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HRM 200 Performance management & appraisal

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Elise Baumgartel

on 8 October 2014

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Transcript of HRM 200 Performance management & appraisal

What is Performance Management?
Performance Management is a continuous and ongoing cycle of criteria setting, monitoring, informal feedback from supervisors and peers, formal multisource assessment, diagnosis and review, action-planning and development resourcing.
What is
Performance Appraisal?
Performance appraisal is concerned with determining how well employees are doing their job, communicating that information to employees, agreeing on new objectives and establishing a plan for performance improvement.
Class Discussion
1) What are the key elements of performance management?

2) Each table has been allocated a performance appraisal objective. Identify why this objective is important for organisations and/or how it adds business value.
The key elements of performance management are...
1) Creation of a
shared vision

2) Establishment of
performance objectives

3) Use of a
formal review process
to evaluate
group/individual progress towards goal achievement

4) The linking of
performance evaluation
to motivate and reinforce desired behaviour
Discriminating on the basis of performance
Rewarding performance
Why is it important for organisations...
boosts job commitment

communicates to employees how to improve job performance

fosters career development

builds effective working relationships

improves quality of individual/team work

Why is it important for organisations...
the costs of keeping non-performers are significant and send the wrong signals to other employees who are performing well.
fosters an efficient and effective workplace
retains industry top talent
- costs include lost sales, customer dissatisfaction, damaged public image, loss of motivation among good performers and the diversion of management resources to deal with incompetent employees
recognises and rewards behaviour that directly aligns with the accomplishment of strategic goals

retains and motivates employees

encourages organisational citizenship behaviour
why is it important for organisations...
Multisource evaluation
(360 degree feedback)
Involves gathering of performance feedback data from multiple sources including subordinates, peers, supervisors and self evaluation
Class Discussion
1) What are the advantages and disadvantages of using multisource evaluation?

2) Identify other forms of performance evaluation.
Other forms of performance evaluation
Sources of error in performance appraisal
to be reliable a performance appraisal system must generate consistent results
to be valid a performance appraisal system must measure actual employee performance
1) Discuss the possible types of rater errors that can arise when conducting a performance appraisal.
Types of rater errors
1) Halo effect

2) Central tendency

3) Leniency/strictness bias

4) Prejudice

5) Recency effect

6) Relationship effect
Appraisal and

Curtin University has recently conducted a performance appraisal on its human resource management staff. However, employees are dissatisfied with their result and feel as though every employee has been incorrectly rated near the average or middle of the scale. This is an example of what type of rater error?
a) Halo effect

b) Central tendency

c) Relationship effect
(Shield 2007, 22)
(Stone 2013, 306)
Shields, John. 2007.
Managing Employee Performance and Reward
. 1st ed. New York.
Cambridge University Press.
Raymond J, Stone. 2013. Managing Human Resources. 4th ed. Australia. John Wiley &
Sons Australia.
In order to ensure effectiveness, managers must consider the validity and reliability of their organisation's performance appraisal system. What answer best describes the meaning of the word "reliability"?
a) Reliability occurs when a performance appraisal system measures actual employee performance and corresponds accurately to rating scores.
b) Reliability occurs when a performance appraisal system is cost-effective and evaluates employees based on relevant criteria.
c) Reliability occurs when a performance appraisal system generates consistent results.
Which of the following is not one of the four key elements in performance management?
a) A shared vision

b) Feedback

c) A formal review process
Giving both positive and negative feedback are essential parts of the performance appraisal process. Giving regular feedback to employees adds business value to an organisation by...
a) communicating and reinforcing behaviour that aligns with the accomplishment of organisational goals.

b) alleviating stress within employees.

c) mitigating the costs associated with under-performing employees.

-facilitates candid and honest discussions about how manager can develop

-creates a high involvement workplace

-avoids discrimination and bias by providing a more comprehensive view of employee performance

-facilitates management learning, skill development and goal setting
- can be time consuming and administratively complex

- may intimidate people

- may be used as an unreliable/invalid feedback instrument

- may not result in anonymous and confidential feedback

- may no result in truthful feedback
Supervisor Evaluation
(Performance appraisal responsibility of the immediate supervisor)

Peer Evaluation
(team member evaluates performance)

Self Evaluation
(employees evaluate their performance)
What is another name for multisource evaluation?
a) 360 degree feedback

b) multi peer evaluation

c) central tendency evaluation
What is the definition of multisource evaluation?
a) a performance management evaluation technique that evaluates organisational performance in four key areas; people, internal operations, customers and financial.

b) a performance management evaluation technique that involves subordinates evaluating the performance of their superior.

c) a performance management evaluation system that seeks to gain feedback from colleagues, superiors, customers and subordinates.
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