Author: Dick Grote Presented by: Nick Grisak and Teresa Castillo CH. 3 APPROACHES TO APPRAISAL

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1 Author: Dick Grote Presented by: Nick Grisak and Teresa Castillo CH. 3 APPROACHES TO APPRAISAL

2 IN THIS CHAPTER WE WILL Analyze various approaches based on unique forms used to appraise performance With the exceptions of rare cases, each organization that uses performance appraisals will have a combination of these approaches Companies mix-and-match forms to create the performance appraisal that fits their needs, values, and culture

3 Appraisal process itself is the most important not the forms used Many people think strictly of the forms used when referring to performance appraisals simply because they are the most visible example of the process (p.36) In fact, companies are not legally obligated to create and use performance appraisals Only that they not commit unlawful discrimination

4 Forms stand to specify the values of the company with it focuses its energies and weight -Think: visual report card (p.36) -Listing of acceptable behaviors, processes, and results the company seeks to make standard practice

5 JOB PERFORMANCE MODEL PERFORMER SITUATION BEHAVIORS RESULTS Performance appraisal forms focus on Performer, Behavior, and Results Situation is taken into account for accuracy and incorporated into appraisal summary (if need be) but not included on the form (p. 39) Example: Salesman exceeding quota given market changes

6 PERFORMER-FOCUSED APPROACH Focuses only on an individual s traits and personal characteristics to gain satisfactory job performance Does not ask: What does his/her job entail? What results are being generated? Simple check mark or rating scale to indicate the degree of the trait Example of purest appraisal form (p.41)

7 THE GOOD AND BAD OF TRAIT-BASED Pros: Ease of construction: check, check Ensure individuals meet the culture of the company Hiring decisions: What are we looking for in an employee?

8 THE GOOD AND BAD OF TRAIT-BASED Cons: Whether one exhibits a traits tells little about how they will perform a task No usable data for change in employee performance Does not accurately convey the importance of some tasks over others Would not survive legal scrutiny Impossible to demonstrate validity and reliability

9 BEHAVIOR-BASED APPRAISAL Concentrates on behaviors, competencies, and skills to assess what the employee does. B.A.R.S (Behaviorally Anchored Rating Scale): Developed in 1963 by Nat l League of Nursing Identify specific factors to be assessed, catalog descriptions and dimensions of job, and scale rating in accordance to quality of performance Scale from superior performance (5) to non-existent (1), for example

10 Pros: Contains no judgment for performance: performance is identified among listing of possible behaviors People feel the appraisal system is fair employees and employer work together to determine criteria High reliability and validity Sparks conversation with discussion of behavior greater effect on change Immediate performance improvements

11 Cons: Hard to identify middle ground for performance Identifying complete dimensions with no overlap Requires keeping logs of each employees behavior time extensive Expensive Appraisal training to fine tune behavioral observations and opinions

12 RESULTS-FOCUSED APPRAISAL Management by objectives (MBO) Most common results-based approach. More of an Organization's philosophy of management Set of beliefs about how an enterprise should be organized, managed, and controlled. MBO emphasizes predicting and influencing the future rather than responding to the past.

13 MBO CONTINUED Eight major steps to the MBO process 1. Long range goals and strategic plans Involves an investigation of the organization s strengths, weaknesses, opportunities, and threats. From this comes the mission statement! 2. Develop Organizational Objectives Objectives are in key areas of productivity, profitability, market share, etc.

14 MBO CONTINUED 3. Establish objectives for major units Each department should create their own objectives that are very specific as to how they will help achieve the organization s objectives. 4. Set realistic and challenging objectives and standards of performance. All personnel should establish their own goals and objectives and relate to department s goals.

15 MBO CONTINUED 5. Action plans for achieving stated goals Establish how the goals from step 4 will be acheived. This includes determining major activities, identifying resources needed, and creating checkpoints and deadlines. 6. Implement action plans and corrective action Managers should give freedom to their subordinates to try to achieve their own goals on their terms. Managers should be supportive and offer guidance rather than direct them.

16 MBO CONTINUED 7. Periodically review performance Compare performance to the goals and give feedback periodically. Meaning, review performance more than once a year. 8. Appraise overall performance, reinforce behavior, and strengthen motivation Appraise overall performance at the end of the term and measure achievement and success of individuals.

17 RESULTS-FOCUSED APPRAISAL Accountabilities and Measures Approach This form of results-focused appraisal is conducted with upper management determining objectives for job incumbents. Consists of a new job description, a new weekly activity report, and predetermined measures used to assess individuals performance. No negotiations of objectives Seems rigid but because of the rigidity, managers know what is expected.

18 ADVANTAGES OF RESULTS-BASED APPRAISAL 1. Improved short and long term planning 2. Focus on results, communicates to all members the importance of achieving results 3. More effective performance 4. Accepted as fair 5. Results in increased commitment to organization 6. Leads to improved clarity of role 7. Highly defensible

19 DISADVANTAGES OF RESULTS-BASED APPRAISAL 1. Excessively results oriented 2. Inflexible 3. Not easy to create or use 4. May not provide incentive for improvement 5. May not fit all aspects of a job

20 GLOBAL PERFORMANCE APPRAISAL Simplest of all appraisal systems Essay based describing strengths and weaknesses, achievements, and development needs

21 GLOBAL PERFORMANCE APPRAISAL 1. Appraisers must be skilled in how to observe behavior and skilled essayists 2. Suffer from lack of reliability and validity 3. Susceptible to rater error 4. Information gathered is only useful to ratee 5. Qualitative