HRM: Performance Management and Appraisal

graphic rating scale

A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait.

central tendency

A tendency to rate all employees the same way, such as rating them all average.

performance appraisal process

A three-step appraisal process involving 1. setting work standards 2. Assessing the employee's actual performance relative to those standards 3. Providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par.

behaviorally anchored rating scale (BARS)

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.

unclear standards

An appraisal that is too open to interpretation

appraisal interview

An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

performance appraisal

Evaluating an employee's current and/or past performance relative to his or her performance standards.

USES OF PERFORMANCE APPRAISAL:

HR Planning, Recruitment and Selection, Training and Development, Career Planning and Development, Compensation Programs, Internal Employee Relations, Assessment of Employee Potentials

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.

critical incident method

Keeping a record of uncommonly good or undesirable examples of an employee's work-related behaviour and reviewing it with the employee at predetermined times.

conducting appraisals of employees

NOT a role played by the HR department in the performance appraisal process

Work standards are good basis for appraisal because of its _____ as it has predetermined standards and expectations.

Objectivity

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.

alternation ranking method

Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

forced distribution method

Similar to grading on a curve; predetermined percentages of ratees 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 goal.

satisfactory-not promotable appraisal interview

The objective is to maintain satisfactory performance. The best option is to find incentives that are important to the person.

strictness/leniency

The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low

bias

The tendency to allow individual differences such as age, race and sex to affect the appraisal rating employees receive

Traditional methods

an appraisal is for pay increases, promotions, and training

BEHAVIORALLY ANCHORED RATING SCALE METHOD

combines elements of the traditional rating scale and critical method; various performance levels are shown along a scale with each described in terms of an employee's specific job behavior; method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior (excellent performance, good performance, average performance) that describe different levels of performance

WORK STANDARDS METHOD

compares each employee's performance to a predetermined standard/expected level of output

The biggest complaints regarding the forced distribution method are that it ______________________.

damages morale

BARS Second step

develop performance dimensions

satisfactory-promotable appraisal interview

discuss the person's career plans and to develop a specific action plan for the educational and professional development the person needs to move to the next job.

DOWNSIDE FOR CRITICAL INCIDENT REPORT

doesn't produce relative ratings for PAY raise purposes

CENTRAL TENDENCY ERROR

employees are incorrectly rated near the average or middle of scale

360 DEGREE FEEDBACK

employer collects performance information all around an employee

360 DEGREE FEEDBACK EVALUATION METHOD

evaluation input from multiple levels within the firm and external sources

CAREER DEVELOPMENT

formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed

PERFORMANCE APPRAISAL

formal system of review and evaluation of individual or team task performance

LENIENCY

gives an undeserved high performance appraisal to employee

PERFORMANCE MANAGEMENT

goal-oriented process directed toward ensuring that organizational process are in place to maximize the productivity of employees, teams, and organization

MIXED STANDARD SCALES

goal: reduce rating method; - list few behavioral examples per performance dimensions

halo effect

in performance appraisal, the problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits.

CRITICAL INCIDENT METHOD

keeping written records of highly favorable and unfavorable employee work actions

RECENCY EFFECTS

letting what the employee has done recently blind you to what their performance has been over the year

EMPLOYEE ENGAGEMENT

level of commitment workers make to their employer

DEFINING THE JOB

make sure that you and subordinate agree on job duties and appraisal method to be use

RESULTS-BASED SYSTEM

manager and subordinate jointly agree on objectives for the next appraisal period

HORN ERROR

manager generalizes one negative performance to all aspects of employee performance

HALO ERROR

manager generalizes one positive performance to all aspects of employee performance

Collaborative

method of appraisal focuses on employee development

BARS ADVANTAGE

method's accuracy, clear standards, and consistency

ALTERNATION RANKING METHOD

most popular method for ranking employees

Traits

one of the commonly established criteria in appraisal systems that is usually subjective and inaccurate, which may lead to legal problems.

CAREER PLANNING

ongoing process whereby an individual sets career goals and identifies the mean to achieve them

DIRECTION SHARING

performance management that is communicating a firm's higher level goals throughout the company and to doable department, team, individual goals

PAIRED COMPARISON

performance of each employee is compared with that of every other employee in the group

The best way to reduce the problem of central tendency in performance appraisals is to ________.

rank employees

RANKING METHOD

ranks all employees from a group in order of overall performance

FORCED DISTRIBUTION METHOD

rater assigned individuals in a work group to a limited number of categories

ESSAY METHOD

rater writes a brief narrative describing the employee's performance

RATING SCALE METHOD

rates employees according to defined factors (job-related & personal characteristic)

A supervisor working for a firm that uses performance management should most likely expect to ________.

re-evaluate how employees accomplish tasks

MANAGEMENT BY OBJECTIVES

requires the manager to set specific measurable, organizationally relevant goals with each employee, and then periodically discuss the latter's progress toward these goals.

APPRAISAL BY SUBORDINATES

subordinate rate their managers

BIAS

tendency to allow individual differences to affect the appraisal ratings

impose a performance distribution

the best method for reducing the problems of leniency or strictness in performance appraisals

360 DEGREE FEEDBACK

used for development

All of the following guidelines will most likely improve the effectiveness of a performance appraisal EXCEPT ________.

using a graphic rating scale to ensure fair and consistent ratings

ONGOING PERFORMANCE MONITORING

using computer-based system that measure and then e-mail progress based on the progress of the person toward her goal

the best way for a supervisor to correct a performance appraisal problem caused by unclear standards?

using descriptive phrases to illustrate traits