| Term | Definition |
| process encompassing all activities related to improving employee performance, productivity, and effectiveness includes goal setting, pay for performance, training and development, career management, and disciplinary action | Performance Management |
| provides information for promotion and salary decisions provides opportunity for reinforcement and/or corrective action regarding performance provides opportunity to review career plans | Why Should Performance Be Appraised? |
| lack of standards; irrelevant, subjective, unrealistic standards poor measures of performance rater errors poor feedback to employees, e.g. arguing failure to use evaluation results for decision making | Performance Appraisal Problems |
| Three steps: setting work standards, assessing actual performance relative to standards, providing feedback to employee regarding performance | The Performance Appraisal Process |
| job description often insufficient to clarify performance expectations measurable standards should be developed for each position | Step 1: Defining Performance Expectations |
| Graphic Rating Scale Trait:_____ ____ Outstanding ____ Very Good ____ Good ____ Improvement Needed ____ Unsatisfactory ____ Not Rated | Step 2: Appraising Performance |
| Trait: ____________ Highest-ranking employee 1. ________________ 4. ____________ 2. _________________ 5. ____________ 3. _________________ 6. ____________ Lowest-ranking employee | Appraisal Methods: Alternation Ranking Scale |
| keep a record of: uncommonly good, undesirable work-related behaviours: review with employee at predetermined times | Appraisal Methods: Critical Incident Method |
| 1. rate performance 2. note performance analysis and examples 3. create improvement plan, including a timetable and follow-up process 4.discussion with employee | Appraisal Methods: Narrative Forms |
| generate critical incidents (job experts specify effective and ineffective job-related behaviours) -develop performance dimensions (experts group incidents into clusters) -reallocate incidents (different experts group incidents into same clusters; retain incidents similarly assigned twice) | Appraisal Methods: Behaviourally Anchored Rating Scales |
| scale the incidents (from effective to ineffective behaviour) -develop final instrument (6-7 incidents used as behavioural anchors for each performance dimension) | Appraisal Methods: Behaviourally Anchored Rating Scales (cont |
| Advantages more accurate measure clearer standards assists feedback independent dimensions consistency .Disadvantage time consuming | Appraisal Methods: Behaviourally Anchored Rating Scales |
| 1set the organization | Appraisal Methods: Management by Objectives (MBO) advantage and disadvantage |
| 1.Problems setting unclear, unmeasurable objectives 2.time consuming 3.tug of war between manager and employee | Appraisal Methods: Management by Objectives (MBO) |
| Reliability: criteria must be precise enough to result in consistent measures when applied across many employees by many different raters. Validity criteria: must be accurate to be valid; must be relevant to the job; broad enough to cover all aspects of job, yet specific | Performance Appraisal: Problems and Solutions |
| immediate supervisor, peers, rating committees, self, employees/subordinates, 360-degree appraisal (all of the above) | Who Should Do the Appraising? |
| Types of Appraisal: Interview performance is satisfactory; employee is promotable. performance is satisfactory; employee is not promotable ,performance is unsatisfactory, but correctable | Step 3: Providing Feedback -The Appraisal Interview |
| recognize that defensive behaviour is normal, never attack a person | How to Handle Criticism and Defensive Employees |