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Supervision in Organizations Chapter 12 Appraising Employee Performance

Supervision in Organizations Chapter 12 Appraising Employee Performance. Learning Outcomes After reading this chapter, I will be able to:. Describe the purposes of the performance appraisal. Identify the performance appraisal process Explain the different types of measurement tools

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Supervision in Organizations Chapter 12 Appraising Employee Performance

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  1. Supervision in Organizations Chapter 12 Appraising Employee Performance

  2. Learning OutcomesAfter reading this chapter, I will be able to: • Describe the purposes of the performance appraisal. • Identify the performance appraisal process • Explain the different types of measurement tools • Distinguish human errors that can distort performance appraisal ratings. • Describe key legal concerns with performance appraisals.

  3. Performance Appraisal defined…. • Performance Appraisal: • A tool that reviews past job performance, emphasizing positive accomplishments as well as deficiencies, as a means for helping employees improve future performance. • Purposes: • Feedback • Raises • Development • Documentation (Termination)

  4. Appraisal Process • Establish performance appraisal standards • Mutually set measurable goals • Measure actual performance AND….

  5. Appraisal Process cont… • Compare actual with standard • Discuss appraisal with employee • Corrective action • Basic • Immediate

  6. Measurement Tools • Focus of the measure • Trait, behavior, or outcome • Type of judgment required • Relative, absolute, or outcome

  7. Focus: Trait, Behavior, & Outcome • Trait • An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring. Ex. Dependable, confident, loyal • Behavior • An appraisal tool that asks managers to assess a worker’s behaviors. • Ex. Average number of sales calls • Outcome • An appraisal tool that asks managers to assess the results achieved by workers. • Ex. Overall sales volume, new accounts

  8. Sample Trait Scales Rate each worker using the scales below. Dependable: 1 2 3 4 5 6 7 Very low Moderate Very high Reliability: 1 2 3 4 5 6 7 Very low Moderate Very high Energy: 1 2 3 4 5 6 7 Very low Moderate Very high Loyalty: 1 2 3 4 5 6 7 Very low Moderate Very high

  9. Judgment: Absolute, Relative, or Objective • Absolute “Supervisors make judgments about an employee’s performance based solely on performance standards” • Relative “Compares an employee's performance to the performance of other employees doing the same job” • Objective “Measurement against a goal established between the supervisor and employee” Appraisal criteria, methods, and documentation must be job related!!!

  10. Absolute Standard Approaches • Essay • Critical incident • Checklist • Adjective rating scale

  11. Absolute: ESSAYS • Simplest Approach • Write a narrative describing the • Strengths • Weaknesses • Potential • Suggestions for improvement • Results reflect the ability of the writers

  12. Absolute: CRITICAL INCIDENT • Essay about what was most effective or ineffective in a key job situation • Focus on behavior, not personality • Time-consuming

  13. Absolute: CHECKLIST • Yes or No • Predefined behaviors or qualities • Items may be irrelevant

  14. Absolute: ADJECTIVE RATING SCALE • Oldest & most popular approach • Factors present • Job knowledge • Cooperation • Quality and quantity of work • 5 to 10 points on a continuum

  15. Sample Adjective Rating Items and Format

  16. Relative Standards • Group order ranking • Quartiles • Individual ranking • Best to worst • Paired comparison • Similar to job ranking • Compare each one to all others

  17. Objective: MANAGEMENT BY OBJECTIVE (MBO) • STEPS • Goal setting • Action planning • Self control • Periodic review

  18. Objective: MBO ISSUES • Advantages • Results oriented • Commitment • Problems • Trust needed • Satisfaction • Time-consuming • Important to follow-up • Frustration builder

  19. Human Errors & Appraisals • Halo Effect • Tendency to rate employee high or low on all factors • Similarity • Giving special consideration to qualities that appraisers perceive in themselves • Recency • Gives greater importance to job behaviors near the end of the measurement period • Central tendency • The reluctance to assign extreme ratings

  20. Tips for Legal Performance Appraisal • Focus on behavior, not the individual • Bias Free – remember Appraisal Errors • Consistent / Continuous Feedback • Document ~ Document ~ Document • Do you have what you need for Fact Finding? • Published appraisal procedures = Binding contract in court

  21. During Evaluation Meeting • First ask for employee comments and suggestions • Be sincere, stay job oriented and objective • Summarize previous memos/suggestions • Suggest new approaches with timelines • Use good 2-way communications • Active listening, paraphrasing and restating • Use different approach for different employees

  22. After Evaluation Meeting • Finalize Form - Add your comments and signature • Give to employee for comments and signature • Give copy to supervisor for review • Give copy to employee • Send signed original to Human Resources for employee file • Set date for planning meeting for next year

  23. How to Determine and Remedy Performance Shortfalls Cause Questions to Ask Possible Remedies • Has the worker ever been • able to perform adequately? • Can others perform the job • adequately, but not this worker? • Is the worker’s performance • level declining? • Is performance lower on all • tasks? • Is performance erratic? • Are performance problems • showing up in all workers, • even those who have adequate • supplies and equipment? • Train • Transfer • Redesign job • Terminate • Clarify linkage between • performance and rewards • Recognize good performance • Streamline work process • Clarify needs to suppliers • Change suppliers • Eliminate conflicting • signals or demands • Provide adequate tools Ability Effort Situation

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