Human resource exam

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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 employee performance.

4. Describe commonly used methods of appraising performance.

Managing Hospitality Human Resources Chapter 7: Evaluating Employee 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.

Employee Appraisal

• An objective and comprehensive rating or evaluation of employees.

Successful performance appraisal programs 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 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

Performance Feedback

• To be successful, feedback should contain – No surprises – Employee Involvement – Primarily 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 decisions

• 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

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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 ratings – assess employees on their behaviors rather than

on personal characteristics.

• Results-based ratings – focused on measuring the extent to which

employees accomplish results

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

Other Methods of Evaluating Performance

• Peer evaluations • Staff appraisals of managers • Self-appraisals • Guest appraisals • Multiple rater evaluations

– 360 degree appraisal

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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 • 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 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