BUSMHR 3200 Professor Lount Book Study Guide Dessler Dessler Chapter Six Performance Management Appraisals and Careers Performance Appraisal and Management Performance appraisal evaluating an employees current and or past performance relative to his or her performance standards o Also assumes performance standards have been set and employee gets feedback to eliminate performance deficiencies or continue to perform above par Appraisals help managers identify problems that may diminish performance help managers make promotion and salary raise decisions let boss and subordinate develop plan for correcting deficiencies facilitate career planning as opportunity to review employees career plans Performance management special goal oriented and continuous way to appraise and manage employees performance o Continuous process of identifying measuring and developing the performance of individuals and teams and aligning their performance with organizations goals o Performance management means continuous daily or weekly interactions and feedback to ensure continuous improvement o Always goal directed employees teams performance against organizations goals work done o Re evaluating and modifying continuously how employee and team get their o Direction sharing goal alignment ongoing performance monitoring ongoing feedback coaching and developmental support recognition and rewards Performance Appraisal Process Setting work standards assessing employees actual performance relative to those standards and providing feedback to employee with aim of helping him or her to eliminate performance deficiencies or continue to perform above par SMART goal setting Specific and clearly state the desired results measurable attainable relevant and clearly derive from what manager and company want to achieve and are timely by reflecting deadlines Different Sources Used to Rate Employee s Appraisals Supervisor should be in best position to observe an evaluate his her subordinates performance but not advised Peer analysis appraisal by peers because firms are using self managing Rating committees usually composed of employees immediate supervisor and 3 4 other supervisors Self Rating problems is employees usually rate selves higher then employees do Appraisal by subordinates upward feedback when firms let subordinates rate supervisors performance 1 BUSMHR 3200 Professor Lount Book Study Guide Dessler o Help top management understand subordinates management styles identify potential people problems take corrective action with individual managers 360 Degree Feedback collects performance information from employees supervisors subordinates peers and internal or external customers then scores delivered and talk with supervisor to develop self improvement plan Graphic Ratings Scale Method Lists number of traits and range of performance for each trait and supervisor rates each subordinate by circling or checking score that best describes performance for each trait and totals score Alternation Ranking Method Ranking employees from best to worst on trait or traits making easier to distinguish between worst and best employees rather than rank them Paired Comparison Method Every subordinate to be rated is paired with and compared to every other subordinate on each trait and number of times employee is rated is added up Forced Distribution Method Manager places predestined percentages of subordinates in performance categories like grading on curve Some say damages morale and creates interdepartmental inequalities by making high performing teams cut workers while low performing teams allowed to retain theirs Critical Incident Method Entails keeping record of uncommonly good or undesirable examples of employees work related behavior and reviewing it with employee periodically Supplement rating or ranking method by providing concrete examples of what subordinates can do to eliminate performance deficiencies and opportunities for mid year corrections Behaviorally Anchored Rating Scales Anchors quantified rating scale with narrative examples of good and poor o Job experts typically go through formal process to develop and choose what performance those examples are Management By Objectives Method Requires manager to set measurable goals with each employee and periodically discuss latters progress toward these goals organization wide goal setting and appraisal program o Set organizations goals establish organization wide plan for next year and set goals 2 BUSMHR 3200 Professor Lount Book Study Guide Dessler o Set department goals department heads and their superiors jointly set goals for departments o Discuss departmental goals department heads discuss with subordinates in department and ask to develop own individual goals o Define expected results department heads and subordinates set short term performance targets o Conduct performance reviews and measure results compare performance of each employee with expected results o Provide feedback department heads hold periodic performance review meetings with subordinates to discuss and evaluate progress in achieving expected goals Common Appraisal Problems and How to Deal with Them Unclear Standards appraisal scale is too open to interpretation o Include descriptive phrases that define each trait and degree of merit to eliminate other traits Halo Effect rating of subordinate on one trait influences way you rate person on Central Tendency tendency to rate all employees about average o Rank employees instead of using a graphic rating scale to eliminate Leniency or Strictness supervisors tend to rate all subordinates consistently high or low o Restrict range of their appraisals and bestow appraisals that don t validly o Insist on ranking subordinates so supervisor distinguish between high and describe performance low performers Bias 41 rater bias because appraisal often says more about appraiser than appraised o Have supervisors boss review rating or for using multiple raters Appraisal Feedback Interview Supervisors and subordinates review appraisal and make places to remedy deficiencies and reinforce strengths Preparation give subordinate enough notice to review their work and compile questions study their job description compare performance to standards and review files of pervious appraisals find time for interview Conducting private area talk in terms of objective work data get agreement on how things will improve and by when action plan ensure fair process express both opinions deal
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