Primary Purposes of Performance EvaluationsPerformance Evaluation Methods:HowSubjective Scale MethodsSubjective Scale Methods (cont.)Other Subjective MethodsWho Should Evaluate Performance?Who Should Evaluate Performance? (cont)Slide 8360-Degree EvaluationsPerformance Appraisal & the Fair-process EffectAttributes of a Fair Performance AppraisalAttributes of a Fair Performance Appraisal (continued)Communication & Interpersonal RelationshipsSupportive Communication / CriticismAttributes of Supportive CommunicationSlide 16Coaching and Counseling SituationsFinding the reasons for problemsPerformance Appraisal VideoPrentice Hall, 2001 Chapter 16 1Primary Purposes Primary Purposes of Performance Evaluationsof Performance Evaluations• Compensation (Decision-making)• Performance Feedback (Development)• Training (Development)• Promotion (Decision-making)• Human Resource Planning• Retention/Discharge (Decision-making)85.665.164.345.343.130.3Use of DataPercent**Based on responses from 600 organizationsPerformance Evaluation Methods:How•Objective–Management by objectives•Numerical counts•Units produced, sales calls made, patients seen per day•Subjective–Based on individuals perceptions–Identify performance dimensions–Develop scale or measure to assess employee’s standing on each dimension•Ranking of employees–Highest to lowest on performance measuresSubjective Scale Methods•Graphic rating scale–How courteous is the salesperson toward customers?•(1) Very discourteous……………Very courteous (7)•Behaviorally anchored rating scale–(1) Ignores customers … (2) Keeps customers waiting… (4) Answers questions promptly………….(7) Greets customers pleasantly and always tries sincerely to help customers locate items to suit their needs•Behavioral observation scale–Pleasantly greets customers (1) almost never……………………almost always (7)Subjective Scale Methods (cont.)•BARS & BOS–More time consuming to develop and to complete in comparison to a graphic rating scale–Appraise more specific behaviors and thus provide a better source of feedbackOther Subjective Methods•Written essays–Narrative of employees strengths and weaknesses, and suggestions for improvement•Critical incidents–Written anecdotes of effective or ineffective behaviors•Can supplement other forms of appraisal, add to one’s “file”Who Should Evaluate Performance?•Supervisors–95% of immediate supervisors evaluate subordinates•Peers–Closer to the action•Potentially more interactions with workers and observations of work behaviors•More sources of data–Some hesitation to evaluate peers•Issues of friendshipWho Should Evaluate Performance? (cont)•Self-evaluations–Advantages•Stimulates discussion, very useful as a developmental tool•Less subordinate defensiveness•Increases satisfaction with evaluations–Disadvantages•Self-evaluations tend to be inflated–Almost no one rates oneself below average–Self-serving biasWho Should Evaluate Performance? (cont)•Subordinates (upward evaluations)–Consistent with employee empowerment and concerns for employee development–Issues•Should the individual evaluations completed by subordinates be anonymous?•Who should review the evaluations?360-Degree Evaluations•Objective is to pool feedback from all of the employees customers (internal & external)–20% of organizations are currently using this approach & another 20% are considering implementing it this year (2001)–Alcoa, Du Pont, Levi Strauss, Sprint, –Why might organizations use this approach?Performance Appraisal & the Fair-process Effect•Independent of the amount of the raise, employees who perceive that performance appraisals are conducted in a fair manner, report more satisfaction with pay and more satisfaction with the appraisal itselfAttributes of a Fair Performance Appraisal•Specific behavioral objectives (performance criteria) are identified and communicated in advance–Subordinates have an opportunity to provide input in terms of setting the performance objectives•Helps ensure that evaluation criteria are: appropriate, understood, and accepted–Behaviors - not traits- are evaluated•“Reports are finished late” versus “you are lazy”Attributes of a Fair Performance Appraisal (continued)•Appraisal is based upon accurate information–Supervisor diaries–Check for accuracy (does the subordinate have anything different?)•Employee provides a review of activities, accomplishments achieved, and progress made during the period (self-evaluation)•Appraisals conducted more often (timeliness)–Once a quarter as opposed to once a yearCommunication & Interpersonal Relationships•Giving feedback and criticism concerning performance issues–Fear of alienating or offending subordinates–Fear of reducing their morale/motivation•Common practices (ineffective)–“don’t worry”•To protect relationship & avoid hurting feelings–“shape up or ship out”•Ignores subordinate reactions & feelingsSupportive Communication / Criticism•Preserves a positive relationship between the communicators and still addresses the problem at hand–Helpful attitude directed toward solving problems–Participative•Positive manager/sub interpersonal relationships–Not merely to be liked or judged as a “nice person”–Practical instrumental value: •Most powerful predictor of profitability, 3 times better than sales growth rate, firm size, & market share combinedAttributes of Supportive Communication•Problem oriented, not person oriented–A focus on problems & issues that can be changes•“going forward, how can we solve this problem?”•NOT, “because of you….”•Participative & supportive listening•“What do you think are the obstacles standing in the way of improvement?”Attributes of Supportive Communication•Specific, not global–A focus on specific events & behaviors, avoiding general or extreme statements•“Your work was late 3 times this month”–NOT, “Your work is always late”•Validating, not invalidating–A focus on statements that communicate respect & collaboration•“I have some ideas, but first do you have any suggestions?”–NOT, “Here is how you will proceed”Coaching and Counseling Situations•Coaching–When managers must pass along performance related advice, information, standards (ability issues)•“I can help you, lets work together on