Developing\u00a0an Appropriate Appraisal Process<\/h3>\r\n
The performance planning and appraisal process is shown and described below.<\/p>\r\n\r\n[caption id=\"attachment_1155\" align=\"aligncenter\" width=\"428\"]![\"The](\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/19161130\/5a896abea265add0cecbdb170d59d6019bc04fc6.png\")
Figure 1. Performance Planning and Evaluation (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)[\/caption]\r\n\r\n
- \r\n\t
- The manager establishes performance standards.<\/li>\r\n\t
- The employee works to meet the standards and expectations.<\/li>\r\n\t
- The employee\u2019s supervisor evaluates the employee\u2019s work in terms of quality and quantity of output and various characteristics such as job knowledge, initiative, relationships with others, and attendance and punctuality.<\/li>\r\n\t
- Following the performance evaluation, reward (pay raise) and job change (promotion) decisions can be made. If work is unsatisfactory, the employee may be put on a performance improvement plan, which outlines the behaviors or performance that must be improved, the milestones and time periods to improve performance, and what will occur if performance is not improved.<\/li>\r\n\t
- Rewards are positive feedback and provide reinforcement, or encouragement, for the employee to continue improving their performance.<\/li>\r\n<\/ol>\r\n
It was once common practice for performance appraisals to be conducted on an annual basis, but most companies have moved away from that standard. Instead, managers are encouraged to provide employees with continuous real-time feedback so that skill development and job performance can be improved more rapidly.<\/p>\r\n
One significant problem in creating an appraisal process is that no single performance appraisal method will be perfect for every organization.[footnote]Kulik, 2004[\/footnote] Establishing an appropriate process involves significant planning and analysis in order to provide quality feedback to the employee.<\/p>\r\n
\r\n SMART Test<\/h3>\r\n
Peter Drucker developed a method called Management by Objectives (MBO) and suggested that employees be evaluated by the SMART test:<\/p>\r\n
[footnote]Management by Objectives\u2014SMART, 2007[\/footnote]<\/p>\r\n
- \r\n\t
- S<\/strong>pecific<\/li>\r\n\t
- M<\/strong>easurable<\/li>\r\n\t
- A<\/strong>chievable<\/li>\r\n\t
- R<\/strong>ealistic<\/li>\r\n\t
- T<\/strong>ime-related<\/li>\r\n<\/ul>\r\n<\/section>\r\n
The process of an evaluation typically\u00a0includes one or more of the following:<\/p>\r\n
- \r\n\t
- An assessment of how well the employee is doing.<\/strong> Sometimes this\u00a0includes a scale rating indicating strengths and weaknesses in key areas (e.g., ability to follow\u00a0instructions, complete work on time, and work with others effectively). It's also common for\u00a0the supervisor and manager to\u00a0discuss and determine the key areas.<\/li>\r\n\t
- Employee goals with a deadline.<\/strong> Sometimes the employee may voluntarily offer a goal, while at other times it will be set by his or her boss. A significantly underperforming employee may be given a performance improvement plan, which details specific goals that must be met to keep\u00a0the job.<\/li>\r\n\t
- Feedback from coworkers and supervisors.<\/strong> The employee may also have the chance to share feelings, concerns, and suggestions about the workplace.<\/li>\r\n\t
- Details about workplace standing, promotions, and pay raises.<\/strong> Sometimes an employee who has performed very well since the\u00a0last review period may get an increase in pay or be promoted to a more prestigious position.<\/li>\r\n<\/ul>\r\n
Methods of Performance Appraisal<\/h3>\r\n
Numerous methods exist for gauging an employee\u2019s performance, and each has\u00a0strengths and weaknesses depending on the\u00a0environment. The following outlines some of the more commonly used methods, as well as some recently developed ones that can be useful for various feedback situations:<\/p>\r\n
- \r\n\t
- Graphic rating scales<\/strong>: This method involves assigning some form of rating system to pertinent traits. Ratings can be numerical ranges (1\u20135), descriptive categories (below average, average, above average), or scales between desirable and undesirable traits (poor \u2194 excellent). This method can be simple to set up and easy to follow but is often criticized for being too subjective, leaving the evaluator to define broad traits such \u201cleadership ability\u201d or \u201cconformance with standards.\u201d[footnote]Kulik, 2004[\/footnote]<\/li>\r\n\t
- Behavioral methods<\/strong>: A broad category encompassing several methods with similar attributes. These methods identify to what extent an employee displays certain behaviors, such as asking a customer to identify the usefulness of a sales representative\u2019s recommendation. While extremely useful for jobs where behavior is critical to success, identifying behaviors and standards for employees can often be very time-consuming for an organization.[footnote]Kulik, 2004[\/footnote]<\/li>\r\n\t
- 2+2<\/strong>: The 2+2 feedback system demonstrates how appraisals can be used primarily for improvement purposes. By offering employees two compliments and two suggestions for improvement focused around high-priority areas, creators Douglas and Dwight Allen suggest that organizations can become \u201cmore pleasant, more dynamic, and more productive.\u201d[footnote]Formula 2+2, 2004[\/footnote] If the goal is employee improvement, this system can provide significant benefits; however, if the goals are compensation changes and rankings, the system provides little benefit.<\/li>\r\n<\/ul>\r\n
Appraisal methodologies depend greatly on the type of work being done; an assembly worker will require a very\u00a0different appraisal system from\u00a0a business consultant. Significant planning will be required to develop appropriate methods for each business unit in an organization in order to obtain maximum performance towards the appraisal goals.<\/p>\r\n
[ohm2_question height=\"400\"]6500[\/ohm2_question]<\/section>","rendered":" Performance Appraisals<\/h2>\n
Along with employee orientation and training, new employees learn about performance expectations through performance planning and evaluation. Managers provide employees with expectations about the job. These are communicated as job objectives, schedules, deadlines, and product and\/or service quality requirements. As an employee performs job tasks, the supervisor periodically evaluates the employee\u2019s efforts. A performance appraisal<\/strong> is a comparison of actual performance with expected performance to determine an employee\u2019s contributions to the organization and to make decisions about training, compensation, promotion, and other job changes.<\/p>\n
Developing\u00a0an Appropriate Appraisal Process<\/h3>\n
The performance planning and appraisal process is shown and described below.<\/p>\n
Figure 1. Performance Planning and Evaluation (Attribution: Copyright Rice University, OpenStax, under CC BY 4.0 license.)<\/figcaption><\/figure>\n - \n
- The manager establishes performance standards.<\/li>\n
- The employee works to meet the standards and expectations.<\/li>\n
- The employee\u2019s supervisor evaluates the employee\u2019s work in terms of quality and quantity of output and various characteristics such as job knowledge, initiative, relationships with others, and attendance and punctuality.<\/li>\n
- Following the performance evaluation, reward (pay raise) and job change (promotion) decisions can be made. If work is unsatisfactory, the employee may be put on a performance improvement plan, which outlines the behaviors or performance that must be improved, the milestones and time periods to improve performance, and what will occur if performance is not improved.<\/li>\n
- Rewards are positive feedback and provide reinforcement, or encouragement, for the employee to continue improving their performance.<\/li>\n<\/ol>\n
It was once common practice for performance appraisals to be conducted on an annual basis, but most companies have moved away from that standard. Instead, managers are encouraged to provide employees with continuous real-time feedback so that skill development and job performance can be improved more rapidly.<\/p>\n
One significant problem in creating an appraisal process is that no single performance appraisal method will be perfect for every organization.[1]<\/sup><\/a> Establishing an appropriate process involves significant planning and analysis in order to provide quality feedback to the employee.<\/p>\n
\n SMART Test<\/h3>\n
Peter Drucker developed a method called Management by Objectives (MBO) and suggested that employees be evaluated by the SMART test:<\/p>\n
[2]<\/sup><\/a><\/p>\n
- \n
- S<\/strong>pecific<\/li>\n
- M<\/strong>easurable<\/li>\n
- A<\/strong>chievable<\/li>\n
- R<\/strong>ealistic<\/li>\n
- T<\/strong>ime-related<\/li>\n<\/ul>\n<\/section>\n
The process of an evaluation typically\u00a0includes one or more of the following:<\/p>\n
- \n
- An assessment of how well the employee is doing.<\/strong> Sometimes this\u00a0includes a scale rating indicating strengths and weaknesses in key areas (e.g., ability to follow\u00a0instructions, complete work on time, and work with others effectively). It’s also common for\u00a0the supervisor and manager to\u00a0discuss and determine the key areas.<\/li>\n
- Employee goals with a deadline.<\/strong> Sometimes the employee may voluntarily offer a goal, while at other times it will be set by his or her boss. A significantly underperforming employee may be given a performance improvement plan, which details specific goals that must be met to keep\u00a0the job.<\/li>\n
- Feedback from coworkers and supervisors.<\/strong> The employee may also have the chance to share feelings, concerns, and suggestions about the workplace.<\/li>\n
- Details about workplace standing, promotions, and pay raises.<\/strong> Sometimes an employee who has performed very well since the\u00a0last review period may get an increase in pay or be promoted to a more prestigious position.<\/li>\n<\/ul>\n
Methods of Performance Appraisal<\/h3>\n
Numerous methods exist for gauging an employee\u2019s performance, and each has\u00a0strengths and weaknesses depending on the\u00a0environment. The following outlines some of the more commonly used methods, as well as some recently developed ones that can be useful for various feedback situations:<\/p>\n
- \n
- Graphic rating scales<\/strong>: This method involves assigning some form of rating system to pertinent traits. Ratings can be numerical ranges (1\u20135), descriptive categories (below average, average, above average), or scales between desirable and undesirable traits (poor \u2194 excellent). This method can be simple to set up and easy to follow but is often criticized for being too subjective, leaving the evaluator to define broad traits such \u201cleadership ability\u201d or \u201cconformance with standards.\u201d[3]<\/sup><\/a><\/li>\n
- Behavioral methods<\/strong>: A broad category encompassing several methods with similar attributes. These methods identify to what extent an employee displays certain behaviors, such as asking a customer to identify the usefulness of a sales representative\u2019s recommendation. While extremely useful for jobs where behavior is critical to success, identifying behaviors and standards for employees can often be very time-consuming for an organization.[4]<\/sup><\/a><\/li>\n
- 2+2<\/strong>: The 2+2 feedback system demonstrates how appraisals can be used primarily for improvement purposes. By offering employees two compliments and two suggestions for improvement focused around high-priority areas, creators Douglas and Dwight Allen suggest that organizations can become \u201cmore pleasant, more dynamic, and more productive.\u201d[5]<\/sup><\/a> If the goal is employee improvement, this system can provide significant benefits; however, if the goals are compensation changes and rankings, the system provides little benefit.<\/li>\n<\/ul>\n
Appraisal methodologies depend greatly on the type of work being done; an assembly worker will require a very\u00a0different appraisal system from\u00a0a business consultant. Significant planning will be required to develop appropriate methods for each business unit in an organization in order to obtain maximum performance towards the appraisal goals.<\/p>\n
- Behavioral methods<\/strong>: A broad category encompassing several methods with similar attributes. These methods identify to what extent an employee displays certain behaviors, such as asking a customer to identify the usefulness of a sales representative\u2019s recommendation. While extremely useful for jobs where behavior is critical to success, identifying behaviors and standards for employees can often be very time-consuming for an organization.[4]<\/sup><\/a><\/li>\n
- Employee goals with a deadline.<\/strong> Sometimes the employee may voluntarily offer a goal, while at other times it will be set by his or her boss. A significantly underperforming employee may be given a performance improvement plan, which details specific goals that must be met to keep\u00a0the job.<\/li>\n
- M<\/strong>easurable<\/li>\n
- S<\/strong>pecific<\/li>\n
- Behavioral methods<\/strong>: A broad category encompassing several methods with similar attributes. These methods identify to what extent an employee displays certain behaviors, such as asking a customer to identify the usefulness of a sales representative\u2019s recommendation. While extremely useful for jobs where behavior is critical to success, identifying behaviors and standards for employees can often be very time-consuming for an organization.[footnote]Kulik, 2004[\/footnote]<\/li>\r\n\t
- Employee goals with a deadline.<\/strong> Sometimes the employee may voluntarily offer a goal, while at other times it will be set by his or her boss. A significantly underperforming employee may be given a performance improvement plan, which details specific goals that must be met to keep\u00a0the job.<\/li>\r\n\t
- M<\/strong>easurable<\/li>\r\n\t
- S<\/strong>pecific<\/li>\r\n\t