1、9-1Chapter 7Chapter 7Appraising Performance 9-2Chapter OutlinelThe appraisal processnThe supervisors rolenSteps in appraising performancenHow to clarify your expectationslAppraisal methodslAppraising performance:problems and solutionslThe appraisal interviewlThe role of appraisals in managing perfor
2、mancenDo appraisals really help to improve performance?nThe performance management approachnPerformance management abroadnTQM-based appraisals9-3After Studying This Chapter You Should Be Able To:lDescribe the appraisal processlDevelop,evaluate,and administer at least four performance appraisal tools
3、lList and discuss the pros and cons of six appraisal methodslExplain and illustrate the problems to avoid in appraising performancelDiscuss the pros and cons of using different raters to appraise a persons performancelPerform an effective appraisal interview9-41.The Appraisal ProcesslPerformance app
4、raisal means evaluating an employees current and past performance relative to performance standardslAn appraisal process involves:nSetting work standardsnassessing the employees actual performance relative to these standards;nproviding feedback to the employee with the aim of motivating that person
5、to eliminate deficiencies or to continue to performlQuestion:Did you have experience with evaluating performance?nYouve probably had experience with performance appraisals.For example,some colleges ask students to rank instructors on scales.9-5(2)Why Appraise Performance?lAppraisals provide informat
6、ion upon which you make promotion and salary decisions lProvide an opportunity for you and your subordinate to review his or her work-related behavior.This in turn lets both of you develop a plan for correcting any deficiencies the appraisal might have unearthed,and for reinforcing things done right
7、 lThe appraisal is part of the firms career-planning process,because it provides an opportunity to review the persons career plans in light of his or her strengths and weaknesses lAppraisals help manage and improve your firms performance9-6(3)The Supervisors RolelAppraising performance is a crucial
8、supervisory skill.The supervisor usually does the actual appraising.Therefore supervisors:nmust be familiar with basic appraisal techniquesnbe candid(无偏见的,公正的)but fair when delivering bad newslWhats the role of HR department?nHR department serves a policy making and advisory role.nHR department will
9、 often outline guidelines but leave implementation to supervisorsnHR department is also responsible for training supervisors to improve their appraisal skills and monitoring the implementation to ensure that appraising performance is candid.9-7(4)Steps in Appraising PerformanceDefine the JobAppraise
10、 PerformanceProvideFeedbackNote:Make sure allagree on dutiesWe shall:Compare performanceto the standardWe shall:Discussprogress&make plansThe performance appraisal process contains three steps:The performance appraisal process contains three steps:9-8Steps in Appraising PerformancelDefine the job nD
11、efining the job means making sure that you and your subordinate agree on his or her duties and job standards.lAppraise performancenAppraising performance means comparing your subordinates actual performance to the standards that have been set;this usually involves some type of rating forml Provide f
12、eedbacknPerformance appraisal usually requires one or more feedback sessions.uExamples:you discuss the subordinates performance and progress,and make plans for any development required.9-9(5)Its All About ExpectationslClarifying what you expect is trickier than it may appear.Employers usually write
13、job descriptions not for specific jobs,but for groups of jobs,and the descriptions rarely include specific goals.lQuantify expectations with explicit goals for each expectationn The most straightforward way to do this(for the sales manager job above,for example)is to set measurable standards for eac
14、h expectation.uMeasure the“personal selling”activity in terms of how many dollars of sales the manger is to generate personally.uMeasure“Keeping the sales force happy”in terms of turnover(on the assumption that less than 10%of the sales force will quit in any given year if morale is high).uMeasure“K
15、eeping customers away from executives”with“no more than 10 customer complaints per year.”nThe point is this:Employee should know basis of appraisal ahead of time how and on what basis youre going to appraise them.9-10lGraphic rating scale methodlAlternation ranking methodlPaired comparison methodlFo
16、rced distribution methodlCritical incident methodlNarrative formslBehaviorally anchored rating scaleslManagement by objectives(MBO)lComputerized and web-based performance appraisallMixing the methods2.Appraisal Methods9-11A scale that lists a number of traits and a range A scale that lists a number
17、of traits and a range of performance for each.of performance for each.The supervisor rates The supervisor rates each subordinate by circling or checking the each subordinate by circling or checking the score that the best describes his or her score that the best describes his or her performance for
18、each trait.performance for each trait.(1)Graphic Rating Scale Method(1)Graphic Rating Scale MethodExample:_ _ _ _ _ Very Average Excellent PoorSample Items on a Graphic Rating Scale Evaluation FormSample Items on a Graphic Rating Scale Evaluation Form(cont.)9-14Graphic Rating Scale(Cont.)lLists trai
19、ts like quality and reliabilitylVersus a range of performance values(from unsatisfactory to outstanding)lEach subordinate is rated for each quality on each job dutylRatings total ranks appraisalnThe supervisor combine the rating for each duty with the dutys importance weighting produces an overall r
20、ating for the jobOutstandingUnsatisfactoryGraphic Rating Scale with space for commentGraphic Rating Scale with space for comment9-16Ranking employees from best to worst on a particular trait or traits,choosing highest,then lowest,until all are ranked.(2)Alternation Ranking MethodAlternation Ranking
21、Method(Cont.)9-18(3)Paired Comparison MethodwRanking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pairRanking employees by the paired comparison methodPaired Comparison Method(Cont.)Paired Comparison Method(Cont.
22、)9-20(4)Forced Distribution MethodlThe forced distribution method is a ranking system by which a designated percentage of employees will receive the highest and lowest ratings.The distribution of the ratings resembles a bell curve with the majority of employees falling between the highest and lowest
23、 ratings.”lFor example,you may decide to distribute employees as follows:n15%high performersn20%high-average performersn30%average performersn20%low-average performersn15%low performerslThe proportions in each category need not be symmetrical;GE uses top 20%,middle 70%,and bottom 10%for managers.9-2
24、1Forced Distribution(Cont.)9-22(5)Critical Incident MethodlWith this method,the supervisor keeps for each subordinate a record of uncommonly good or undesirable examples of that persons work-related behavior and then reviews it with the employee at predetermined times.lAdvantages/Disadvantages n The
25、 advantage to this method is that the supervisor has specific incidents to judge performance by.Rather than saying something vague like,“I think your customer service skills are overall pretty good,”this supervisor can bring up something more specific to justify why he or she thinks the employees cu
26、stomer service skills are good.nThe disadvantage is that there is really no way to compare the employees to one another because the critical incidents are going to be different for each person.The supervisor cant compare apples to apples.9-23(6)Narrative Forms9-24(7)Behaviorally Anchored Rating Scal
27、eslBARS is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.lDeveloping a BARS typically requires five steps:nGenerate critical incidentsuAsk pe
28、rsons who know the job(job holders and/or supervisors)to describe specific illustrations(critical incidents)of effective and ineffective performance.nDevelop performance dimensionsuHave these people cluster the incidents into a smaller set of(5 or 10)performance dimensions,and define each dimension,
29、such as“conscientiousness.”9-25nReallocate incidentsuAnother group of people who also know the job then reallocate the original critical incidents.They get the cluster definitions and the critical incidents,and must reassign each incident to the cluster they think it fits best.Retain a critical inci
30、dent if some percentage(usually 50%to 80%)of this second group assigns it to the same cluster as did the first group.nScale the incidents uThis second group then rates the behavior described by the incident as to how effectively or ineffectively it represents performance on the dimension(7-to 9-poin
31、t scales are typical).nDevelop a final instrumentuChoose about six or seven of the incidents as the dimensions behavioral anchorsExample of a Behaviorally Anchored Rating ScaleExamples Of A Bars For Municipal Fire Companies9-28BARS for Grocery ClerkslResearchers developed a BARS for grocery clerks b
32、y collecting critical incidents in 8 areas(rating scale given below):Knowledge and judgmentConscientiousnessSkill in human relations Skill in operation of registerSkill in bagging Ability of checkout workSkill in monetary transactionsObservational abilityExtremely PoorPoorAverageGoodExtremely Good19
33、9-29Advantages of BARSlA more accurate gauge.nPeople who know the job and its requirements better than anyone develop the BARS.This should produce a good gauge of job performance lClearer standards n The critical incidents along the scale make clear what to look for in terms of superior performance,
34、average performance,and so forth.lFeedback nThe critical incidents make it easier to explain the ratings to appraises.9-30Advantages of BARSlIndependent dimensions nSystematically clustering the critical incidents into five or six performance dimensions(such as knowledge and judgment”)should help to
35、 make the dimensions more independent of one another.lConsistency nBARS evaluations also seem to be relatively consistent and reliable,in that different raters appraisals of the same person tend to be similar.9-31(8)Management by ObjectivesMBO refers to a organizational 6 step goal setting and appra
36、isal programSet theorganizationsgoalsSet thedepartmentalgoalsDiscussdevelopmentalgoalsDefineexpectedresultsPerformancereviewsProvidefeedback9-32Management by Objectives(cont.)lThere are three problems in using MBOnSetting unclear,unmeasurable objectives is the main one.An objective such as“will do a
37、 better job of training”is useless.On the other hand,“will have four subordinates promoted during the year”is a measurable objective.nMBO is time consuming.Setting objectives,measuring progress,and giving feedback can take several hours per employee per year.nSetting objectives with the subordinate
38、sometimes turns into a tug-of-war,with you pushing for higher quotas and the subordinate pushing for lower ones.9-33(9)Computerized Performance AppraisalVisit these web sites for online performance rating tools.Technology has updated the appraisal process.New software programs enable employees to ch
39、eck their own performance against prescribed criteria.9-34Important Advantages and Disadvantages of Appraisal ToolsGraphicratingscalesADVANTAGESDISADVANTAGESSimple to use;providesa quantitative rating.Standards may be unclear;halo effect,central tendency,leniency,bias problems.AlternationrankingSimp
40、le to use;avoidscentral tendency problems.Can cause disagreementsamong employees and may be unfair if all employeesare excellent.ForceddistributionEnd up with a pre-determined number of people in each groupAppraisal results depend onthe adequacy of your original choice of cut off points.Criticalinci
41、dentmethodHelps specify what is right&wrong about employees performance;forces super-visor to evaluate subordin-ates on an ongoing basis.Difficult to rate or rank employees relative to oneanother.BARSProvides behavioral anchors;very accurateDifficult to developManagement by objectivesTied to jointly
42、 agreed-upon performance objectivesTime consuming9-35Most Commonly Used Appraisal MethodsSociety for Human Resource Management reports about 89%of surveyed managers use performance appraisal for all their employees3.Dealing With Rating Scale Appraisal Problems(1)Common Rater ErrorsUnclear/9-37Common
43、 Rater Errors(cont.)lUnclear standards use of words like“good”or“fair”on appraisals9-38lMost Recent Performance ErrornA rater evaluates a workers most recent job behavior rather than behavior throughout the period since last appraisaluFalse high ratinguFalse low ratingnTo reduce this type of error,r
44、equire more frequent performance appraisalsCommon Rater Errors(cont.)9-39Common Rater Errors(cont.)lCentral tendency everyones in the middlenSome supervisors stick to the middle when filling in rating scales.For example,if the rating scale ranges from 1 to 7,they tend to avoid the highs(6 and 7)and
45、lows(1 and 2)and rate most of their people between 3 and 5.lLeniency or strictness no middlenOther supervisors tend to rate all their subordinates consistently high(or low),just as some instructors are notoriously high or low graders.This strictness/leniency problem is especially severe with graphic
46、 rating scales,when firms dont tell their supervisors to avoid giving all their employees high(or low)ratings.On the other hand,ranking forces them to distinguish between high and low performers9-401)Leniency(positive bias)_ _ _ _ _ Very Average Excellent Poor2)Severity(negative bias)_ _ _ _ _ Very
47、Average Excellent Poor3)Central Tendency(midpoint)_ _ _ _ _ Very Average Excellent PoorAll lead to a restriction in the range of performance scores9-41Common Rater Errors(cont.)lBias characteristics affect ratingnAppraisees personal characteristics(such as age,race,and sex)can affect their ratings,o
48、ften quite apart from each ratees actual performance.9-42Common Rater Errors(cont.)lHalo effect one trait affects all ratings nThe tendency to judge all aspects of behavior or character on the basis of a single attributeuPositiveuNegativenTo control for halo,have multiple raters9-43(2)How to Avoid A
49、ppraisal ProblemslLearn and understand the potential problems,and the solutions(like clarifying standards)for each.Understanding the problem can help you avoid it.lUse the right appraisal toolnEach tool has its own pros and cons.For example,the ranking method avoids central tendency but can cause ba
50、d feelings when employees performances are in fact all“high”;and the ranking and forced distribution methods both provide relative not absolute ratings.lTrain supervisors to reduce rating errors such as halo,leniency,and central tendency.nTraining isnt always the solution,however.In practice,several
