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Chapter 7

BUS 381 Chapter Notes - Chapter 7: Performance Appraisal, Performance Management, Central Tendency

Business Administration
Course Code
BUS 381
Melissa Mc Crae

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Human Resources Chapter 7 Textbook
Performance management
The entire process affecting employee motivation, performance, productivity, and effectiveness
Summative evaluation
Appraisals provide information for promotion and salary decisions
Formative evaluation
Appraisals reveal opportunities for employees to develop goals and action plans for
professional development
The strategic importance of managing performance
The performance management process involves all activities related to enhancing
employee motivation, performance, productivity, and effectiveness
The quality of employees is a effective differentiation strategy for organizations
Better performance management is a largely untapped opportunity to improve
Appraisals provide information for performance improvement, promotion and salary
decisions, career planning, and mentoring
The performance appraisal process
Three steps:
1. Defining performance expectations and standards
2. Appraising employee performance by comparing actual performance to
3. Providing feedback to employees and planning future development
Appraisal problems arise if these three steps are not carefully followed
Performance factors
Key knowledge, skills, and abilities, from an employee’s job description that will be used to
evaluate performance
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