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Human Resource

Management

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jerformance appraisal
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ses of jerformance Appraisal

jerformance improvement- 



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ses of jerformance Appraisal continue

Career jlanning & Development- 



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jerformance Appraisal Challenge

(a) Legal Constraints-


PA must be free of discrimination. Whatever form of
evaluation is used it should be reliable & valid;
otherwise placement decisions which are based on PA
can be challenged in the legal courts
GM example : From book
(b) Rater Biases-
Bias is the inaccurate of a measurement. Human
emotions of evaluators usually cause biasness in
performance evaluation
b) Rater Biases

¢he halo effect/ error

¢he error of central tendency


Rater Biases
Leniency & strictness bias
Bias is the inaccurate of a
Cross- cultural biases
measurement.
Human emotions of
Personal prejudice (discrimination)
evaluators usually cause
biasness in performance
evaluation ¢he recency error
Halo effect
error
Error of
Recency error
Central tendency

Distortions

Stereotyping Leniency &


Personal prejudice Strictness bias

Cross-culture biases

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Factors that can Distort
Appraisals
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Factors that can Distort Appraisals
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Factors that can Distort
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How to Reduce Rater Bias
When rater uses subjective performance measures, biases
can be reduced through training, feedback & proper
selection of PA techniques««
m Three approachesÒ

Absolute standards

Relative standards

Future-Oriented Appraisals
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jast- oriented Appraisal Methods
&  absolute standards6
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Appraisal Methods
Relative standardsÒ
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jast- Oriented Appraisal Methods
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Absolute standards Relative standards

m Rating scales Ranking Methods


m Checklists Forced distribution
m Forced choice method Point allocation method
m Critical incident method Paired comparisons
m Accomplishment Records
m Behaviorally anchored rating scales
m Field review method
m Performance tests and observations

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Appraisal Methods
Relative standardsÒ
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Appraisal Methods
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Behaviorally anchored rating scales

m BARS are families of evaluation approaches


that identify & evaluate job related
behaviors
m Specific name behaviors are used to give
the rater reference points in making the
evaluation

BES BOS

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Behavioral expectation scales
m Specific behaviors are ranked along a scale For example
BES for Bartender¶s Customers Relations:

m Extremely Out Standing 7 you can expect this bartender


m Performance to help customers in need.

m Good performance 6 you can expect this bartender to


calm down arguments before they
erupt into fires
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m Poor performance w you can expect this bartender
to check identification of
customers on their first time in
the bars.
m Extremely poor 1 you can expect this bartender
Performance to pick up customers drinks
finished or not with little
or no warning at close time.

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Field review method
m Skill representative of HR dept goes into field &
assists supervisor with their ratings
m HR specialists obtain information from immediate
supervisor about employee performance
m Expert prepares an evaluation
m Evaluation sent to supervisor for review, changes,
approval and discussion with employee who was
rated
m Reliability and comparability are more likely and
rater biases are less common
m Bias may still exist since primary source of info is
the supervisor

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jerformance test & observations

Assignment

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Comparative Evaluation Approaches

Relative standardsÒ
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Forced distributions
m Raters sort employees into different
classifications, usually with specified
proportions in each category
m Relative differences among employees are
not known
m Overcome biases of Central tendency,
leniency, and strictness errors
m Example from the book or handouts

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joint allocation
m Rater allocate a fixed number of points
among employees in the group
m Good performers are given more points than
poor performers
m Rater can recognize the relative differences
between employees
m Halo effect & recency bias remain

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joint allocation method
Points Employees
m 17 A
m 14 B
Allocate all 100 points to all
m 13 C
employees according to their
m 11 D relative worth. ¢he
m 10 E employee with the
m 10 F maximum points is the best
m G employee
m 6 H
m  I
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m 100
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Future oriented appraisals
Future ± orientated focus on future performance by
evaluation an employee¶s potential & setting future
goals.

m Self-appraisals
m Management by Objectives (MBO¶s)
m Psychological appraisals
m Assessment centers

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Self appraisals
m seful tool for employees who want to develop
themselves
m Means evaluating oneself
m Important dimension of self appraisals is the
employee involvement in & commitment to the
improvement process
m Example: construction CO. supervisor telling
employees what is expected- employees fill a
sheet-understanding of the job before 10-1 days
PA is to be done
± job accomplishment, performance difficulties &
suggestions for improvement± tells supervisor what
they need to do in future to eliminate roadblocks

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Future oriented appraisals
Management by Objectives MBO)
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± It consists of goals that are objectively measured
and mutually agreed on by employee and the
manager.
Goal setting
Action planning
Self-control
Periodic review
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Appraisal Methods
: Achieved Outcomes 
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jsychological appraisals
m Org employs psychologists- to assess individuals future
potential, not that individuals past performance
m In depth interviews, psychological tests, discussions with
supervisors and review of other evaluations
m Raters writes an evaluation of employees intellectual,
emotional, motivational and other work related
characteristics that may predict future performance
m relate to job opening for which the person is being
considered- placement-development decisions can be made
to shape persons career
m Slow and costly± good for young bright managers
m uality of appraisals depends on skills of psychologist-
some employees object to these evaluation

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Creating More Effective jerformance
Management Systems
Combine Absolute and Relative
StandardsÒ
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Creating More Effective jerformance
Management Systems
jrovide Ongoing FeedbackÒ
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Creating More Effective jerformance
Management Systems
se Multiple RatersÒ
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Creating More Effective jerformance
Management Systems
Rate Selectively
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Creating More Effective jerformance
Management Systems
Train AppraisersÒ
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Creating More Effective jerformance
Management Systems

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ßuidelines for Evaluation jerformance Interviews

⠘  positive aspects of employee


performance
â ¢ each employee that the evaluation session is
to improve performance, not to discipline
⠗  the performance review session in
private with the minimum interruptions
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performance formally at least annually &
more frequently for new employees or those who
are performing poorly
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ßuidelines for Evaluation jerformance Interviews

â `  criticisms specific, not general & vague


â |  criticisms on performance, not personality
characteristics
â =  & do not argue with the person being evaluated
â  specific actions the employee can take to
improve performance
⠘  the evaluator¶s willingness to assist the
employee¶s efforts & to improve performance
⠘ the evaluation sessions by stressing the positive
aspects of the employee¶s performance
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