Week 4

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Select one of the following case studies (located in your textbook):

  • Case 7-1: Doing Crunches at Nestle: Continuous Improvement of Human Assets.
  • Case 7-2: Google Search: Building the Program That Writes the Code to Find Female Talent.

Then complete the following:

  • Add your opinion about the choices and decisions being made—if this was your company, would you make this choice?
  • What would you do differently?

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Performance Management and Appraisal

Chapter 8

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Performance Management Versus
Performance Appraisal

Performance management

Identifying, measuring, managing, and developing HR performance. Serves as systematic measurement of performance.

Performance appraisal

Evaluating individual employee performance. Vital component of performance management process.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Performance management versus performance appraisal

Performance management is the process of identifying, measuring, managing, and developing the performance of human resources throughout an organization. When used correctly, it serves as a systematic measurement of worker performance.

Performance appraisal is the ongoing process of evaluating individual employee performance. This is a vital component of the Performance Management Process.

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The Performance Appraisal Process

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Accurate Performance Measures

Must be:

Valid and reliable

Acceptable and feasible

Specific and pertinent to the job itself

Based on the mission and objectives

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Why Conduct Performance Appraisals?

To communicate employee’s strengths and needs and to motivate performance.

To make employment-related decisions (i.e., salaries, promotions, demotions, training, development, termination).

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Two Factors of an Effective Appraisal

Evaluate

Avoid problems by coaching employees between performance evaluations.

Motivate

Focus on positive future results by offering tools, training, and opportunities to fix problems.

Positive communication should prevent any surprises.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Without appearing passive/aggressive, always try to praise before criticizing.

For any area of improvement you should as the manager praised the employee 10 times.

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Behavioral Appraisals

Evaluated employees should have recourse to question outcome of their appraisals. Managers should provide examples and transition to a coaching mode.

The following example should never occur:

Video: George Costanza–Was that wrong?

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Employees who are being evaluated should always have some recourse to question the outcome of their appraisals.  

If you ask the question “what could I have done differently or better to earn a higher appraisal” the manager should be able to provide examples and transition to a coaching mode.

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What Can Be Assessed?

Traits

Behaviors and actions

Results and outcomes

Direct relationship to job functions

Accurate, reliable, and valid measures

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Traits (physical or psychological characteristics)

Behaviors (actions) 

Results/outcomes (how well goals were achieved)

Traits, behaviors and outcomes being evaluated should have a direct relationship to the essential job functions and be accurate (reliable and valid) measures. 

What are traits and behaviors?

Traits are a notable feature or quality found in a person:

Honesty, patience, independence, persistence, humility, optimism, and so on.

Behaviors are the way in which a person, organism, or group responds to a specific set of conditions:

Employees who meet deadlines, are conscientious, well organized and responsible.

Appraising for results/outcomes

That which gets measured gets done!

Traits are not easily measured but behaviors and results are easily quantified.

Results represent a tangible confirmation of acceptable actions.

If all members of a department or business unit are evaluated as “Exceptional” or “Outstanding” but the results indicate “Underperforming” then there is a serious DISCONNECT which can be detrimental to the organization. 

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What Are Traits and Behaviors?

Traits

Such as honesty, patience, independence, persistence, humility, optimism, and so on.

Behaviors

How an employee or team respond to conditions.

For example, employees or teams who meet deadlines and who are conscientious, well organized, and responsible.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Appraising for Results and Outcomes

Traits are not easily measured, but behaviors and results are easily quantified.

Results represent a tangible confirmation of acceptable actions.

If employees of a department are evaluated as “exceptional” or “outstanding,” but the results indicate “underperforming,” then there is a detrimental disconnect.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Performance Appraisal
Measurement Methods and Forms

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Performance appraisal measurement methods and forms–critical incidents

Manager keeps a written record of positive and negative employee performance. 

The concept was developed from military flight training.  There are certain actions that MUST be taken and others that MUST NEVER occur.

Typically used for making developmental and evaluative decisions.

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Management by Objectives (MBO)

Managers and employees jointly set employee objectives.

Managers give feedback, evaluate performance, and reward as merited.

Not unusual to see misappropriation of resources used to fulfill MBOs. Misuse of MBOs can foster a “me first” mentality.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Manager and employee jointly set employee objectives (goals); manager periodically gives feedback and evaluates performance; rewards employee as merited. 

Typically used for employee development and rewards.  

It is not unusual to see misappropriation of resources being used late in the year to fulfill MBOs.  The misuse of MBOs can foster a “me first” mentality.

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Narrative Method or Form

Managers keep written records about employees’ performance.

Used for ongoing feedback and employee development planning.

Narratives capture employees’ values and contributions.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Manager writes statements about employee performance. 

Typically used for ongoing feedback; also for employee development planning.

If an evaluator is skilled at communicating one’s contributions to the organization a narrative is better able to capture the essence of their value. Many times, however, a lesser skilled manager will resort to “boilerplate” standard templates.

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Graphic Rating Scale Forms

Managers use appraisal checklists to rate employee performance, often expressed as a numerical scale.

Typically used for evaluative decisions, but should also steer development decisions.

An effective rating is possible using a 1-5 Likert-type scale, but examples provide greater clarity.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Behaviorally Anchored Rating Scales (BARS)

Managers use behaviorally based continuum to rate employee performance, often expressed as a numerical scale.

Perhaps best and most effective appraisal measurement.

Typically used for evaluative decision making, but should also steer development decisions.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Perhaps the best and most effective appraisal measurement, this is typically used for evaluative decision making but should also be used to steer development decisions.

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Ranking

Managers rank employees by comparing best to worst.

Forced distribution ranking of best to worst is the most used measure when companies resort to downsizing and layoffs.

Typically used for evaluative decision making and development.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Who Should Assess Performance?

While managers typically evaluate employees’ performance, they may invite peers, subordinates, customers, and/or employees themselves to evaluate performance.

This reduces bias and offers a comprehensive picture of employee’s performance (as in 360 Degree Evaluations).

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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How to Choose Who We Select
to Conduct an Evaluation

Conduct a cost-benefit analysis.

Do the benefits of increasing performance feedback outweigh cost to give the organization a return on its investment?

Goal is to maximize performance while minimizing appraisal cost.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Performance Appraisal Problems and Avoiding Them

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Avoid performance appraisal process problems

Develop accurate performance measures

Use multiple criteria. 

Minimize the use of trait-based Evaluations. 

Give the measures the OUCH and Blanchard tests.

Train evaluators

to overcome the common problems of assessment. 

to use the measurement methods and forms. 

Use multiple raters

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How to Avoid Appraisal Process Problems

Develop accurate performance measures

Use multiple criteria.

Minimize use of trait-based evaluations.

Give measures the OUCH and Blanchard tests.

Train evaluators

Overcome common problems of assessment.

Use measurement methods and forms.

Use multiple raters

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Debriefing the Appraisal

Managers prepare for and communicate analysis of each employee’s performance with the employee.

Conduct two interviews:

1. For evaluative decisions.

2. For development.

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Evaluative Performance Appraisal Interview

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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Developmental Performance Appraisal Interview

Lussier, Human Resources Management 3e. © SAGE Publications, 2019.

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