Performance Management and Appraisal

and Appraisal
Learning Outcomes
After studying this chapter you should be able to:
8.1 Discuss the difference between performance management and
performance appraisal
8.2 Identify the necessary characteristics of accurate performance
management tools
8.3 List and briefly discuss the purposes for performance appraisals
8.4 Identify and briefly discuss the options for “what” is evaluated in a
performance appraisal
8.5 Briefly discuss the commonly used performance measurement
methods and forms
8.6 Identify and briefly discuss available options for the rater/evaluator
8.7 Briefly discuss the value and the drawbacks of a 360° evaluation
8.8 Identify some of the common problems with the performance
appraisal process
8.9 Identify the major steps we can take to avoid problems with the
appraisal process
8.10 Briefly discuss the differences between evaluative performance
reviews and developmental performance reviews
8.11 Define the following terms:
Performance management
Performance appraisal
Critical incidents method
Management by Objectives
(MBO) method
Narrative method or form
Graphic rating scale form
Behaviorally Anchored
Rating Scale (BARS)
Ranking method
360° evaluation
Electronic Performance
Monitoring (EPM)
Performance Management Systems
Performance Management Versus Performance Appraisal
The Performance Appraisal Process
Accurate Performance Measures
Why Do We Conduct Performance Appraisals?
Decision Making (Evaluating)
Motivating (Developing)
Evaluating and Motivating (Development)
What Do We Assess?
Trait Appraisals
Behavioral Appraisals
Results/Outcomes Appraisals
Which Option Is Best?
How Do We Use Appraisal Methods and Forms?
Critical Incidents Method
Management by Objectives (MBO) Method
Narrative Method or Form
Graphic Rating Scale Form
Behaviorally Anchored Rating Scale (BARS) Form
Ranking Method
Which Option Is Best?
Who Should Assess Performance?
360º Evaluation
Who Do We Choose?
Performance Appraisal Problems to Avoid
Common Problems With the Performance Appraisal
Avoiding Performance Appraisal Process Problems
Debriefng the Appraisal
The Evaluative Performance Appraisal Interview
The Developmental Performance
Appraisal Interview
Trends and Issues in HRM
Is It Time to Do Away With
Performance Appraisals?
Technology: Electronic Performance Monitoring
Competency-Based Performance Management
Aligning the Appraisal Process
C. Job Analysis/Job Design (required)
4. Performance management (performance criteria and appraisal)
F. Performance Management (required)
1. Identifying and measuring employee performance
2. Sources of information (e.g., managers, peers, clients)
3. Rater errors in performance measurement
4. Electronic monitoring
5. Performance appraisals
6. Appraisal feedback
7. Managing performance
Case 8-1. Beauty and the Beastly Situation at Aerospace Designs’ Marketing
Case 8-2. Performance Evaluation at DHR: Building a Foundation or
Crumbling Ruins?
Chapter 8 Outline
See Appendix A:
SHRM 2010 Curriculum
Guidebook for the
complete list
 Productivity
 Satisfaction
 Absenteeism
 Turnover
Section IV: Compensating and Protecting
How do you REWARD and MAINTAIN your Human Resources?
Section III: Developing and Managing
How do you MANAGE your Human Resources?
Section II: Attracting and Staffing
What HRM Functions do you NEED for sustainability?
Section I: 21st-Century HRM Strategic Planning and Legal Issues
What HRM issues are CRITICAL to your organization’s long-term sustainability?
Performance Management Miscue
The Practitioner’s Model for HRM
Most managers don’t look forward to performance
appraisals. As soon as Heather stuck her head in my offce
and asked me to sit in on her performance appraisal, I
knew I had two employees who needed some coaching—
Heather and her supervisor, Christine. Our company bases
many employment decisions on performance appraisals,
so the results are important.
When I entered the room, it became apparent
that although Heather believed she had been doing a
great job, Christine did not agree. Christine recorded
Heather’s performance as needing improvement overall, but did not offer any reason beyond a vague charge
that Heather had a poor attitude and wasn’t a team
I quickly suggested a small interruption to the meeting, and
asked Heather to step out of the room. It soon became
clear that the overall problem was Heather’s failure to
report to work on time. When Heather was late, it impacted
her entire work group as the other employees then had to
answer Heather’s phone calls.
What’s going on here? Why don’t Heather and Christine
agree on Heather’s performance? Where did Christine
go wrong? How can Christine get Heather to agree with
her performance review now? How can this problem be
avoided during the next formal performance appraisal session? The answers to these questions are based on having
a good performance management system. By reading this
chapter, you will learn how you can avoid these problems.
Chapter 8: Performance Management and Appraisal 285

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