23/12/2014. Job analysis. Performance standards. The performance appraisal system. Assessing performance. Performance review

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2 5. Managers must decide who conducts the performance appraisal. Immediate supervisors are the frequent choice, but, they are by no means the only choice. 360-degree feedback is the process by which an individual s performance is assessed through confidential feedback from supervisors, peers, subordinates, customers, and individual himself. Job analysis Performance standards The performance appraisal system Assessing performance Performance review 2

3 Behavioral performance appraisal methods Checklists Graphic rating scale Personnel comparison systems Ranking Paired comparisons Results-oriented performance appraisal method MBO Work planning Halo effect Stereotyping Attributions Recency effects Leniency/strictness errors Central tendency errors The performance appraisal system can be used to promote a variety of management goals and objectives. Strengthening the linkage between the performance appraisal system and the organization s long-term strategic plans can improve organizational effectiveness. By designing a performance appraisal system that matches the organization s strategy, individuals should naturally perform in such a way to support the organization s mission. 3

4 When an organization is operating under a retrenchment strategy, primary attention is devoted to improving the efficiency of existing operations. Successful organizations in retrenchment use performance appraisals as a means of identifying training needs and of skill building. On the other hand, when an organization is under a growth strategy, searching for new product lines or market opportunities is common. The emphasis is often on the identification and acquisition of human resources outside the organization. The focus is on identifying staffing needs as opposed to training needs. 1. A poorly defined appraisal system 2. A poorly communicated appraisal system 3. An inappropriate appraisal system 4. A poorly supported appraisal system 5. An unmonitored appraisal system 1. Construction reflects clear obkectives 2. Endorsement by management and employees 3. Flexibility to adapt 4. Predictable timing of appraisal 5. Performance dialogue 6. Appropriate appraisal form 7. Periodic system checks 4

5 1. Performance appraisals should be based on a thorough job analysis that is current regarding both job descriptions and job specifications. 2. Performance standards should be developed from the job analysis as input into the performance appraisal. 3. Performance appraisals should evaluate a number of specific behaviors as opposed to evaluating overall job performance using one or a few global measures. 4. The performance review discussion should be a two-way communication between the evaluator and the employee. 5. The performance appraisal should be used not only as a means of evaluating performance but also as a means of motivating and developing the employee. 6. The purpose of the performance appraisal and the objectives of the organization must be considered carefully before deciding on a performance appraisal method. 7. Training programs should be implemented to help raters avoid common perceptual errors in evaluations and to help raters with their performance review/feedback skills. 8. The link between the performance appraisal system and the organization s long term strategic plans should be clearly defined. 5

6 9. In general, a successful performance appraisal system should be built around clear objectives, have the support of both management and employees, be flexible enough to adapt to organizational changes, and foster open discussions between supervisors and employees. 10. The validity of the performance appraisal system should be examined at regular intervals. 6