Prepared by Joseph B Mosca, Monmouth University and © 2012 South-Western, Cengage Learning, Inc All rights reserved Marla M Kameny, Baton Rouge Community College PowerPoint Presentation Design by Charlie Cook The University of West Alabama Learning Objectives After studying this chapter, you should be able to: Describe the purposes of performance appraisal in organizations Summarize the performance-appraisal process in organizations Identify and describe the most common methods that managers use for performance appraisal Discuss other general issues involving performance appraisal in organizations Describe the nature of careers in organizations © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–2 Learning Objectives (cont’d) After studying this chapter, you should be able to: Discuss human resource management and career management Identify and discuss basic career-development issues and challenges © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–3 Performance Appraisal and Management • Performance Appraisal Performance Appraisal  The specific and formal evaluation of an employee conducted to determine the degree to which the employee is performing his or her job effectively • Performance Management  The general set of activities carried out by the organization to change (improve) employee performance © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–4 Importance of Performance Appraisal • Provide a benchmark to assess the Provide a benchmark to assess the adequacy of recruiting and selection processes • Validate legal aspects of the appraisal process decisions • Provide information for HR planning • Fostering employee motivation • Support compensation decisions © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–5 Goals of Performance Appraisal • To provide a measure of employee performance • To provide information in support of HR and performance management activities • To improve job performance © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–6 The Performance Management Process in a Typical Organization © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–7 Performance Appraisal Process • Role of the Organization • Role of the Rater Role of the Ratee â 2012 South-Western, Cengage Learning, Inc All rights reserved 10–8 Sources of Information for Performance Appraisal • 360-Degree Feedback  Involves gathering performance information from people on all sides of the manager © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–9 Performance Appraisal Issues • What Gets Rated?  Traits  Behaviors  Outcomes • Who Should Be Rated?  Individual performance  Team performance © 2012 South-Western, Cengage Learning, Inc All rights reserved 1010–10 10 Examples of Graphic Rating Scales © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–14 Beyond the Book: Management by Objectives © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–15 Behaviorally Anchored Rating Scales © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–16 Which System Is Best? • It is difficult to predict how a set of employees will react to a given system © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–17 Beyond the Book: Are Most Workers Motivated by Money? YES NO • Money is an objective way of measuring an employee’s value to a firm • Money motivates some employees because they have a use or need for it • Studies indicate that the piecerate system improves employee productivity while increasing take-home pay • There are other ways to reward employees • After deductions, a pay raise is always less than the employee expected • Research indicates that work factors, recognition and achievement are motivators for most workers © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–18 Beyond the Book: Possible Merit Increase Guidelines © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–19 Rating Errors Common Common Rater Rater Bias Bias Errors Errors Contrast Contrast error error Distributional Distributional error error © 2012 South-Western, Cengage Learning, Inc All rights reserved Halo Halo error error Horns Horns error error 10–20 Legal Issues in Performance Appraisal • When performance appraisals are used as the basis for HR decisions, they are considered the same as any other test under the law © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–21 The Nature of Careers • Career  The set of experiences and activities that people engage in related to their job and livelihood over the course of their working life • Traditional Stages of Careers  Exploration  Establishment  Maintenance  Disengagement © 2012 South-Western, Cengage Learning, Inc All rights reserved 1010–22 22 The Traditional Model of Career Stages © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–23 New Views of Career Stages and the Decision to Retire • Older Workers May:  Find themselves ready to disengage from the organization at a relatively young age  Begin working again by seeking opportunities with a better work and family balance  Retire if they have the financial resources to maintain their pre-retirement lifestyles  Retire if their health makes work burdensome © 2012 South-Western, Copyright ©2012 by Cengage Cengage Learning Learning, All Inc rights Allreserved rights reserved 10–24 HRM and Career Management • Limitations and Pitfalls in Career Planning  Predicting future levels of talent, expertise, motivation, or interest of an individual is difficult  Unexpected business changes may result in changes in career opportunities  Careers not simply happen–they must be planned and managed  Responsibility for career planning resides with both the organization and the individual © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–25 Individual and Organizational Perspectives on Career Planning © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–26 Steps in Career Planning © 2012 South-Western, Cengage Learning, Inc All rights reserved 10–27 Career Planning and Development Challenges • Career Counseling  Involves interaction between an individual employee or manager in the organization and either a line manager or an HR manager Dual-Career and Work-Family Issues â 2012 South-Western, Cengage Learning, Inc All rights reserved 10–28 ... Management-byManagement-byobjectives objectives(MBO) (MBO) 10 13 Examples of Graphic Rating Scales © 2012 South-Western, Cengage Learning, Inc All rights reserved 10 14 Beyond the Book: Management by. .. performance  Team performance © 2012 South-Western, Cengage Learning, Inc All rights reserved 101 0 10 10 Beyond the Book: Two Ways to Assess Behaviors • Give separate behavior and results ratings... South-Western, Cengage Learning, Inc All rights reserved 10 2 Learning Objectives (cont’d) After studying this chapter, you should be able to: Discuss human resource management and career management Identify