Performance Management &

Appraisal, Part I
• The purposes and requirements of
an effective performance
management and appraisal system
• Legal and strategic issues in
performance appraisal
• Appraisal formats: Advantages and
disadvantages
Performance Management &
Appraisal
• Performance • Performance
management Appraisal
– Defines – Measures
performance performance
– Facilitates – Evaluates
Performance performance
– Encourages – Feeds back the
performance evaluation
 Legal & Strategic Issues
• Legal issues
– Performance appraisal is open to
adverse impact
– Criteria must be applied equally
• Strategic issues
– Organizations get what they reward
– Need to align strategy with performance
management system
 Using Performance
Appraisal
• Developmental
– Improving performance
– Career development
• Administrative
– Salary decisions
– Promotion
– Retention
 Relative & Absolute
Judgments
• Relative
– Ranking
– Forced distribution
• Absolute
– Graphic rating scales
– Behavioral checklists
– Critical incidents
 Scale Formats
Graphic Rating Scale
Quality of Work

1 2 3 4 5
Poor Below Average Good Excellent
Average
Graphic Rating Scale
clearer anchors Quality of Work

1 2 3 4 5
Frequent Passable Usually Errors Accurate
Errors accurate rare
 Trait and Behavioral Data
• Traits
– Personality
– Individual traits
• Behavioral data
– BARS (create dimensions, write critical
incidents, rate critical incidents, form
scales with incidents as anchors
– BOS
 Scale Formats

Behaviorally Anchored Rating Scale For Supervision

5: Can train and develop

subordinates

4: Exhibits respect towards

subordinates

3: Critical of personnel in front of

others
2: Sets a poor example

1: Reneges on promises
 Outcome Data
• Meeting goals
• Quantitative data
– sales
– scrappage
– productivity
 Backwards & Forwards
• Summing up: We began with distinguishing
performance management from performance appraisal.
Legal and strategic issues were considered and the
balance of the session reviewed different rating formats,
their advantages and disadvantages.
• Looking ahead Next time we complete our discussion of
performance management by looking at challenges to
effective performance management, the appraisal
interview, motivation, and performance improvement.