PERFORMANCE APPRAISAL

CHAPTER SEVEN: PERFORMANCE APPRAISAL第七章绩效考评CHAPTER OBJECTIVES本章目标第一节绩效考评概述AN BRIEF INTRODUCTON TO PERFORMANCEAPPRAISAL1. The Significance of Performance Appraisal2. Roles (作用) of Performance Appraisal3. Principle of Performance Appraisal4. Who Performance AppraisalPERFORMANCE APPRAISAL PROCESS第二节绩效考评的过程1. Preparation: To establish the criteria and standardfor each position2. Conducting Performance Appraisal3．To Coach (辅导阶段)4．To improveTYPES OF APPRAISAL INSTRUMENTS第三节绩效考评的方法1.Alternation Ranking Scale2.Forced Distribution Method.（强制分布法）3.Paired comparison Method（配对比较法）4.GRAPHIC RATING SCALES（量表法）5.BEHAVIORALLY ANCHORED RATING SCALES(行为锚定法)6.Critical Incident Method(关键事件法)7．MANAGEMENT-BY-OBJECTIVES（目标管理法）FEEDBACK INTERVIEW第四节绩效考评的面谈EXERCISES作业Reference参考文献CHAPTER OBJECTIVES（本章目标）After you learn this chapter, you should be able to:1. To cite the various objectives of performance appraisal.2. To identify the basic consideration in selecting standards for appraisal3. To identify and discuss the major performance appraisal method.4. To identify the different approaches to performance appraisal interview.5.To describe the types of errors those are commonly found in performance appraisalAN BRIEF INTRODUCTON TO PERFORMANCE APPRAISAL （第一节绩效考评概述）CASE:“ Why did Zhang jump ship?”After graduated from the college, Zhang was recruited to be a salesman in Company Z .In the first two years, his performance was not so satisfactory because of lacking experience. But at the end of the third year, His performance was greatly improved.Last year, Zhang did a very good job, and he accomplished his sale-volume at the end of September. But the sales manager didn’t show any response to it, so Zhang felt quite disappointed. Zhang left the company in October since the company had no formal appraisal system. In the Company z, an HR professional appraised employees only based on informal conversations between the HR professional and the employees’ supervisor. This system yields no information regarding employee strengths and weaknesses. To make matter worse, this system provided no information regarding company expectation, leaving the employees in the dark as to what they needed to do to achieve favorable performance.In this chapter we turn to discuss performance appraisal programs, which are among the most helpful tools an organization can use to maintain and enhance competitive advantage and facilitate progress toward organization goals.Performance appraisal (绩效评估) refers to a formal, structured system for measuring, evaluating, an employee’s job-related attributes, behavior, and outcomes.1. The Significance of Performance AppraisalIt may understand at first glance that performance appraisals are used for evaluating who is doing a good job and who is doing a bad one. The significance of performance appraisals can be reviewed from the point of employees as well as the organization’s. The following are just a sample of those significance.For Employees a. Understand more clearly about their own duties, tasks and requirements.b. Understand more about what the organization expects from them and their future goals for achieving high performance.c. Employees who are performing well can receive formal recognition （认可）for their performance.d. To provide Employees with the opportunity to participate in performance appraisal.For Organizationa. To provide the supervisor with a means of identifying the strengths and weaknesses of an employe e’s performance.b. To provide a format enabling managers and employees to jointly establish future development and growth plan for the employees.c. To establish a communication channel between managers and employees.d. To express what managers wish to expect from employees.2. Roles (作用) of Performance AppraisalIn HRM activities, a lot decisions have to be based on performance appraisal process, which implies that performance appraisal provides input into all aspects of HRM. The interrelationship between the performance appraisal function and other major HR functions is shown in following Figure:Training: It can determined which employee needs more training and what should be trained (培训内容)b. Administrative decisions: It helps the organization to decide who should be receive pay raises, promoted, laid off, transferred.c. Rewards: It provides basis for judging Pay System (薪酬制度) and pay adjustment.d. Motivation: It encourages initiative, develops a sense of responsibilities, and stimulates efforts to perform better.e. HR planning: Performance appraisal data can also be used in HR planning, in determining the relative worth of jobs under a job evaluation program.f. Selection: It can be used to validate selection tool such as a testing program.3. Principle of Performance Appraisala. Transparency (透明):A supervisor should communicate appraisal criteria （评估项目）or dimension, appraisal procedures, results openly with employees.b. Objectiveness（客观）: Employees’ outcome must be assessed by supervisors fairly without inserting their own Likes or dislikes.c. Practical（实用）: The appraisal scheme should be simple but practical.d. Training（培训）: Supervisor should be trained how to apply appraisal standards, when making judgments.e. Clear performance standards: It must be so clear that employees know exactly when the company expects of them,f. Relented: Appraisal form must exclude criteria that are irrelevant to job performance.g. Difference (差别化): The result of appraisal must be able to reflect the difference between high and low performers.4. Who Performance Appraisala. Appraisal by supervisor (主管评估) The superior knows the subordinate’sperformance better. He knows his ability and behaviors and attitude. However, appraisal by supervisor has drawbacks. Supervisor appraisal has been the traditional approach to evaluating an employee’s performance. Supervisor has the power to reward and pu nish.b. Peer Appraisals (同事评估) Some companies use it to replace or supplement the appraisal given by supervisor. The co-worker who is at an individual’s side all day has an excellent opportunity to observe the individual’s behavior and even can observe the o ther facets of the employee’s behavior that his supervisor can not because employees often be have differently when the boss is present.c. Self-Appraisal （自评）A worker knows clearly what he has done. Self-appraisal can reduce the defensive of the employee and make the employee to evaluate his performance with his responsibility.d. Subordinate Appraisal（下属评价）Subordinates are in a good position to evaluate their managers since they are in frequent contact with many performance-related behaviors. Those performance dimensions judged most appropriate for subordinate appraisals include leadership, oral communication, delegation of authority, coordination of team efforts, and interest in subordinates.e. Customers (客户评估) Some companies like restaurants will ask the customers to assess their employees’ performance.E. 360-Degree Feedback（360度评估）Performance information is collected all round an employee, from his or her supervisors, subordinates, peers, and internal or external customers; this approach is increasingly popular. It is generally used for management and career development.PERFORMANCE APPRAISAL PROCESS（第二节绩效考评的过程）1. Preparation: To establish the criteria and standard for each positiona．Types of Performance Criteria (考评项目)Criteria are dimensions against which the performance of an employee team or a work unit is evaluated.Trait-based criteria: They focus on the personal moral character, value and work attitude such as team-sprit, locality, initiative or creativity of an employee.Behaviour-based criteria: They focus on how the work is performed. With behaviour clearly defined, an employee is more likely to exhibit the acts that lead to peak performance. Behaviour is difficult to be measured in figures or amounts. As a matter of fact, an organization generally uses frequency to describe the employee s’ behavior.Outcome-based criteria: They focus on what was produced rather than on how it was produced. (focus on output and contribution which can be reflected in quality, quantity, efficiency). This kind of criteria can be easily measured. It doesn’t c are how the result achieved. Aresult-at-all-cost may plague outcome-based appraisal.Unfortunately, when used alone, any one of these performance criteria is deficient for accurately evaluating performance. Thus, many organizations use several criteria in making judgments about an employee’s performance.Realistic, measurable, clearly understood performance standards benefit both the organization and the employee. It is important to establish standards before the work is performed so that all involved will understand the level of accomplishment expected.b．To set performance standard Ensure that the targets set are in the smart model.Specific means that they are transparent and not open to dispute.Targets should be measurable so that all sides can agree when they are achieved or not. Thirdly, Targets should be agreed and achievable. If employees disagree with the target because they find them too difficult to achieve, then they may set out to prove this by determining to fail.Fourthly, targets should be realistic and relevant, which makes them more attractive to all parties. Finally, they should be time-related, so that it is clear at what point they should be achieved.An organization may use three approaches to performance evaluations. The first evaluates employees against preestablished common criteria or standards, similar to the way many professors evaluate students’ performance.The second evaluation approach is based on individualized performance criteria and standards. Performance goals for each individual are derived from the overall departme nt’s performance requirements for a specified period. Each employee may have unique performance goals (criteria and standards), and each employee is evaluated on the basis of how well he or she meets those goals.A third evaluation approach entails rankin g one employee’s performance against the performance of other employees.2. Conducting Performance AppraisalAfter an appraisal system is designed, must be properly implemented. Managers are chiefly responsible for implementation; they must complete the real ratings for employees and provide feedback to employees.One of the key objectives of feedback is to improve employee performance by giving them constructive criticism, when necessary, to make them aware of their shortcomings.3．To Coach (辅导阶段)After completing performance Appraisal, some employees’ result may turn out to be comparatively dissatisfactory which may be resulted from lacking knowledge or skills. In reality, it is supervisor’s responsibility to establish a performan ce improvement plan as follows.4．To improveThe supervisor must evaluate whether the employees have improved their outcome or not after caring out the plan for some time.TYPES OF APPRAISAL INSTRUMENTS（第三节绩效考评的方法）1.Alternation Ranking ScaleFor the trait you are measuring, list all the employees you want to rank. Put the highest-rankingemployee’s name on line 1. Put the lowest-ranking employee’s mane on line 10. Then list the next highest ranking on line 2, the next lowest ranking on ling 9, and so on Continue all names are on the scale.Highest-ranking employeeLowest –ranking employee2..Forced Distribution Method.（强制分布法）The forced distribution method is similar to grading on a curve. With this method, predetermined percentages of rates are placed in performance categories. For example, you may decide to distribute employees as follows:5% high performers20% high-average performers50% average performers20% low-average performers5% low performers3..Paired comparison Method（配对比较法）The paired comparison method helps make the ranking method more precise. For every trait (quantity of work, quality o f work, and so on), every subordinate is paired with and compared to4.GRAPHIC RATING SCALES（量表法）A graphic rating scale (GRS) presents a list of traits (e.g., cooperativeness, adaptability, maturity,motivation). Each trait is accompanied by a five or seven-point rating scale. The points along the scale are defined by numbers and/or descriptive words or phrases that indicate the level of performance.Many organizations use graphic rating scales because they are practical and cost little to develop. But Graphic rating scales do present a number of problems. Such scales do not effectively direct behavior; that is, the rating scale does not clearly indicate what a person must do to achieve a given rating. Another problem with GRS is the points on the rating scale are not clearly defined. An example of GRS is showed as followsEvaluate the worker on each quality using the following ratting scale:5=Outstanding; one of the best workers you have known4=Good; meets all job standards; exceeds some3=Adequate; meets all job standards2=Needs improvement; needs improvement in some way1=Unsatisfactory; not acceptableA. Dress and appearanceB. Self-confidenceC. DependabilityD. Tact and diplomacyE. AttitudeF. CooperationG. EnthusiasmH. Knowledge1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________1_________2________3________4________5_________5.BEHAVIORALLY ANCHORED RATING SCALES(行为锚定法)A behaviorally anchored rating scale (BARS), is a combination of a graphic rating scale, and Critical Incident Method. It requires appraisers to rate employees on their traits. The typical BARS includes seven or eight traits, referred to as “dimensions,” each anchored by a seven-or nine-point scale.6.Critical Incident Method(关键事件法)With the critical incident method, the supervisor keeps a record good or bad or so, the supervisor and subordinate meet and discuss the latter’s performance using the specific incidents as examples.This method has several advantages. It provides you with specific hard example true facts of good and poor performance for explaining the appraisal. A BARS anchors each trait with examples of specific job behaviors that reflect varying levels of performance. An example is shown in Exhibit below.DIMENSION: CLASSROOM TEACHICG SKILLSOutstanding7 ·The instructor answers students questions in a clear, concise, and accurate manner.6 ·The instructor uses examples when trying to emphasize a point.54 ·The instructor exhibits a number of annoying habits when lecturing.3 ·The instructor singles out students in class for unreasonable criticism.2Extremely Poor 1The greatest strength of BARS is to let employees know what types of behaviors are expected of them and gives appraisers the opportunity to provide behaviorally based feedback.The failure of BARS may lie in the difficulty raters experience when trying to select the one behavior on the scale that is most indicative of the employees performance level. Sometimes an employee may exhibit behaviors at both ends of the scale, so the rater would not know which rating to assign.7．MANAGEMENT-BY-OBJECTIVES（目标管理法）Management-by-objectives (MBO) is a management system designed to achieve organizational effectiveness by steering each empl oyees behavior toward the organization’s mission. The MBO process includes goal setting, planning, and evaluation.GOAL SETTING Goal setting starts at the top of the organization. The goal then cascades down through the organizational hierarchy to the level of the individual employee.In most instances individual goals are mutually set by employees and their supervisors, at which time mine how goal attainment will be measured. As will as to identify potential obstacles to reaching goals and devise strategies to overcome these obstacles.EVALUATION In the final phase, the employee’s success at meeting goals is evaluated against the agreed-on performance standards.MBO lets people know what is expected of them so that they can spend their time and energy in ways that maximize the attainment of important organizational objectives.But MBO presents several potential problems, it does not specify the behaviors required to reach them. This may be a problem for some employees, especially new ones.MBO also tends to focus on short-term goals.The successful achievement of MBO goals may be partly affect by some factors which are outside the worker’s control.Common appraisal problemHalo Effect ：It means that the rating of a subordinate on one trait influences the way the person is rated on other traits. Managers may rate employees on the basis of their personal relationships rather than by an objective measure of their competencies and abilities.Central Tendency ：It refers to a tendency to rate all employees above average.Leniency or Strictness: Some supervisors tend to rate all subordinates consistently high or low Recency Error: Some supervisors tend to be too influenced by an event that happened a few days or weeks ago that is fresh in their mind.Bias :It refers to the tendency to allow individual differences such as age, race, and sex to affect the appraisal rating employees receive.FEEDBACK INTERVIEW （第四节绩效考评的面谈）Before the InterviewAdequate preparation, including giving notice, reviewing the job description and choosing the right place.During the InterviewListen and questionConcentrate on performance not personalityBe specific about specificDon’t impose your ideasDon’t be instructiveAfter the InterviewMonitor progressFollow-up any issuesEXERCISES （作业）QURSTION1.. What is meant by the term “relevance” in the context of performance appraisal? And what canan organization do to ensure its rating instruments are relevant?2. What are some of the causes of inaccurate ratings? How can ratings be made more accurate?3. Why are graphic rating scales so frequently used? What are major problems associated with their use?4. Discuss the advantages and disadvantages associated with the use of MBO as a performance appraisal technique.5. Why are peer ratings sometimes used to supplement supervisory ratings? What are some problems associated with their use?6. What steps can an organization take to help ensure that its appraisal system is a fair one?7.What sources could be used to evaluate the performance of people working in the following jobsa. Taxi driverb. GMc. HR Managerd. Lathe operatorA spokesperson for each group should present the group’s responses.8.Suppose you are the HR manager of Foshan University, how you should develop a performance appraisal system for teachers. Please follow the steps as below■ Gain support for system: gain support of President and seek employee input when developing the system■ Develop rating instruments: instrument o f choice depends on practicality, cost, and the nature of jobs being evaluated■ Chose raters: supervisors, peers, self, and 360-degree feedback■ Determine when appraisals will be given■ Include safeguards to ensure fairness: should include an u pper-management review and an appeals system,A spokesperson for each group should present the group’s responses.CASE STUDY华夏银行商业信贷部的绩效评估华夏银行商业信贷部总共有4名出纳员，其中一名是资深出纳员马丽，部门主管张岚负责信贷部的工作，已经有3年了。