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Resource Management
Eighth Edition
Chapter 10
Establishing the Performance Management System
Introduction
Employees generally see performance
evaluations as having a direct effect on
their work lives.
The performance management
systems need to include:
decisions about who should evaluate
performance
what format should be used
how the results should be utilized
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Performance Management
Systems
Purposes of a Performance
Management System
Feedback - let employees know how well
they have done and allow for employee
input.
Development identify areas in which
employees have deficiencies or
weaknesses.
Documentation - to meet legal
requirements.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
Performance Management
Systems
Difficulties in Performance
Management Systems
Focus on the individual: Discussions of
performance may elicit strong emotions
and may generate conflicts when
subordinates and supervisors do not
agree.
Performance Management
Systems
Difficulties in Performance
Management Systems
Focus on the process: Company policies
and procedures may present barriers to a
properly functioning appraisal process.
Additionally, appraisers may be poorly
trained.
Communication of performance
standards to employee.
Appraisal Methods
Three approaches:
Absolute standards
Relative standards
Objectives
Appraisal Methods
Evaluating absolute standards:
An employees performance is
measured against established
standards.
Evaluation is independent of any other
employee.
Appraisal Methods
Evaluating absolute standards:
Essay Appraisal: Appraiser writes
narrative describing employee
performance & suggestions.
Critical Incident Appraisal: Based on key
behavior anecdotes illustrating effective or
ineffective job performance.
Appraisal Methods
Evaluating absolute standards:
Checklist Appraisal: Appraiser checks off
behaviors that apply to the employee.
Adjective Rating Scale Appraisal:
Appraiser rates employee on a number of
job-related factors.
Appraisal Methods
Relative standards:
Employees are evaluated by comparing
their performance to the performance of
other employees.
Appraisal Methods
Relative standards:
Group Order Ranking: Employees are
placed in a classification reflecting their
relative performance, such as top onefifth.
Appraisal Methods
Relative standards:
Individual Ranking: Employees
are ranked from highest to
lowest.
Paired Comparison:
Each individual is compared to
every other.
Final ranking is based on number
of times the individual is preferred
member in a pair.
International Performance
Appraisal
Who performs the evaluation?
Different cultural perspectives and
expectations between the parent and local
country may make evaluation difficult.
Evaluation forms may not be translated
accurately.
Quantitative measures may be misleading.
International Performance
Appraisal
Evaluation Formats
May make sense to use different forms for
parent-country nationals and host-country
nationals.
Performance criteria for a particular
position should be modified to fit the
overseas position and site.
Include a current expatriates insights as
part of the evaluation.