4 paragraphs
kemm10
10464_4224795_Classnote8.pptx
9
Learning Outcomes
Distinguish formal performance appraisals from employee feedback.
Describe at least five appraisal techniques.
Explain the criteria that make a performance appraisal legally defensible, and discuss the importance of record keeping and confidentiality.
Describe steps that can be taken to make the appraisal system relevant.
Appraising and Rewarding Performance
Chapter 9
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
9
Learning Outcomes
Explain why performance appraisals should include both quantitative and qualitative measures.
Describe factors that influence compensation and the three basic types of decisions for designing a compensation system.
Compare individualized and team rewards and provide examples of each.
Appraising and Rewarding Performance
Chapter 9
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
9
Performance Appraisal
Making the Appraisal System Relevant
Performance Measures
Compensation
Appraising and Rewarding Performance
Chapter 9
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Performance appraisal
The process of evaluating individual job performance as the basis for personnel decisions
Employee feedback
Spontaneous feedback on performance
Performance Appraisal
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Goal Setting (Management by Objectives)
Essays
Critical Incidents
Behaviorally Anchored Rating Scales (BARS)
Weighted Checklists
Performance Appraisal Techniques
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Forced Ranking System
Multirater Appraisal
Continuous Improvement Review (CIR)
Performance Appraisal Techniques
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
A Forced Ranking Item
Figure 9.2
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Criteria that can help an employer defend its appraisal systems:
Use a job analysis to develop the performance appraisal system
Use a behavior-oriented appraisal system
Making Performance Appraisals Legally Defensible
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Criteria that can help an employer defend its appraisal systems:
Follow specific written instructions when conducting appraisals.
Review the results of appraisals with employees being evaluated.
Making Performance Appraisals Legally Defensible
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Record Keeping and Confidentiality
Evaluators should observe performance frequently and regularly throughout the time period covered by the evaluation.
All communication regarding performance should be kept confidential.
Making Performance Appraisals Legally Defensible
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Record Keeping and Confidentiality
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Tell Employees What to Expect
Emphasize Performance Goals
Encourage a Productive Discussion
Making the Appraisal System Relevant
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Quantitative measures
Focus on productivity or results that can be counted or measured
Qualitative measures
Focus on the level of excellence of a product or service
Performance Measures
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Prepare employees for today’s appraisal by agreeing on written performance goals at the beginning of the evaluation period.
Continue the preparation by discussing progress toward goals in a comfortable coaching setting throughout the evaluation period.
Begin today’s discussion by indicating you would like it to be similar to the discussions the two of you have had over the past year. This step is designed to make the employee more comfortable and prevent or reduce stress.
Ten Tips for Effective Performance Appraisals
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Briefly talk about the agreed-on goals and earlier discussions of progress toward those goals.
Encourage the employee to describe what he or she thinks were his or her most significant accomplishments over the entire evaluation period. Make it obvious you are listening carefully. State your agreement (if you agree), and indicate the employee should take pride in the accomplishments.
Discuss the most positive aspects first. Compliment the employee on those items that represent growth and progress.
Ten Tips for Effective Performance Appraisals
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Follow up by discussing items in which some progress was noted, but perhaps not as much as desired.
Ask the employee what support, training, or resources are needed, if any, to help achieve these goals at a higher level.
Use a problem-solving approach to move toward discussing areas of needed improvement, and ask the employee for suggestions on ways to improve.
Summarize key points, again recognizing positive contributions and thanking the employee for them. Express optimism and confidence about the future. Encourage the employee to begin thinking about goals for the next evaluation period.
Ten Tips for Effective Performance Appraisals
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Performance Measures
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
External Factors
Employment laws
Labor market
Geographical area
Economy
Factors Influencing Compensation
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Internal Factors
Corporate culture and philosophy
Performance
Experience and/or education
Potential
Factors Influencing Compensation
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Salary Structure
Pay Variability or Flexibility
Level of Pay
Designing Compensation Systems
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Examples of individual employee benefits:
Insurance programs
Fully compensated absences
Retirement and stock ownership plans
Employer-provided services
Extrinsic Rewards
Intrinsic Rewards
Benefits
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Team Rewards
Identical rewards given to team members to recognize team-based goal achievement
Individualized Rewards: Beyond the Annual Pay Raise
Rewards that are unique and of significant value to the employee
Rewards
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Key Terms
360-degree review
behaviorally anchored rating scales (BARS)
benchmarking peers
cafeteria-style benefits
compensable factors
compensation
confidentiality
continuous improvement review (CIR)
critical incidents
extrinsic rewards
forced ranking system
individualized rewards
intrinsic rewards
job evaluation
level of pay
management by objectives (MBO)
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
Key Terms
pay structure
pay variability
performance appraisal
performance measures
qualitative measures
quantitative measures
team rewards
weighted checklist
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Chapter 9
Slide ‹#›
Administrative Management © 2015 Cengage Learning. All Rights Reserved.
Slide ‹#›
Chapter 4
