វិទ្យាស្ថានខ្មែរជំនាន់ថ្ែី
INSTITUTE OF NEW KHMER
មហាវិទ្យាល័យគ្រប់គ្រងពាណិជចកមែ និងទទ្យស្ចរណ៍
ការគ្រប់គ្រងធនធានមនុស្ស
Human Resources Managements
Lectured by: NOUV Brosh
Mobile Phone: 093640486 & E-mail: broshnouv@gmail.com
HRM By: NOUV Brosh
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PART III:
Rewarding Human Resources
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Chapter 9:
Performance Evaluation and
Management
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What is Performance Appraisal?
• a formal management system that provides for the evaluation
of the quality of an individual’s performance in an
organization.
• appraisal is usually prepared by the employee’s immediate
supervisor.
• typically requires the supervisor to fill out a standardized
assessment form that evaluates the individual on several
different dimensions and then discuss the results of the
evaluation with the employee.
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What is Performance Appraisal? (Con’t)
What is the purpose of Performance Appraisal?
• providing feedback to employees about their performance
• determining who gets promoted
• facilitating layoff or downsizing decisions
• encouraging performance improvement
• setting and measuring goals
• counseling poor performers
• determining compensation changes
• determining individual training and development needs
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FOUR-PHASE MODEL OF PERFORMANCE APPRAISAL:
ORGANIZATION STRATEGY
Strategic Plan
Mission/Vision/Values
Department/Unit Objectives
Common Organizational Competencies
WHAT
Objectives
Standards
Goals
Results
PHASE 1:
PERFORMANCE
PLANNING
Manager’s Responsibilities
• Create conditions that motivate
• Eliminate performance problems
• Update objectives
• Provide development opportunities
• Reinforce effective behavior
PHASE IV:
PERFORMANCE
REVIEW
HOW
Competencies
Behaviors
Skills
Performance
Factors
PHASE II:
PERFORMANCE
EXECUTION
Individual’s Responsibilities
• Achieve objectives
• Solicit feedback and coaching
• Communicate openly
• Collect and share data
• prepare for reviews
JUDGING
Strengths
Weaknesses
Compensation
Potential
PHASE III:
PERFORMANCE
ASSESSMENT
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COACHING
Training
Development
Immediate
Prospects
Career
Planning
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What is the difference between “results” and
“behaviors”?
• Results include actual job outputs, countable
products, measurable outcomes and
accomplishments, and objectives achieved. Results
deal what the person achieved.
• Behaviors include competencies, skills, expertise and
proficiencies, the individual’s adherence to
organizational values, and the person’s personal style,
manner, and approach. Behaviors deal with how the
person went about doing the job.
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What is the difference between “results” and
“behaviors”? (Con’t)
ELEMENT
ELEMENT
RESULT
What the individual achieved
Actual job outputs
Measurable outcomes and accomplishments
Objectives achieved
QQCT (Quantity/Quality/Cost/Timeliness)
BEHAVIOR
How the individual performed
Adherence to organizational values
Competencies/performance factors
Traits/attributes/characteristics/proficiencies
Personal style, manner, and approach
KASH (Knowledge/Attitudes/Skills/Habits)
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Example of a Performance System that includes Behavior and Results
Accountabilities
and Key Results
Performance
Standards
Interim
Feedback
Key result areas
that will
accomplish
during the review
period. Should
align with
company values,
business goals
and job
description.
How the key
result area will be
measured
(quality, cost,
quantity). Focus
on work methods
and
accomplishments
.
Employee
and
manager
discuss
performanc
e on an
ongoing
basis.
Project
Development
Manage the
development of
project scope,
cost estimate
studies, and
schedules for
approval
Actual
Results
Review
actual
performance
for key
result.
Performance
Rating
Evaluate
performance on
each key result.
1 = Outstanding
2 = Highly
effective
3 = Acceptable
Areas for
Development
Action
Specific
knowledge,
and behaviors
to be
developed
that will help
employee
achieve key
results.
What
employee
and
manager will
do to
address
development
needs.
Increase
Read
knowledge of
project
management
software.
articles, and
meet with
software
vendors.
4 = Unsatisfactory
Develop
Preliminary
By end of
preliminary
project material
for approval
within four
weeks after
receiving project
scope. 80% of
new projects
receive
approval. Initial
cost estimates
are within 5% of
final estimates.
project
materials are
developed on
time
year,
approvals
were 75%
less than
standard
HRM By: NOUV Brosh
Source: Noe, Hollenbeck, Gerhart & Wright (2003), page 355.
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9
An Organizational Model of Performance
Management
Organizational
Strategy
Long & Short
term goals
and values
Individual
Attributes
(skills, abilities)
Individual
Behaviors
Objective
Results
Situational
Constraints
- Culture
- Economic
conditions
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Purposes of Performance
Management
The purposes are:
• Strategic
• Administrative
• Developmental
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Performance Appraisal
Developmental
PURPOSE:
BASIS FOR
COMPARISON :
APPRAISAL
TECHNIQUE :
ROLE OF
MANAGER :
Administrative
Improve Performance
Information for:
pay increases
promotions
terminations
Absolute Standard
Relative Standard
Results - Oriented
BARS
Rating Scale
Counselor
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Judge
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HOW SHOULD A COMPANY EVALUATE PERFORMANCE?
Some yardsticks/criteria to consider:
•
fast and quick action to boss’s instructions
•
understand the boss’s thinking and requirements
•
ability to organize and schedule priorities
•
hardworking and willing to go the extra mile for company
•
meticulous attention to details and follow-up actions
•
ability to achieve results and performance
•
loyal, faithful, dedicated, committed and passionate about work
•
good organizational and co-ordination skills
•
feel for the company
•
assist the company to make money
2 types of royalty: 1. PERSONAL and 2. CORPORATE (expected and
demanded of all paid employees. Employees are paid
to perform & contribute)
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Performance Measures Criteria
•
Strategic Congruence - the extent to which the performance
management system elicits job performance that is consistent
with the organization’s strategy, goals, and culture.
•
Validity - the extent to which a performance measure assesses
all the relevant aspects of job performance.
•
Reliability - the consistency of a performance measure; the
degree to which a performance measure is free from random
error.
•
Acceptability - the extent to which a performance measure
is deemed to be satisfactory or adequate by those who use
it.
•
Specificity - the extent to which a performance measure gives
detailed guidance to employees about what is expected of them
and how they can meet those expectations.
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Factors that Influence Performance
Motivation
•
•
•
•
•
Career ambition
Employee conflict
Frustration
Fairness/satisfaction
Goals/expectations
•
•
•
• Equipment/materials •
• Job design
•
• Economic conditions •
• Unions
• Rules and policies
• Management support
• Laws and regulations
Environment
P = f (A,M,E)
Ability
Technical skills
Interpersonal skills
Problem-solving
Analytical skills
Communication skills
Physical limitations
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Establishing Performance
Standards
Strategic relevance-performance standards linked
to organizational goals and
competencies.
Strategies
and
Competencies
Criterion contamination-elements that affect the
appraisal measures that are
not part of actual performance.
PerformanceMeasure
Measure
Performance
Performance
Measure
PerformanceMeasure
Measure
Performance
Performance Measures
Zone of
Valid Assessment
Criterion deficiency--aspects
of actual performance that are
not measured.
Actual Performance
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Reliability--consistent
measurement across raters
and/or over time.
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HOW TO ESTABLISH AN EFFECTIVE APPRAISAL
PROGRAM?
ESTABLISHING PERFORMANCE STANDARDS :
•
strategic relevance - performance standards that
linked to organizational goals and competencies. For
example, setting an objective that 95% of all
customer complaints must be resolved within one
day, then such standard would be use to evaluate
sales service representatives.
•
criterion deficiency - aspects of actual performance
that are not being measured. For example, when
performance standards focus on a single criterion
(e.g., sales revenue), to the exclusion of other but less
quantifiable performance dimensions (e.g.,
customer service), then the appraisal system is said
to suffer from criterion deficiency.
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HOW TO ESTABLISH AN EFFECTIVE APPRAISAL
PROGRAM? (Con’t)
•
criterion contamination - elements that affect the
appraisal measures that are not part of the performance.
Just as performance criteria can be deficient, they can
also be contaminated. There are factors outside an
employee’s control that can influence his/her
performance. For example, a comparison of Mild-Seven
cigarette salesman should not be contaminated by the
fact that locations (provinces) differ in sales potential.
•
reliability - consistent measurement across raters and/or
over time. In ratings, reliability must be measured by
correlating two sets of of ratings made by a single rater or
by two different raters. For example, two managers may
rate the same individual and estimate his/her suitability
for a promotion. Their ratings could be compared to
determine inter-rater reliability.
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Pitfalls in Performance Appraisals
Common
Appraisal
Errors
Error of Central Tendency Performance-rating error in
which all employees’ re
rated above average.
Leniency or Strictness
Error - performancerating error in which the
appraiser tends to give
employees either
unusually high or
unusually low ratings
Similar-to-Me Error performance-rating error in
which an appraiser inflates the
evaluation of an employee
because of a personal mutual
connection
HRM By: NOUV Brosh
Recency Error performance-rating error
in which the appraisal is
based largely on the
employee’s most recent
behavior rather than on
behavior throughout the
appraisal period
Contrast Error performance- rating error
in which an employee’s
evaluation is based either
upward or downward
because of comparison
with another employee just
previously evaluated
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Performance Measurement Approaches
•
•
•
•
•
Comparative
– ranking
– forced distribution
– paired comparison
Attribute
– graphic rating scales
– mixed standard scales
Behavioral
– critical incidents
– Behaviorally Anchored Rating Scales (BARS)
– Behavioral Observation Scales (BOS)
– Organizational Behavior Modification (OBM)
– assessment centers
Results
– MBO
– Productivity Measurement & Evaluation System (ProMES)
The Quality Approach
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Performance Appraisal: Trait Methods
Graphic Rating Scale - a
trait approach to p.a whereby
each employee is
rated according to a scale
of characteristics
Mixed Standard Scale - a
trait approach to p.a similar
to other scale methods but
based on comparison with
(better than, equal to,or
worse than) a standard
Forced-Choice - a trait
approach to p.a that requires
the raters to choose from
statements designed to
distinguish between
successful & unsuccessful
performance
Essay - a trait approach to
p.a that requires the rater
to compose a statement
describing employee
behavior
Common Trait
Methods of
Appraisal
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Performance Appraisal: Behavioral Methods
Critical Incidents - unusual
event that denotes superior of
inferior employee performance in
some part of the job
Behavioral Checklist - consists of having
the rater check those statements on a list
that the rater believes are characteristic
of the employee’s performance or
behavior
Behavior Observation Scales (BOS)
- a behavioral approach to
performance appraisal that
measures the frequency of observed
behavior
Behaviorally Anchored Rating
Scale (BARS) - a behavioral
approach to performance appraisal
that consists of a series of vertical
scales, one for each important
dimension of job performance
Common Behavioral
Appraisal Methods
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EXAMPLES OF PERFORMANCE METHODS
A. GRAPHIC RATING SCALES (A TRAIT APPROACH TO PA)
Appraise employee's performance in PRESENT ASSIGNMENT. Tick ( ) t h e most appropriate square. Appraisers are urged t o freely
use the "Remarks" sections for significant descriptive of the individual.
1. KNOWLEDGE
Needs instruction or guidance
OF WORK:
Has required knowledge of
own and related work
Has exceptional knowledge of
own and related work
n
Understanding of all
phases of his/her work
n
n
Remarks:
and related matters
2. INITIATIVE:
Lacks imagination
Meets necessary requirements
Unusually resourceful
Ability t o originate
n
or develop ideas and
application t o his/her work
q
q
Remarks:
3. APPLICATION :
Attention and application t o Wastes time (needs close supervision)
n
his/her work
4. QUALITY OF WORK:
Needs improvement
Thoroughness,andaccuracy
of work
5. VOLUME OF WORK :
n
Regularly meets recognized standards
n
Exceptionally industrious
Consistently maintains high quality
CJ-+--------Cl-+--------r=l-+----------r=l----------r=l----------
Remarks:
Should be increased
n
Quantity of acceptable
work
n
Steady and willing worker
Remarks:
Regularly meets recognized standards
n NOUV Brosh
n
HRM By:
Unusually high output
n
n
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B. MIXED-STANDARD SCALE (A TRAIT APPROACH TO
PA)
•
B. MIXED-STANDARD SCALE (A TRAIT APPROACH TO PA)
•
INSTRUCTIONS: Please indicate whether the individual’s performance is above (+), equal to (0), or lower (-) than each of
the following standards.
•
1.
Employee uses good judgement when addressing problems and provides workable
alternatives; however, at times does not take actions to prevent problems. (MEDIUM PROBLEM
SOLVING)
2.
Employee lacks supervisory skills; frequently handles employees poorly and is at
times argumentative. (LOW LEADERSHIP)
3.
Employee is extremely cooperative; can be expected to take the lead in developing cooperation
among employees; completes job tasks with a positive attitude. (HIGH COOPERATION)
4.
Employee has effective supervision skills; encourages productivity, quality, and
employee development. (MEDIUM LEADERSHIP)
5.
Employee normally displays an argumentative or defensive attitude toward fellow employees
and job assignments. (LOW COOPERATION)
6.
Employee is generally agreeable but becomes argumentative at times when given job
assignments; cooperates with other employees as expected. (MEDIUM COOPERATION)
7.
Employee is not good at solving problems; uses poor judgement and does not anticipate
potential difficulties. (LOW PROBLEM SOLVING)
8.
Employee anticipates potential problems and provides creative, proactive alternative
solutions; has good attention to follow-up. (HIGH PROBLEM SOLVING)
9.
Employee displays skilled direction; effectively coordinate unit activities; is generally a
dynamic leader and motivates employees to high performance. (HIGH LEADERSHIP)
•
•
•
•
•
•
•
•
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C. BEHAVIOURALLY ANCHORED RATING SCALES (BARS) (A BEHAVIORAL APPROACH TO PA)
Instructions: Select the rating that best describes the behavior of the employee you are appraising for each dimension:
JOB
: FRONT DESK RECEPTIONIST
DIMESNSION : CUSTOMER FOCUS
RATING
The names of regular customers are recalled from memory.
The customer is greeted warmly and acknowledged on completion of business.
1
2
Is attentive to the customer if he or she is required to wait.
3
Displays irritation with the customer if asked questions.
4
Fails to deal with customer queries adequately.
5
Leaves customer waiting while chats to other staff.
6
1 - EXCELLENT
4 - POOR PERFORMANCE
2 - GOOD PERFORMANCE
5 - VERY POOR PERFORMANCE
3 - AVERAGE PERFORMANCE
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6 - EXTREMELY POOR PERFORMANCE
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D. BEHAVIOR OBSERVATION SCALES (BOS) (A BEHAVIORAL APPROACH TO PA)
INSTRUCTIONS: Please consider the Sales Representative’s behavior on the job in the past rating period. Read each
statement carefully, then circle the number that indicates the extent to which the employee has demonstrated this effective
or ineffective behavior.
For each behavior observed, use the following scale:
5 represents almost always
95 - 100% of the time
4 represents frequently
85 - 94% of the time
3 represents sometimes
75 - 84% of the time
2 represents seldom
65 - 74% of the time
1 represents almost never
0 - 64% of the time
SALES PRODUCTIVITY
ALMOST NEVER
ALMOST ALWAYS
1. Reviews individual productivity results with manager
1
2
3
4
5
2. Suggests to peers, ways of building sales
1
2
3
4
5
3. Formulates specific objectives for each contact
1
2
3
4
5
4. Focuses on product rather than customer problem
1
2
3
4
5
5. Keeps account plans updated
1
2
3
4
5
6. Keeps customer waiting for service
1
2
3
4
5
7. Anticipates and prepares for customer concerns
1
2
3
4
5
8. Follows up on customer leads
1
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2
3
4
5
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Summary of Appraisal Methods
TRAITS
ADVANTAGES
Inexpensive
Meaningful
Easy to use
BEHAVIOR Specific dimensions
Accepted by employees
Useful for feedback
OK for reward/promotion
RESULTS
Less subjectivity bias
Accepted by employees
Performance-reward link
Encourages goal setting Good
for promotion decisions
DISADVANTAGES
Potential for error
Poor for counseling
Poor for allocating rewards
Poor for promotional decisions
Time consuming
Costly
Some rating error
Time consuming
Focus on short term
Criterion contamination
Criterion deficiency
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DECIDING WHO SHOULD DO THE
APPRAISAL :
• MANAGER/SUPERVISOR APPRAISAL
• SELF-APPRAISAL
• SUBORDINATE APPRAISAL
• PEER APPRAISAL
• TEAM APPRAISAL
•
360 DEGREE APPRAISAL
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Alternative Sources
of Appraisal
SUPERIOR
CUSTOMERS
PEERS
TEAM
SELF
SUBORDINATES
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DECIDING WHO SHOULD DO THE
APPRAISAL :
• MANAGER/SUPERVISOR APPRAISAL
• SELF-APPRAISAL
• SUBORDINATE APPRAISAL
• PEER APPRAISAL
• TEAM APPRAISAL
•
360 DEGREE APPRAISAL
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What is 360-degree appraisal?
• What is 360-degree appraisal? - a performance appraisal process for
managers and supervisors that includes evaluations from a wide range of
persons who interact with the manager/supervisor. The process includes
self-evaluations as well as evaluations from the manager/supervisor’s
boss, subordinates, peers, and customers.
• The 360-degree appraisal is intended to provide employees with as
accurate a view of their performance as possible by getting input from all
angles: immediate superiors, peers, subordinates, customers and
anybody’s else who has direct interaction with the employee in his/her
work.
• It is useful as a feedback for both developmental and administrative
purposes.
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ADVANTAGES AND DISADVANTAGES OF 360-DEGREE
APPRAISAL:
ADVANTAGES
DISADVANTAGES
The system is more comprehensive in that
responses are gathered from multiple
perspectives
Quality of information is better.
It compliments TQM initiatives by
emphasizing internal/external customers.
It may lessen bias/prejudice since feedback
comes are from more people, not one
individual.
Feedback from peers and others may increase
employee self-development.
•The system is complex in combining all the
responses.
•Feedback can cause intimidating and
resentment if employees feel the respondents
have “ganged up”.
•There may be conflicting opinions, though
they may all be accurate from the respective
standpoints.
•The system requires training to work
effectively.
•Employees may collude or “game” the system
by giving invalid evaluations to one another.
•Appraisers may not be accountable if their
evaluations are anonymous
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How to establish an effective 360-degree
appraisal system?
•
•
•
•
•
Assure anonymity.
Make respondents accountable.
Prevent “gaming” of the system.
Use statistical procedures.
Identify and quantify biases.
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Performance Appraisal under an MBO Program
Step 5a:
Inappropriate
goals/metrics
deleted
Step 1:
Organization
goals and
metrics
Step 2:
Department
goals and
metrics
Step 7:
Review of
organization
performance
Step 3:
Supervisor
lists goals and
metrics for
subordinate
Step 3:
Subordinate
proposes
goals and
metrics
Step 5b:
New inputs
are then
provided
Step 4:
Mutual
agreement of
goals and
metrics
Step
6: Final
review
HRM By: NOUV Brosh
Step 5:
Interim
review
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Appraisal Interviews
Ask for SelfAssessment
Follow Up
Day by Day
Establish
Goals
Invite
Participation
Express
Appreciation
Be
Supportive
Minimize
Criticism
Focus on
Problem
Solving
Change the
Behavior, not
the Person
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Why
Performance
Appraisals
May Fail?
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36
Improving Performance Feedback
•
•
•
•
•
•
•
•
•
Give feedback frequently
Create the right context for the discussion
Have employee do self-evaluation before session
Encourage participation during session
Praise effective performance
Focus on solving problems
Focus feedback on behavior or results
Minimize criticism
Set specific goals and a date to review progress
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Reading Cases
Case 9-1: Evaluating store managers at
Bridgestone/Firestone Tire and Rubber
on page 287 to 290.
Case 9-2: The Politics of Performance
Appraisal on page 290 to 292
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