Chapter 9
Human Management Performance
(Appraising Performance)
1- Why appraising performance?
Appraising employee performance is important due to the following reasons:
A) Appraisals play an integral role in the employer's performance management
process.
B) Appraisals help in planning for correcting deficiencies and reinforce things to be
done correctly.
C) Through appraisals employee's strength and weak points can be determined; it is
useful for career planning.
D) Appraisals affect the employer's salary raise decisions.
2- Steps in appraising performance
To carry out an effective performance evaluation (appraisal), the following steps
should be carries out:
A) Defining the job: making sure that you and your subordinate agree on his/her job
duties and standards.
B) Appraising performance: comparing your subordinate actual performance to the
standards that have been set, this usually involves some types of rating forms.
C) Providing feedback: Discussing with your subordinate his/her performance,
progress, and put plans for any development required.
3- Designing the appraisal tool
In this regard it is important to determine what to measure (what is to be measured)
and how to measure it?
What To Measure?
- Work Output (quality & quantity)
- Personnel competencies
- Goals (objectives) achievement
How to measure?
- Graphic rating scales
- Alternation ranking method
- MBO, management by objectives
4- Performance appraisal methods?
There are five major performance appraisal methods; each will be discussed as
follows:
(1) Graphic Rating scale: A scale that list a number of traits and a range of
performance for each trait. The employee is then rated by identifying the score that
best describes his or her level of performance for each trait.
(2) Alternation ranking method: Ranking employees from best to worst on a particular
trait, choosing highest then lowest until all are ranked.
(3) 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.
(4) Forced distribution method: Similar to grading on a curve, predetermined
percentages of rates are placed in various performance categories. For example:
15% high performers
20% high-average performers All By Scores
30% average performers
20% low average performers
15% low performers
(5) Narrative Forms:
- Behaviorally anchored rating scales (BARS): an appraisal method that uses
quantified scale with specific narrative examples of good & bad performance.
- Developing a BARS: to develop a BARS you should generate critical incidents,
develop performance dimensions, reallocate incidents, scale the incidents, and finally
develop a final instrument.
- Advantages of using BARS are as follows:
A) A more accurate gauge
B) Clearer standards
C) Provide feedback
D) Independent dimensions
E) Consistency
(6) Management by objectives (MBO) method: involves setting specific measurable
goals with each employee and then periodically reviewing the progress made. MBO is
an appraisal program that consists of six main steps as follows:
- Set the organizational goals.
- Set departmental goals
- Discuss departmental goals
- Define expected results (set individual goals)
- Performance reviews
- Provide feedback
5- Potential rating scale appraisal problems
There are five main problems can undermine appraisal tools, as follows:
(1) Unclear standards: An appraisal scale that is too open to interpretation
(2) Halo effect: Occur when a supervisor's rating of a subordinate on one trait biases
the rating of that person on other traits.
(3) Central tendency: A tendency to rate all employees the same way such as rating
them all average, all of them 50%.
(4) Strictness/leniency: The problem that occurs when a supervisor has a tendency to
rate all subordinates either high or low.
(5) Bias: The tendency to allow individual differences such as age, race, and gender to
affect the appraisal rates of employees.
6- How to avoid appraisal problems?
There are at least four ways to minimize the impact of appraisal problems, as follows:
(1) Learn and understand the potential problems and suggest a solution for each.
(2) Use the right (correct) appraisal tool, each tool has its own pros and cons.
(3) Train supervisors to reduce rating errors such as halo effect, Strictness/leniency
and Bias.
(4) Dairy keeping; have raters consider positive and negative critical incidents as they
occur.
7- Who should do the appraising?
In this regard several options exist, as follows:
- The immediate supervisor (direct manager)
- Peers (using peer appraisals)
- Rating committees
- Self-rating
- Subordinates (appraisal by subordinates)
- 360- degree feedback.
8- The appraisal Interview
(1) Types of appraisal interviews: there are four major types, as follows:
- Satisfactory - promotable
- Satisfactory – not promotable
- Unsatisfactory – correctable
- Unsatisfactory – uncorrectable
(2) How to conduct the appraisal interview: the appraisal interview can be conducted
through performing the following steps:
- Talk in terms of objective work data. (Direct and specific)
- Don't get personal.
- Encourage the person to talk.
- Don't tiptoe around.
(3) How to criticize a subordinate?
- Do it in a manner that lets the person maintain his dignity and sense of worth.
- Criticize privately, do it constructively
- Criticism should be objective, free of any personal bias.
- Avoid once-a-year "critical broadsides" by giving feed back on a daily bases.
(4) How to handle a defensive subordinate?
- Recognize that a defensive behavior is normal
- Never attack a person's defenses
- Postpone actions
- Recognize your own limitations.
(5) How to ensure that the appraisal interview leads to improved performance
- Don’t make subordinates feel threatened during the interview.
- Give subordinates the opportunity to present his ideas/feelings.
- Helpful and constructive supervisors should conduct the interview.
- Offer to subordinates the necessary support for development and change.