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HRM 2600 Lecture Notes - Specific Performance, Standard Scale, Balanced Scorecard

6 pages111 viewsWinter 2012

Human Resources Management
Course Code
HRM 2600
Ron Ophir

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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
- Provide performance feedback
- Individual strengths/weaknesses
- Reinforce authority structure
- Improve communication
- 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
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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
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.
- Appraisal done by the employee being evaluated, generally on an appraisal form completed by the
employee prior to the performance interview.
Peer Appraisal
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