Chapter 11. Performance Management and Appraisal

Objectives

1.       Identify the components of performance management systems.

2.       Distinguish performance management and performance appraisal, and between job criteria and performance standards.

3.       Explain the administrative and developmental uses of performance appraisal.

4.       Describe the advantages and disadvantages of multisource(360) appraisal.

5.       The importance of training managers and employees.

6.       Several rater errors.

“Performance appraisal systems are like seat belt-most people believe they are necessary, but don’t like to use them” – Dick Grote

Performance Management vs. Performance Appraisal

Performance management: Composed of the processes used to identify, measure, communicate, develop, and reward employee performance.

개인의 성과를 식별, 측정, 의사 소통, 개발, 보상 하는 일련의 과정

Performance appraisal: Process of evaluating how well employees perform their jobs and then communicating that information to the employees. Iis also called Employee rating, employee evaluation, performance reviews, performance evaluation

Cf. Job evaluation: A compensation activities identifying the importance of jobs, whereas performance appraisal focuses on the actual performance of individuals and managers. 직무의 중요성을 식별하기 위한 보상 활동. 반면에 성과평가는 개인과 평가자들의 실제 성과에 중점을 둔다.

Performance Management à Performance Appraisals à Performance Feedback à Performance Rewards and Development

Employee Performance (Identifying and Measuring)

Performance: Quantity of output, Quality of output, Timeliness of output, Presence at work.

Job criteria: Important element in a given job. Dimension of job performance. Identified from well-written job descriptions that contain the most important factors of individual jobs.

Type of Performance Information: Trait-based information, Behavior-based information, Result-based information. Cf. Objective or Subjective(성과를 직접 관측 혹은 결정하기 쉬운지 아닌지에 따라)

Measuring performance requires the user of relevant criteria that focus on the most important aspects of employees’ jobs.

Performance Standards: Expected Levels of performance. Benchmarks, goals, targets. It can be set by managers, employees, or others such as quality control inspectors and financial analysts.

Legal Concerns

: How job related the performance appraisal is.

Performance appraisal criteria based on job analysis.

Absence of disparate impact and evidence of validity.

…

Uses of Performance Appraisals

Administrative: To provide a measure of performance for consideration in making pay or other administrative decision about employees.

Developmental: A primary source of information and feedback, which are often to their future development.

Decisions For Effective Performance Appraisal Process

Responsibilities of HR Unit and Manager: Figure 11-5

Informal vs. Systematic Appraisal Process: 다음 단락의 Method for appraising performance 와 연관.

Timing of Appraisal: 평가의 주기

Who Conduct Appraisal

Supervisory Rating of Subordinates

Employee Rating of Managers

Team/Peer Rating

Self-Rating

Outsider Rating

Multisource/360 Feedback-직무의 수가 늘어나고 성과가 입체적이고 또한 여러 부서 혹은 조직에 걸쳐져 있을 경우, 특히 글로벌 환경에서 요구됨. Figure 11-7.

Methods For Appraising Performance

Category Scaling Method: Graphical Rating Scales, Behavioral Rating Scales

Comparative Methods: Ranking, Forced Distribution

Narratives Methods: Critical Incident, Essay

MBO(Management by Objectives)

Combinations of Methods

Training of Managers and Employees

성과 평가에 있어서 일련의 법원의 결정들과 평가의 효율성에 관련한 조사에서 평가자와 피평가자의 교육의 중요성을 더욱 강조되고 있다. 특히 최근에 승진 하거나 평가자로서 경험이 없는 경우에 더욱 필수적이다.

Rater Error

Varying Standards: Different standards and expectations for employees performing similar jobs.

Recency and Primary Effect: 최신효과, 초두효과

Central Tendency: 중심경향

Leniency and Strictness Errors: 관대함과 엄격함

Rater Bias: A raters values of prejudices distort the rating.

Halo and Horn Effect: 후광효과, 뿔?효과

Contrast Error: To rate people relative to others rather than against performance standards.

Similar to Me/Difference from Me Error

Sampling Error: 잘못된 sample 을 선택할 통계적 오류

Appraisal Feedback

Appraisal Interview: Figure 11-13 Interview 시 해야 할 것과 하지 말아야 할 것

Feedback as a System: data à evaluation of that data à subsequent action based on the evaluation

Reactions of Manager

Reactions of Appraised Employees

Effective Performance Management

Done well, performance management can lead to higher employee motivation and satisfaction. To be effectives….

Consistent with the strategic mission of the organization

Beneficial as a development tool

….