bsad 310 spring 2017 - ch 8
TRANSCRIPT
Chapter 8:Performance Management and Appraisal
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Performance Management vs Performance Appraisal
• Performance Management – Identifying, measuring, managing, and
developing HR performance; serves as systematic measurement of performance
• Performance Appraisal – Evaluating individual employee
performance; vital component of performance management process
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
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Exhibit 8-1: The Performance Appraisal Process
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
4Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Accurate Performance Measures Must Be…
• Valid and reliable• Acceptable and feasible• Specific and pertinent to the job itself• Based on the mission and objectives
5Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Why Do We Conduct Performance Appraisals?
• Communication (Informing)– To communicate employee’s strengths and needs
and to motivate performance• Decision-Making (Evaluating)
– To make employment-related decisions (i.e., salaries, promotions, demotions, training, development, termination)
• Motivation (Engaging)– To motivate employees to improve the way they
work, which will in turn improve organizational productivity overall
6Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
What Do We Assess?• Trait Appraisals• Behavior Appraisals• Results Appraisals
7Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Trait Appraisals• Traits identify the physical or psychological
characteristics of a person.• There is evidence that certain traits such as
inquisitiveness, conscientiousness, and general cognitive ability are valuable in jobs that require management and leadership.
• Should We Measure Traits?– Important to ask whether both the manager and
employee will agree with the measured rating as being accurate.
8Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Behavioral Appraisals• Behaviors are the actions taken by an
individual.• Behavior appraisals measure what
individuals do at work.• Evaluated employees should have recourse
to question outcome of their appraisals. • Should We Measure Behaviors?
– The most useful and most acceptable feedback to employees is feedback on specific job-related behaviors.
9Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Results Appraisals• Results are a measure of the goals
achieved through a work process.• Results are concrete measures of
performance.• Should We Measure Results?
– Results-based evaluations are typically very acceptable to both the employee and the manager.
10Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
How Do We Use Appraisal Methods and Forms?
• The formal performance appraisal usually involves the use of a standard form developed by the HR department to measure employee performance.
• Employees need to know the standards and understand what good performance looks like, and they need to be able to measure their own performance.
11Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Exhibit 8-2: Performance Appraisal Measurement Methods and Forms
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
12Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Critical Incident Method• A performance appraisal method in
which a manager keeps a record of the positive and negative performance of employees throughout the performance period.
• A list of documented critical incidents is especially important to have leading up the evaluative decision of firing employees.
13Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Management by Objectives (MBO)
• Managers and employees jointly set employee objectives.
• Managers give feedback, evaluate performance, and reward as merited.
• It is not unusual to see misappropriation of resources used to fulfill MBOs. Misuse of MBOs can foster a “me-first” mentality.
14Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Narrative Method or Form• Managers keep written records about
employees’ performance.• Used for ongoing feedback and
employee development planning.• Narratives capture employees’ values
and contributions.
15Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Graphic Rating Scale Forms• Managers use appraisal checklists to
rate employee performance, often expressed as a numerical scale.
• Typically used for evaluative decisions, but should also steer development decisions.
• An effective rating is possible using a 1–5 Likert Scale, but examples provide greater clarity.
16Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Behaviorally Anchored Rating Scales (BARS)
• Managers use behaviorally-based continuum to rate employee performance, often expressed as a numerical scale.
• It’s perhaps the best and most effective appraisal measurement.
• It is typically used for evaluative decision-making, but should also steer development decisions.
17Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Model 8-1: Setting Objectives Model
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
18Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Ranking Method• Managers rank employees by
comparing best to worst. • Forced distribution ranking of best to
worst is the most used measure when companies resort to downsizing and layoffs.
• It is typically used for evaluative decision-making and development.
19Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Which Option Is Best?• Using a combination of the methods
and forms is usually superior to using just one.
• For developmental objectives, the critical incidents, MBO, and narrative methods work well.
20Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Which Option Is Best?• For administrative decisions, a ranking
method based on the evaluative methods and especially graphic rating scales or BARS forms work well.
• The success of the performance appraisal process depends on the manager’s human relations skills in ongoing critical-incidents coaching.
21Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Who Should Assess Performance?
• Supervisors• Peers • Subordinates • Customers • Employees themselves • 360-Degree Evaluations
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Exhibit 8-3: Performance Appraisal Problems and
Avoiding Them
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
23Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Debriefing the Appraisal• Managers prepare for and
communicate analysis of each employee’s performance with the employee.
• There are two major reasons for assessing performance:– For evaluative decisions– For development
24Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Model 8-2: The Evaluative Performance Appraisal Interview
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
25Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Model 8-3: The Developmental Performance Appraisal Interview
Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
26Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.
Trends and Issues in HRM• Continuous Appraisals: Is it time to do
continuous appraisals?• Competency-Based Performance
Management: With the nature of work in today’s companies and the fact that competencies are becoming a significant issue, performance management systems need to be redesigned so that we can evaluate the skills and capabilities that are most important to the business.