4. CHAPTER 9 PERFORMANCE APPRAISAL

Performance appraisal

means evaluating an employee’s current and/or past performance relative to his or her performance standards

Performance appraisal process

it tackles about the steps for performance appraisal which is (1) set work standards; (2) assess the employees actual performance relative to those standards; (3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par.

Immediate supervisor

It still the heart of most appraisals. This supervisor is usually in the best position to observe and evaluate the subordinates performance and is responsible for that person's performance

Peer appraisals

A type of appraising where it is appraised by one’s peers. It see aspects of the person that the boss may never see.

Rating committees

They typically consist of the employee’s immediate supervisor and three or four other supervisors. It helps cancel out problems such as bias on the part of individual raters.

Self-ratings

Employees usually rate themselves. The problem is employees usually rate themselves higher than their supervisor or peer’s evaluation. Some believe incompetent performers aren't capable of objectively assessing themselves.

Upward feedback

a type of appraising where subordinates rate their managers twice a year, usually for developmental rather than for pay purposes.

360-Degree feedback

its when the employer collects performance information all around an employee. From supervisor, subordinates, peers, and internal or external customers.

Graphic rating scale method

it is the simplest and most popular method for appraising performance. It has list of job dimensions or traits and a range of performance values (unsatisfactory to outstanding) supervisor then rates each subordinates

Competency based graphic rating scale

This rating form assesses the person’s competencies

Alteration Ranking Method

ranking employees from best to words on a trait or traits. This indicate the employee who is hughes then the lowest in the performance dimension

Paired comparison method

This makes the ranking method more precise. For every trait, you compare every employee with every other employee

Forced Distribution Method

It is similar to grading on a curve. Here, the manager places predetermined percentages of rates into performance categories. Its advantages is preventing supervisors from simply rating from “satisfactory” or “high”. The disadvantage is many employees may feel that their appraisal was dysfunctional.

Critical Incident Method

It makes the supervisor think about the subordinate’s appraisal all during the year, not just the recent performance. It's when a supervisor keeps a log of positive and negative examples of subordinates' work-related behaviors then they are used as examples in performance appraisals.

Narrative forms

Here the person's supervisor assesses the employee past performance and required areas of improvement. The supervisor's narrative assessment helps the employee understand where his or her performance was good or bad, and how to improve that performance.

Behaviorally Anchored Rating Scales (BARS)

it is an appraisal tool that anchors a numerical rating scale with specific illustrative examples of good or performance.

Management by objectives

it usually refers to a multistep company wide-goal setting and appraisal program. It requires the manager to set specific measurable, organizationally relevant goals with each employee, and then periodically discuss the latter’s progress toward these goals.

Unclear standards

The way to fix this problem is to include descriptive phrases that define or illustrate each trait. It is a problem where different supervisors might define “good” performance, “fair” performance differently. It might result in unfair appraisals because the traits and degrees of merit are ambiguous.

Halo effect

to alleviate this problem, it is recommended to use BARS. it is the influence of a rater’s general impression on ratings of specific ratee qualities.

Central Tendency

This means rating all employees average. For example the rating scale is 1-7 and the supervisor tends to avoid high scores like 6 and 7 and lows like 1 and 2 and just rate people between 3 and 5.

Leniency or strictness

This problem is especially severe with graphic rating scales. Other supervisors tend to rate all their subordinates high or low.

Recency effects

The main solution is to accumulate critical incidents all year long. In this context it means letting what the employee has done recently blind you to what his or her performance has been over the years