Performance

9 Management and
Appraisal

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 I.
Describe the appraisal
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process.

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 Basics of Performance
Appraisal
• The performance appraisal process steps
1. Sets work standards
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2. Assesses performance
3. Provides feedback to the employee

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 Why Appraise Performance?

Five reasons:
1. Used for pay, promotion, and retention
decisions
2. Links performance management to
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company goals
3. The manager can correct deficiencies
and reinforce strengths
4. With appraisals employee’s can review
career plans
5. Training needs are identified
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Defining the Employee’s Goals and
Performance Standards

1. Goals
2. Job dimensions or
Traits
3. Behaviors or 4-
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Competencies

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 Who Should Do the Appraising?

1. Peer Appraisals
2. Supervisor
3. Rating Committees
4. Self Ratings 4-
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5. Appraisal by
Subordinates
6. 360-Degree
Feedback
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 II.
Discuss the pros and cons
of at least
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eight
performance appraisal
methods.

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 Techniques for Appraising
Performance

1. Alternation Ranking
(Best to worst)
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2. Paired Comparison
3. Forced Distribution
4. Narrative Forms/Essays
5. Critical Incident Method
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 Techniques for Appraising
Performance continued

6. Graphic Rating Scale

7. Behavior Anchored
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Rating Scale
8. Mixed Standards Scales
9. Management by
Objectives (MBO)
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 III.
Give examples of
potential 4-9appraisal
problems and how to deal
with them.

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 Dealing with Rater Error
Appraisal Problems
• Potential appraisal problems
o Unclear standards
o Halo Effect
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o Central Tendency
o Leniency or Strictness
o Recency Effects

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 How to prevent discrimination in
appraisal and ensure fairness

o Clear performance standards

o Measurable standards/Objectivity
o Use of multiple sources
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o Transparency of appraisal method
o Do not solely emphasize on group
appraisals to avoid biasness

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The Need for Fairness

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