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HRM Chapter 6

The document discusses performance appraisal, which involves evaluating an employee's job performance and establishing an improvement plan. Performance appraisal is conducted formally through scheduled reviews and informally through regular supervision and feedback. Formal reviews typically evaluate employees against pre-determined criteria using methods like rating scales, checklists, rankings, or behavioral observations. While performance appraisals aim to develop, motivate, and plan for employees, they often face issues like unfairness, negative biases, and a short-term focus.

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121 views15 pages

HRM Chapter 6

The document discusses performance appraisal, which involves evaluating an employee's job performance and establishing an improvement plan. Performance appraisal is conducted formally through scheduled reviews and informally through regular supervision and feedback. Formal reviews typically evaluate employees against pre-determined criteria using methods like rating scales, checklists, rankings, or behavioral observations. While performance appraisals aim to develop, motivate, and plan for employees, they often face issues like unfairness, negative biases, and a short-term focus.

Uploaded by

hailegebrael
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Performance Appraisal

• Brainstorming Questions
1. Who is/are appraiser/s?
2. What are performance appraisal
processes/phases
3. Methods used to appraise employee
performance?
4. What are the common problems observed
during employee performance appraisal?
Performance Appraisal
• Performance appraisal is the process by which
organization evaluate employee job performance
• Its a process that involves detemining and
communicating to an employee how he/she
performing the job and ideally establishing a plan
of improvement
• Its a systematic and objective way of evaluating
both work related behaviour and potential of
employees
Performance…Cont’d

Other terms for performance evaluation:


 Performance review
Personnel rating
Merit rating
Performance appraisal
Employee appraisal
Employee evaluation
• Many organizations have two evaluation systems: formal and informal
• Thinking about how well employees are doing is an informal system
• A formal system is set up by the organization to regularly and systematically
evaluate employee performance
• Political and interpersonal processes influence the informal system
• Employees who are liked better have an advantag
• Formal Performance Evaluation
• Purposes of a well-designed formal evaluation system:
 Development
 Motivation
 Human resource and employment planning
 Communication
 Legal compliance
 HRM research
• Employees should consider an evaluation meaningful, helpful, fair, and honest
• This is difficult to attain because of a number of factors, including:
•  Unfairness
•  Negative practices
•  A short-term focus
Who conducts appraisal?
Performance appraisal process
Establish Criteria
• The dimensions of performance upon which an employee is
evaluated are called the criteria of evaluation
 Examples: quality, quantity, and cost of work
• A major problem with many evaluation systems:
• They require supervisors to make person evaluations rather than
performance evaluations
• An effective criterion should possess the following characteristics:
Reliability
Relevance
Sensitivity
Practicality
• Multiple criteria are necessary to measure performance completely
One must evaluate both activities and results
Management must weigh these criteria
Performance Appraisal Methods
1) Graphic Rating Scale
Category Rating Method
2) Checklists
• A performance appraisal tool that uses a
list of statements or work behaviors that
are checked by raters
• Can be quantified by applying weights to
individual check list item
Comparative Methods
 Ranking  Narrative methods
• A listing of all • Critical accident
employees fom highest  Managers keeps witten
to lowest in records of highly
performance. favaourable and
 Forced distibution unfaourable employee
conditions
• A controversial process
 Essay
by which employees
graded against each • Managers writes a short
other rather than judged essay describing an
against performance employee’s pefommance
standard
Behavioural Methods
 Behavioual rating  Management by ojective
approach (MBO)
• Assess employees • Specify the performance
behaviour instead of goals that individual and
other characteristics his/her manager agree the
• Consists of identifying employee will try to attain
important job with appropriate length of
dimensions, creating time
statements decribing a
range of desired &
undesired behaviours
360 Feedback system
• A system of collecting performance information from multiple
parties such as peers, supervisors, and customers
• It also used to design promotion and reward
• Positive features of a 360-degree system:
 Multiple perspectives of a person’s performance
 Raters base evaluations on contact and observation
 Feedback is provided from multiple directions… above, below, peer
 Anonymous upward feedback, which results in full participation
 Learning about weaknesses and strengths is motivational
Negative features of a 360-degree system:
  Feedback from all sources can be overwhelming
  Rater can hide in a group of raters and provide harsh evaluations
  Conflicting ratings can be confusing and frustrating
  Providing feedback that is constructive requires a plan&well trained raters
Poblems with Performance Appraisal
 Reading Assigments
 First Impression
 Stereotyping
 Leniency
 Other Reading Assigments
• Compensation
• Diversity Management
THANK YOU FOR YOUR ATTENTION!
THE END!

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