Appraisal
Performance Measures
Slide 10
PERFORMANCE MEASURES
Direct versus Indirect Observation

Direct observation occurs when the rater actually sees the
performance

Indirect observation occurs when the rater can evaluate only
substitutes for actual performance (constructs)
Objective versus Subjective

Objective performance measures are those indications of job
performance that are verifiable by others and are usually quantitative

Subjective performance measures are those ratings that are not
verifiable by others and usually are based on the rater’s opinions
Characteristics for
Effectiveness
Slide 11
CHARACTERISTICS OF AN EFFECTIVE PERFORMANCE
APPRAISAL SYSTEM






Characteristics for
Effectiveness (cont’d)
Slide 12





Validity is of utmost importance. The most valid criteria are results.
Valid, or job-related, performance criteria must be based on a
thorough job analysis
Reliability (consistency) is difficult to achieve because of different
raters and changing work environments. However, valid criteria
tend to reliable, but reliable criteria are not necessarily valid
Input into system development increases the probability of
acceptance of the system by both supervisors and employees. It
gives employees a sense of ownership
Acceptable performance standards mean the standards should be
set based on the job analysis
Acceptable goals are derived from the strategic business plans of the
organization, but must be operationalized by managers and made to
be achievable by the employee
Control of standards, i.e., recognizes that jobs are highly
interdependent. An employee must have control over meeting a
standard of performance for it to be valid
Frequency of feedback—most appraisals take place once a year.
Ideally, performance feedback would be given by the supervisor
monthly, or quarterly, and immediately after effective or ineffective
job behaviour was observed
Rater training in observation techniques and categorization skills as
well as to be familiarized with potential rating errors
Ratee training to ensure the performance appraisal system is wellunderstood and accepted by employees
Input into interview process increases employee satisfaction and
morale
Appraisal consequences are required to maintain effectiveness and
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
ensure employees and supervisors see that appraisal results are taken
seriously and followed up on. There is also a crucial link to a merit
pay system
Different sources (raters) will have different but valid views of a
job and the performance of the employee and reduces the risk of
biases (rating errors)
METHODS OF EVALUATING PAST PERFORMANCE
Past Performance:
Noncomparative
Slide 13
Noncomparative evaluation methods do not compare one employee
against another, but use scales or reports with performance criteria

Rating Scale is perhaps the oldest and most widely used form of
performance appraisal
-- Rater provides a subjective evaluation of an individual’s
performance along a scale from low to high
-- Responses may given numerical values to enable calculation of an
average score
-- Although inexpensive to develop and administer there are many
disadvantages including rater biases and omissions of specific
performance criteria in order to be useful to a variety of jobs

Behaviourally Anchored Rating Scales (BARS) attempt to reduce
the subjectivity and biases of subjective performance measures by
using descriptions of effective and ineffective performance provided
by a variety of sources
-- Specific examples of behaviours are placed along a scale
-- BARS are job-related, practical, and standardized for similar jobs
-- Serious limitation is that only a limited number of performance
categories are included
-- Similar to BARS, Behavioural Observation Scales (BOS) involve
making judgements on the frequency at which observed
behaviours occurred

Performance Tests and Observations may include paper-and
pencil tests or an actual demonstration of skills
-- Must be valid (i.e., job-related) and reliable to be useful

360-Degree Performance Appraisals involve using multiple
sources of performance appraisal ratings including self, peer,
supervisor, subordinate, and even client or customer ratings.
Past Performance:
Comparative
Slide 14
Comparative evaluation methods compare one person’s performance
with that of co-workers

Ranking method has the rater place each employee in order from
best to worst
-- Although easy to administer and explain, this method is subject to
the halo and recency effects

Forced distributions require raters to sort employees into different
categories or classifications
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Chapter 8 Performance Appraisal
-- Usually a certain proportion must be put into each category
-- Although this method overcomes the biases of central tendency,
leniency, and strictness, some employees and supervisors dislike
this method because they feel some employees are rated lower
than they think to be correct
Future Performance
Methods
Slide 15
Other Developments
Slide 16
METHODS TO TARGET FUTURE PERFORMANCE
Future-oriented appraisals focus on future performance by evaluating
employee potential or setting future performance goals. Techniques
include:
• Management-by-Objectives Approach
-- Employee and supervisor jointly establish performance goals for
the future
-- Ideally, these goals are mutually agreed upon and objectively
measurable
• Assessment Centre Technique
-- Evaluation of future potential that relies on multiple types of
evaluation and multiple raters
-- Usually used for groups of middle-level managers with potential
OTHER DEVELOPMENTS

Web-based performance appraisal
-- Now the mainstream standard for all sizes of firms
-- These systems are: developed by experts, adaptable to an
organization’s needs, easy to use, and they allow for data to be
easily analyzed, stored, and retrieved.
-- Ideally performance appraisal software is part of an enterprisewide software system including other HR software (e.g.,
application data, interview guides for selection, computer-based
training, and payroll) and software for other organizational
functions such as finance, purchasing, distribution,
manufacturing, and more.
 Competencies
-- Historically, it was the performance standards set in job
descriptions that guided supervisors in their assessment; now
there is a tendency to focus more on skill levels than job
performance.
-- One problem within performance appraisal still to be addressed is
evaluating the performance on contingency workers
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
Implications of Appraisal:
Training
Slide 17
Talent Management is emerging within the HR field. It involves
identifying and developing specific individuals who are seen as having
high potential
-- It comes from recognizing that employees who are top performers
are not necessarily the people with the highest potential for working
at key organizational positions or areas, or for moving up in the
organization.
-- Tools such as the 9 box grid provide for assessments of employee
potential along with performance, and guide conversations
around which employees to target for remedial training,
employee development, and future promotion.
IMPLICATIONS OF APPRAISAL

Training Raters
-- Raters need knowledge of the system and its purpose
-- Require training not only focused on rating errors, but also on the
cognitive aspect of the rating process i.e., ability to make
judgments based on relatively complex information

The Recency Effect—occurs when ratings are strongly affected by
the employee’s most recent actions (either good or bad)

Implications of Appraisal:
Evaluation Interviews
Slide 18
Effective Evaluation Interviews
Slide 19
Effective Evaluation Interviews
(contd)
Slide 20
Contrast Errors – occur when raters compare employees to each
other rather than to a performance standard
EVALUATION INTERVIEWS

Evaluation interviews are performance review sessions that give
employees feedback about their past performance or future
potential
– Can use tell-and-sell, tell-and-listen, or problem-solving
approaches
-- The interview should be a positive, performance-improving
dialogue
GUIDELINES FOR EFFECTIVE PERFORMANCE EVALUATION
INTERVIEWS
1. Emphasize positive aspects of employee performance
2. Tell each employee that the evaluation session is to improve
performance, not to discipline
3. Provide immediate positive and developmental feedback in a
private location, and explicitly state that you are providing
performance feedback
4. Review performance formally at least annually and more frequently
for new employees or those who are performing poorly
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Chapter 8 Performance Appraisal
5.
6.
7.
8.
Make criticisms specific, not general and vague
Focus criticisms on performance, not on personality characteristics
Stay calm and do not argue with the person being evaluated
Identify specific actions the employee can take to improve
performance
9. Emphasize the evaluators willingness to assist the employee’s
efforts and to improve performance
10. End the evaluation session by stressing the positive aspects of the
employee’s performance and reviewing plans to improve
performance
Human Resource Management
Feedback
Slide 21
Legal Aspects of Performance
Appraisal
Slide 22
HUMAN RESOURCE MANAGEMENT FEEDBACK
The performance appraisal process also provides insight into the
effectiveness of the human resource management function.
-- If poor performance is widespread, many employees are excluded
from internal promotions and transfers, or they may be
terminated.
-- Unacceptably high numbers of poor performers may indicate
errors elsewhere in the human resource management function
(e.g., the selection process may be screening candidates poorly,
job analysis information may be incorrect, or the HR department
may be failing to respond to the challenges of the external
environment)
LEGAL ASPECTS OF PERFORMANCE APPRAISAL
A performance appraisal form is a legal document.
-- Raters must use only performance criteria that are relevant to the
job, and performance criteria must be valid and used consistently.
-- Nonrelevant criteria can be avoided if performance standards are
established through a thorough job analysis and recorded in a job
description.
-- A reasonable time frame must be set for performance
improvement with the length of time depending on the job.
-- Well-documented performance shortcomings can avoid serious
embarrassments, and feedback interviews have been viewed
favourably in court or with arbitrators.
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ANSWERS TO REVIEW AND DISCUSSION
QUESTIONS
1. Discuss the differences between performance
management and performance appraisal.
6. Why are direct and objective measures of
performance usually considered superior to indirect
and subjective measures?
Performance management looks at a number of
variables of which performance appraisal is just one.
Performance management looks at how organization
strategy can be met through the performance of every
member within the organization.
Direct measures are based on actual observation of job
behaviour, i.e., the supervisor has opportunities to see
an employee in action. Indirect measures are substitutes
for direct observation, e.g., a test substituted for direct
observation.
2. Explain why Wal-Mart is a good example of
effective performance management. What did
management do to make it one of the most efficient
and profitable companies in the world?
Objective measures are verifiable, e.g., counting
mistakes. Subjective measures are not verifiable, e.g.,
the opinion of a supervisor regarding the performance
of an employee. Opinions may be biased.
One of the reasons of Wal-Mart's success was the
introduction of bar codes, which allowed tracking of
items for instant feedback on sales.
7. If your organization were to use subjective
measures to evaluate employee performance, what
instructions would you give evaluators about the
biases they might encounter?
3. What are the uses of performance appraisals?
The various biases should be reviewed and their causes
discussed. Evaluators should be instructed to justify
their evaluations based on the employee's actual
performance.
Figure 8-2, p. 304, summarizes the uses of performance
appraisals. It may be worth indicating to students that
the performance appraisal also provides feedback on
how well the human resource department is performing.
8. Describe how you would conduct a typical
performance evaluation interview.
4. Suppose a company for which you work uses a
rating scale. The items on the scale are general
personality characteristics. What criticism do you
have of this method?
The three major approaches to conducting a
performance evaluation interview outlined in the
chapter include tell-and-sell, tell-and-listen, and
problem solving. Figure 8-11, p. 320, provides specific
guidelines for conducting the interview itself, regardless
of the approach selected.
A rating scale is very subject to rater biases. When the
scale uses general personality characteristics, biases are
more likely to appear. Furthermore, it is very unlikely
that personality characteristics bear much of a
relationship to actual job performance.
9. How do the results of performance appraisals
affect other human resource management activities?
5. If you were asked to recommend a replacement
for the rating scale, what actions would you take
before selecting another appraisal technique?
Performance appraisals can be viewed as providing
feedback on the entire range of human resource
activities discussed in this book. Poor performance may
be indicative of just that -- poor employee performance.
However, it may reveal problems in the way the human
resource department defines its objectives; meets
external challenges; deals with employment equity;
helps with job design; collects job analysis information;
conducts human resource plans; handles recruitment;
proceeds through the selection process; provides
Students should seek a performance appraisal technique
that is job-related, practical, and standardized.
Additionally, the method selected should consider the
nature and availability of performance standards and
measures that are available for evaluating performance.
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Chapter 8 Performance Appraisal
orientation, training, and development; assists with
career planning; deals with change in the organization;
or designs and implements performance appraisal
techniques.
14. What are the minimum requirements of a due
process appraisal system?
10. Describe the characteristics of a 360-degree
performance appraisal.
1. Valid criteria
2. Consistent use
3. Reasonable time frame
4. Well-documented
A 360-degree performance appraisal is a combination
of self, peer, supervisor, and subordinate feedback,
sometimes even from customers. Advantage: different
perspectives. It proves very useful in flat organizations,
with fewer managers who have to supervise more
employees, making it more difficult to assess individual
performance.
See p.321 for details.
.
11. In what ways is the Balanced Scorecard
approach a useful performance appraisal
instrument?
The balanced scorecard concept combines the
performance measures of the total organization instead
of relying on independent measures of its parts. It
provides a view or an organization’s overall
performance by integrating financial measures with
other key performance indicators around customer
satisfaction, internal organizational processes and
growth, learning, and innovation.
12. What is the relationship between a performance
appraisal system and a selection system?
No selection system can be validated without a valid
performance appraisal. Validation would be done by
correlating selection scores (interview, tests) with
performance scores.
13. Explain the legal aspect of a performance
appraisal system. Under what circumstances could it
become a crucial document?
Dismissals are often based on grounds of low
performance. Many low performance assessments are
poorly documented and based often on the opinion of a
supervisor, which have no validity in a court of law or
with an arbitrator. However, if low performance is well
documented, management usually has no problems
ridding itself of a poor performer.
It could also be a crucial document if an organization
has to prove that its selection system is valid. This can
be done only with a valid performance appraisal system.
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ANSWERS TO CRITICAL THINKING QUESTIONS
1. If the dean of your faculty asked you to serve on a
committee to develop a performance appraisal
system for evaluating the faculty, what performance
criteria would you identify? Of these criteria, which
ones do you think are most likely to determine the
faculty members' success at your school? What
standards would you recommend to the dean
regardless of the specific evaluation instrument
selected?
3. Can one performance appraisal instrument be
used for all levels in an organization, i.e., executives,
middle managers, and employees? Why or why not?
It is unlikely that one instrument could be used
effectively for different job groups. The text emphasizes
the importance of job-relevant performance criteria
which, by definition, would be different for each job. It
is true that often one performance appraisal systems is
used for different groups, but this is at the expense of its
validity.
To students, the primary performance criterion is
teaching ability. If students are encouraged, they may
identify many individual criteria that comprise effective
teaching. Examples might include fair grading,
reasonable tests, interesting classroom presentations,
freedom from annoying mannerisms, and others.
It is possible to use one part of a performance appraisal
instrument for different jobs, if the latter contain similar
job elements, e.g., managers may have common
decision making skill requirements. The other part of
the appraisal instrument would then use job specific
criteria. Such elements the above jobs do not have in
common. As an example, a manufacturing manager
probably requires some manufacturing-related specific
skills, which would be different from the skill
requirements of a marketing manager, but both jobs
may have some common management/supervisory
skills.
The criteria most likely to determine success at your
college or university are probably unique to your
institution, and depend on whether the school is
considered to have a teaching, research, or community
service orientation. In turn, this orientation affects the
specific standards a student is likely to recommend.
2. Your organization has dismissed an employee for
not performing up to par. She sues the company for
unjust dismissal, claiming that the company's
performance appraisal instrument is not a valid
assessment tool, since no woman had served on the
committee responsible for developing it. Are you
able to persuade a judge that despite the fact that no
woman served on the committee, your appraisal
instrument is valid?
The employee would have to demonstrate that the
instrument is gender sensitive, i.e., discriminates against
women (or men), which would be unusual. It is much
more common that biases originate from raters.
However, the issue here is whether the performance
appraisal instrument is valid, because no woman was
involved in its development. If proper development
rules have been followed (see Figure 8-4, p. 307), and if
job-relevant performance criteria were developed, then
it really does not matter whether women were involved
in the instrument's development or not.
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Chapter 8 Performance Appraisal
ETHICS QUESTION
Comments to Instructors
There is no right or wrong answer to this question. It is for class discussion purposes.
WEB RESEARCH
Comments to Instructors
These exercises have been designed for students to demonstrate their computer and Internet skills to research the required
information. Answers will vary.
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INCIDENT 8.1: THE MALFUNCTIONING
REGIONAL HUMAN RESOURCE DEPARTMENT
Incident Comments
The main value in this incident is that it identifies some of the potential problems that can emerge if careful attention is
not paid to the organization's performance appraisal process. The incident also underscores the interdependency of
various human resource activities.
1. What do you think is the major problem with the performance appraisal process in the regional office?
In a word, feedback. The survey indicates that many employees felt feedback was insufficient. Still others apparently
never saw their evaluations, another sign of limited feedback. Even those who did see their evaluations felt the standards
were irrelevant and unfair, an indication that these employees do not understand the standards.
2. What major problems do you think exist with the regional office's
(a) job analysis information?
(b) human resource planning?
(c) training and development?
(d) career planning?
Job analysis information may not have identified accurate performance standards; if those standards were accurate, they
may be outdated.
Human resource planning may not be addressing the organization's future human resource needs, as indicated by the
perceived high proportion of outsiders used to fill job openings.
Training and development may be insufficient, since few employees showed any improvement on their performance
ratings from one year to another.
Career planning also may be insufficient, since employees complain about a lack of career opportunities within the
organization.
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Chapter 8 Performance Appraisal
EXERCISE 8-1: DEVELOPING A PERFORMANCE
APPRAISAL SYSTEM
1. Define at least three performance criteria for the instructor.
To students, the primary performance criterion is teaching ability. Individual criteria that comprise effective teaching
may include fair grading, reasonable tests, and providing effective classroom presentations. Additional criteria may
include research and publication results, and community involvement.
The criteria most likely to determine success at your college or university are probably unique to your institution, and
depend on whether the school is considered to have a teaching, research, or community service orientation.
2. How would you measure them so that the results would be useful for a tenure and promotion decision?
Objective, job-related performance measures should be used to ensure that tenure and promotion decisions are made in a
non-discriminatory manner.
3. Which type of instrument or method do you suggest? Why?
Recommended methods or instruments include use of BARS to assess teaching ability. BARS is job-related and could be
standardized for the instructor job. 360-degree performance appraisal could also be used to gather diverse perspectives
including student assessments of performance. Other criteria such as fair grading and reasonable tests could be assessed
through the use of performance tests or the use of an assessment center to provide objective assessments. Criteria such as
research and publication could be measured using specific, quantifiable results e.g. number of publications, research
funds generated, etc. using a MBO approach. Consideration should also be given to the balanced scorecard approach as
a means to integrate and balance the institution’s overall performance measures.
4. Who should be the appraisers?
Appraisers may include members of the Faculty Evaluation Committee, supervisors (i.e., Dean or Associate Dean),
students, other instructors and/or teaching experts from a university or college teaching/education discipline.
5. Time permitting, compare the results in your group with those of another group.
Students should compare performance criteria, instruments, and who was chosen to be raters.
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CASE STUDY: MAPLE LEAF SHOES LTD.,
PERFORMANCE APPRAISAL ISSUES
Answers to Discussion Questions
1. You are Tim Lance. Please write an assessment of
Maple Leaf Shoes' performance evaluation system.
2. What changes would you recommend to the
company? Why?
The strength of the present evaluation system is that it is
easy to use and that 10 percent of the supervisors are
trying, seriously trying, to make it work as intended.
The weaknesses, however, are numerous. For the
majority of supervisors, the system is not worth the
paper it is written on. First, the criteria are vague and
the standards are unspecified. Second, the supervisors
do not seem to have received any training in using it or
had its importance impressed upon them. Third, the
employees generally receive no feedback and have
indifferent or mixed feelings about the system. Fourth,
the senior management do not consult the evaluation
results for promotions or raises. So it has become a
useless system carried on by untrained people.
The only recommendation here is for the company to
formally dissolve the system and start training the
supervisors in the art and science of performance
appraisal. Supervisors should hold periodic conferences
with their subordinates to give them feedback as to how
they are doing. At the next stage, perhaps a formal
evaluation form with specific criteria may be devised,
and a format such as BARS or MBO can be established
in consultation with the supervisors and employees. In
the third stage, an attempt might be made to link salary
decisions to performance appraisal. The linkage should
perhaps be a qualitative one rather than a quantitative
one.
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Chapter 8 Performance Appraisal
CASE STUDY: CANADIAN PACIFIC AND
INTERNATIONAL BANK
Answers to Discussion Question
critical incidents that indicate whether the employee
meets the performance standards on each performance
criteria. This means that the relevant performance
dimensions and standards should be determined a priori
(i.e., what behaviours would indicate mistakes and
why), and that they be incorporated in the BARS
measure. This system allows for documenting concrete,
overt behaviours, which reflect the relevant
performance requirements of the job, and thus is legally
defensible.
1. How can the bank develop a system that will be
legally foolproof?
The appraisal system should accurately reflect the
performance criteria and standards of the job, and the
ratings should indicate the level of performance in the
appraisal itself. One way to make it foolproof is to
document the specific behaviours that are deemed as
unacceptable, and why they are considered mistakes
relative to the specified standards. This can be done
through BARS, which is based on writing in specific
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