Chapter 7 Notes - Chapter 7 Performance Appraisal The Key...

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Chapter 7 – Performance Appraisal: The Key to Effective Performance Management The Strategic Importance of Managing Performance – The performance management process should link performance criteria to current strategic objectives and implementation plans Performance Management: the entire process affecting employee motivation, performance, productivity, and effectiveness. Appraisals provide a systematic way to look back and look forward Summative Evaluation: appraisals provide information for promotion and salary decisions. Formative Evaluation: appraisals reveal opportunities for employees to develop goals and action plans for professional development. The role of the line manager and HR department in performance appraisal The line manager does the actual appraising HR department develops policies and procedures that support the performance appraisal process and serves as an advisory capacity to line managers The HR department is also in charge of monitoring the appraisal system’s use and ensuring that the format and criteria being measured comply with human rights laws The Performance Appraisal Process – Challenges with performance appraisals Employees are not told ahead of time exactly what is expected of them in terms of good performance and managers are not trained to manage the performance appraisal process Problems with the method used to appraise performance or how managers complete the appraisal form Problems regarding the feedback stage not communicating effectively, turning the session into an argument Some believe that most appraisal systems do not motivate employees or guide their development Steps in appraising performance 1. Defining Performance Expectations: making sure that job duties and standards of performance are clear to all. 2. Appraising Performance: comparing an employee’s actual performance to the standards that have been set. 3. Providing Feedback: sessions in which the employee’s performance and progress are discussed and plans are made for any development that is required.
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Step 1: Defining Performance Expectations – Performance Factors: key knowledge, skills, and abilities from an employee’s job description that will be used to evaluate performance. Performance Standards: quantifiable and measurable criteria that communicate how well, how often, and how quickly tasks are to be completed. Criterion Deficiency: omission of performance factors that are integral to job success. Criterion Contamination: inclusion of performance factors that are not relevant or are outside the employee’s control.
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