Appraisals

Performance Appraisal

  • performance management: set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performing expectations

    • a continuous interactive process
    • steps:
    1. define performance
    2. monitor and evaluate performance
    3. review performance
    4. provide consequences

  • performance appraisal: assessing and employees performance and providing feedback

    • aka performance review
    • frequency is usually dictated by the calendar
    • criticized as tending to be a “boss-dominated” assessment

  • objective appraisal: measures desired results

    • based on fact and often numerical
    • harder to challenge legally → reduced personal bias

  • subjective appraisal: based on managerial’s perceptions of an employees traits and behaviors

    • easy to create and use, but validity is questionable
    • one type is behaviorally anchored rating scale
    • behaviorally anchored rating scale: rates employee graduations in performance according to scales of specific behaviors

Who Should Make Performance Appraisals?

  • 360-degree assessment: employees are appraised not only by their managerial supervisors but also by peers, subordinates, and sometimes clients
    • typically, an employee chooses their evaluators (6 to 12 people) who fill out anonymous forms, the results of which are tabulated by computer
    • employee goes over results with his or her manager and together they put into place a long term plan for performance goals

Forced Ranking: Grading On A Curve

  • forced ranking: all employees within a business unit ranked against one another and grade are distributed along a bell curve
    • top performers are rewarded with bonuses and promotions
    • the worst performers are given warnings or dismissed
    • rapidly losing favor; forced ranking used in about 27% of Fortune 1000 companies (down from 44% in 2013)

Effective Performance Feedback

  • to help increase performance, managers should offer:

    1. formal appraisals: conducted at specific times throughout the year and based on performance measures that have been established in advance
    2. informal appraisals: conducted on an unscheduled basis and consists of less rigorous indications of employee performance

  • with all appraisals, take a problem-solving approach, be specific, get employee input, and follow up