Human Resource Chapter 10

Strictness error-

occurs when ratings of all employees fall at the low end of the scale.

Subjective measure

requires judgment on the part of the evaluator and is more difficult to determine.

Feedback as a System

- Data are factual pieces of information regarding observed actions or consequences. - Evaluation is the way the feedback system reacts to the facts, and it requires performance standards - For feedback to cause change, some decisions must be made regarding subsequent actions.

The contrast error is the

tendency to rate people relative to others rather than against performance standards.

A systematic appraisal is used when

the contact between manger and employee is formal and a system is in place to report managerial impressions and overreactions on employee performance.

Implementing a guided self-appraisal system using MBO is a four-stage process, stages:

1. Job review and agreement 2. development of performance standards 3. setting of objectives 4. continuing performance discussions

Performance Appraisal-

Process of evaluating how well employees perform their jobs and then communicating that information to the employees.

Primacy effect-

occurs when a rater gives greater weight to information received first when appraising an individual's performance.

Specific job criteria,

or dimensions, of job performance identify the most important elements in a given job.

Performance standard:

performance is acceptable when employee follows all requirements of the procedure "price and cost Analysis.

-Objective measures

can be observed directly

Three aspects of performance are appraised using graphic rating scales:

- descriptive categories( such as quantity of work, attendance, and dependability - job duties(taken form the job description) - behavioral dimensions(such as decision making , employee development, and communication effectiveness

Components of effective performance management

- performance-focused organizational culture - Identifying and measuring employee performance - Legal and effective performance appraisal processes - Manager and employee training - Appraisal feedback

-Performance measures that leave out some important job duties are considered

deficient.

Job Criterion:

do price or cost analysis as appropriate

Performance-

driven organizational culture focused on corporate values, results information sharing, and performance appraisal systems.

MBO include

appraisal by results, and mutual coaching, work planning and review, performance objective setting, and mutual goal setting.

Job Criteria-

Important elements in a giver job.

Measuring employee performance

- Quantity of output - Quality of Output - Timeliness of output - Presence at work

Performance appraisals can be conducted by anyone familiar with the performance of individual employees:

- supervisors rating their employees - employees rating their superiors - team members rating each other - employees rating themselves - outside sources rating employees - a variety of parties providing multi source or 360 , feedback

Concerns with Graphic Rating Scales

-Graphic rating scales in many forms are widely used because they are easy to develop: however they encourage errors on the part of the raters, who may depend too heavily on the form to define performance. -Graphic rating scales tend to emphasize the rating instrument itself and its limitations.

Timing of Appraisals

-Most companies require mangers to conduct appraisals once or twice a year most often annually. -Employees commonly receive an appraisal 60-90 days after hiring, again at six months, and annually thereafter.

Performance management

-performance appraisals- performance feedback-performance rewards and development.

Performance standards can be set by managers, employees, or others such as quality control inspectors or financial analysis.

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Three administrative uses of appraisal impact managers and employees the most:

1. determining pay adjustments 2. making job placement decisions on promotions, transfers, and demotions 3. choosing employee disciplinary actions up to and including termination of employment

Performance standards:

1. every four months, invite suppliers to make presentation of newest technology. 2. visit supplier pants twice a year. 3. attend trade shows quarterly. Job criterion: do price or cost analysis as appropriate.

Performance management-

Composed of the processes used to identify, measure, communicate, develop, and reward employee performance.

Multisource/360 feedback

It recognizes that for a growing number of jobs, employee performance is multidimensional and crosses departmental, organizational, and even global boundaries. - mangers - customers - self - subordinates - co-workers/peers

Entitlement-

Meaning that adequate performance and stability dominate the organization.

Central tendency error-

Occurs when a rater gives all employees a score within a narrow range in the middle of the scale

Recency effect-

Occurs when a rater gives greater weight to recent events when appraising an individual's performance.

Halo effect-

Occurs when a rater scores an employee high on all job criteria because of performance in one area.

Rater bias-

Occurs when a rater's values or prejudices distort the rating.

Leniency error-

Occurs when ratings of all employees fall at the high end of the scale

Ranking-

Performance appraisal method in which all employees are listed from highest to lowest in performance.

Forced distribution-

Performance appraisal method in which ratings of employee' performance are distributed along a bell-shaped curve

Management by objectives -

Performance appraisal method that specifies the performance goals that an individual and manager mutually identify.

Comparative Methods

Require that managers directly compare the performance levels of their employees against one another.

Graphic rating scale-

Scale that allows the rater to mark an employee's performance on a continuum.

-Performance appraisal is also called employee rating, employee evaluation, performance review, and performance evaluation.

Sometimes it is incorrectly called job evaluation; this is a compensation activity identifying the importance of individuals and managers.

Contrast error-

Tendency to rate people relative to others rather than against performance standards.

A legally defensible performance appraisal system should include

appraisal criteria based on job analysis

A method frequently used by supervisors to rate the performance of subordinates on a continuum is

graphic rating scales

Results-based:

information considers employee accomplishments. For jobs in which measurement is easy and obvious, a result based approach works well.

Behavior-based:

information focuses on specific behaviors that lead to job success. Verbal persuasion can be observed and used as information on performance.

Trait based:

information identifies a character trait of the employee such as attitude, initiative, or creativity and may or may not be job related

Job criterion:

keep current on supplier technology

-Performance appraisals must accomplish three major purposes:

legal compliance and documentation, administrative uses, and developmental uses.