Performance Management

1
Performance Management Appraisal, Part I

• The purposes and requirements of an effective
  performance management and appraisal system
• Legal and strategic issues in performance
  appraisal
• Appraisal formats Advantages and disadvantages

2
Performance Management Appraisal

• Performance management
• Defines performance
• Facilitates Performance
• Encourages performance

• Performance Appraisal
• Measures performance
• Evaluates performance
• Feeds back the evaluation

3
Legal Strategic Issues

• Legal issues
• Performance appraisal is open to adverse impact
• Criteria must be applied equally
• Strategic issues
• Organizations get what they reward
• Need to align strategy with performance
  management system

4
Using Performance Appraisal

• Developmental
• Improving performance
• Career development
• Administrative
• Salary decisions
• Promotion
• Retention

5
Relative Absolute Judgments

• Relative
• Ranking
• Forced distribution
• Absolute
• Graphic rating scales
• Behavioral checklists
• Critical incidents

6
Scale Formats
Graphic Rating Scale
Quality of Work
1 2 3
4 5 Poor Below
Average Good Excellent
Average
Graphic Rating Scale clearer anchors
Quality of Work
1 2 3
4 5 Frequent Passable
Usually Errors Accurate Errors
accurate rare
7
Trait and Behavioral Data

• Traits
• Personality
• Individual traits
• Behavioral data
• BARS (create dimensions, write critical
  incidents, rate critical incidents, form scales
  with incidents as anchors
• BOS

8
Scale Formats
Behaviorally Anchored Rating Scale For
Supervision
5 Can train and develop subordinates
4 Exhibits respect towards subordinates
3 Critical of personnel in front of others
2 Sets a poor example
1 Reneges on promises
9
Outcome Data

• Meeting goals
• Quantitative data
• sales
• scrappage
• productivity

10
Backwards Forwards

• Summing up We began with distinguishing
  performance management from performance
  appraisal. Legal and strategic issues were
  considered and the balance of the session
  reviewed different rating formats, their
  advantages and disadvantages.
• Looking ahead Next time we complete our
  discussion of performance management by looking
  at challenges to effective performance
  management, the appraisal interview, motivation,
  and performance improvement.