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CHAPTER 7 EVALUATING EMPLOYEE PERFORMANCEThe performance appraisal process can be divided into 10 interrelated stepsStep1: Determine the Reason for Evaluating Employee PerformanceForced-choice rating scales:a method of performance appraisal in which a supervisor is given several behaviors and is forced to choose which of them is most typical of the employee. vast majority of performance appraisal systems are not successful there are many uses and goals for performance appraisal, the most common include:1.Providing Employee Training and Feedback Most important use of performance evaluation is to improve employee performance Performance appraisal review:a meeting between a supervisor and a subordinate for the purpose of discussing performance appraisal results.2.Determining Salary IncreasesBe fairA numerical rather than narrative format is probably needed3.Making Promotion Decision Promoting the best or most senior employee often results in the so-called Peter Principle (the idea that organizations tend to promote good employees until they reach the level at which they are not competent—in other words, their highest level of incompetence) Performance appraisal can provide useful information about an organization’s strengths and weaknesses4.Making Termination Decisions5.Conducting Personnel Research ?test ? training ? ? ? ?effectiveimportant, especially in organizations where union contracts forbid the use of performance evaluations in personnel decisions.Step 2: Identify Environmental and Cultural Limitation the second step in the performance appraisal process is to identify the environmental and cultural factors that could affects the system. ? ? ? ? ? ?? ?
Step 3: Determine Who Will Evaluate Performance360-degree feedback: a performance appraisal system in which feedback is obtained form multiple sources such as supervisors, subordinates, and peers. Is primarily used as a source of training and employee development and is seldom used in the appraisal process to determine salary increases or to make promotion and termination decisions.Multiple-source feedback: a performance appraisal strategy in which an employee receives feedback from sources (e.g. clients, subordinates, peers) other than just his/her supervisor.SupervisorsMore than 90%? ? ? ? ? ,? ? ? ? ?PeersOften see the actual behavior rather than results Fairly reliable only when the peers who make the ratings are similar to and well acquainted with the employees being rated Have been successful in predicting the future success of promoted employees Employees tend to react worse to negative feedback from peers than from expertsSubordinatesAlso called upward feedback Important component of 360-degree feedback With exception of students rating teachersCustomersOrganizations also seek customer feedback in the form of secret shoppers---- current customers who have been enlisted by a company to periodically evaluate the service they receive.