one of the basics in human resources

1. PERFORMANCE
MANAGEMENT
AND
APPRAISAL
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2. THE HUMAN RESOURCE MANAGEMENT PROCESS
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3. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler
9–3
THE APPRAISAL PROCESS
• EVALUATING AN EMPLOYEE’S CURRENT AND
PAST PERFORMANCE RELATIVE TO
PERFORMANCE STANDARDS
AND
• PROVIDING A FEEDBACK TO THE EMPLOYEE.

4. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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OBJECTIVES OF PERFORMANCE RATING FOCUSES
ON BOTH EMPLOYEE & THE ORGANIZATION
• FOR EMPLOYEES:
• HE IS MADE AWARE OF THE ORGANIZATION’S EVALUATION OF HIM
• REASONS FOR BOTH SUCCESS & FAILURE ARE ANALYZED
• FUTURE JOB PLANS ARE WORKED OUT
• CAREER PLANS & OPPORTUNITIES DISCUSSED
* TRAINING & DEVELOPMENT NEEDS ARE IDENTIFIED & DISCUSSED *
• FOR ORGANIZATION:
• CHECKING THE EFFECTIVENESS OF RECRUITMENT & SELECTION PROCESS
• ASSESSING DEVELOPMENT PROGRAMS
• EVALUATING PREVIOUS PROMOTION DISCUSSIONS
• IDENTIFYING TALENT
• MANPOWER & SUCCESSION PLANNING
* INFORMATION ON SALARY DECISIONS *

5. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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9–5
WHO DOES THE APPRAISING?
Rating
Committee
Peers
You
Subordinates
Your
Boss

6. HRM’S PERFORMANCE APPRAISAL ROLE
1.SERVES A POLICY-MAKING AND ADVISORY ROLE.
2. PROVIDES ADVICE & ASSISTANCE ON THE APPRAISAL TOOL TO USE.
3. TRAINS SUPERVISORS/ RATERS TO IMPROVE THEIR APPRAISAL SKILLS.
4. MONITORS THE APPRAISAL SYSTEM EFFECTIVENESS AND COMPLIANCE
WITH LABOR LAWS
© 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler
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7. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler
9–7
Appraising performance vs standards
3 Steps
in Appraising Performance
Defining the job / setting standards
Providing feedback

8. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler
d.
9–8
STEP 1A: WHAT DO WE MEASURE?
CRITERIA FOR EMPLOYEE EVALUATION
• WORK OUTPUT
VOLUME, QUALITY, QUOTA, IMPACT ON COST, ON PROFIT
• PROFESSIONAL PROFICIENCY ( STAFF AND MGT )
PLANNING, ORGANIZING, DELEGATING, WORKING WITH OTHERS, COMMUNICATING, ANALYSIS,
CONTROL
• SKILLS PROFICIENCY ( RANK AND FILE, OPERATIONS )
MACHINERY, TOOLS, MANUAL DEXTERITY, CLERICAL PERCEPTION
• PERSONAL PROFICIENCY
LEADERSHIP, INITIATIVE, RESOURCEFULNESS, MENTAL ALERTNESS, SENSE OF VALUES, DEPENDABILITY,
COOPERATION, ADAPTABILITY ETC.
NOTE: BEWARE OF “PROXY FACTORS” OR “SUBSTITUTES FOR PERFORMANCE”

9. STEP 1B:
DEFINING & SETTING GOALS / STANDARDS
HOW ? THROUGH SMART GOALS:
• SPECIFIC, AND CLEARLY STATE THE DESIRED RESULTS.
• MEASURABLE IN ANSWERING “HOW MUCH.”
• ATTAINABLE, AND NOT TOO TOUGH OR TOO EASY.
• RELEVANT TO WHAT’S TO BE ACHIEVED.
• TIMELY IN REFLECTING DEADLINES AND MILESTONES.
*
© 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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10. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler
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STEP 2: HOW TO MEASURE?
METHODS OF PERFORMANCE APPRAISAL
• GRAPHIC RATING SCALE - FROM A SCALE OF OUTSTANDING TO UNSATISFACTORY, A
PERSON IS ASSESSED ON QUALITY AND QUANTITY OF THE WORK , PERSONAL TRAITS,
AND OTHER FACTORS THAT VARY WITH THE JOB. RATINGS E.G. 1 EXCELLENT AND 5
UNSATISFACTORY
• WEIGHTED CHECK LIST- SIMILAR TO THE FIRST, EXCEPT THE TRAITS AND BEHAVIORS ARE
ALSO ASSIGNED WEIGHTS
• RANKING- USED WHEN COMPARING PEOPLE; THEY ARE RANKED FROM HIGHEST TO
LOWEST USING OVER ALL CRITERION LIKE QUANTITY OF WORK. CAN BE ALTERNATING
• FORCED DISTRIBUTION - PERSONS ARE RATED AND ARE FORCE FIT TO A FIX OR NORMAL
DISTRIBUTION CURVE.*

11. © 2008 Prentice Hall, Inc. All rights reserveRef: Chapter 9 Human Resource Mgt , Gary Dessler
d.
9–11
MORE….METHODS OF PERFORMANCE
APPRAISAL
• ESSAY AND EVALUATION – AN ESSAY ABOUT THE PERSON’S STRONG AND WEAK POINTS.
• CRITICAL INCIDENT TECHNIQUE - CONSISTS OF SHORT STORIES OR ANECDOTAL REPORTS OF
EXTRAORDINARILY POSITIVE OR NEGATIVE INCIDENTS THAT HAPPEN TO THE EMPLOYEE
• MANAGEMENT BY OBJECTIVE - EMPLOYEES ARE ASKED TO SET THEIR OWN PERFORMANCE
GOALS, EXPECTED RESULTS
• WORK PLANNING AND REVIEW - PERIODIC MEETINGS ARE HELD BETWEEN MANAGERS AND
SUBORDINATES, WHERE PAST GOALS ARE REVIEWED, SOLUTIONS ARE SOUGHT AND NEW GOALS
ARE SET. THERE ARE DISCUSSIONS OF PERFORMANCE BUT NO RATINGS ARE MADE; EMPHASIS ON
MUTUAL GOAL PLANNING AND PROBLEM SOLVING.
• BARS- BEHAVIORALLY ANCHORED RATING SCALES, COMBINE BEST FEATURES OF NARRATIVE,
CRITICAL INCIDENTS AND QUANTIFIED SCALES *

12. TABLE 9–3 IMPORTANT ADVANTAGES AND DISADVANTAGES OF APPRAISAL TOOLS
© 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler
9–12
Tool Advantages Disadvantages
Graphic rating
scale
Simple to use; provides a
quantitative rating for each
employee.
Standards may be unclear; halo
effect, central tendency, leniency,
bias can also be problems.
BARS Provides behavioral “anchors.”
BARS is very accurate.
Difficult to develop.
Alternation ranking Simple to use (but not as simple as
graphic rating scales). Avoids central
tendency and other problems of
rating scales.
Can cause disagreements among
employees and may be unfair if all
employees are, in fact, excellent.
Forced distribution
method
End up with a predetermined number
or % of people in each group.
Employees’ appraisal results depend
on your choice of cutoff points.
Critical incident
method
Helps specify what is “right” and
“wrong” about the employee’s
performance; forces supervisor to
evaluate subordinates on an ongoing
basis.
Difficult to rate or rank employees
relative to one another.
MBO Tied to jointly agreed-upon
performance objectives.
Time-consuming.

13. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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9–13
STEP 3: THE APPRAISAL INTERVIEW
AN INTERVIEW IN WHICH THE SUPERVISOR AND SUBORDINATE
REVIEW THE PERFORMANCE APPRAISAL AND MAKE PLANS TO
REMEDY DEFICIENCIES AND REINFORCE STRENGTHS.
ADEQUATE PREPARATION AND EFFECTIVE IMPLEMENTATION
ARE THEREFORE ESSENTIAL.

14. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
.
9–14
Talk in terms
of objective
work data.
Don’t tiptoe
around.
Don’t get
personal.
Encourage
the person to
talk.
Guidelines for
Conducting an Interview

15. © 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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9–15
COMMON APPRAISAL PROBLEMS
• UNCLEAR STANDARDS
• BIAS ON AGE, GENDER, FORM
• “HALO” EFFECT
• RECENT PERFORMANCE BIAS
• EARLY PERFORMANCE BIAS
• COMPATIBILITY
• BLIND SPOTS
• CENTRAL TENDENCY VS STRICTNESS/LENIENCY
• INCONSISTENCY OF RATING BY DIFFERENT
SUPERVISORS

16. © 2008 Prentice Hall, Inc. All rights reserved. Ref: Chapter 9 Human Resource Mgt , Gary Dessler
9–16
HOW TO AVOID APPRAISAL PROBLEMS
• BE CLEAR ON THE STANDARDS AND GOALS AGREED UPON
• LEARN AND UNDERSTAND THE PROBLEMS, IF ANY
• USE THE RIGHT APPRAISAL TOOL
• TRAIN SUPERVISORS
• REDUCE OUTSIDE FACTORS: TIME CONSTRAINTS, UNION PRESSURES
& TURNOVER
• KEEP A DIARY OF CRITICAL INCIDENTS

17. SOMETHING TO THINK ABOUT….
DO APPRAISALS REALLY HELP TO IMPROVE PERFORMANCE?
•NO…..IT CAN BACKFIRE; DEMORALIZES; CAUSES CONFLICT
YES….IF DONE OBJECTIVELY AND AS AN INTEGRAL PART
OF COMPANY’S PERFORMANCE MANAGEMENT I.E. ALIGNING INDIVIDUAL
PERFORMANCE WITH ORGANIZATIONAL GOALS)
© 2008 Prentice Hall, Inc. All rights reservedRef: Chapter 9 Human Resource Mgt , Gary Dessler
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9–17

18. 1–18
WORK ACTIVITY: GROUP CASE ANALYSIS
CASE: APPRAISING THE SECRETARIES OF SWEET WATER U” (DESSLER PP337, 15TH EDITION)
ANSWER ALL THREE QUESTIONS AT THE END OF THE CASE AND BE SURE YOU COVER THESE 2
IMPORTANT POINTS:
WHAT PERFORMANCE APPRAISAL SYSTEM WOULD YOU DEVELOP? WHY?
ON WHAT WOULD YOU BASE SALARY INCREASES AND PROMOTIONS? EXPLAIN.