Part three

Training and Development

There are three topics in this part
• Training and Developing Employees
• Performance Management and Appraisal
• Employee Retention, Engagement, and Careers
Topic 2
Performance Management and Appraisal
Learning Objectives (6)
• Define performance appraisal and performance management, and discuss how
they differ from each other
• Describe the appraisal process
• Set effective performance appraisal standards
• Develop, evaluate, and administer various performance appraisal tools
• Discuss the pros and cons of using different raters to appraise a person’s
performance
• Explain and illustrate the problems to avoid in appraising performance
Performance Appraisal
• Performance appraisal means evaluating an employee’s current and/or past
performance relative to his or her performance standards.
• Effective appraisal requires that the supervisor set performance standards;
• Effective appraisals begin before the actual appraisal, with the manager defining the
employee’s job and performance criteria.
• Defining the job means making sure that you and your subordinate agree on job duties and
standards and on the appraisal method will use.

• Effective appraisal also requires that employee receives the training, feedback,
and incentives required to eliminate performance deficiencies.
Performance Appraisal
• Performance appraisal means evaluating an employee’s current and/or past
performance relative to his or her performance standards.
• Effective appraisal requires that the supervisor set performance standards;
• Effective appraisals begin before the actual appraisal, with the manager defining the
employee’s job and performance criteria.
• Defining the job means making sure that you and your subordinate agree on job duties and
standards and on the appraisal method will use.

• Effective appraisal also requires that employee receives the training, feedback,
and incentives required to eliminate performance deficiencies.
Performance Appraisal Process
3-step performance appraisal process
• (1) setting work standards;
• (2) assessing the employee’s actual performance relative to those standards;
• (3) providing feedback to the employee with the aim of helping him or her to
eliminate performance deficiencies or to continue to perform above par.
 Short Video Sharing!!
(Performance
Why Appraise Performance Management)

• First, most employers still base pay, promotion, and retention decisions on the
employee’s appraisal.
• Second, appraisals play a central role in the employer’s performance management
process.
• Performance management means continuously making sure that each employee’s and team’s
performance makes sense in terms of the company’s overall goals. (Continuous feedback &
strategically related performance criteria)

• Third, the appraisal lets you and the subordinate develop a plan for correcting any
deficiencies, and to reinforce the things the subordinate does right.
Why Appraise Performance
• Fourth, appraisals should facilitate career planning. They provide an opportunity
to review the employee’s career plans in light of his or her displayed strengths
and weaknesses.
• Finally, supervisors use appraisals to identify employees’ training and
development needs.
• The appraisal should enable the supervisor to identify if there is a “performance gap” between
the employee’s performance and his or her standards.
How to set effective goals and standards
Assign specific goals
• Employees who receive specific goals usually perform better than those who do not.

Assign measurable goals

• Put goals in quantitative terms and include target dates or deadlines.

Assign challenging but doable goals

• Goals should be challenging, but not so difficult that they appear impossible or unrealistic.

Encourage participation
• You also can set performance appraisal standards by using job descriptions!!!
Who should do the appraising?
• Direct Supervisor
• Colleagues
• Committees
• Self-rating
• Subordinates
• Customers
360-degree Feedback
• With 360-degree feedback, the employer collects performance information all
around an employee—from his or her supervisors, subordinates, peers, and
internal or external customers—generally for developmental rather than pay
purposes.
• The usual process is: to have the raters complete online appraisal surveys on the
ratee (see picture). Computerized systems then compile all this feedback into
individualized reports to ratees. The person may then meet with his or her
supervisor to develop a self-improvement plan.
360-degree Feedback
• With 360-degree feedback, the employer collects performance information all
around an employee—from his or her supervisors, subordinates, peers, and
internal or external customers—generally for developmental rather than pay
purposes.
• The usual process is: to have the raters complete online appraisal surveys on the
ratee (see picture). Computerized systems then compile all this feedback into
individualized reports to ratees. The person may then meet with his or her
supervisor to develop a self-improvement plan.
Techniques for Appraising Performance
• Graphic rating scale
• The graphic rating scale is the simplest and most popular method for appraising performance.
Techniques for Appraising Performance
• Alternation Ranking Method
• Ranking employees from best to worst on a trait or traits.
Techniques for Appraising Performance
• Paired Comparison Method
• The paired comparison method helps make the ranking method more precise.
• For every trait (quantity of work, quality of work, and so on), you pair and compare every
subordinate with every other subordinate.
Techniques for Appraising Performance
• Forced Distribution Method
• The forced distribution method is similar to grading on a curve. With this method, you place
predetermined percentages of ratees into several performance categories.
• A+ (less than 10%), A, B+, B, C+, C, D, F
Techniques for Appraising Performance
• Critical Incident Method
• With the critical incident method, the supervisor keeps a log of positive and negative
examples (critical incidents) of a subordinate’s work-related behavior. Every 6 months or so,
supervisor and subordinate meet to discuss the latter’s performance, using the incidents as
examples.
Techniques for Appraising Performance
• Narrative Forms
Techniques for Appraising Performance
• Behaviorally Anchored Rating Scales
• A behaviorally anchored rating scale (BARS) is an appraisal tool that anchors a numerical
rating scale with specific illustrative examples of good or poor performance.
Techniques for Appraising Performance
• Electronic Performance Monitoring
• Electronic performance monitoring (EPM) systems use computer network technology to
allow managers to monitor their employees’ computers.
• They allow managers to monitor the employees’ rate, accuracy, and time spent working online.

Suppliers, customers and platforms are monitoring performance of

delivery guys via systems.
Potential Appraisal Problems
• Unclear standards
• Halo Effect
• “the influence of a rater’s general impression on ratings of specific ratee qualities.”

• Central Tendency
• Central tendency means rating all employees average.

• Leniency or Strictness
• Recency Effects
• The recency effect means letting what the employee has done recently blind you to what his
or her performance has been over the year.
Potential Appraisal Problems
• Bias
• Personality and Ratings?
• conscientiousness (strict); agreeableness (generous)
• Personal characteristics (such as age, race, and sex) also affect ratings.
• e.g., a 36-year-old supervisor ranked a 55-year-old subordinate at the bottom of the department’s
rankings, and then fired him.

Short Video Sharing!!

(5 success factors of a
performance appraisal)
In-class exercise: Grading lecturer’s performance
• Please set performance standards for lecturers in College of Management, SZU
• From a perspective of students