Primary Purposes of Performance Evaluations Use of Data Compensation Decision making Performance Percent 85 6 Feedback Development 65 1 Training Development 64 3 Promotion Decision making 45 3 Human Resource Planning 43 1 Retention Discharge Decision making 30 3 Based on responses from 600 organizations Prentice Hall 2001 Chapter 16 1 Performance 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 measures Subjective Scale Methods Graphic rating scale How courteous is the salesperson toward customers Behaviorally anchored rating scale 1 Very discourteous Very courteous 7 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 feedback Other 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 friendship Who 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 bias Who 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 itself Attributes 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 year Communication 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 feelings Supportive 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 combined Attributes 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 this Directive accurate specific Counseling When problems result from attitudes personality clashes defensiveness or emotions Goal convey that a problem exists This is what is perceived Not directive Effects on others Finding the reasons for problems Probing responses Asks a questions about what the person just said Intends to acquire more information to help the communicator say more Neutral in tone Can you tell me more about that What do you mean help me understand that You are having difficulty with Performance Appraisal Video Identify pros cons of the organizations performance appraisal system Consider the performance appraisal meeting Was this an effective meeting Why why not What could have improved the meeting What should the boss and the subordinate do now What recommendations can you make to improve the performance appraisal experience at the company