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Chapter 12 Evaluating Employee Performance Copyright © 1999 John Wiley & Sons Canada, Ltd. All rights reserved. Performance Appraisals and the Motivation Process HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Purposes of Performance Management Systems • Feedback • Development • Documentation HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Difficulties in Performance Management Systems • Focus on the individual • Focus on the process HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Performance Appraisals and Employment Equity • Must be bias-free, objective, and jobrelated • Should be conducted at regular intervals by trained appraisers HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd The Appraisal Process HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Absolute Standards (Employees are measured against a set benchmark) • Essay appraisal • Critical incident appraisal • Adjective rating appraisal • Forced choice appraisal • Behaviourally anchored rating scales (BARS) HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Sample Checklist Items for Appraising Customer Service Representative HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Sample of Adjective Rating Scale Items and Format HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Sample BARS for an Employee Relations Specialist HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Relative Standards (Individuals compared to each other) • Group order ranking • Individual ranking • Paired comparison HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Appraisal Methods: Management by Objectives (Employees evaluated on how well they achieve specific objectives) Steps of MBO: 1. Goal setting 2. Action planning 3. Self-control 4. Periodic reviews HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Factors Distorting Appraisals • • • • • • • • Leniency/harshness error Halo error Similarity error Low appraiser motivation Central tendency Inflationary pressures Inappropriate substitutes for performance Attribution errors HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Factors Leading to More Effective Performance Management Systems • • • • • • • Behaviour-based measures Combination of absolute and relative standards Ongoing feedback Multiple raters Selective rating Trained appraisers Rewards for accurate appraisers HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Conducting the Performance Appraisal Interview • • • • • • • • Prepare for, and schedule, the appraisal in advance Create a supportive environment Describe the purpose of the appraisal to employees Have the employees complete a self-evaluation Focus discussion on work behaviour Support your evaluation with specific examples Give both positive and negative feedback Make sure the employees understand what was discussed • Generate a development plan HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd Issues in International Performance Appraisal • Who performs the evaluation? • Which evaluation format will be used? HUMAN RESOURCES MANAGEMENT Templer • Cattaneo • De Cenzo • Robbins John Wiley & Sons Canada, Ltd
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