Chapter 9 - Performance management. In this chapter, the following content will be discussed: Challenges of performance review, facts about performance appraisals, purposes of performance-appraisal systems, key components of effective appraisal systems, to avoid legal problems with performance appraisals,. | Chapter 9 Performance Management Challenges of Performance Review In forced ranking, all employees are ranked against each other and grades are distributed along a bell-shaped curve Do you support the use of forced rankings? If the criteria used to determine an employee’s rank are more qualitative than quantitative, does this undermine the forced-ranking system? Suppose all the members of a given team are superstars. Can forced ranking deal with that situation? Facts About Performance Appraisals Employees are often less certain where they stand after the appraisal interview than before it Employees tend to evaluate their supervisors less favorably after the interview than before it Employees feel that the authoritarian, “tell-and-sell” approach to appraisal is out of sync with today’s democratic business structure Purposes of Performance-Appraisal Systems Appraisals provide legal and formal organizational justification for employment decisions Appraisals are used as criteria in test . | Chapter 9 Performance Management Challenges of Performance Review In forced ranking, all employees are ranked against each other and grades are distributed along a bell-shaped curve Do you support the use of forced rankings? If the criteria used to determine an employee’s rank are more qualitative than quantitative, does this undermine the forced-ranking system? Suppose all the members of a given team are superstars. Can forced ranking deal with that situation? Facts About Performance Appraisals Employees are often less certain where they stand after the appraisal interview than before it Employees tend to evaluate their supervisors less favorably after the interview than before it Employees feel that the authoritarian, “tell-and-sell” approach to appraisal is out of sync with today’s democratic business structure Purposes of Performance-Appraisal Systems Appraisals provide legal and formal organizational justification for employment decisions Appraisals are used as criteria in test validation Appraisals provide feedback to employees Appraisals can help establish objectives for training programs Appraisals can help diagnose organizational problems Key Components of Effective Appraisal Systems Relevance Sensitivity Reliability Acceptability Practicality To Avoid Legal Problems with Performance Appraisals Conduct a job analysis to determine characteristics necessary for effective job performance Incorporate these characteristics into a rating instrument Provide written instructions and train supervisors to use the rating instrument properly Establish a system to detect potentially discriminatory practices Include formal appeal mechanisms + higher-level review Document all appraisals + reasons for any termination decisions Provide performance counseling or guidance to assist poor performers Alternative Methods for Appraising Employee Performance Behavior-oriented rating methods Relative rating systems Absolute rating systems Results-oriented rating systems .
