HRM Chapter 10

What are the common errors and distortions people make in performance appraisal?

-Leniency error Each evaluator has his/her own value system; Some evaluate high (positive leniency) and others, low (negative leniency). -Halo error Evaluator lets an assessment of an individual on one trait influence evaluation on all traits. -Similarity error Evaluator rates others in the same way that the evaluator perceives him or herself. -Low appraiser motivation Evaluator may be reluctant to give an accurate appraisal if it means the employee may not attain expected rewards as a result. -Central tendency The reluctance to use the extremes of a rating scale resulting in all employees being rated close to average. -Inflationary pressures Rater feels pressures for equality or fear of retribution from unhappy employees. Rater ranks employees better than they deserve to avoid conflict. -Inappropriate substitutes for performance Criteria that they are measuring are not related to performance, Effort, enthusiasm, appearance, etc., are less relevant for some jobs than others

How often should we do the performance appraisal?

1/2 do it once a year, 1/3 do it yearly Informal , Ongoing basis- keep observing, doesn't have to be formal every time. Formal- set period of time

Who should do the performance appraisal?

Immediate supervisor, yourself, 360 degree (everyone around you, like co-workers, manager, customer) Evaluations done by trained appraisers. Poorly trained supervisors may show bias. Must know employee and how they perform on the job

Can a person be perfect?

No one can be perfect. Always continuous improving, we need to recognize that we are imperfect and accept that we are both good and bad at, when we understand this we will be balanced and centered "We are perfectly imperfect"

What are the steps that need to be conducted in a performance appraisal process?

Step 1 Establishing Performance Standards(job analysis, job description, job specification) Step 2 Communicate Expectations( Explaining standards and criteria) Step 3 Measure Actual Performance (related to question 5, use several different methods) Step 4 Compare Actual Performance with Standards. Step 5 Discuss the Appraisal with the Employee. Step 6 Initiate Corrective Action If Necessary.

Why is it important to have a formal performance appraisal system?

They are powerful tools for employee motivation, engagement, and development Give employees feedback to let them know how they are doing on the job Formal record about how the employee has been doing on the job Used to make decision on promotions, benefits, and termination

What are different methods of performance appraisal should we consider to use? What are the advantages and disadvantages of each of these methods?

Types of Absolute Standard Appraisals: -Critical incident appraisal --Based on key behavior anecdotes illustrating effective or ineffective job performance . - Checklist appraisal --Appraiser checks off behaviors that apply to the employee. -Graphic rating scale appraisal --Appraiser rates employee on a number of job-related factors; avoids abstract categories . -Forced-choice appraisal --Appraisers ponder sets of statements that appear to be equally favorable, then choose the statement that best describes the employee. -Behaviorally anchored rating scales (BARS) --Appraiser rates employee on factors that are defined by behavioral descriptions illustrating various dimensions along each rating scale . Types of Relative Standard Appraisals -Group order ranking Employees are placed in a classification. reflecting their relative performance, such as "top one-fifth" . -Individual ranking Employees are ranked from highest to lowest . -Paired comparison Each individual is compared to every other final ranking is based on number of times the individual is preferred member in a pair. Management by Objectives (MBO) -Includes mutual objective-setting and evaluation based on the attainment of the specific objectives. -The organizational objectives translate into specific objectives for the divisional/departmental/ individual levels.

What suggestions do you have to help improve performance appraisal?

Use behavior-based measures They're more job-related and elicit more inter-rater agreement than traits such as "loyalty" or "friendliness". Combine absolute and relative standards Absolute standards tend to be positively lenient. Relative standards suffer when there is little variability Provide ongoing feedback Expectations and disappointments should be shared with employees on a frequent basis Use multiple raters The more used, the more reliable and valid the results, Self-appraisals, Peer evaluations, Upward evaluations and 360-degree appraisals Rate selectively Appraisers should evaluate only in areas they have an element of expertise. Have first-hand knowledge of the individual being evaluated. Only use effective raters. Train appraisers Poor appraisals can demoralize employees and increase legal liabilities.