Chapter 7

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gljw  on May 7, 2012

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Human Resource Management

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Chapter 7

Performance Appraisal
The identification, measurement, and management of human performance in organizations
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Terms

Definitions

Performance Appraisal The identification, measurement, and management of human performance in organizations
Dimension An aspect of performance that determines effective job performance
Competencies Characteristics associated with successful performance
Competency model Set of competencies associated with a job
Relative judgement An appraisal format that asks supervisors to compare and employee's performance to the performance of other employees doing the same job
Absolute judgement An appraisal format that asks supervisors to make judgements about an employee's performance based solely on performance standards
Trait appraisal instrument An appraisal tool that asks a supervisor to make judgements about work characteristics that tend to be consistent and enduring
Behavior appraisal instrument An appraisal tool that asks managers to assess a worker's behaviors
Outcome appraisal instrument An appraisal tool that asks managers to assess the results achieved by workers
Management by objectives (MBO) A goal-directed approach to performance appraisal in which workers and their supervisors set goals together for the upcoming evaluation period
Self-review A performance appraisal system in which workers rate themselves
Peer review A performance appraisal system in which workers at the same level in organization rate on another
Subordinate review A performance appraisal system in which workers review their supervisors
360 degree feedback The combination of peer, subordinate, and self-review
Rater error An error in performance appraisals that reflects consistent biases on the part of the rater
Comparability In performance ratings, the degree to which the performance ratings given by various supervisors in an organization are based on similar standards
Frame-of-reference training (FOR) A type of training that presents supervisors with fictitious examples of worker performance (either in writing or on video), asks the supervisors to evaluate the workers in the examples, and then tells them what their ratings should have been
Situational factors or system factors A wide array of organizational characteristics that can positively or negatively influence performance
What is performance appraisal?Performance appraisal is the identification, measurement, and management of human performance in organizations. Appraisal should be a future-oriented activity that provides workers with useful feedback and coaches them to higher levels of performance. Appraisal can be sued administratively or developmentally.
Identifying Performance Dimensions Performance appraisal begins by identifying the dimensions of performance that determine effective job performance. Job analysis is the mechanism by which performance dimensions should be identified.
Measuring PerformanceThe methods used to measure employee performance can be classified in two ways: (1) whether the type of judgement called for is relative or absolute and (2) whether the measure focuses on traits, behavior, or outcomes. Each measure has its advantages and disadvantages. But it is clear that the overall quality of ratings is much more a function of the rater's motivation and ability than of the type of instrument chosen. Managers face five challenges in managing performance: rater errors and bias, the influence of liking, organizational politics, whether to focus on the individual or the group, and legal issues (including discrimination and employment at will)
Managing PerformanceThe primary goal of any appraisal system is performance management. To manage and improve their employee's performance, managers must explore the causes of performance problems, direct manager and employee attention to those causes, develop actions plans and empower workers to find solutions, and use performance-focused communication

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