Performance Appraisals. Time to educate and communicate as well as evaluate. -Brayton Bowen
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1 Chapter Performance Appraisals Time to educate and communicate as well as evaluate. -Brayton Bowen
2 What is a Performance Appraisal? Formal feedback on how well an employee is performing his or her job.
3 17-3 Purposes of Performance Appraisal Employees need to know how they are doing in order to improve The supervisor and employee can make a plan for how to improve weak areas. An appraisal can help motivate employees. Performance appraisals are part of the ongoing control process. Performance appraisals provide important records for the organization.
4 4 Steps in the Appraisal Process: 1. Establish and communicate expectations. 2. Establish and communicate standards for measuring expectations. 3. Observe and measure performance against standards. 4. Reinforce good performance or correct poor performance.
5 17-5 Step 1 Establish and communicate expectations for performance. List 3-5 major responsibilities of each position. Focus the appraisal on these responsibilities. Be sure employees know and understand what is expected of them. Employee are most likely to understand and be committed to objectives they helped develop.
6 17-6 Step 2 Establish and communicate standards for measuring performance. Each expectation should be measurable. A supervisor s task includes deciding how to measure employees performance and then making sure employees know what will be measured.
7 17-7 Step 3 Observe and measure individual performance against standards. A supervisor should continuously gather information about each employee s performance. When preparing a performance appraisal, a supervisor compares this information with the standards for the employee being appraised. Several software programs can help with appraisals. Appraisal Software called TrakStar
8 17-8 The Appraisal Process Step 4 Reinforce good performance or correct poor performance Point out to employees where they have performed well. Asking an employee to help solve a problem is often more effective than the supervisor simply stating what the employee is expected to change.
9 17-9 Possible Causes of Poor Performance Inadequate skills Lack of effort Shortcomings of the process External conditions Personal problems
10 Problems Have Solutions Problem Inadequate skills Lack of effort Shortcomings of the process External conditions Personal problems Solution Needs Training Needs Motivation Way work is done needs to change Out of employee s control-adjust standards Needs counseling or discipline
11 17-11 What to Measure in an Appraisal Do not label people in the appraisal, ie lazy, irresponsible. Focus on behavior and results. When appraisals require supervisors to draw conclusions about the employee s personal characteristics, try to base them on observations about behavior and results. Record at least one specific example for each category rated if doing a subjective judgement.
12 17-12 Appraisal Measures Should Be: Objective Job-related Based on behaviors Within employee s control Related to specific tasks Communicated to employees
13 EEOC Guidelines The behaviors and characteristics measured by a performance appraisal should be related to the job and to succeeding on the job. Appraisals should be based on the employee s success in carrying out the essential tasks of a particular job. The ratings in a performance appraisal should not be discriminatory. An employee should know performance standards in advance. Employees should be able to ask questions about their ratings. McGraw-Hill/Irwin 17-13
14 17-14 Performance Appraisals and Pay Reviews Many organizations review an employee s wage or salary level at the time of the performance appraisal. Employees may focus on the issue of money, diminishing a supervisor s motivating and coaching opportunities. A supervisor who must review pay rates at performance appraisal time should make an extra effort to emphasize performance and should provide feedback through the year.
15 6 Main Types of Appraisals 1. Graphic Rating Scale 2. Paired-Comparison Approach 3. Forced-Choice Approach 4. Essay Appraisal 5. BARS (Behaviorally Anchored Rating Scale) 6. Checklist Appraisal
16 17-16 Types of Appraisals (contd) Graphic Rating Scale: Most commonly used; relatively easy to use Drawback: subjective-what is excellent for one supervisor could be average for the next. Paired-Comparison Approach: Measures the relative performance of employees in a group, 2 at a time. Appropriate to find one outstanding employee in a group Drawbacks: possible harm to morale and teamwork, and possible lawsuits
17 17-17 Types of Appraisals (contd) Forced-choice approach: Appraisal form provides sets of statements describing employee behavior Figure 17.4, pg 485. Essay appraisal: Often used with other types of appraisals, such as graphic rating scales Drawback: depends on supervisor s writing skills Behaviorally Anchored Rating Scales (BARS): Describe performance as effective or ineffective in several areas such as work quantity and quality Drawbacks: developing the scales is time consuming so expensive.
18 17-18 Types of Appraisals (continued) Checklist appraisal: Supervisor checks Yes or No HR dept scores the Yes/No results. Score results in a rating of performance. Drawbacks: can be difficult to prepare and a supervisor has no way to adjust the answers for any special circumstances that affect performance
19 17-19 Sample Checklist Appraisal
20 Other Types of Appraisals Critical-incident appraisal: Written record of incidents that show positive and negative ways an employee has acted Work-standards approach: A supervisor compares employee s actual performance with established standards Management by Objectives (MBO): A supervisor compares each employee s accomplishments with the objectives for that employee Assessments by someone other than supervisor: 360-degree feedback-combining several sources for McGraw-Hill/Irwin info. Should keep sources anonymous
21 17-21 Sources of Bias
22 17-22 The Performance Appraisal Interview Purpose of the interview Preparing for the interview Conducting the interview Problem solving and coaching Signatures Follow-up
23 17-23 The Process of Conducting a Performance Appraisal Interview
Performance Appraisal: Methods
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