Performance Management &
Appraisal, Part I
• The purposes and requirements of
an effective performance
management and appraisal system
• Legal and strategic issues in
performance appraisal
• Appraisal formats: Advantages and
disadvantages
Performance Management &
Appraisal
• Performance
management
– Defines
performance
– Facilitates
Performance
– Encourages
performance
• Performance
Appraisal
– Measures
performance
– Evaluates
performance
– Feeds back the
evaluation
Legal & Strategic Issues
• Legal issues
– Performance appraisal is open to
adverse impact
– Criteria must be applied equally
• Strategic issues
– Organizations get what they reward
– Need to align strategy with performance
management system
Using Performance
Appraisal
• Developmental
– Improving performance
– Career development
• Administrative
– Salary decisions
– Promotion
– Retention
Relative & Absolute
Judgments
• Relative
– Ranking
– Forced distribution
• Absolute
– Graphic rating scales
– Behavioral checklists
– Critical incidents
Scale Formats
Graphic Rating Scale
Quality of Work
1
Poor
2
Below
Average
Graphic Rating Scale
clearer anchors
3
Average
4
Good
5
Excellent
Quality of Work
1
2
3
Frequent Passable Usually
Errors
accurate
4
5
Errors Accurate
rare
Trait and Behavioral Data
• Traits
– Personality
– Individual traits
• Behavioral data
– BARS (create dimensions, write critical
incidents, rate critical incidents, form
scales with incidents as anchors
– BOS
Scale Formats
Behaviorally Anchored Rating Scale For Supervision
5: Can train and develop
subordinates
4: Exhibits respect towards
subordinates
3: Critical of personnel in front of
others
2: Sets a poor example
1: Reneges on promises
Outcome Data
• Meeting goals
• Quantitative data
– sales
– scrappage
– productivity
Backwards & Forwards
• Summing up: We began with distinguishing
performance management from performance appraisal.
Legal and strategic issues were considered and the
balance of the session reviewed different rating formats,
their advantages and disadvantages.
• Looking ahead Next time we complete our discussion of
performance management by looking at challenges to
effective performance management, the appraisal
interview, motivation, and performance improvement.