What specific factors influenced Laverne? How could Laverne have approached the supervisors differently? 3. What specific steps should Laverne now take with each supervisor to ensure that he or she improves employee performance in each respective unit?
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1.Describe general performance appraisal issues and summarize the functions of performance appraisals.
2. Identify and discuss potential problems with performance appraisals.
3.Describe the principal types of rating systems used in appraising
Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance
employee performance.
4.Describe commonly used methods of appraising performance.
5. Identify who should evaluate performance, and discuss objectives for programs that train managers and supervisors to conduct performance appraisals.
6.Discuss how often performance appraisals should be conducted, identify legal issues relating to performance appraisals, and summarize keys to developing an effective employee appraisal system.
Performance Management
• A systematic process by which managers help employees to improve their ability to achieve goals.
f l dPerformance management includes: – Planning work and setting expectations – Continually monitoring performance – Developing employee skills – Periodically appraising performance in an objective manner
– Rewarding good performance
Performance Management Employee Appraisal
• An objective and comprehensive rating or evaluation of employees.
Successful performance appraisal programs include:include: – Performance goals set by supervisors and employees.
– Regular, informal feedback from supervisors. – A formal method to address performance or disciplinary problems.
– Regular and formal appraisal.
Performance Appraisal Issues
• Mismanagement can cause resentment and resistance
• Managers must realize that both managers and employees are subject to human conditionsemployees are subject to human conditions that affect performance appraisals
• Managers should also comment on the positive aspects of an employee’s performance
Functions of Performance Appraisals • Basically fill two kinds of needs in organizations: – improving work performance – making work‐related decisions
• The purpose is to give employees feedback – reinforce or encourage performance – help employees develop in their careers
• Appraisals should be designed with a specific purpose in mind
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Performance Feedback
• To be successful, feedback should contain – No surprises – Employee Involvement – Primarily objective dataPrimarily objective data
Decision Making and Evaluation Tool
• Provide an effective way to link rewards and discipline to performance
• Provide a basis for compensation, promotion, transfer, grievance, or discipline decisionsg p
• Can be used to measure the effectiveness of training – if the employee is evaluated both before and after the training
• Can serve as an evaluation for new policies
Validation of Selection Process
• May help establish predictive validity – the extent to which a measurement predicts future behavior, of selection methods
• Construct validity – appraisals must measure what they intend to
• Content validity – appraisals must measure the entire issue
• Consistency – it is important to look for consistency rather than just focusing on one or two particular points in time
Bias
• Leniency errors – occur when managers or interviewers rate an employee too positively
• Severity errors – occur when managers or interviewers rate employees too severely
• Central tendency errors – occur when managers or interviewers rate all or most employees as average
More Possible Bias • Recency errors
– when managers base employee ratings primarily on the most recent events or behaviors
• Past anchoring errors – when rate employees on the basis of previous ratings
• Halo errors – when managers rate employees on the basis of a single positive attribute
Principal Appraisal Rating Systems
• Trait‐based ratings – used primarily to assess the personal characteristics of employees
• Behavior‐based ratingsg – assess employees on their behaviors rather than on personal characteristics.
• Results‐based ratings – focused on measuring the extent to which employees accomplish results
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• Ranking methods • Forced distribution • Graphic rating scale
Methods of Appraising Performance
• BARS ‐ Behavioral anchored rating scales • Narrative essays • Critical incidents • MBO ‐ Management by objectives
Ranking Methods
• Simple ranking – rank all employees from best to worst – does not distinguish between different aspects of job responsibilities
• Alternative ranking – list each employee on a separate piece of paper and order them from best to last
• Paired comparisons – directly compare employees to one another on each job criterion
• Ranking methods • Forced distribution • Graphic rating scale
Methods of Appraising Performance
• BARS ‐ Behavioral anchored rating scales • Narrative essays • Critical incidents • MBO ‐ Management by objectives
• Ranking methods • Forced distribution • Graphic rating scale
Methods of Appraising Performance
• BARS ‐ Behavioral anchored rating scales • Narrative essays • Critical incidents • MBO ‐ Management by objectives
Methods of Appraising Performance Methods of Appraising Performance
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Methods of Appraising Performance Other Methods of Evaluating Performance
• Peer evaluations • Staff appraisals of managers • Self appraisals• Self‐appraisals • Guest appraisals • Multiple rater evaluations
– 360 degree appraisal
Supervisors as Appraisers
• May have little to no contact with the employees he or she evaluates
• Immediate supervisors make vastly superior assessments when compared with those of a second‐ level supervisor
• Bosses in a bad mood are more likely to issue negative performance appraisals
• Subconscious stereotypes that managers hold regarding race, age, attractiveness, and other attributes directly affect their appraisals
Frequency
• Once or twice per year is norm • Difficult to remember events and behaviors that occurred
• Goal should be quarterly• Goal should be quarterly • Performance appraisals are most effective when used often
Content Issues
• Performance standards must be based on job analysis
• Evaluations based on specific dimensions of job performancejob performance
• Performance standards should be objective and observable
• Ratings should be documented • Validity of appraiser’s ratings should be assessed
Process Issues • Performance standards must be communicated to and understood by employees
• Specific instructions for appraisals should be in writing
• More than one appraiser should be used • Appraisers should review results with employees
• Have process clear for formal appeals