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UT Arlington MANA 3320 - Performance Appraisals

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MANA 3320 Lecture 8Outline of Last LectureI. Assess the need for training. II. How to create employees’ readiness for training. III. Plan an effective training program. IV. Compare widely used training methods. V. Implement and evaluate a successful training program.Outline of Current LectureI. The three steps in the performance appraisal process.II. Performance appraisal serves strategic, administrative, and development purposes.III. The pros and cons of different performance appraisal approaches methods and the overall recommendation.IV. Providing performance feedback is an important step in the performance appraisal. And it needs to be conducted in an appropriateway to be effective.Current LectureThe Three Steps in the Performance Appraisal ProcessIdentification: determines what areas of work the manager should be examining when measuring performance. Identifies relevant behaviors, Identify traits and qualities, should be based on job analysisThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The first part of the performance appraisal process is identifying what is going to be measured• Should be based on what determines effective job performance• Should be based on job analysis• E.g. quality, quantity, and interpersonal skillsMeasurement: is making managerial judgments about how “good” or “bad” employee performance was. Performance EvaluationTypes of Appraisal Methods:The first part of the performance appraisal process is identifying what is going to be measured• Should be based on what determines effective job performance• Should be based on job analysis• E.g. quality, quantity, and interpersonal skillsManagement: is the overriding goal of any appraisal system. Appraisals should be more than a past-oriented activity that criticizes or praises workers for their previous performance. It must take a future-oriented view of what workers can do to achieve their potential in the organization. how do you enforce the performance?Purposes of Performance AppraisalStrategic Purpose - effective performance management helps the organization achieve its business objectives. fulfill quota, goals, etcAdministrative Purpose - ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. determining salary, benefits, recognitionDevelopmental Purpose - serves as a basis for developing employees’ knowledge and skillsTypes of Appraisal ApproachesThe Comparison Approach:Advantages:1) It counteracts the tendency to rate everyone favorably or near the center of the scale.2) Can be easy to use.Disadvantages:1) It does not provide any absolute information, so managers cannot determine how good or poor employees actually are.2) It can force managers to identify differences among workers where no real difference exists which can cause conflict among workers.3) The basis for the ranking is not clear, which makes it difficult for employees to understand and unhelpful for developmental purposes.Most HR specialists believe the disadvantages of the comparison approach outweigh its advantages.Absolute Rating Approaches:Including: the trait/attribute approach, the behavioral approach, and the outcome/results approachAdvantages:1) It allows employees from different work groups to be compared to one another.2) If all employees are excellent workers, they all can receive excellent ratings. It is viewed as more fair than the relative comparison approach andit helps to avoid causing conflict among workers.3) Because ratings are made on separate dimensions of performance, the feedback to the employee can be more specific and helpful.Challenges:1) All workers in a group can receive the same evaluation if the supervisor is reluctant to differentiate among workers.2) Different supervisors can have different evaluation standards.The Trait/Attribute Approach:E.g.: the graphic rating scaleAdvantage:Relatively easy to develop and implementDisadvantages:1) It is ambiguous and subjective. Definitions of a trait (e.g., dependability, conscientiousness) can differ dramatically across supervisors.2) It focuses on the person rather than on performance and can therefore make employees defensive.3) It is not very helpful for performance development.The Behavioral Approach:E.g.: BARSAdvantages:1) Standards are unambiguous and observable behaviors.2) More objective and more legally defensible than trait scales.3) It provides employees with specific examples of the types of behaviors to engage in or to avoid. It also encourages supervisors to be specific in their performance feedback.4) Employee acceptance is high.Disadvantages:1) Developing behavioral scales can be time consuming.2) It does not work as well for complex jobs in which it is difficult to see a link between behavior and results or there is more than one good way to achieve success.The Outcome/Results ApproachE.g.: Sales volume, units produced, profits Advantages:1) It provides clear and unambiguous criteria by which worker performancecan be judged.2) It provides objective criteria that are less subject to human biases. 3) It can be easily linked to the strategic goal of the organization.Disadvantages:1) It may not be valid when performance results are significantly affected byexternal circumstances that are beyond an employee’s control.2) It may create a “results at any price” mentality that can lead employees todisregard ethics in the conduct of their job.3) It does not provide guidance on how to improve.Professor’s Opinion on Appraisal Methods:Behavioral and outcome/results approaches are recommended as they are based on more objective and specific performance information.A combination of the behavioral and results/outcome approaches may be used to assess both the process and outcome of employee performance.Errors in Performance Measurement:Types of Rating Errors in Performance MeasurementSimilar-to-me bias (text, p. 254, last paragraph)Contrast errorsDistributional errors: e.g. central tendency Halo error/Halo effectProviding Performance Feedback:Scheduling Performance FeedbackPerformance feedback should be a regular, expected management activity.Annual feedback is not enough.Employees should receive feedback so often that they know what the manager will say during their annual performance review.Conducting the Feedback SessionDuring feedback


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