Chapter 9
PERFORMANCE
MANAGEMENT
AND APPRAISAL
9–1
WHERE WE ARE NOW…
9–2
Performance Appraisal
Performance Appraisal
Setting work standards, assessing
performance, and providing feedback
to employees to motivate, correct, and
continue their performance.
9–3
An Introduction to Appraising Performance
Why Appraise Performance?
1 Is basis for pay and promotion decisions.
2 Plays an integral role in performance management.
3 Helps in correcting deficiencies and reinforcing good performance.
4 Is useful in career planning.
9–4
Performance Appraisal Roles
• The Supervisor’s Role
Usually do the actual appraising
Must be familiar with basic
appraisal techniques
Must understand and avoid
problems that can cripple
appraisals
Must know how to conduct
appraisals fairly
9–5
Performance Appraisal Roles (cont’d)
• The HR Department’s Role
Serves a policy-making and advisory role.
Provides advice and assistance regarding the appraisal
tool to use.
Trains supervisors to improve their appraisal skills.
Monitors the appraisal system effectiveness and
compliance with EEO laws.
9–6
Effectively Appraising Performance
Steps in Appraising Performance
1 Defining the job and performance criteria
2 Appraising performance
3 Providing feedback session
9–7
Performance Appraisal Methods
Appraisal Methodologies
1 Graphic rating scale 6 Narrative forms
2 Alternation ranking 7 Behaviorally anchored rating scales (BARS)
3 Paired comparison 8 Management by objectives (MBO)
4 Forced distribution 9 Computerized and Web-based performance appraisal
5 Critical incident 10 Merged methods
9–8
FIGURE 9–2
Sample Graphic
Rating Performance
Rating Form
9–9
FIGURE 9–5 Scale for Alternate Ranking of Appraisee
9–10
FIGURE 9–6 Ranking Employees by the Paired Comparison Method
Note: + means “better than.” - means “worse than.” For each chart, add up
the number of +’s in each column to get the highest ranked employee.
9–11
FIGURE 9–8
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skills
9–12
Management by Objectives (MBO)
• A comprehensive and formal organizationwide
goal-setting and appraisal program requiring:
1. Setting of organization’s goals
2. Setting of departmental goals
3. Discussion of departmental goals
4. Defining expected results (setting individual goals)
5. Conducting periodic performance reviews
6. Providing performance feedback
9–13
Computerized and Web-Based
Performance Appraisal Systems
• Allow managers to keep notes on subordinates.
• Notes can be merged with employee ratings.
• Software generates written text to support appraisals.
• Allows for employee self-monitoring and self-evaluation.
• Electronic Performance Monitoring (EPM) Systems
Use computer network technology to allow managers access to
their employees’ computers and telephones.
Managers can monitor the employees’ rate, accuracy, and time
spent working online.
9–14
Who Should Do the Appraising?
Immediate
Self-rating
supervisor
Peers
Potential Subordinates
Appraisers
Rating 360-degree
committee feedback
9–15
The Appraisal Interview
Satisfactory—Promotable
Satisfactory—Not Promotable
Types of Appraisal
Interviews Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
9–16