Performance Management: Appraisal and Coaching

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Performance Management Appraisal and Coaching
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Performance Appraisal

• In this session well cover
• Purposes of appraisal
• Methods of appraisal
• Overcoming rater biases and legal issues
• Improving performance appraisals

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Purposes for Appraisal

• Appraisal of employees performance is used for
• Salary decisions
• Promotion decisions
• Correcting performance deficits
• Career development plans

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Methods of Appraisal

• Graphic or Trait Rating Scales
• Ratings are based on traits or characteristics of
  the job incumbent
• Examples Dependability, Honesty, Team
  Player, Job Knowledge, etc.
• Ratings are usually on a Likert-type scale (1-5)
• Usually the least helpful or accurate

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Methods of Appraisal

• Forced Distribution Method
• Just like a bell curve in academia
• Categories are just like in Trait Scales
• Difficult for supervisors to use and VERY
  difficult to justify to employees
• Standards for ratings have to be crystal clear in
  order to work properly

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Methods of Appraisal

• Behaviorally Anchored Rating Scales (BARS)
• Provides concrete examples for the desirable,
  acceptable, and unacceptable behaviors
• Very easy to use for supervisors, and valid to
  employees
• Legally defensible
• Expensive and time-consuming to develop

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Methods of Appraisal

• Management By Objectives (MBO)
• Based on achievement of goals/objectives
• Feedback is given frequently over the
  goal-setting period
• Adjustments are made to the goals and time tables
  as feedback is given
• Rewards are typically given for meeting goals
• Problem setting low, unchallenging goals

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Methods of Appraisal

• 360 ? Feedback
• Method uses multiple raters (e.g., supervisor,
  peers, subordinates, customers) to gather
  feedback on those aspects of performance
  well-known to the rater
• All information is compiled into one feedback
  report that is presented to the employee
• A self-improvement plan is developed to overcome
  weaknesses and capitalize on strengths
• Usually used for development generally not used
  for salary increases because of political reasons

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Rater Biases

• Unclear standards
• Halo Error
• Central Tendency Error
• Leniency/Strictness Errors
• Stereotyping Error
• Recency/Primacy Errors

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Improving Appraisals

• Train supervisors/raters on the biases
• Develop job-specific appraisals
• Use both objective and subjective information
• Give frequent performance feedback, rather than
  just an annual review
• Always put formal appraisals in writing

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Performance is NOT Just A Person Issue

• Organizations have to realize that some of the
  responsibility for employees performance lies in
  system issues
• Information
• Resources
• Incentives
• Individual employees are held responsible for
• Skills and knowledge
• Capacity
• Motivation

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Next Time.

• Well practice using information about an
  employee to appraise his performance
• Well discuss problems, concerns, and issues you
  might have in conducting such an appraisal