Human Resource Management 13th Edition Chapter Performance Management and Appraisal Copyright © [2014] Pearson Education 8-1 Learning Objectives • Describe employee engagement, define performance management, and describe the importance of performance management • Define performance appraisal and identify the uses of performance appraisal • Discuss the performance appraisal environmental factors, describe the performance appraisal process, and discuss whether or not a case can be made for getting rid of performance appraisals • Identify the various performance criteria (standards) that can be established • Identify who may be responsible for performance appraisal and explain the performance period Copyright © [2014] Pearson Education 8-2 Learning Objectives (Cont.) • Identify the various performance appraisal methods • List the problems that have been associated with performance appraisal • Explain the characteristics of an effective appraisal system • Describe the legal implications of performance appraisal • Explain how the appraisal interview should be conducted and discuss how performance appraisal is affected by a country’s culture Copyright © [2014] Pearson Education 8-3 HRM in Action: Employee Engagement for a Committed Workforce • Level of commitment workers make to their employer • Seen in their willingness to stay at the firm and to go beyond call of duty • Found in employees’ minds, hearts, and hands Copyright © [2014] Pearson Education 8-4 Performance Management (PM) • Goal-oriented process ensuring processes are in place to maximize productivity at employee, team and organizational levels • Close relationship between incentives and performance • Dynamic, ongoing, continuous process • Each part of the system is integrated and linked for continuous organizational effectiveness Copyright © [2014] Pearson Education 8-5 Performance Appraisal Defined • Formal system of review and evaluation of individual or team task performance • Often negative, disliked activity that seems to elude mastery Copyright © [2014] Pearson Education 8-6 Uses of Performance Appraisal • • • • • • • Human resource planning Recruitment and Selection Training and development Career planning and development Compensation programs Internal Employee Relations Assessment of Employee Potential Copyright © [2014] Pearson Education 8-7 Performance Appraisal Environmental Factors • External: – Legislation requiring nondiscriminatory appraisal systems – Labor unions • Factors within internal environment, such as corporate culture Copyright © [2014] Pearson Education 8-8 Trends & Innovations: Can a Case Be Made for Getting Rid of Traditional Performance Appraisal? • Managers not like administering performance appraisal and employees not like receiving them • Failures lies in lack of ownership by line managers and employees • At times developed for wrong reasons • May be a better way Copyright © [2014] Pearson Education 8-9 Performance Appraisal Process External Environment Internal Environment Identify Specific Performance Appraisal Goals Establish Performance Criteria (Standards) and Communicate Them To Employees Examine Work Performed Appraise the Results Discuss Appraisal with Employee Copyright © [2014] Pearson Education 8-10 Standardization Firms should use same evaluation instrument for all employees in same job category who work for same supervisor Copyright © [2014] Pearson Education 8-51 Trained Appraisers • Seldom receive training on how to conduct effective evaluations • Training should be ongoing • Includes how to rate employees and how to conduct appraisal interviews Copyright © [2014] Pearson Education 8-52 Continuous Open Communication • Employees need to know how well they are performing • Good appraisal system provides highly desired feedback on continuing basis • Should be few surprises in performance review Copyright © [2014] Pearson Education 8-53 Conduct Performance Reviews • Special time should be set for formal discussion of employee’s performance • Withholding appraisal results is absurd • Performance review allows employees to detect any errors or omissions in appraisal • Employee may simply disagree with evaluation and want to challenge it Copyright © [2014] Pearson Education 8-54 Due Process • Provides employees opportunity to appeal appraisal results • Must have procedure for pursuing grievances and having them addressed objectively Copyright © [2014] Pearson Education 8-55 Legal Implications • Employee lawsuits may result from negative evaluations • Unlikely that any appraisal system will be immune to legal challenge Copyright © [2014] Pearson Education 8-56 Appraisal Interview • • • • • • Achilles heel of entire evaluation process Scheduling interview Interview structure Use of praise and criticism Employee’s role Concluding interview Copyright © [2014] Pearson Education 8-57 Scheduling the Interview • Employees typically know when their interview should take place • Anxiety tends to increase if their supervisor delays the meeting Copyright © [2014] Pearson Education 8-58 Interview Structure • Discuss employee’s performance • Assist employee in setting goals and personal development plans for next appraisal period • Suggesting means for achieving established goals, including support from manager and firm Copyright © [2014] Pearson Education 8-59 Conducting Separate Interviews • Conduct separate interviews for discussing: Employee performance and development Pay • When pay emerges in interview, it tends to dominate conversation • Performance improvement then takes a back seat Copyright © [2014] Pearson Education 8-60 Use of Praise and Criticism • Praise is appropriate when warranted • Criticism, even if warranted, is especially difficult to give • “Constructive” criticism is often not perceived that way Copyright © [2014] Pearson Education 8-61 Employee’s Role • Should go through diary or files and make notes of all projects, regardless of their success • Information should be on appraising manager’s desk well before review Copyright © [2014] Pearson Education 8-62 Concluding the Interview • Ideally, employees will leave interview with positive feelings about management, company, job, and themselves • Cannot change past behavior; future performance is another matter • Interview should end with specific and mutually agreed-upon plans for employee’s development Copyright © [2014] Pearson Education 8-63 A Global Perspective: Performance Appraisal versus a Country’s Culture • Special problems when translated into different cultural environments • Chinese managers often have different idea about what performance is than Western managers • Culture also plays significant role in success and failure of performance appraisal systems in the Middle East Copyright © [2014] Pearson Education 8-64 8-65 [...]... Service In performance appraisal system, general characteristics such as “leadership, public acceptance, attitude toward people, appearance and grooming, personal conduct, outlook on life, ethical habits, resourcefulness, capacity for growth, mental alertness, loyalty to organization are susceptible to partiality and to the personal taste, whim, or fancy of the evaluator as well as patently subjective in ...Learning Objectives • Describe employee engagement, define performance management, and describe the importance of performance management • Define performance appraisal and identify the uses of performance... mastery Copyright © [2014] Pearson Education 8-6 Uses of Performance Appraisal • • • • • • • Human resource planning Recruitment and Selection Training and development Career planning and development... Found in employees’ minds, hearts, and hands Copyright © [2014] Pearson Education 8-4 Performance Management (PM) • Goal-oriented process ensuring processes are in place to maximize productivity