Chapter 7

Appraising and Managing

Performance

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Chapter Challenges
1. How to effectively carry out each of the
steps in performance appraisal
2. Have familiarity with challenges to effective
performance measurement
3. Develop competence in managing
performance

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What Is Performance
Appraisal?

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Uses of Performance
Appraisals

Administrative Purposes

Developmental Purposes

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Identifying Performance
Dimensions
• Dimension
o Quality of work
o Quantity of work
o Interpersonal effectiveness
• Competencies

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Benefits of Performance
Appraisal

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 Measuring Performance:
Type of Judgment
• Relative Judgment
o Rank order
o No absolute information
• Absolute Judgment
o Based on performance standards
o Lessens conflict among workers

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 Measuring Performance
• Trait Appraisal
o Worker characteristics
• Behavioral Appraisal
o Worker behavior
o BARS
• Outcome Data
o Results
o MBO

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Sample Trait Scale

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Assessing Ethical Behavior

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 Measurement
• Self-rating
• Peer review
• Subordinate review
• Customer review
• 360° feedback

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 Challenges to Effective
Performance Measurement
Rater errors and bias

The influence of liking

Organizational politics

Individual or group focus

Legal issues

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 Rater Errors
• Halo Error
• Restriction of Range Error
o Leniency Error
o Central Tendency Error
o Severity Error

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 Performance Measurement
Difficulties
• Comparability
• Frame-of-Reference

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 The Appraisal Interview
• Performance Discussion
• Salary Discussion
• Performance Improvement

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Situational Factors of
Performance Issues

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How to Determine and
Remedy Shortfalls

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Effective Performance
Appraisal
Developing an Action Plan and
Empowering Workers

Directing Communication at Performance

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 Summary and
Conclusions
• What Is Performance Appraisal?
• Identifying Performance Dimensions
• Measuring Performance
• Managing Performance

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Pearson Education, Inc.
Copyright

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