Transcript: Supervisor's rating of a subordinate based on one single factor biases the rating of that same individual based on other factors (Boachie-Mensah and Seidu 2012) Attractive people are perceived to more likeable, friendly, intelligent, successful and competent than their non-attractive counterparts (James 2000) Employees with visible body decorations including tattoos and piercings experience more bias during performance appraisal than other employees. Perceived as unintelligent, untrustworthy and unprofessional- negatively impacting their performance appraisal (Dean 2010; Sarlak 2012) Occurs when an employee’s most recent events have a greater influence on the performance appraisal than overall performance (Boachie-Mensah and Seidu 2012) One single unfavourable recent event has a negative impact on Performance Appraisal even if overall performance was very favourable (Cintrón and Flaniken 2011) Very misleading as employees tend to extremely hard leading up to a Performance Appraisal (Boachie-Mensah and Seidu 2012) When the nature of the rater-ratee relationship influences the performance appraisal more than the subordinate's overall performance (Stone 2013) Rater is more likely to give a better appraisal to someone they like rather than someone they don't like, even though their performance may be identical (Kondrasuk 2011) Subjective criteria such as likeability, trustworthiness, ability to get along with others and dependability become more influential in the performance appraisal than the subordinate's actual performance (Duart, Goodson and Klich 1994) Occurs when a supervisor consistently gives average ratings to subordinates and avoids the favourable and unfabourable ends of the rating scale (Cintrón and Flaniken 2011) Affects employee morale as average employees are over-compensated and good performing employees are under-compensated (Curtis, Harvey and Rayden 2005) Consequently affects employee motivation, productivity and commitment to organisational activities Supervisors may consistently give average ratings to all subordinates because the supervisor believes the performance appraisal process is a waste of time or he/she lacks adequate information and knowledge of the subordinates (Boachie-Mensah and Seidu 2012) Leniency bias occurs when supervisors consistently give better performance appraisals to subordinates than their performance justifies (Boachie-Mensah and Seidu 2012) Lenient performance appraisals reduce employee motivation, and make it difficult to provide accurate performance feedback, terminate poor performing employees and identify areas for employee development improvements (Shore and Strauss 2008). Creates feelings of inequity amongst employees (Vipanchi, Mishra, and Sylvia G. Roch 2013) Raters tend to be more lenient in performance appraisals to not damage their relationship with subordinates or when rating a subordinate for a merit increase or promotion (Boachie-Mensah and Seidu 2012; Stone 2013) Strictness bias error occurs when supervisors consistently give poorer performance appraisals to subordinates than their performance justifies. Supervisors mainly give deflated appraisal to subordinates due to concerns that employees with consistently good appraisals may replace them in the future (Boachie-Mensah and Seidu 2012) When a supervisor clearly establishes a positive or negative bias towards a particular individual or group during a performance appraisal (Stone 2013) "Similar to me" error describes the tendency for superiors to give better performance appraisals to subordinates who are similar to them in terms of gender, age, race, or religion. For example, female superiors tend to give poorer performance appraisals to males than females (Boachie-Mensah and Seidu 2012) Boachie-Mensah, Francis and Peter Awini Seidu. 2012. "Employees' Perception of Performance Appraisal System: A Case Study." International Journal of Business and Management 7 (2): 73-88. http://search.proquest.com/docview/932073648?accountid=10382. Cintrón, Rosa and Forrest Flaniken. 2011. "Performance Appraisal: A Supervision Or Leadership Tool?" International Journal of Business and Social Science 2 (17). http:// search.proquest.com/docview/904522995?accountid=10382. Dean, Dwane H. 2010. "Consumer Perceptions of Visible Tattoos on Service Personnel." Managing Service Quality 20 (3): 294-308. http://dx.doi.org/10.1108/09604521011041998. http:// search.proquest.com/docview/198031702?accountid=10382. Duarte, Neville T., Jane R. Goodson, and Nancy R. Klich. 1994. "Effects of Dyadic Quality and Duration on Performance Appraisal." Academy of Management Journal 37 (3): 499. http://search.proquest.com/ James Poon, Teng Fatt. 2000. "Attractiveness and Outcomes of Job Interviews." Management Research News 23 (1): 11-18. http://search.proquest.com/docview/223541740? accountid=10382. Karimi, Rabia, Muhamad I. Malik, and Saddam Hussain. 2011. “Examining the relationship of performance appraisal system and employee
Transcript: Launching the process Performance Appraisal What is Performance Appraisal Evaluation Collection Methods Provide feedback to employees Counseling and developing employees Conveying and discussing compensation, job status and disciplinary decisions Coaching Function of PA Performance management systems are considered to be running when the following conditions are met: A vision of objectives is communicated to employees Departmental and individual performance targets are set within objectives A formal review of progress towards targets is conducted The whole process is evaluated to improve effectiveness Source : Schultz (2004, 475) Features of PA The performance management process in perspective Systematic and periodic process (long-cycle appraisals and short-cycle) Assess individual employee’s job performance and productivity Related to certain pre-establish criteria and organizational objectives A method by which the job performance of an employee is evaluated It is part of career development It consists of regular reviews of employee performance within organization Source: Schultz (2004, 476) Objective production Personnel Judgemental Evaluation Alignment with the business strategy Alignment with departmental goals Determining employee goals to add value Defining parameters of an action plan Measuring performance Determining amount of value to be added Allocating results of evaluation to HR systems Reviewing new business strategy Departmental and employee goals Interim checking of progress Exploring causes of poor performance Counselling and mentoring
Transcript: “There is little evidence that shows learning alone explicitly links with organisational change. By building an entrepreneurial attitude which makes members central to decision making and action taking process there is significant achievement in organisation’s goals” (Harrison 2004) 8. Eight principles for a successful appraisal system •Strictness – occurs when an appraiser believes that no employee can ever be worthy of the highest rating since “no one is perfect” •Leniency error – when the supervisor believes that all employees put forward their best efforts, so they should all be worthy of higher rating How to minimise the risk of these errors Chris Kimberley Yvonne 7. The performance appraisal process is a good tool for HRD as it physically identifies and addresses performance gaps and applies techniques to overcome them. Diary keeping This involves documenting critical incidents regarding their employees performance throughout the assessment period. Rater error training Raters view examples of common rating errors and receive suggestions on how to avoid making these errors when partaking in an appraisal. Frame-of-reference training Involves observing examples of good and poor performance. •Recency effect – When a supervisor considers only the most recent performance rather than the performance over a year (of the length of time the appraisal covers) •Bias occurs when a supervisor has prejudices against certain employees based on gender, age, religion, ethnicity, race, weight, disability or some other non job-related aspect What techniques are used in a performance appraisal? Why are these a good tool for HRD? What preparation is necessary for a performance review? 4. Clark was given two days notice for the interview It lasted 20 minutes, and Clark was unable to share his input John jumps right to the observation stage Discussing and analysing job description, specification and performance indicators with employees Behaviourally Anchored Rating Scale offer greater insight and objectivity 1-2 weeks notice to prepare questions and observations Focus more on two way communication by using the problem solving technique Collect relevant data and don’t ignore performance indicators during the appraisal period Involve employees in the decision making process as it motivates them to be goal driven Preparation is key for a successful appraisal system Each member should come out feeling accomplished, heard and motivated 5. Clark was surprised with two satisfactory ratings as he had received excellent client satisfaction figures (performance indicators) which John had failed to collect and review Clark requested a rescheduled meeting to share his ideas and concerns Overview of Performance Management and Appraisal What is Performance appraisal? Why appraise performance? What is the goal of the performance review? •Halo effect – when an employee is seen by the supervisor as highly competent in one or more areas, and as a result, is rated highly in other areas •Horn effect – when an employee is seen as weak in one or more areas and is rated low in other areas based on that weakness 1. Recognition that there are two types of performance appraisal system – administrative and developmental 2. The use of a cascade process – upper managers are appraised first, then those managers appraise the operational managers who then appraise their supervisors who then appraise their operational staff 3. Establishing a standard for performance based on a current job analysis 4. Observing the events using appropriate observation methods 5. Using realistic comparisons between the observed data and the predetermined standard 6. Taking action through the use of appropriate feedback methods 7. Creating action plans 8. Recognising that the action plans must become the inputs for a developmental program Performance Appraisal Errors in Performance Appraisal 1. John is the manager of a small number of staff in an education facility He conducted a developmental performance appraisal with a long term experienced staff member, Clark References •Central tendency – when appraiser believes that all employees are average and fall somewhere in the middle of the rating scale •Contrast – when the appraiser rates one employee based on the work of other employees, rather than based on the performance standards for a particular position. 6. A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities, which identifies the strengths and weaknesses in staff’s knowledge (Kirkpatrick, Donald L, 2005). The goal of the review process is to recognise achievement, to evaluate job progress, and then to design training for the further development of skills and strengths. Conclusion/recommendations What errors can occur in performance appraisal? How can HR developers and managers ensure they run a successful appraisal? 3. Clark's performance rated mainly high or very high Two characteristics were rated as
Transcript: Performance Appraisal A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. Perfomance Appraisal is only one method of Performance Management. Performance Management is the proces through which employers and managers gage employees' outputs and ensure they are on track with the goals of the organization's. Types of Appraisals The Comparative Approach The Comparative APproach is the process in which the performance evaluator compares one employee to the next. Employees are assessed by their performance and a ranking system is developed. Techniques of The Comparative Approach Ranking - simple ranking requires managers to rank employees within their departments from highest performer to poorest performer. Alternation ranking- consists of a manager looking as a list of employees, deciding who is the best, and crossing that name off the list. From the remaining names the employee decides who is the worst and crosses off that name and so on. Forced Distribution - also uses a ranking format, but employees are ranked in groups. Employees are placed into predetermined catagories based on percentages. Forched distribution was popularized by former General electirc CEO Jack Welch. He insisted that GE annually identify and remove the bottome 10% of the workforce. Paired Comparison-requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he or she is considered the higher performer. Feedback The Attribute Approach The Quality APproach Definition: Process where an employee receives information about performance in order to change future performances. The Results Approach What's Appropriate? The Behavioral Approach
Transcript: Characteristics Questions Performance Managment The use of permformance data to effect organizational culture, systems, and processes, set goals, allocate resources, affect policies and programs, and share results. Performance Appraisal The process by which organizations evaluate employee job performance. Appropriate Environment In Private / Isolated Non Threatening Make Employee Comfortable Neutral Ground Seek Feedback from Employee when appraisal is over. The Halo Effect The Error of Central Tendancy The Leniency and Strictness Biases Personal Prejudice The Recency Effect Validity Reliability Input into System Development Acceptable Performance Standards Acceptable Goals Control Standards Frequency of Feedback Rater Training Ratee Training Input into Interview Process Appraisal Consequences Different Sources (Raters) Rater Biases ? Performance Managment VS Performance Appraisal Performance Appraisal
Transcript: Shared a Photo Appraisal the act/manner of doing a job is a method by which the job performance of an employee is documented and evaluated the act of judging the value, condition or importance of something "In order to succeed, your desire for success should be GREATER than your fear of failure." 1. PLANNING Photos like comment share Managing employee performance is an integral part of the work of the managers & rating officials. It is as important as managing FINANCIAL RESOURCES. like comment share Employee Performance Appraisal Plans (EPAP) Performance elements tell employees WHAT THEY HAVE TO DO and; Standards tell them HOW WELL they have to do it. EPAP outlines the specific elements and standards that the employee is expected to accomplish during the rating cycle. Performance elements should be measurable, understandable, verifiable, equitable & achievable. PERFORMANCE APPRAISAL like comment share Performance Appraisal Performance 5 ELEMENTS IN DEVELOPING "EPAP" Performance VS Standards
Transcript: References Project Methodology Performance appraisal is a developmental tool in HRM Promotion Compensation Employee development Validation Communication Motivation Performance is defined as the accomplishment of a task measured against set standards. Culture is about being passionate about customers Quarterly conversations are held Training is provided to all employees Career progression is in the hands of the employees Encouragement is provided through recognition and bonuses; points system Employees like having informal conversations Continue their rewards system As well as having their quarterly internal 'conversations', use external auditors to ensure fair hearings Encourage communication between different departments, especially between supervisors and employees Provide extra training and support to those who need it Offer a greater variety of rewards and/or incentives A commitment to provide customers with quality products and services, fair fees and charges, and relationships built on the principles of help, guidance and advice Erosion of motivation Time consuming Subject to appraiser bias Yvette Domingo | Bow Samanbut | Carlitos Lugue | Marie Chew | Peter Macnamara Erbasi, A., Arat, T. and Buyukipekci, S., n.d. The Effect of Performance Appraisal Errors on Employee Performances: An Examination in Industrial Cooling Managements in Turkey in terms of Employee Perceptions. European Scientific Journal. Fisher, L., 2013. How poorly handled employee performance reviews damage an organisation ‘almost every time’. [online] BRW. Available at: <http://www.brw.com.au/p/leadership/time_poorly_handled_employee_performance_ssif2j5cVQzJdwV0pioPBM> [Accessed 12 May 2015]. GloboForce, 2013. Summer 2013 Report: Empowering Employees to Improve Employee Performance. [eBook] Available at: <http://go.globoforce.com/rs/globoforce/images/Summer2013Moodtracker.pdf> [Accessed 12 May 2015]. Adequate notice Fair hearing Judgement based on evidence Performance Appraisal Interview Findings Recommendations What is 'performance appraisal'? Qualitative research An interview was conducted at their Bourke Street branch Advantages 1,700 stores and business banking centers around the world What makes an effective Appraisal System? Disadvantages Background Information How do employees feel about Performance Appraisal? The process of: Examining and evaluating Documenting results Providing feedback
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