Gary Dessler

tenth edition

Chapter 9 Part 3 Training and Development

Performance Management
and Appraisal
© 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama
After
After studying
studying this
this chapter,
chapter,
you
you should
should be
be able
able to:
to:
1. Describe the appraisal process.
2. Develop, evaluate, and administer at least four
performance appraisal tools.
3. Explain and illustrate the problems to avoid in
appraising performance.
4. List and discuss the pros and cons of six appraisal
methods.
5. Perform an effective appraisal interview.
6. Discuss the pros and cons of using different raters
to appraise a person’s performance.

©
© 2005
2005 Prentice
Prentice Hall
Hall Inc.
Inc. All
All rights
rights reserved.
reserved. 9–2
9–2
9–2
 Comparing Performance Appraisal and
Performance Management
 Performance appraisal
– Evaluating an employee’s current and/or past
performance relative to his or her performance
standards.
 Performance management
– The process employers use to make sure
employees are working toward organizational
goals.

© 2005 Prentice Hall Inc. All rights reserved. 9–3

 Why Performance Management?
 Increasing use by employers of performance
management reflects:
– The popularity of the total quality management
(TQM) concepts.
– The belief that traditional performance appraisals
are often not just useless but counter productive.
– The necessity in today’s globally competitive
industrial environment for every employee’s
efforts to focus on helping the company to
achieve its strategic goals.

© 2005 Prentice Hall Inc. All rights reserved. 9–4

 An Introduction to Appraising
Performance
 Why appraise performance?
– Appraisals play an integral role in the employer’s
performance management process.
– Appraisals help in planning for correcting
deficiencies and reinforce things done correctly.
– Appraisals, in identifying employee strengths and
weaknesses, are useful for career planning
– Appraisals affect the employer’s salary raise
decisions.

© 2005 Prentice Hall Inc. All rights reserved. 9–5

 Classroom
Teaching
Appraisal By
Students

Source: Richard I. Miller, Evaluating Faculty

for Promotional and Tenure (San Francisco:
Jossey-Bass Publishers, 1987), pp. 164–165.
Copyright © 1987, Jossey-Bass Inc.,
Publishers. All rights reserved. Reprinted with
permission.
Figure 9–1
© 2005 Prentice Hall Inc. All rights reserved. 9–6
 Continuous improvement
 A management philosophy that requires
employers to continuously set and meet ever-
higher quality, cost, delivery, and availability
goals by:
– Eradicating the following wastes:
• overproduction, defective products, and unnecessary
downtime, transportation, processing costs, and
inventory.
– Requiring each employee to continuously improve
his or her own personal performance, from one
appraisal period to the next.

© 2005 Prentice Hall Inc. All rights reserved. 9–7

 The Components of an Effective
Performance Management Process
 1. Planning and Expectation Setting
2. Monitoring
3. Development and Improvement
4. Periodic Rating
5. Rewards and Compensation
1. Planning and Expectation Setting
Goals must be set, the means by which those goals will be
evaluated must also be made clear and a specific time frame must
be outlined.
Performance management success requires clear goal setting.
2. Monitoring
This means that your employees will also be able to keep
track of their performance at work, which will give them ownership
of their own development; an essential quality to cultivate in an
effective employee.
3. Development and Improvement
Once you have monitored your employee for a specific period of time
and through a number of ways, you will need to encourage further
improvement and development.
If an employee is on target to meet his or her goals, the shrewd and
effective performance manager will not stop there, but encourage
ways in which to help the employee exceed and go beyond their
indicated goal. Successful performance management always strives
for more and we can help to show you how to find further ways of
stretching the capacity and potential of your employees.
4. Periodic Rating
It is important to avoid waiting until judgment day when working on
strengthening your performance management system.
You will have outlined your cut-off point for reaching the goals that
you set, but in the interim period it is essential that you provide some
kind of feedback or rating to help your employee realize whether or
not they are on track in terms of meeting that future goal.

© 2005 Prentice Hall Inc. All rights reserved. 9–9

5. Rewards and Compensation
In some ways, the rewards and compensation stage is the most
important element of all when looking for performance management
success.
Why?

Because if you want a good employee to continue to achieve and

develop, they need to feel recognized and appreciated; there needs to
be some kind of end to encourage the next round of triumphs.
The performance management consultants who work for Keen
Alignment have an endless list of ways in which to reward and offer
compensation to your employees when targets are met or even when
targets weren’t met, but your employee did everything possible to try to
get things done.

© 2005 Prentice Hall Inc. All rights reserved. 9–10

 Defining Goals and Work Efforts
 Guidelines for effective goals
– Assign specific goals
– Assign measurable goals
– Assign challenging but doable goals
– Encourage participation
 SMART goals are:
– Specific, and clearly state the desired results.
– Measurable in answering “how much.”
– Attainable, and not too tough or too easy.
– Relevant to what’s to be achieved.
– Timely in reflecting deadlines and milestones.
© 2005 Prentice Hall Inc. All rights reserved. 9–11
 Performance Appraisal Roles
 Supervisors
– Usually do the actual appraising.
– Must be familiar with basic appraisal techniques.
– Must understand and avoid problems that can
cripple appraisals.
– Must know how to conduct appraisals fairly.

© 2005 Prentice Hall Inc. All rights reserved. 9–12

 Performance Appraisal Roles (cont’d)
 HR department
– Serves a policy-making and advisory role.
– Provides advice and assistance regarding the
appraisal tool to use.
– Prepares forms and procedures and insists that all
departments use them.
– Responsible for training supervisors to improve
their appraisal skills.
– Responsible for monitoring the system to ensure
that appraisal formats and criteria comply with
EEO laws and are up to date.

© 2005 Prentice Hall Inc. All rights reserved. 9–13

 Steps in Appraising Performance
 Defining the job
– Making sure that you and your subordinate agree
on his or her duties and job standards.
 Appraising performance
– Comparing your subordinate’s actual performance
to the standards that have been set; this usually
involves some type of rating form.
 Providing feedback
– Discussing the subordinate’s performance and
progress, and making plans for any development
required.

© 2005 Prentice Hall Inc. All rights reserved. 9–14

 Designing the Appraisal Tool
 What to measure?
– Work output (quality and quantity)
– Personal competencies
– Goal (objective) achievement
 How to measure?
– Graphic rating scales
– Alternation ranking method
– MBO

© 2005 Prentice Hall Inc. All rights reserved. 9–15