HRM 442 – Human Resource
Management
Establishing the Performance
Management System
Lecture 5
Outline
• Understanding Performance
• Performance Management Systems
(Management vs. Appraisals)
• The Appraisal Process
• Performance Appraisal Techniques
• Factors that Distort Appraisals
• Creating Better Performance Management
Systems
• Performance Appraisal Meeting
Overview of managing performance of employees in
the organization
How would you manage
student’s performance?
Understanding Performance
• Employee
Performance
– Completing key job
activities
• Performance
Management Systems
– Typically include
performance appraisal
and employee
development
Performance Management Systems
• Purpose of Performance Management Systems
− Feedback – let employees know how well they have
done and allow for employee input
− Development – identify areas in which employees
have deficiencies or weaknesses
− Documentation – to meet legal requirements
• Difficulties in Performance Management Systems
Focus on the Individual Focus on the Process
Performance Management Systems
Dangers of Poorly Implemented Performance
Management Systems
1. Employees may quit due to results
2. False or misleading information may be used
3. Self-esteem may be lowered
4. Time and money are wasted
5. Relationships are damaged
6. Motivation to perform is decreased
7. Employees suffer from job burnout and job dissatisfaction
8. There is increased risk of litigation
9. Unjustified demands are made upon managers’ resources
[Link] and ratings vary and are unfair
[Link] can replace standards
[Link] surrounds how ratings were derived
Performance Management Systems
The future of performance management
system
The Appraisal Process
Performance Appraisal Techniques
Absolute Relative
Objectives
Standards Standards
• An employee’s • Employees are • Employees are
performance is evaluated by evaluated on how
measured against comparing their well they
established performance to the accomplished a
standards of an performance of specific set of
organization other employees objectives
Essay Appraisal Group Order Ranking Management by
Critical Incident Appraisal Individual Ranking Objectives (MBO)
Checklist Appraisal Paired Comparison • goal specificity
Behaviorally Anchored • participative decision
Rating Scales (BARS) making
• an explicit time period
• performance feedback
Performance Appraisal Techniques
The Checklist Model of Performance Appraisals
Performance Appraisal Techniques
Performance Appraisal Techniques
The Graphic Rating Scale
Performance Appraisal Techniques
Sample BARS for an Employee Relations Specialist
Performance Appraisal Techniques
Factors that Distort Appraisals
Factors that Distort Appraisals
Reasons for changing the ratings of individuals
Creating Better Performance
Management Systems
Reinventing
Performance
Management
Creating Better Performance
Management Systems
Performance Appraisal Meeting
Scheduling the Use of Praise and
Interview Structure
Interview Criticism
Concluding the
Employees’ Role
Interview