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Chapter 10

MHR 523 Chapter Notes - Chapter 10: Performance Appraisal, Career Development

Human Resources
Course Code
MHR 523
Margaret Yap

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Chapter 10 Performance Management
The Strategic Importance of Performance Management
Performance management process encompassing all activities related to improving
performance, productivity, and effectiveness of employees. It includes goal setting,
pay for performance, training and development, career management, and
disciplinary action.
Performance appraisal process is the foundation of performance management
The Performance Management Process
Step 1 Defining Performance Expectations
Should be linked to current strategic goals and implementation plans
Job description is often not sufficient to clarify
Step 2 Providing ongoing coaching and feedback
Two-way communication is important
Employees are responsible for monitoring their own performance and asking for help
Step 3 Performance appraisal and evaluation discussion
Formal appraisal methods:
oGraphic rating scale simplest, most popular. It lists traits and range of
performance values. The supervisor rates employees by circling/checking
oAlternation ranking method ranking employees from best to worst on a
particular trait
oPaired Comparison method for each trait, every employee is paired with and
compared with every other employee
oForced distribution method places predetermined percentage of rates in
performance categories. Not everyone can be excellent, performance is
relative to others.
oCritical incident method supervisor keeps log of desirable and undesirable
examples of each employees work related behavior. Meets every 6 months or
so to discuss. This method is a good supplement to other methods.
oNarrative forms pg. 274 for example
oBehaviorally anchored rating scales (BARs) aims to combine benefits of
narrative, critical incidents, and quantified ratings by anchoring a quantified
scale with specific narrative. Example: good and poor performance.
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