[3] Performance Management and Appraisal

Human Resource Management 16th Edition - Gary Dessler

Performance appraisal

Evaluating an employee’s current and/or past performance relative to his or her performance standards.

Performance appraisal process

A three-step process involving (1) setting work standards, (2) assessing the employee’s actual performance relative to those standards, and (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.

Specific

SMART GOALS

What is the “S” in SMART?

Measurable

SMART GOALS

What is the “M” in SMART?

Attainable

SMART GOALS

What is the “A” in SMART?

Relevant

SMART GOALS

What is the “R” in SMART?

Timely

SMART GOALS

What is the “T” in SMART?

Graphic rating scale

A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait.

Alternation ranking method

Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Paired comparison method

Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Forced distribution method

Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories.

Critical incident method

Keeping a record of uncommonly good or undesirable examples of an employee’s work-related behavior and reviewing it with the employee at predetermined times.

Behaviorally Anchored Rating Scale (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.

Management By Objectives (MBO)

Refers to a multistep company wide goal-setting and appraisal program.

Electronic Performance Monitoring (EPM)

Having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance.

Unclear standards

An appraisal that is too open to interpretation.

Halo effect

In 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 traits.

Central tendency

A tendency to rate all employees the same way, such as rating them all average.

Strictness/Leniency

The problem that occurs when a supervisor has a tendency to rate all subordinates either high or low.

Bias

The tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings employees receive.

Appraisal interview

An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths.

Performance management

The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization’s goals.