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Human resource management 15e by gary dessler 2017 chapter 09

Human Resource Management
Fifteenth Edition

Chapter 9
Performance Management and
Appraisal

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Learning Objectives (1 of 2)
9-1. Describe the performance appraisal process.
9-2. Define the pros and cons of at least eight performance appraisal methods.

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Learning Objectives (2 of 2)
9-3. Give examples of potential appraisal problems and how to deal with them.
9-4. List steps to take in the appraisal interview.
9-5. Explain key points in how to use the appraisal interview to boost employee

engagement.
9-6. Explain how you would take a performance management approach to appraisal.

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I.
Describe the appraisal process.

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Basics of Performance Appraisal



The performance appraisal process steps

1.
2.
3.

Sets work standards
Assesses performance
Provides feedback to the employee

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Why Appraise Performance?
Five reasons:

1.

Used for pay, promotion, and retention decisions

2.

Links performance management to company goals


3.

The manager can correct deficiencies and reinforce strengths

4.

With appraisals employee’s can review career plans

5.

Training needs are identified

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Defining the Employee’s Goals and Performance Standards

1.

Goals

2.

Job dimensions or Traits

3.

Behaviors or Competencies

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Improving Performance: HR as a Profit Center

Setting Performance Goals at Ball Corporation

Let’s talk about it…

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Improving Performance: HR Tools for Line Managers and Small
Businesses

How to set Effective Goals

Let’s talk about it…

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Who Should Do the Appraising?

1.

Peer Appraisals

2.

Rating Committees

3.

Self Ratings

4.

Appraisal by Subordinates

5.

360-Degree Feedback

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II.
Discuss the pros and cons of at least eight
performance appraisal methods.

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Techniques for Appraising Performance (1 of 2)

1.

Graphic Rating Scale

2.

Alternation Ranking

3.

Paired Comparison

4.

Forced Distribution

5.

Critical Incident Method

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Techniques for Appraising Performance (2 of 2)

6.

Narrative Forms

7.

Behavior Anchored Rating Scale

8.

Mixed Standards Scales

9.

Management by Objectives (MBO)

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Computerized and Web-Based Performance Appraisal

Many employers today make use of
computerized or online appraisals for
evaluating employee performance.

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Electronic Performance Monitoring

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Additional Techniques



Conversation Days



Appraisal in Practice

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Trends Shaping HR: Customized Talent Management

Appraisal Methods being Customized

Let’s take a look…

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Improving Performance: The Strategic Context

TRW’s New Global Performance Appraisal / Management System

Let’s take a look…

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III.
Give examples of potential appraisal problems and
how to deal with them.

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Dealing with Rater Error Appraisal Problems



Potential appraisal problems







Unclear standards
Halo Effect
Central Tendency
Leniency or Strictness
Recency Effects

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Diversity Counts The Problem of Bias

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The Need for Fairness (1 of 4)
Figure 9-10 Checklist of Best Practices for Administering Fair Performance
Appraisals



Base the performance review on duties and standards from a job analysis.



Try to base the performance review on observable job behaviors or objective performance data.



Make it clear ahead of time what your performance expectations are.



Use a standardized performance review procedure for all employees.

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The Need for Fairness (2 of 4)



Make sure whoever conducts the reviews has frequent opportunities to observe the
employee’s job performance.



Either use multiple raters or have the rater’s supervisor evaluate the appraisal results.



Include an appeals mechanism.



Document the appraisal review process and results.

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The Need for Fairness (3 of 4)



Discuss the appraisal results with the employee.



Let the employees know ahead of time how you’re going to conduct the reviews.



Let the employee provide input regarding your assessment of him or her.



Indicate what the employee needs to do to improve.

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The Need for Fairness (4 of 4)



Train the supervisors who will be doing the appraisals. Make sure they understand the
procedure to use, how problems (like leniency and strictness) arise, and how to deal
with them.

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