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A performance appraisal

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is the specific and formal evaluation of an employee to determine the degree to which the employee is performing his or her job effectively

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Performance management

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the general set of activities carried out by the organization to change (improve) employee performance

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Why organizations conduct performance appraisals

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Managers believe that performance appraisals are important and they have a meaningful role to play. Organizations hope to achieve several goals with appraisals

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Performance appraisals and employees

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Most people involved in appraisals tend to be dissatisfied with them. This is true for both the employee being rated and the manager who is rating them

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Importance of performance appraisals - benchmark

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- provide a benchmark for assessing the extent to which recruiting and selection processes are adequate; when this info. is used it can lead to real improvements in the performance of individual employees and ultimately the entire organization

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Importance of performance appraisals - legal

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organizations must be able to demonstrate that their promotions, transfers, terminations and reward allocations are based on merit as opposed to discriminatory factors such as gender as race. Appraisals are the mechanisms by which organizations provide documentation

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Importance of performance appraisals - compensation

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Performance appraisal information should be the basis of incentive pay systems and other perf. mgmt. interventions designed to improve motivation and performance

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Goals of performance appraisal

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- is to provide a valid and reliable measure of employee performance along all relevant dimensions. Appraisals should reflect the true picture of what is and is not working well. - documentation - employees need to receive useful feedback that is accurate, - pay raises and promotions on the basis of performance

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Performance appraisal process

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Manager tasks: Establish job duties, establish and communicate performance standards, inspect/observe performance, document / record observed performance, rate performance, set up meeting with employee, provide feedback and coaching or counseling as needed. Is performance improving? If yes, recognize/reward performance, foster further development, performance managed - repeat cycle. If no, implement performance improvement plan, If still no improvement, transfer, demote or terminate the employee

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Role of the rater

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Establish clear standards, compare information acquired with the standards. Consider context and extenuating circumstances. Collect information about those day to day behaviors that are relevant to performance on the job. Transfer behaviors to ratings. Once ratings are completed, communicate with employee. Include goals for the future to help improve and stay motivated

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Role of the employee (ratee)

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Employee should have a clear unbiased view of their performance. Problems can occur if disagreements occur. This approach may require the ratee to acquire information about the performance of co-workers and requires the ratee to gain an understanding about his or her behavior affects performance.

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Who performs the performance appraisal?

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Sources of information for performance appraisal: Supervisor, peers, customers, subordinates, self-appraisal information goes to the rater

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Ratings of attitude, leadership and initiative

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are important and popular traits that get appraised in many organizations

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360 degree appraisals

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organizations that use 360 degree appraisals gather performance information from people on all sides of the manager; above, beside, below and so forth. By looking at performance from all perspectives helps match strengths and weaknesses, benefits and shortcoming from each perspective and gain a more realistic overall view of person's true performance Definition: performance is gathered from all sides of the manager: above, beside, below and so forth

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Reconciling different feedback

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Manager must reconcile different feedback and the organization needs to use these ratings for feedback and development purposes only - weighting the ratings from different sources

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Frequency of appraisals

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1 year - rater memory is a critical factor and limits the accuracy and effectiveness of appraisals, raters should keep performance diaries or logs

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What gets rated?

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Many organizations rate traits traits are abstract properties of individuals that generally cannot be observed but can be inferred Rating traits allow the org. to use the same instrument for all employees Based on the assumption that similar traits underlie effective performance

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Court cases

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Trait based performance appraisals are the most difficult to defend, courts tend to see them as more subjective than other systems.

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Behavior appraisals

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These appraisals tend to be based on job analysis and tailored for specific jobs, ex. a ratee may be evaluated on how well he or she can physically observe. Reliance on behaviors can lead to an emphasis on processes underlying effective performance. In some organizations is to base employees on outcomes.

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Who should be rated?

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With work teams the organization must decide whether to rate tams or individuals. If the individual is rated and rewarded there may be no reason for cooperation - individuals tend to believe they should be rated on an individual rather team bases. This avoids the "free rider" problem. If the team functions as a team rather than as a set of individuals it is essential the team performance is appraised and rewarded

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The simple ranking method

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involves having the manager rank order each member of a work group or department from top to bottom or best to worse

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Paired comparison method

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each employee is compared with every other individual employee two at a time

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Objective measures and objective data

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reflects conditions under the control of the individual employee. Performance appraisals are prone to problems of bias and rating errors. Most ratings are subjective. For most jobs and for all managerial jobs, straightforward objective measures of performance do not exist, they are usually contaminated by factors such as location of sales territories. In other cases where objective measures exist they are meaningful only at the team level and not at the level of the indivdual

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Graphic rating scales

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Attitude: poor, below average, average, above average, outstanding (1-5) Working with others: poor, average, outstanding (1-7) Meeting deadlines: needs improvement, meets expectations, exceeds expectations Quality of work: poor to outstanding

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Forced distribution method

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involves grouping employees into predefined frequencies of performance ratings - frequencies are determined by the organization in advance and are imposed on the rater. Ex. Like GE, employer can decide 20% of employees are not performing to standard, 60% are meeting standards, only 20% are truly outstanding Advantage: results in a normal distribution of ratings Forced distribution ensures control over how much money is spent on merit pay Disadvantage: its possible all employees are performing at acceptable levels but this method makes rankings that are not really meaningful. Most orgs. rely on some type of absolute judgments and employ a system of performance ratings rather than rankigns

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Graphic rating scale

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consists of a statement or question about some aspect of an individual's job performance - pg 230

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critical incident method

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relies on instances of especially good or poor performance on the part of the employee. Requires raters to recall instances on the job and then describe what the employee did or did not do that led to success or failure

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behaviorally anchored rating scale (BARS)

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is an appraisal system that represents a combination of the graphic rating scale and the critical incident method - developing a BARS is complicated and expensive - 1st the manager must develop a pool of effective and ineffective behaviors. Advantage: provides specific behavioral examples to reflect effective and less effective behaviors.

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Behavioral observation scale (BOS)

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is developed from critical incidents like BARS but uses substantially more critical incidents to define specifically all the measures necessary for effective performance

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Goal based or management by objectives (MBO)

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system is based largely on the extent to which individual's meet their personal performance objectives

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Behaviorally Anchored Rating Scales - interpersonal skills: instructor's ability to establish rapport with students in and out of the classroom example

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Instructor encourages students to ask questions Instructor comes down to the level of the students. Instructor maintains an informal relationship with the students. Instructor doesn't draw students out who don't ask questions. Instructor puts down students who ask questions Instructor lowers student self esteem Ranking scale 1-7

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simple ranking method

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involves having the manager rank order each member of work group or department from top to bottom or from best to worse

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Contrast error

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occurs when we compare people against one another instead of against an objective standard

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Distributional error

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occurs when the rater tends to use only part of the rating scale

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Halo error

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occurs when one positive performance characteristic causes the manager to rate all other aspects of performance positively

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Distributional error issues

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1. sometimes the distributional error may be severity, which occurs when the manager gives low ratings to all employees by holding them to an unreasonable high standard 2. the opposite error is leniency which occurs when a manager assigns relatively high or lenient ratings to all employees 3. A central tendency distributional error occurs when the manager tends to rate all employees as average, using only the middle part of the scale

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Which system is best?

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It's difficult to find much advantage for any one system over the others HR manager must take what is known about each system and decide how well the system fits into the culture and operation of the organization

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Horns error

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occurs when the manager downgrades other aspects of an employee's performance because of a single performance dimension

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Contextual performance

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refers to tasks an employee does on the job that are not required as part of the job but that still benefits the organization in some way

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Layoffs and legal issues

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When performance appraisals are used as the basis for human resource decisions as in the case of merit pay or promotion decisions. They are considered the same as any other test under the law. This designation includes decisions about layoffs based on performance.

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Career

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is the set of experiences and activities that people engage in related to their job and livelihood over the course of their working lives

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Steve Jobs

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founded Apple in 1976. He left the company in 1985 and started another computer business NeXT. He bought a computer animated business from George Lucas and turned it into Pixar. He eventually rejoined Apple in 1997 and led the company until his death in 2011.

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Exploration

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first stage and involves identifying interests and opportunities

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Establishment

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second stage of the traditional career model involves creating a meaningful and relevant role in the organization

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Maintenance

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the third stage involves optimizing talents or capabilities

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Disengagement

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the fourth stage involves the individual gradually beginning to pull away from work in the organization. Priorities change and work may become less important

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New views of career stages

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people go through the 4 stages in a shorter period of time due to the economy and layoffs. Some experts argue we should think about career ages (how long someone was on the job) rather than career stages or even chronological age. They suggest we must directly incorporate the premise of multiple careers. At the beginning of any new career, the employee begins the process again

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Issues facing older workers and the decision to retire

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Persons age 40 and older are protected by the Age Discrimination in Employment Act but people assume abilities and performance decline with age. Evidence is mixed. Motor coordination and dexterity can be explained by education and job type, no evidence of age related declines in intelligence, verbal ability or numerical ability. Some studies find a curvilinear relationship between age and performance with performance highest when workers are youngest and oldest. Financial resources need to be factored into retirement decisions. Health, maintaining lifestyle, etc.

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Individual and organizations perspectives on career planning

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Work to achieve good person organization fit through selection Understand & monitor career opportunities, successes and failures Effective career planning (organization and individual) stronger and more effective workforce more successful and healthier career

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Steps in career planning

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Individual assessment > Organizational specification of career paths and opportunities > communication/performance management > career counseling

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Importance of career planning

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1. individual assessment phase - anaylze what they percieve to be their own abilities, competencies, skills and goals 2. HR should be developing a potential career path up the ladder 3. Communication is important 4. Career counseling - interaction between employee or manager

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individual assessment phase of career planning

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requires that individual analyze carefully what they perceive to be their own abilities, competencies, skills and goals

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Career counseling

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involves interaction between employee or manager in the organization and either a line manager or a human resource manager

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If an institution wants to be adaptive, it has to let go of some control and trust that people will work on the right things in the right way

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Robert Shapiro, CEO of Monsanto

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Dual career and work family issues

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in the 1950s most married couples in the US were characterized by roles that gave the male partner career precedence over the female partner

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Evaluating career - management activities

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ultimate goals are to reach full potential, enjoy productive and satisfying work careers, transition to retirement. Career management activies can be judged on ly by their success at any one point in time.

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A basic goal of any appraisal system is to provide a valid and reliable measure of employee performance along all relevant dimensions. a. True b. False

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True

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Research finds that most appraisals are objective—that is, not influenced by personal feelings. a. True b. False

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false

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The simple-ranking method of performance appraisal involves grouping employees into predefined frequencies of performance ratings. a. True b. False

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false

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The leniency error occurs when a manager assigns relatively high or lenient ratings to all employees. a. True b. False

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true

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The first stage of the traditional career view is establishment. a. True b. False

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false

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________ is the specific and formal evaluation of an employee to determine the degree to which the employee is performing his or her job effectively. a. A performance appraisal b. Organizational review c. Performance management d. Compensation assessment e. Job measurement

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a. performance appraisal

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Generally speaking, how often do most organizations conduct performance appraisals? a. Once a month b. Every 18 months c. Once a week d. Once a year e. Every three months

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d. once a year

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The ________ method of performance appraisal involves grouping employees into predefined frequencies of performance ratings. a. simple ranking b. forced-distribution c. graphic-distribution d. graphic rating e. paired-comparison

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b. forced-distribution

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An advantage of the ________ method of performance appraisal is that it results in a normal distribution of performance ratings, which many people see as inherently fair. a. simple ranking b. forced-distribution c. graphic-distribution d. graphic rating e. paired-comparison

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b. forced-distribution

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The ________ method of performance appraisal is developed from substantial amounts of critical incidents to define specifically all the measures necessary for effective performance. a. behavioral observation scale b. forced-distribution c. graphic-distribution d. graphic rating e. paired-comparison

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a. behavioral observation scale

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A ________ occurs when the rater tends to use only one part of the rating scale. a. contrast error b. contextual performance error c. distributional error d. halo error e. horns error

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c. distributional error

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A typical individual passes through ________ career stages. a. three b. six c. two d. four e. five

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d. four

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An individual typically passes through the ________ stage of career development during the late twenties through mid-to-late thirties. a. growth b. exploration c. decline d. establishment e. maintenance

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d. establishment

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In the ________ phase of career planning requires that individuals analyze carefully what they perceive to be their own abilities, competencies, skills, and goals. a. growth b. career counseling c. decline d. establishment e. individual assessment

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e. individual assessment

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When did a dramatic increase of women begin entering the workforce? a. Mid-to-late 1950s b. Mid-to-late 1980s c. Mid-to-late 1940s d. Mid-to-late 1960s e. Mid-to-late 1970s

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d. Mid-to-late 1960s

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The role of the ratee in the performance appraisal is to have a clear and unbiased view of his or her performance; this may require the ratee to acquire information about the performance of co-workers. a. True b. False

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true

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For most jobs, and for all managerial jobs, straightforward objective measures of performance exist. a. True b. False

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false

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Probably the simplest method of performance appraisal is the paired-comparison method. a. True b. False

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false

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The individual assessment phase of career planning requires that individuals analyze carefully what they perceive to be their own abilities, competencies, skills, and goals. a. True b. False

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true

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The ultimate goals of career management are to have employees reach their full potential at work, enjoy productive and satisfying careers, and then make a successful transition to retirement. a. True b. False

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true

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All of the following are roles of the organization in the performance-appraisal process EXCEPT: a. to decide how the information gained from performance appraisals is to be used. b. ensuring that clear and specific performance standards are available to managers. c. to determine the timing of the performance appraisals. d. communicating the results and consequences of the appraisal to the ratee. e. ensuring that clear and specific performance standards are available to employees.

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d. communicating the results and consequences of the appraisal to the ratee.

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Jason is working on developing the performance appraisal process at ABC Manufacturing. Which of the following should be Jason's first task in this process? a. Inspect/observe performance b. Rate performance c. Document/record observed performance d. Establish job duties e. Establish and communicate performance standards

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d. Establish job duties

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All of the following people may perform a performance appraisal EXCEPT: a. a supervisor of the employee. b. customers of the employee. c. peers of the employee. d. subordinates of the employee. e. friends of the employee.

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e. friends of the employee.

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Monika is interested in getting feedback on all her employees in the division from people on all sides of the manager: above, beside, below, and so forth. Monika should utilize a ________ appraisal. a. corporate management b. ranking system c. paired d. 360-degree e. reverse

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d. 360-degree

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The graphic is an example of a ________. a. 360-degree appraisal b. critical incident method c. graphic rating scale d. contrast error

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c. graphic rating scale

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In the ________ method of performance appraisal, each individual employee is compared with every other individual employee, two at a time. a. paired-comparison b. graphic rating c. forced-distribution d. behavioral observation scale e. critical incident

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a. paired-comparison

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Suppose a given employee always comes to work early and is always full of energy and enthusiasm at the beginning of the workday. The manager may so appreciate this behavior that he or she gives the employee a high performance rating on all other aspects of performance, even when those other aspects may be only average or merely inadequate. This is an example of the ________ error. a. contextual performance b. halo c. horns d. distributional e. contrast

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b. halo

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A manager may feel that a given employee does not dress appropriately and views that characteristic negatively. As a result, the manager may also give the individual low performance ratings on other performance dimensions when higher ratings are justified. This is an example of the ________ error. a. contextual performance b. halo c. horns d. distributional e. contrast

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c. horns

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Joseph is a 22-year-old college senior. He is currently majoring in social work, but he changed his major several times throughout his time in college. Joseph is in the ________ stage of career development. a. growth b. maintenance c. decline d. establishment e. exploration

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e. exploration

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Sheila has been working at Brown Industries for 15 years. She often devotes extra time to learning new job skills and is frequently called on to fill mentoring roles in which she helps newcomers to the organization. Shelia is in the ________ stage of career development. a. growth b. maintenance c. decline d. establishment e. exploration

answer

b. maitenance

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