BBA 440 Chapter 8 notes

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jroji
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BBA 440 Chapter 8 notes
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2011-03-02 12:55:45
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appraisals chapter HRM
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HRM chapter 8 vocabulary and chapter outline
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  1. Performance appraisal
    Process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
  2. Performance management
    Process of creating a work environment in which people can perform to the best of their abilities.
  3. 2 Purposes for Performance Appraisal
    • 1. Developmental
    • 2. Administrative
  4. Developmental purposes for Performance Appraisal
    • 1. Provide performance feedback
    • 2. Identify individual strengths/weaknesses
    • 3. Recognize individual performance
    • 4. Assist in goal identification
    • 5. Evaluate goal achievement
    • 6. Identify individual training needs
    • 7. Determine organizational training needs
    • 8. Reinforce authority structure
    • 9. Allow employees to discuss concerns
    • 10. Improve communication
    • 11. Provide a forum for leaders to help
  5. Administrative purposes for performance appraisal
    • 1. Document personnel decisions
    • 2. Determine promotion candidates
    • 3. Determine transfers and assignments
    • 4. Identify poor performance
    • 5. Decide retention or termination
    • 6. Decide on layoffs
    • 7. Validate selection criteria
    • 8. Meet legal requirements
    • 9. Evaluate training programs/progress
    • 10. Personnel planning
    • 11. Make reward/compensation decisions
  6. Reasons Appraisals fail
    • 1. Lack of top-management information and support
    • 2. Unclear performance standards
    • 3. Rater bias
    • 4. Too many forms to complete
    • 5. Use of appraisal program for conflicting (political) purposes.
  7. What are the performance Standards?
    • 1. Strategic Relevance
    • 2. Criterion Deficiency
    • 3. Criterion Containment
    • 4. Reliability
  8. Strategic relevance
    Individual standards directly relate to strategic goals
  9. Criterion deficiency
    Standards capture all of an individual´┐Żs contribution
  10. Criterion contamination
    Performance capability is not reduced by external factors
  11. Reliability (consistency)
  12. Standards are quantifiable measurable and stable
  13. Calibration
    Process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another
  14. Brito v. Zia
    Supreme Court ruled that performance appraisals were subject to the same validity criteria as selection procedures.
  15. Albemarle Paper Company v. Moody
    Supreme Court found that employees had been ranked against a vague standard, open to each supervisor's own interpretation.
  16. Legal guidelines for performance appraisals
    • 1. Must be job related
    • 2. Employees must be given a written copy of their job standards in advance
    • 3. Managers must be able to observe behavior they are rating.
    • 4. Supervisors must be trained to use the appraisal form correctly.
    • 5. Should be discussed openly with employees and counseling or corrective guidance offered.
    • 6. Appeals procedure should be established
  17. Who should Appraise Performance?
    • 1. Manager/Supervisor
    • 2. Self
    • 3. Subordinate
    • 4. Peer
    • 5. Team
    • 6. Customer
  18. Manager /supervisor appraisal
    Performance appraisal done by an employee's manager and often reviewed by a manager on level higher
  19. Self-appraisal
    Performance appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.
  20. Subordinate appraisal
    Performance appraisal of a superior by an employee which is more appropriate for development than for administrative purposes.
  21. Peer appraisal
    Performance appraisal done by one's fellow employees generally on forms that are compiled into a single profile for use in the performance interview conducted by the employee's manager
  22. Reasons why peer appraisals are not used frequently
    • 1. Peer rating are simply a popularity contest
    • 2. Managers are reluctant to give up control over the appraisal process
    • 3. Those receiving low ratings might retaliate against their peers.
    • 4. Peers rely on stereotypes in ratings
  23. Team appraisal
    Performance appraisal based on TQM management concepts, that recognizes team accomplishment rather than individual performance
  24. Customer appraisal
    Performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers
  25. Safeguards to ensure its maximum quality and acceptance
    • 1. Assure anonymity
    • 2. Make respondents accountable
    • 3. Prevent gaming of the system
    • 4. Use statistical procedures
    • 5. Identify and quantify biases
  26. How to train appraisers
    • 1. Establishing an appraisal plan
    • 2. Eliminating Rater Error
    • 3. Feedback training
  27. Error of central tendency
    Performance rating error in which all employees are rated about average
  28. Leniency or strictness error
    Performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings
  29. Recency error
    Performance rating error in which the appraisal is based largely on the employee's most recent behavior rather than on behavior throughout than on behavior throughout the appraisal period
  30. Contrast error
    Performance rating error in which an employee's evaluation is biased wither upward or downward because of comparison with another employee just previously evaluated
  31. Similar-to-me error
    Performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection
  32. Trait Appraisal methods:
    • 1. Graphic rating scales
    • 2. Mixed standard scales
    • 3. Forced-choice method
    • 4. Essay method
  33. Graphic rating scale method
    Trait approach to performance appraisal whereby each employee is rated according to a scale of characteristics
  34. Mixed-standard scale method
    A trait approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard
  35. Forced-choice method
    Trait approach to performance appraisal that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance
  36. Behavior Appraisal Methods
    • 1. Critical incident
    • 2. Behavioral checklist
    • 3. Behaviorally anchored Rating Scale (BARS)
    • 4. Behavior Observation Scale (BOS)
  37. Critical incident
    Unusual event that denotes superior or inferior employee performance in some part of the job
  38. Behaviorally anchored rating scale (BARS)
    Behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance
  39. Common rater related errors
    • 1. Error of central tendency
    • 2. Leniency or strictness errors
    • 3. Similar to me errors
    • 4. Recency errors
    • 5. Contrast and halo errors
  40. Behavior Observation Scale (BOS)
    Behavioral approach to performance appraisal that measures the frequency of observed behavior
  41. Three reasons why BOS is preferred over BARS
    • 1. Maintaining objectivity
    • 2. Distinguishing good performers from poor performers
    • 3. Providing feedback
    • 4. Identify training needs
  42. Results Appraisal Methods
    • 1. Productivity measures
    • 2. Management by objectives
    • 3. Balanced scorecard
  43. Management by objectives (MBO)
    Philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager
  44. Balance Score Card segments
    • 1. Financial
    • 2. Customer
    • 3. Processes
    • 4. Learning
  45. Recommendations for ensuring Balanced Scorecard success
    • 1. Translate the strategy into a scorecard of clear objectives
    • 2. Attach measures to each objectives
    • 3. Cascade scorecards to the front line
    • 4. Provide performance feedback based on measures
    • 5. Empower employees to make performance improvements
    • 6. Reassess strategy
  46. Performance Appraisal methods
    • 1. Trait
    • 2. Behavioral
    • 3. Results
  47. Pros for Trait methods
    • 1. Inexpensive to develop
    • 2. Use meaningful dimensions
    • 3. Easy to use
  48. Pros for Behavioral methods
    • 1. Use specific dimensions
    • 2. Acceptable to employees & superiors
    • 3. Useful for providing feedback
    • 4. Fair for reward and promotion decisions
  49. Pros for Results methods
    • 1. Less subjectivity bias
    • 2. Acceptable to employees & superiors
    • 3. Link individual performance to organizational performance
    • 4. Encourage mutual goal setting
    • 5. Good for reward and promo decisions
  50. Cons of Trait methods
    • 1. High potential for rating errors
    • 2. Not useful for employ counseling
    • 3. Not useful for allocating rewards
    • 4. Not useful for promotion decisions
  51. Cons of Behavioral methods
    • 1. Time-consuming to develop/use
    • 2. Costly to develop
    • 3. Potential for rating error
  52. Cons for Results methods
    • 1. Time consuming to develop/use
    • 2. May encourage a short-term perspective
    • 3. May use contaminated criteria
    • 4. May use deficient criteria
  53. Three types of appraisal interviews
    • 1. Tell and sell interview
    • 2. Tell and listen interview
    • 3. Problem solving interview
  54. Steps to conducting the appraisal interview
    • 1. Ask for a self-assessment
    • 2. Invite participation
    • 3. Express appreciation
    • 4. Minimize criticism
    • 5. Change the behavior not the person
    • 6. Focus on solving problems
    • 7. Be supportive
    • 8. Establish goals
    • 9. Follow up day to day
  55. Tips for using criticism constructively:
    • 1. Consider whether it is really necessary
    • 2. Consider the needs of the employee
    • 3. Be specific, don't exaggerate
    • 4. Watch your timing
    • 5. Make improvement your goal
  56. Three factors that influence performance
    • 1. Motivation
    • 2. Environment
    • 3. Ability

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