Chapter 9
How to set effective goals
1. Assign specific goals 2. Assign measurable goals 3. Assign challenging but doable goals 4. Encourage participation
Best practices for administrating fair performance appraisals
1. Base performance review on duties and standards from a job analysis. 2. Make it clear ahead of time what your performance expectations are 3. Use standardized performance review procedure for all employees 4. Include appeals mechanism 5. Document appraisal review process and results 6. Discuss the appraisal results with the employee 7.Let the employee know ahead of time how you're going to conduct the reviews 8.Indicate what the employee needs to improve
6 basic elements of performance management
1. Direction sharing- communicating company goals to all employees 2. Goal alignment- linking employees to goals 3. Ongoing performance monitoring- computerized system measuring progress towards meeting goals 4. Ongoing feedback- providing feedback regarding progress to goals 5. Coaching and development support- part of the feedback process 6. Recognition and rewards- provide incentives to keep employee's goal directed performance on track
Why Appraise Performance?
1. Most employers base pay, promotion and retention decisions on the employee's appraisal. 2. Appraisals play a central role in employer's performance management process. 3. Appraisals lets manager and subordinates develop a plan for correcting any deficiencies and reinforce strengths. 4. Provides an opportunity to review employees career plans in lights of his/her exhibited S. & W. 5. Enabling supervisors to identify if there is a training need and the remedial steps required.
how to handle a defensive subordinate
1. Recognize that defensive behavior is normal 2. Never attack the person's defense 3. Postpone action 4. Recognize your limitations
4 types of appraisal situations
1. Satisfactory- Promotable (easiest interview) 2. Satisfactory- Not Promotable 3. Unsatisfactory- correctable(lay out action and development plans for correction unsatisfactory performance) 4. Unsatisfactory- uncorrectable( dismissal is often the preferred option)
MBO steps
1. Set the organization's goals 2. Set departmental goals 3. Discuss departmental goals 4. Define expected results(set individual goals) 5. Conduct performance review 6. Provide feedback
Using appraisal interview to build engagement
1. Take the opportunity to show the employee how his/her efforts contribute to the company success. 2. Use interview to emphasize the meaningfulness to the company of what the employee is doing. 3. be candid and objective but do so supportively and without unnecessarily undermining the employees self- image 4. make sure your employee has what he/she needs to do a good job 5. Managers focused on strengths were engaged, compared to those who focused on weakness. 6. Use interview as an opportunity to show your employees that you listen to their ideas and value their contributions 7. Discuss where he/she sees themselves heading career-wise 8. Make sure that the interviewee views the appraisal and the rewards or the remedial action as fair
How to conduct an appraisal interview
1. Talk in terms of objective work data 2. Don't get personal 3. Encourage the person to talk 4. Get agreement
Formal Written Warning purpose
1. To shake your employee out of his/her bad habits 2. To help defends your rating to your own boss and to the courts.
5 steps of developing BARS
1. Write critical incidents 2. Develop performance dimensions 3. Reallocate incidents 4. Scale incidents 5. Develop a final instrument
Who should do the appraising?
1.Peer appraisals- appraisals by one's peers 2.Rating committees-a committee of the employee's immediate supervisor and three or four other supervisors 3.Self-ratings- self ratings usually w/supervisor 4. Appraisals by subordinates- subordinates rate their managers 5.360-degree feedback-employer collects performance information all around an employee( supervisors, subordinates, peers, internal, external customers)
Performance appraisal process
A three step appraisal process involves: 1. setting work standards, 2. assessing the employee's actual performance relative to those standards and 3. providing feedback to employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par.
Appraisal interview
An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths
Techniques for Appraising performance
Graphic rating scale method, alternation method, paired comparison method, forced distribution method, critical incident method.
Total Quality Management (TQM)
a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
Management by Objectives (MBO)
a multistep company-wide goal-setting appraisal program
Central tendency
a tendency to rate all employees the same way, such as rating them all average
Unclear Standards
an appraisal that is far too open to interpretation
Narrative forms
determining performance based on a written example of past behavior and future plans
Electronic Performance Monitoring (EPM)
having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance
Managers role in performance management
linking employee's goals to the company's goals, giving employees continuous feedback, providing required resources and coaching, rewarding good performance and remembering that employee's performance reflects more than just whether they're motivated.
Behaviorally Anchored Rating Scale (BARS)
method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
Alternation ranking method
ranking employee from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. Easier to distinguish between best and worst employee.
Paired comparison method
ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair. Makes ranking method more precise
Conversation days
semi-annual manager-employee conversations
Mixed standard scales
similar to behaviorally anchored scales, however here employer mixes together sequentially the good and poor behavioral example statements when listing them.
Forced distribution method
similar to grading on a curve, predetermined percentages of rates are placed in various performance categories.
Performance management
the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals
Strictness/ leniency
the problem that occurs when a supervisor has a tendency to rate all subordinates either high or low
Performance appraisal
the process of evaluating employee's current and/ or past performance relative to his or her performance.
Graphic rating scale method
the simplest most popular method- a scale that lists the number of traits and a range of performance for each. The employee then is rated by identifying the score that best describes his/her level of performance for each trait.
Critical incident method
the supervisors keeps a lop of positive and negative examples of subordinates work-related behaviors, and reviews it with employee at predetermined times.
Bias
the tendency to allow individual differences to affect the appraisal ratings employee receives
Rater error appraisal problems
unclear standards, halo effect, central tendency, leniency or strictness and bias
Halo effect
when a supervisor's rating of a subordinate on one trait biases the rating go that person on other traits
how to criticize a subordinate
when necessary criticize in a manner that lets the person maintain his/her dignity- in private. Provide examples of critical incidents and specific suggestions. Give feedback periodically. Never day the person is always wrong. Criticism should be objective and free of personal bias.
