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ADMS 2600 - 8.docx

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Human Resources Management
HRM 2600
Ron Ophir

Ch. 8 - Appraising and Improving Performance Performance Appraisal includes paperwork; difficult to take emotions out of the performance appraisal - A process, performed annually by a superior for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success Performance Development includes an on-going theme, retention issues, and total compensation package – part of Performance Management piece (managers create program to influence employees to improve them and to motivate them to perform at a higher level) - The process of creating a work environment in which people can perform to the best of their abilities Development - Provide performance feedback - Individual strengths/weaknesses - Reinforce authority structure - Improve communication Administrative - Document personnel decisions - Promotion candidates - Decide on layoffs - Personnel planning *Performance Appraisal and Other HRM Functions (How does performance appraisal relate to other parts of HR?) Recruitment – performance appraisal judge effectiveness of recruitment efforts/ quality of applicants determines feasible performance standards Selection – performance appraisal validates selection function/ selection should produce workers best able to meet job requirements Training and Development – performance appraisal determines training needs/ training and development aids achievement of performance standards Compensation Management – performance appraisal is a factor in determining pay/ compensation can affect appraisal of performance Labour Relations – performance appraisal justifies personnel actions/ appraisal standards and methods may be subject to negotiation Reasons Appraisal Programs Sometimes Fail - Lack of top-management information and support - Unclear performance standards - Difficult to give negative feedback - Use of the appraisal program for conflicting (political) purposes Developing an Effective Appraisal Program Strategic Relevance: individual standards directly relate to strategic goals. For example: are the employees willing to travel to different countries to work? Criterion Deficiency: Standards capture all of an individual’s contributions. For example: how well they perform the job Criterion Contamination: Performance capability is not reduced by external factors. The external factors breeding into the performance appraisal. Reliability (Consistency): standards are quantifiable, measurable, and stable. Guidelines for Appraisals - Performance ratings must be job-related - Employees must be given a written copy of their job standards in advance of appraisals - Managers who conduct the appraisal must be able to observe the behaviour they are rating - Supervisors must be trained to use the appraisal form correctly - Appraisals should be discussed openly with employees and counselling or corrective guidance offered Sources of Performance Appraisal Manager and/or Supervisor - Appraisal done by an employee’s manager and reviewed by a manager one level higher. Subordinate Appraisal - Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes. Self-Appraisal - Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview. Peer Appraisal - Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager - Why peer appraisals are not used more often: - 1. Peer ratings are simply a popularity - 2. Managers are reluctant to give up control over the appraisal process. - 3. Those receiving low ratings might retaliate against their peers. - 4. Peers rely on stereotypes in ratingsw 360-Degree Performance Appraisal System - Assure anonymity - Make respondents accountable - Prevent “gaming” of the system - Use statistical procedures - Identify and quantify biases Training Performance Appraisers Common rater-related errors - Error of c
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