HRM 751 Performance and Compensation Management (Performance Appraisal) Nur Izyan binti Supandi 2012293352 BM7703CF
Outline Introduction of Performance Appraisal Definition and Purpose When? Performance appraisal steps/process Performance Interview and Feedback Definition Importance Performance Interview Performance Appraisal Methods Appraisal Form Traditional Methods vs Modern Methods Type of appraisal Methods Type of Appraiser Supervisors, Peers, Subordinates, Self, Customers, Clients and Group Appraiser Error Judgmental Errors Rater Training Program Poor Appraisal Forms Ineffective Organizational Policies and Practices
INTRODUCTION
Other Terms Performance appraisal has been synonymous with performance review, performance evaluation, performance assessment, performance measurement, employee evaluation, personnel review, staff assessment, and service rating ( Aggarwal & Thakur , 2013)
Definition of Performance Appraisal
Definition of Performance Appraisal
Purpose of Performance Appraisal Walsh and Fisher (2005); Faseeh (2013): (1) To provide feedback about strengths and weaknesses; (2)To distinguish between individuals to allocate rewards; (3)To evaluate and maintain the human resource systems of the organization; and (4)To create a paper trail of documentation (Murphy & Cleveland, 1995) Chattopadhayay and Ghosh (2012), It provides a justification for human resource decision such as rewards, career planning, transfers, training, counseling, mentoring , termination, etc.
Milliman , Nason , Zhu, and Cieri (2002)
When Performance Appraisal?
Six Formal Meetings ( Aguinis , 2009)
Example Performance Appraisal Step ( Kumari , 2012)
Example Performance Appraisal Step (West Virginia Division of Personnel Handbook, 2005)
PERFORMANCE INTERVIEW AND FEEDBACK
Definition of Performance Interview
Function of Performance Interview Two main purpose: Counseling and development Evaluation and discussion About employees’ performance ( Cederblom , 1982) Allow employees to improve their performance by identifying performance problem and solution for overcoming them. Helps to build good relationship ( Aguinis , 2009)
Importance of Performance Interview
Explanation of Feedback Staff members should not receive any surprise feedback because informal, continuous discussion and feedback between staff and manager throughout the year prevents surprises ( Boice & Kleiner , 1997).
PERFORMANCE APPRAISAL METHODS
Traditional vs New Approach Traditional Approach This method is based on studying the personal qualities of the employees. It may include knowledge, initiative, loyalty, leadership and judgment ( Aggarwal & Thakur , 2013). New Approach Performance appraisal is used for developmental and motivational purposes in the organizations ( Gürbüz & Dikmenli , 2007). Traditional Approach New Approach
( Nili , Ardakani & Shekarchizadeh , 2012)
Methods and Form SHRM Curriculum Guidebook (2010)
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.
Management by Objectives (MBO) Employees are evaluated how well they accomplished a specific set of objectives that have been determined to critical in the successful completion of the job.
Narrative Essay Evaluator writes an explanation about employee’s strength and weakness points, previous performance, positional and suggestion for his (her) improvement at the end of evaluation time.
Rating Scale
Comparative Methods Comparative methods of performance appraisal seek to identify one worker’s standing to others. Ranking, paired comparison, and forced distribution
Appraisal Form Information on performance is collected by using forms, which can be filled out in paper or electronically ( Aguinis , 2009) Example appraisal form
Components in Appraisal Form Basic employee information Accountabilities, objectives and standard Competencies and indicators Major achievements and contributions Developmental achievements Developmental needs, plans, and goals Stakeholder input Employees comments Signature ( Aguinis , 2009)
360 Degree is known by a variety of names, including multisource assessment, 360-degree feedback, multirater assessment, and three-dimensional or full-circle appraisal. It relies on the input of an employee's superior, colleagues, subordinates, sometimes customers, suppliers and/or spouses. The information collected and feedback is provided in full circular fashion top down and back to top.
TYPE OF APPRAISER
APPRAISER ERROR
Appraiser Error Appraisal error affect the objectivity of the appraisal negatively ( Boachie-Mensah & Seidu , 2012). The problems that affect the validity and dependability of the Performance appraisal systems ( Kumari , 2012)
Component of Appraisal Error ( Kumari , 2012)
Ratings Error Similar to me Contrast Halo Primacy Recency Negatively First impression Spillover Stereotype Attribution Leniency Severity Central tendency Unintentionally Intentional ( Aguinis , 2009)
Rater Training Programs The overall objective of providing raters with tools that will allow them to implement the performance management system effectively and effectively ( Aguinis , 2009). To improve managers’ ability to conduct effective performance appraisals with dealing errors to eliminate it from ratings ( Inancevich & Konopaske , 2013). The example of training such as Rater Error Training, Frame of Reference Training (FOR), Behavioral Observation Training, and Self-Leadership Training.
A Study in polytechnic in Takoradi , Ghana ( Boachie-Mensah & Seidu , 2012)
Support from Previous Study In a study of Telecom Industry in Navi Mumbai Region the most common appraisal errors in the system are the similarity (similar-to-me) effect and the halo effect.
Deming (1982/2000) Deming was a recognized guru in the quality movement and famous for his critique of performance ratings, identifying them as one of management’s deadly diseases in the PA: It nourishes short-term performance, annihilates long-term planning, builds fear, demolishes team-work, nourishes rivalry and politics. It leaves people bitter, crushed, bruised, battered, desolate, despondent, dejected, feeling inferior, some even depressed, unfit for work for weeks after receipt of rating, unable to comprehend why they are inferior. (p. 102)
Conclusion Organizations can benefit a lot from performance appraisal by seeing it as crucial part of management responsibility. Employee will be motivated and inspired with positive and constructive feedback from performance appraisal. Effective performance appraisal should eliminate appraisal error.