CHAPTER - 7

Appraisal Management

LEARNING OBJECTIVES
Understand the appraisal process Develop, evaluate, and administer performance appraisal tools Discuss pros and cons of appraisal methods Problems to avoid in appraising Pros and cons of using different raters Perform an effective appraisal interview

The Appraisal Process

The evaluation of an employees current and past performance relative to performance standards An appraisal involves: - Setting work standards - Assessing actual performance vs. these standards - Providing feedback to the employee

Why Appraise Performance?

Appraisals provide information for promotion and salary decisions Provide opportunities to review an employees work related behavior with the goal of correcting deficiencies Is part of the career-planning process Appraisals help manage and improve your firms performance

The Supervisors Role

Must be familiar with basic appraisal techniques Be candid but fair when delivering bad news HR will often outline guidelines but leave implementation to supervisors

Steps in Appraising Performance

Defining the Job: It means making sure that you and your subordinate agree on his duties and job standards. Appraising Performance:Means comparing your subordinates actual performance to the standards that have been set Feedback Session: Two of you discuss performance and make plans for development

How to Clarify your Expectations

Job descriptions are usually written for a group of jobs without specific goals Quantify expectations with explicit goals for each expectation Employee should know basis of appraisal ahead of time

Appraisal Methods
Graphic rating scale: A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait. Alternation ranking: Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked.

Appraisal(Contd.)
Paired comparison: Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair. Forced distribution method: Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories.

Appraisal(Contd.)
Critical Incident Method: Keeping a record of uncommonly good or undesirable examples of an employees work related behavior and reviewing it with the employee at predetermined times.

Appraisal(Contd.)
Behaviorally Anchored Rating Scale-BARS -An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance.