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Performance Appraisel Essay, Research Paper

PERFORMANCE APPRAISALPerformance appraisal is defines as evaluating an employee s current and past performance relative to his or her performance standards.Appraisal process:1. Setting work standards2. Assessing the employees actual performance relative to these standards3. Providing feedback to employee with aim at motivating that person to eliminate performance deficiencies or to continue to perform above parWhy appraise performance:1. Appraisal provide information upon which promotion and salary decisions can be made (administrative purpose)2. Provide opportunity for you and your subordinate to review subordinate work-related behaviour, correct any deficiencies + reinforce the things being done right. 3. Career-planning process: provides an opportunity to review the persons career plans in light of his/her strengths and weaknesses.4. Overall help better manage and improve your organization s performance.The supervisor does the appraisal, help and advise from HR departmentAPPRAISAL METHODSGraphic Rating Scale Method:Most simple and most popular technique.A scale that lists a number of traits (ex. Quality and reliability) and a range of performance for each. The employee is than rated by identifying the score that best describes his or her level of performance for each trait. The assigned values (ex from unsatisfactory to outstanding) for the traits are then totalled. Alternative ranking methodRanking employees from best to worst on a particular trait, choosing highest, then lowest until all are ranked. Usually easier to distinguish between the worst and best employees, difficult to distinguish employees rated in the middle.Paired Comparison MethodRanking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee. Can only be used in small organizations.Forced Distribution MethodSimilar to grading on the curve, predetermined percentage of rates are placed in various performance categories. Critical Incident MethodKeeping a record of uncommonly good or undesirable examples of an employee s work related behaviour and reviewing it with the employee at predetermined time. Advantage: provides specific hard examples of good and bad performance though out the year so performance is not only based on recent performance. Disadvantage: not useful in evaluating salary, promotion etc.Narrative Forms1. rate the employee s performance for each performance factor or skill. 2. to write down critical examples and an improvement plan designed to aid the employee in understanding where his or her performance was good or bad, and for improving that performance. Behaviourally Anchored Rating Scales (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. 5 steps:1. Generate critical incidents. Persons who know the job being appraised (jobholders and/or supervisors) are asked to describe specific illustrations (critical incidents) of effective and ineffective performance.2. Develop performance dimensions. These people then cluster the incidents into a smaller set of performance dimensions.3. Reallocate incidents. Another group of people who also know the job then reallocate the original critical incidents. They are given the clusters definition and the critical incidents and are asked to reassign each incident to the cluster they think it fits best.4. Scale the incidents. This second group is generally asked to rate the behaviour described in the incident as to how effectively or ineffectively it represents performance on the appropriate dimension. 5. Develop final instrument. A subset of incidents is used a behavioural anchors for each dimension. Advantages: 1. A more accurate gauge.2. Clearer standards3. Feedback4. Independent dimensions5. ConsistencyThe Management by Objectives Method (MBO)Involves setting specific measurable goals with each employee and then periodically reviewing the progress made.6 steps:1. Set the organizations goals2. Set department goals3. Discuss department goals. Department heads discuss the goals with subordinates and ask them to develop individual goals, how can each employee contribute to department goals.4. Define expected results (set individual goals). Department heads and their subordinates set short term performance targets.5. Performance reviews, Measure the result. Compare the actual performance or subordinates with expected results.6. Provide feedback.Problem: 1) setting unclear goals. 2) time consuming. 3) subordinates and heads has to agree on the subordinates goals (subordinate: low vs. head: high)APPRAISAL PROBLEMSUnclear standardsAn appraisal scale that is too open to interpretation, instead include descriptive phrases that define each trait and what is meant by standards like good and unsatisfactory .Halo effectIn 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 trait. Halo effect has been defined as the influence of a rater s general impression on ratings of specific ratee qualities. Central TendencyA tendency to rate all employees the same way, such as rating them all average.Leniency or strictnessThe problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.

BiasIndividual differences among rates in terms of characteristics like age, race and sex can affect their ratings, often apart from each ratee s actual performance. How to avoid appraisal problems:1) Understand the above problems2) Choose the right appraisal tool3) Train supervisors to eliminate errors4) Diary keepingSee table 9-3 page 341 for similarities and difference in the appraisal tools. Legal issues page 342Who should do the appraising?1. Appraisal by the immediate supervisor. 2.

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