HRM- CHAPTER 8

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It is one of the major keys to effective management. It basis for determining who should be promoted to a higher position.

PERFORMANCE APPRAISAL

The Purpose of Performance Appraisal

STRATEGIC PURPOSE, ADMINISTRATIVE PURPOSE AND DEVELOPMENTAL PURPOSE

The performance management system should link employee activities with the organization's goals and objectives. These strategies are implemented by defining results, behavior, and to some extent employee characteristics that are necessary for carrying out the predetermined goals and objectives.

STRATEGIC PURPOSE

Performance management information relative to performance appraisal points to the use of evaluation in decisions for salary adjustments, promotion, retention, termination, layoff, and recognition of individual performance. The purpose of the evaluation and appraisal program is usually hampered by the human element of compassion and many times supervisors and managers see the process as a necessary evil to fulfill their job requirements. They tend to evaluate everyone highly or at least rate them as average making the appraisal information relatively useless.

ADMINISTRATIVE PURPOSE

The third purpose of performance management is to develop employees who are effective in their jobs. When employees are not performing as well as they should, performance management seeks to improve their performance. The feedback given during the performance evaluation process often pinpoints the employees' weaknesses. Ideally, however, the performance management system must identify not only the deficient aspects of the employee's performance but also the relative causes of these deficiencies, like lack of skills in performing the tasks, the motivational problems in the workplace, and some related problems with employees holding back efficient performance.

DEVELOPMENTAL PURPOSE

THE CRITERIA IN THE DEVELOPMENT OF A MEASURING INSTRUMENT

VALIDITY, RELIABILITY, ACCEPTABILITY AND SPECIFICITY

is the extent to which the performance measure assesses all the relevant aspects of the performance.

VALIDITY

Ratings may be considered reliable if they are consistent. They are consistent if the individual employee in a group receives essentially the same ratings when evaluated at least twice by the same rate at different times or by different raters who are familiar with the work of the employee and have observed him perform his job.

RELIABILITY

refers to whether the people who use the performance measure accept it. Many very elaborate performance measures are extremely valid and reliable yet many managers and supervisors do not want to use them as they consume so much time. Other employees may not want to be evaluated with the set of rating instruments, as they have to submit a lot of paperwork to prove their ratings.

ACCEPTABILITY

is the extent to which the performance measure gives guidelines to employees about what is expected of them and how they meet these expectations. It is relevant to both the strategic and what the employee must do to help the company achieve its strategic goals, it becomes difficult to achieve its strategic purpose.

SPECIFICITY

Approaches to Performance Management

COMPARATIVE APPROACH, BEHAVIORAL APPROACH AND THE RESULT APPROACH

Approach of performance measurement consists of techniques that require the rater to compare the individual's performance with that of others.

COMPARATIVE APPROACH

What are the techniques under the Comparative approach?

RANKING, FORCED DISTRIBUTION TECHNIQUE, PAIRED COMPARISON METHOD AND THE CHECKLIST METHOD

This method provides a comparison of the relative qualities of performance among all the employees in a group or unit. The employees to be rated are ranked from the most efficient to the least capable in each trait or quality used in judging the employees' performance. Some of the traits or qualities are quality of work, dependability, judgment, attendance, and attitude toward the job. The employees are ranked for each trait and as many times as there are traits on which the employees are to be rated. Thus the employee may be ranked first in quality of work accomplished, second in reliability, third in judgment, and so on.

RANKING

this system uses a five-point job performance scale in rating employees who are doing similar jobs. Under this method, it is assumed that a normal group or workers doing similar jobs fall into some such levels as Superior, Above Average, Average, Below Average, and Poor. The common group percentage would be 5-20-50-20-5. This means that 5 of his subordinates are superior, 20 are above average, 50 are average, 20 are below average and 5 are poor

FORCED DISTRIBUTION TECHNIQUE

Under this method the name of each employee who is to be rated is written on the card. Each employee to be rated is then paired with every other employee in the same unit. In the process, the person rating the employee determines which of the two employees in each pair is superior in terms of the trait being considered. The pairing may be made for such traits as quantity of work output, quality of work done, cooperation, and job attitude. The pairing is repeated for each trait and for all employees in the unit

PAIRED COMPARISON METHOD

This rating method provides a number of traits of factors with corresponding definitions for evaluating the employees written in the left-hand column of the form such as the quantity of work done, quality of work, attitude towards work, judgment, reliability, cooperation, punctuality and others. The rater checks the statements that most nearly describe the performance of the employee being rated during the rating period.

THE CHECKLIST METHOD

Approach of performance management attempts to define the behavior an employee exhibits to be effective in the job.

BEHAVIORAL APPROACH

What are the techniques under Behavioral Approach?

THE CRITICAL INCIDENT, THE BEHAVIORAL ANCHORED RATING SCALE AND THE ORGANIZATIONAL BEHAVIOR MODIFICATION

approach requires managers to keep a record of specific examples of effective and ineffective performances on the part of each employee. It is a narrative report of incidents or occurrences that involve the employee.

THE CRITICAL INCIDENT

This builds on the critical incidents approach. It is designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance.

THE BEHAVIORAL ANCHORED RATING SCALE

This entails managing the behavior of the employees through a formal system of behavioral feedback and reinforcement. It builds on the behaviorist's view of motivation, which holds that the individual's future behavior is determined by past behaviors that have been positively reinforced.

THE ORGANIZATIONAL BEHAVIOR MODIFICATION

To correct some of the fears in the management appraisal system, the following errors should be studied very carefully:

PROBLEMS OF VARYING STANDARD, RECENT EFFECT, CENTRAL TENDENCY, RATER'S BIAS, HALO EFFECT AND CONTRAST ERROR

The manager should avoid using different standards among employees performing similar jobs. This could trigger anger from employees.

PROBLEM OF VARYING STANDARD

the error in which the rater gives greater weight to recent events when appraising an individual performance. This is very true when employees are about to be evaluated; they are early in coming to work and are more prudent in the performance of the assigned tasks.

RECENT EFFECT

occurs when employees are incorrectly rated near the average or middle scale. The supervisors who play safe in giving performance ratings usually commit this error.

CENTRAL TENDENCY

occurs when the rater's value distorts the rating. It may be unconsciously or quite unintentionally.

RATER'S BIAS

occurs when a manager rates an employee high or low on all items because of one characteristic. For example, if a worker has few absences, the supervisor might give her a high rating in all other areas of work including quantity and quality of output because of her attendance. The manager may not really think about the employee's other characteristics separately.

HALO EFFECT

it is the tendency to rate people relatively with other people

CONTRAST ERROR

managing the objectives, and measurable results from the measurement process and the results are the closest indicators of one, of a job or work group. This approach assumes that subjectivity can be eliminated contribution to organizational effectiveness

THE RESULT APPROACH

two performance management systems that use results

MANAGEMENT BY OBJECTIVE (MBO) AND PRODUCTIVITY MEASUREMENT AND EVALUATION SYSTEM (PROMES)

is used in most companies that believe in results as the basis of performance management Under this system, the top management defines the company's strategic goals and objectives and passes it on to the next level of management and down the line.

MANAGEMENT BY OBJECTIVES (MBO)

the goal of this system of measurement is to motivate the employees to go for a higher level of productivity. It is a means of measuring and feeding back productivity information to personnel.

PRODUCTIVITY MEASUREMENT AND EVALUATION SYSTEM (PROMES)

Feedback as a system includes:

DATA, EVALUATION AND ACTION

factual information regarding observed actions or consequences of actions. These are facts that report what happened.

DATA

is the way the feedback system reacts to the facts and requires performance standard

EVALUATION

a system in which data and evaluation influence action. The manager gives specific suggestions regarding future actions the employee must take.

ACTION

presents an opportunity for the manager to talk about the employees' potential and also their weaknesses. It could be an emotional experience for the manager and the employees because the manager must communicate both the praise and the constructive criticisms in the evaluation.

THE APPRAISAL INTERVIEW

VITMOLOGY-PPT2

Anndrea S. Galupo · 22問 · 1年前

VITMOLOGY-PPT2