Performance Management
and Appraisal
Chapter 9
Performance appraisal means
evaluating an employee’s current
and/or past performance relative to
his or her performance standards.
Basic Concepts in Performance Management and
Appraisal
Comparing
Performance Appraisal and
Performance Management
Performance Appraisal: Performance Management:
Setting work standards, assessing An integrated approach to ensuring that
performance, and providing feedback to an employee’s performance supports
employees to motivate, correct, and and contributes to the organization’s
continue their performance. strategic aims.
Why Performance Management?
Total Quality
The
Performance
Appraisal Issues
Management
Approach
Strategic Focus
Who Should Do the Appraising?
Immediate Supervisor Self-Rating
Peers
Potential Subordinates
Appraisers
Rating 360-Degree
Committee Feedback
BASIC APPRAISAL METHODS
• ACR (Annual Confidential • Forced distribution method
Report)
• Critical Incident Method
• Graphic rating scale
• BARS
• Alternation Ranking Method
• Management by Objectives
• Paired Comparison Method
ACR (Annual Confidential Report)
• ACR: Most popular method in Bangladesh. It has three sections which will be
filled out sequentially by employee, supervisor and HR department. HR will
refer to employee file while judging employees performance and put together
recommendations to management.
.
Behaviorally Anchored Rating Scale
(BARS) is an appraisal method that combines the benefits of narrative
critical incidents and quantitative ratings by anchoring a quantified scale
with specific narrative examples of good and poor performance
Management by Objectives
• Requires the manager to set
specific measurable goals with
each employee and then
periodically discuss progress
toward these goals
MBO
• Set the organization’s goals
• Set departmental goals
• Discuss departmental goals
• Define expected results
• Conduct performance reviews and measure the
results
• Provide feedback
Using MBO
Setting unclear Time-consuming
objectives appraisal process
Problems with MBO
Conflict with
subordinates over
objectives
Graphic rating scale
• Lists a number of traits and a range of performance for each
• Supervisor rates each subordinate by checking the score that best
describes the subordinate’s performance for each trait
Alternation Ranking
• Ranking employees Method
from best to worst on a trait
• Alternates between highest and lowest until all employees to be rated
have been addressed
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
• Helps ensure that the supervisor thinks about the subordinate’s
appraisal all during the year
• Does not just reflect the employee’s most recent performance
Appraising Performance: Problems and Solutions
Potential Rating
Scale Appraisal
Problems
Unclear Halo Central Leniency or
Bias
Standards Effect Tendency Strictness
Appraising Performance: Problems and Solutions
(cont’d)
How to Avoid Appraisal
Problems
Control
Know Use the Right Train Keep
Outside
Problems Tool Supervisors a Diary
Influences
The Appraisal Interview
Satisfactory—Promotable
Satisfactory—Not Promotable
Types of Appraisal
Interviews
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
The Appraisal Interview (cont’d)
Guidelines for Conducting an
Interview
Talk in terms of
Don’t get Encourage the Don’t tiptoe
objective work
personal. person to talk. around.
data.
KEY TERMS
performance appraisal management by objectives (MBO)
performance management electronic performance monitoring (EPM)
graphic rating scale unclear standards
alternation ranking method halo effect
paired comparison method central tendency
forced distribution method strictness/leniency
critical incident method bias
behaviorally anchored rating scale (BARS) appraisal interview