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Evaluating Employee Performance

- Determine purpose of appraisal - Identify environmental and cultural limitations - Determine who will evaluate performance - Select the best appraisal methods to accomplish goals - Train raters - Observe and document performance - Evaluate performance - Communicate appraisal results to employee - Make personnel decisions - Monitor the legality and fairness of the appraisal process

Common uses for performance appraisal:


- Providing employee feedback and training - Determining salary increases

- Making promotion decisions - Making termination decisions - Conducting personnel research

- Identify the environmental and cultural factors that could affect the system.

Sources of relevant information:


- A performance appraisal - supervisors - will observe the employees end result system in which feedback is obtained from multiple sources as supervisors, - often see the actual behavior of such the employee subordinates and peers.

- peers

- subordinates - known as upward feedback - customers

- files complaints or compliments to the manager regarding his or her employee - A performance appraisal strategy in

which an employee receives feedback from sources (e.g., clients, - self-appraisal - technique employed by small organizations subordinates, peers) other that just his/her supervisors.

Two important decisions must be made:


- The focus of the appraisal dimensions
- which can focus on traits, competencies, task types or goals.

- To use rankings or ratings.


- involves the use of objective measures such as attendance and number of units sold, or having supervisors rate how well the employee has performed on each of the dimensions

Trait-focused system
- concentrates on such employee attributes as dependability, honesty, and courtesy. Though commonly used, this dimension is not a good idea because they provide poor feedback and thus will not result in employee development and growth.

Compentency - Focused Performance Dimension


- It concentrates on the employees knowledge, skills, and abilities.

TaskedFocused Performance System


- It is a dimension that refers to an organized similarity of tasks that are performed. The advantage of this approach is that it is easier to visualize employees performance.

Goal-Focused Performance
- It aims to organize the appraisal on the basis of goals to be accomplished by the employee. The advantage of this approach is that it makes it easier for an employee to understand why certain behaviors are expected.

Contextual Performance
- It refers to the effort that an employee exerts to get along with peers, improve the organization, and performance tasks that are needed but necessarily an official part of the employees job description.

Weighting Dimensions
- It makes good philosophical sense, as some dimensions might be important to an organizations that others.

Employee Comparisons, Objective Measures, or Ratings


- evaluate performance by comparing employees with one another (ranking), using objective measures such as attendance and number of units sold.

Employee Comparisons
- Rank Orders

- Paired Comparisons
- Forced Distribution

- It is referred as rank and yank. - In this approach, employees - This It involves comparing each are method refers to the ranked in order by their judged possible pair of employees and predetermined percentage of performance for each relevant choosing which one each pair employees placed inof each dimension. It is convenient when is the better employee. category. To use this method, there only few employees. one are must assume that employee performance is normally distributed.

Objective Measures
- Quantity of Work

- Quality of Work
- Attendance - Safety

-obtained by counting the Is Employees usually measured who follow in 3 terms safety of -is Can be separated into distinct number of relevant job behaviors errors, rules and which who are have defined notardiness, as criteria: absenteeism, that place. deviations occupational from accidents standard. do not and take tenure. cost an organization as much money as those who break the rules.

Ratings of Performance
- Graphic Rating Scale

- Behavioral Checklist

- It This is used scaleto is forced fairly simple, supervisors with 5 to concentrate to 10 dimensions on the accompanied fall supervisors by words such that as fall excellent under and dimension. poor anchoring. It is constructed by taking the task statements from a detailed job description.

The effectiveness of training - is tofunction communicate the organizations also is a of training format.

definition of effective performance and to then get raters to consider only relevant employee behaviors when making performance evaluation. The better that employees

understand the performance appraisal system, the greater is their satisfaction with the system.

- It forces a supervisor to focus on employee behaviors rather than traits. - It helps supervisors recall behaviors when they are evaluating performance. - It provides examples to use when reviewing performance ratings with employees. - It helps an organization defend against legal actions taken against it by an employee who was terminated or denied a raise.

Obtaining and Reviewing Objective Data


Reading Critical-Incident Logs Completing the Rating Form

Reminders: Supervisor must be careful not to make the common rating errors.

- Distribution Errors - Halo Errors - Proximity Errors - Contrast Errors


performance rating one --The These These occurs are made occurs when when when a rater rating rater allows uses person receives can be or made either only one on a single one part dimension of attribute a rating affects scale an influenced by the performance the overall (Leniency rating impression made Error, on Central of the an of a previously evaluated person. dimension individual Tendency that to Error, affect immediately and the Strictness ratings follows that Error). she it makes on the on rating each scale. relevant job dimension.

- First, rater often commit the rating errors previously discussed. - Second, raters often have very different standards and ideas about the ideal employee. - Third, two different raters may actually see very different behaviors by the same employee.

In most organizations, supervisor spends a few minutes with employees every 6 months to tell them about the scores they received during the recent period.
Research suggests that certain techniques can be used to make the performance appraisal interview more effective: time; scheduling; and preparation.

- because employees are free to quit their at will, so toocovered are the by In jobs situations not organizations free to terminate an employment-at-will, there employee at will.

are only four reasons that an employee can be legally terminated: probationary period; violation of company rules; inability to perform; and economically caused reduction in force.

- In many jobs, employees are given a probationary period in which to prove that they can perform well.

1) A rule against a particular behavior must actually exist. 2) A company must prove that the employee knew the rule. 3) The ability of the employer to prove that an employee actually violated the rule. 4) Considered by the court, the extent to which the rule has been equally enforced. 5)The extent in which the punishment fits the crime.

- Employees can also be terminated for an inability to perform the job.

- Also known as layoffs. Employees can be terminated if it is in the best economic interests of the organization to do so.

Performance ratings should be analyzed each rating period to determine if there are gender, race/ethnicity, or age differences.

end of the report

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