Performance Appraisal and Career Management

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Performance Appraisal Process

Effective Goal Setting performance management - A process that consolidates goal setting, performance appraisal, and development into a single system to ensure that the employee's performance supports the company's strategic aims

performance appraisal - Evaluation of an employee's present or past performance according to the performance standards

Performance management is related to the company's strategic goals

Performance appraisals are the key to measuring the results of an employee's job actions

Measuring these efforts demonstrates how well an organization is achieving its goals through its employees

Effective Goal Setting Includes:

- Assign specific goals

- Assign measurable goals

- Assign challenging but doable goals

- Encourage participation

Why Appraise Performance?

Appraising employee performance sets clear expectations and provides regular feedback

Shows both supervisor and employee how effective the employee is in achieving mutually set standards and performance objectives

Allows supervisor and employee to develop a plan for correcting the deficiencies and reinforcing the strengths of the employee

Appraisal provides employees with information about their career and career management

Salary, bonus, and promotion depend on the appraisal

Appraisal is important to

- Set expectations

- Provide feedback

- Identify weaknesses

- Reinforce strengths

- Plan the career

- Decide on salary and promotion

Steps Executed by Supervisor During Appraisal

1. Define the job

Make sure that you and your subordinates agree on their duties and job standards

2. Appraise the performance

Compare the actual performance of your subordinates with the standards that have been set; involves the use of a rating form

3. Provide feedback

Discuss the performance and progress of your subordinates and make plans for any development required

Methods Used for Performance Appraisals Graphic Rating Scale

This is a scale that lists a number of traits and a range of performances for each in order to identify the score that best describes an employee’s level of performance for each trait

Alternative Ranking Method

This method involves ranking employees from best to worst on traits and choosing the highest, then the lowest, until all are ranked

Paired Comparison Method

This method helps make the ranking process more precise. For every trait, such as the quantity and quality of work, you pair and compare the subordinates with each other

Forced Distribution Method

This method is similar to grading on a curve. In this method, predetermined percentages of ratings are placed into performance categories

Critical Incident Method

In this method, the supervisor keeps a log of critical incidents, positive and negative, of an employee’s work-related behavior. After a specific period, the supervisor and the employee meet to discuss the latter’s performance, using the incidents as specific examples.

Narrative Form

The appraisal is written in a narrative style in which the supervisor indicates the areas requiring improvement and the key areas in which the employee has demonstrated superior work.

Management by Objectives

This method focuses on the manager setting organizational objectives for the employee to achieve, followed by periodic review and feedback on the employee’s progress toward the goals.

Electronic Performance Monitoring

In this method, also called electronic performance monitoring (EPM), supervisors electronically monitor the amount of computerized data an employee processes during a set time period and, thereby, the employee’s performance.

Behaviorally Anchored Rating Scales

This scale combines the benefits of narratives, critical incidents, and graphic rating scales by anchoring a rating scale with specific behavioral examples of good and poor performance.

Conflicts in Appraising Employees

Categories of Potential Problems Job Responsibility Error

This error can occur if the job itself is seen as so important to an organization that everyone forgives the error and does not hold the individual responsible for his or her performance.

Contrast Error

This error arises from interpersonal comparisons in which individuals are not assessed on their own job performance or characteristics, but in comparison to someone else’s performance or characteristics.

One-dimensional error

In such an error, one item dominates the evaluation process to such an extent that other critical factors are ignored. It can result from job-related, substantive, or mechanical concerns.

Interpersonal Error

This error is caused by a bias that introduces intentional distortions in the appraisal process. Squeaky wheels often benefit from an interpersonal bias. Sometimes, the bias can be more than just an error and an actual abuse of the supervisor’s role and responsibilities.

Potential Problems Unclear Standards

An appraisal that is too open to interpretation

Halo Effect

An effect that occurs when a rating on one trait biases the rating on other traits

Central Tendency

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

Strictness of Leniency

A tendency to rate all subordinates either high or low

Bias

A tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings

Avoiding Problems

Thoroughly review the company’s appraisal process, including the ratings by each supervisor, the complaints, and other related issues

Ensure that the most appropriate appraisal method and tool is being used

Train supervisors in the use of appraisal tools in order to reduce rater errors and biases. This training should encompass organizational and employee considerations along with those directly related to the appraisal process itself

Ask supervisors to maintain records of employees’ performance throughout the performance period, instead of relying on memory

Set up a review process whereby the rater has an official who reviews all the individuals at the same level in the organization. This builds in a sense of due process