CHAPTER 10: PERFORMANCE APPRAISAL

AND CAREER MANAGEMENT

Enguas, Gabrielle
Guillermo, Aldrin
Tambio, Ailen Rose
Cabang, Glenn Louis
Cerda, Princess

GROUP 6
PERFORMANCE APPRAISAL
AND CAREER MANAGEMENT
Performance Appraisal Performance
Management

• The specific and formal  The general set of activities

evaluation of an employee
to determine the degree to
which the employee is
performing his or her job
effectively.
carried out by the
organization to
change(improve) employee
performance.
 Why Organizations conduct
performance appraisals

• Organizations hope to achieve several

goals with performance appraisals.
 Importance of Performance
Appraisals
• Appraisal results provide a benchmark for assessing the extent wo
which recruiting and selection process are adequate.
• Performance appraisals are also important for legal reasons.
• Appraisals play a role as part of the larger performance-
management process.
• Performance-appraisal information should be the basis of incentive
pay systems and other performance-management interventions
designed to improve motivation and performance.
 Goals of Performance Appraisal
• Valid and reliable
• Improve performance on job
• Organization’s ability to make decisions about
things such as raises and promotions
• Employees should also gain a clear understanding
 The Role of the
Organization
Organizational roles are a
method of providing service
entitlements to person entities
within the system. If person
entities are assigned to
an organizational role,
managed resources available
to the role then become
available to the person entities
in that role.
 The Role of the Rater

The rater (traditionally and most typically the supervisor

of the employee being appraised) plays the greatest role
in the appraisal process. As performance information is
acquired about the ratee, the rater also has to compare
the information acquired with these standards as a way
of evaluating the employee.
 The Role of the Ratee
r also has to compare the information acquired with these
standards as a way of evaluating the employee.C) Role of
the rate: For performance appraisals to work more
efficiently, a ratee should have a clear andunbiased view of
his or her performance
 Who Performs the
Performance Appraisal?
Another aspect of performance appraisal is the determination of
who conducts the appraisal and what information will be used.

SOURCES OF INFORMATION FOR PERFORMANCE APPRAISAL

Supervis
or

Self-
apprais
Pee
al
The
rs
Ratee

Subordinat custome
es rs
 Who Performs the
Performance Appraisal?

360 - Degree Appraisal

• performance information
is gathered from people
on all sides of the
manager: above, beside,
below, and so forth.
 What Get’s Rated?
The choices of appraisal instruments is related to this issue
because some systems are clearly designed to measure some
aspects of performance rather than others. But the decision of
what to rate should be based more on the needs of the
organization than on the choice of rating instrument. There are
three most common factors encountered:

 Traits
 Behavior
 Outcomes
 Who Should be Rated?
Final issue to consider is exactly who should be rated in the
appraisal process. Specifically, this issue is connected with
the use of work teams. With work teams, the organization
must decide whether to evaluate individual performance or
team performance, and this issue can be quite complicated.
 METHOD FOR APPRAISAING
PERFORMANCE
Ranking Methods V.S. Rating Methods
Simple Ranking Method
• Involves having the manager rank order
each member of a particular work group or
department from top to bottom or from
best to worst.
Paired-comparison Method
• Each individual employee is compared with
every other individual employee, two at a
time.
 Ranking Methods V.S. Rating Methods

The Forced-Distribution
Method
• Involves grouping employees
into predefined frequencies of
performance ratings.
 Specific Rating Method
Graphic Rating Scale
• Consists of a statement or question about some aspect of
an individual's job performance.
 Specific Rating Method
The Critical Incident Method
• Relies on instances of especially good or poor performance on the
part of the employee.

Behaviorally Anchored Rating Scale (BARS)

• An appraisal system that represents a combination of the graphic
rating scale and the critical incident method.
 Specific Rating Method
Behavioral Observation Scale (BOS)
• Developed from critical incidents like a BARS but uses
substantially more critical incidents to define specifically all
the measures necessary for effective performance.
 Specific Rating Method
Goal-Based or Management-
by-Objectives (MBO) System
• Based largely on the extent
to which individuals meet
their personal performance
objectives.

• Contrast Errors - occurs

when we compare people
against one another instead
of against an objective
standard.
 Which System is Best?
It is difficult to suggest which system is best because it is
difficult to predict how a set of employees will react to a given
system. The HR manager must take what is known about
each type of system and decide how well the system fits into
the culture and operations of the organization.
 Other issues in
performance appraisal
 10-4a. rating errors

 In conducting performance appraisals, manager must be careful to avoid

making rating errors.
 There are different type of rating errors: contrast error, distributional
error, central tendency, and halo error.
 Contrast error
• It occurs when we compare people against one another
instead of against an objective standard.

Distributional Error
• Occurs when the rater tends to use only one part of the
rating.
• Sometimes distributional error may be severity, which
occurs when the manager gives low ratings to all
employees by holding them to an unreasonable high
standard.
• Opposite error: Leniency, which occurs when a
manager assigns relatively high or lenient ratings to all
employees.
 10.4B contextual performance
Why context is important in the performance appraisal
process?

• Any organization’s success is determined by a combination

of various factors that need to fall in place at the right point
of time. One of them is the performance appraisal process.
To make sure that employees are performing at optimum
levels, it is recommended that their performance be
evaluated from time to time. It helps both the management
and employees understand the current level of employee
performance and compare it with the standard level of
performance.
10.4b legal issues in performance appraisal

• We all know that performance appraisals can be

problematic because of issues that exist regarding the
accuracy of them. Another world of issues arise when we
talk about the legal issues that can be brought up
because of performance appraisals. Legal issues can cost
organizations hundreds of thousands of dollars in court
costs, and even in instances where they win the case,
there are still court costs and the negative image of your
company name in court cases.
10-5 The Nature of
Careers
10-5a: The Meaning of Careers

 Careers – is a set
of experiences and
activities that people
engage in related to
their job and livelihood
over the course of
their working life.
The Traditional Model of Career Stages
 10-5b: Traditional Career Stages
 Exploration – During this period in people’s lives, they try to
identify the kind of work they are interested in doing.
 It generally encompasses the time when he tries to assess his own
interests, values, preferences, and career opportunities and to
relate them what he thinks represent a feasible career option.
 10-5b: Traditional Career Stages
 Establishment – involves creating a meaningful and relevant
role in the organization.
10-5b: Traditional Career Stages

 Maintenance –
involves optimizing talents
or capabilities.
 10-5b: Traditional Career Stages
 Disengagement – involves the individual gradually
beginning to pull away from work in the organization. Priorities change,
and work may become less important.
10-5c: New Views of Career Stages
10-5d: Issues Facing Older Workers And The Decision
To Retire
 Eventually, older workers must confront
the decision to retire.
 More commonly, individuals retire and
then take on
full-time work at other organizations, or
retire and take on part-time work, or
work as a consultant.
 Individuals are likely to retire when they
have the financial resources needed to
maintain their
pre-retirement lifestyles.
 They may also retire when their health
makes work burdensome.
 The Importance of
Career Planning
Career planning is clearly important to both
organization and employees. Furthermore,
effective career planning requires careful
coordination between individual employees and
the organization itself.
1. In the Individual assessment phase.
Individuals need to analyse carefully what they perceive to be
their own abilities , competencies, skills and goals.
2. The HR manager should be developing a potential career path
an employee may take up the corporate ladder.
3. Communication is also an important part of this process
4. The final step in effective career planning is career counselling .
Career Development Issues and Challenges

 Many organizations that are sincerely interested

in more effective career management for their
employees deal and address various issues
amd challenges.
 Career- Counseling Programs

 Career-counseling program are important to an organization

interested in career development for its employees.

 Formal career-counselling program usually take the form of

workshop, conferences, and career-development centers.
 Evaluating Career-Management Activities

 The ultimate goals of career management are to have

employees reach their full potential work, enjoy
productive and satisfying work careers and then make
a successful transition to retirement.
 THANK YOU
AND
GOD BLESS US ALL!