Dessler Human Resource Management Chapter 9 Performance Management and Appraisal Lindenwood University

Performance Appraisal
Evaluating an employee’s current and/or past performance relative to his or her performance standards.
Performance Appraisal Process
1. Setting Work Standards
2. Assessing the employee’s 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
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
Four Guidelines for setting performance goals
1. Assign specific goals
2. Assign measurable goals
3. Assign challenging but doable goals
4. Encourage participation
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, the 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
BARS 5 Steps
1. Write critical incidents
2. Develop performance dimensions
3. Reallocate incidents
4. Scale the incidents
5. Develop a final instrument
Management By Objectives
A comprehensive and formal organization-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