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8

Performance
Management
and Appraisal
Learning Outcomes
After studying this chapter you should be able to:
8.1

Discuss the difference between performance management and
performance appraisal

8.2

Identify the necessary characteristics of accurate performance management tools

8.3

List and briefly discuss the purposes for performance appraisals

8.4

Identify and briefly discuss the options for “what” is evaluated in a performance appraisal

8.5

Briefly discuss the commonly used performance measurement
methods and forms

8.6

Identify and briefly discuss available options for the rater/evaluator

8.7

Briefly discuss the value and the drawbacks of a 360° evaluation

8.8

Identify some of the common problems with the performance
appraisal process

8.9

Identify the major steps we can take to avoid problems with the appraisal process

8.10

Briefly discuss the differences between evaluative performance reviews and developmental performance reviews

8.11

Define the following terms:
Performance management
Performance appraisal
Motivation
Traits
Behaviors
Results
Critical incidents method
Management by Objectives
(MBO) method
Narrative method or form

Graphic rating scale form
Behaviorally Anchored
Rating Scale (BARS)
form
Ranking method
360° evaluation
Bias
Stereotyping
Electronic Performance
Monitoring (EPM)

Chapter 8 Outline
Performance Management Systems
Performance Management Versus Performance Appraisal
The Performance Appraisal Process
Accurate Performance Measures
Why Do We Conduct Performance Appraisals?
Communicating
Decision Making (Evaluating)
Motivating (Developing)
Evaluating and Motivating (Development)
What Do We Assess?
Trait Appraisals
Behavioral Appraisals
Results/Outcomes Appraisals
Which Option Is Best?
How Do We Use Appraisal Methods and Forms?
Critical Incidents Method
Management by Objectives (MBO) Method
Narrative Method or Form
Graphic Rating Scale Form
Behaviorally Anchored Rating Scale (BARS) Form
Ranking Method
Which Option Is Best?

Who Should Assess Performance?
Supervisor
Peers
Subordinates
Self
Customers
360º Evaluation
Who Do We Choose?
Performance Appraisal Problems to Avoid
Common Problems With the Performance Appraisal
Process
Avoiding Performance Appraisal Process Problems
Debriefing the Appraisal
The Evaluative Performance Appraisal Interview
The Developmental Performance
Appraisal Interview
Trends and Issues in HRM
Is It Time to Do Away With
Performance Appraisals?
Technology: Electronic Performance Monitoring
Competency-Based Performance Management
Aligning the Appraisal Process

C.

Job Analysis/Job Design (required)
4. Performance management (performance criteria and appraisal)

F.

Performance Management (required)
1. Identifying and measuring employee performance
2. Sources of information (e.g., managers, peers, clients)
3. Rater errors in performance measurement
4. Electronic monitoring
5. Performance appraisals
6. Appraisal feedback
7. Managing performance

Case 8-1. Beauty and the Beastly Situation at Aerospace Designs’ Marketing Department
Case 8-2. Performance Evaluation at DHR: Building a Foundation or Crumbling Ruins?

SHRM
HR CONTENT
See Appendix A:
SHRM 2010 Curriculum
Guidebook for the
complete list

284

PART III: DEVELOPING AND MANAGING

Performance Management Miscue
Most managers don’t look forward to performance
appraisals. As soon as Heather stuck her head in my office
and asked me to sit in on her performance appraisal, I
knew I had two employees who needed some coaching—
Heather and her supervisor, Christine. Our company bases
many employment decisions on performance appraisals,
so the results are important.
Wh e n I e n t e r e d t h e r o o m , i t b e c a m e a p p a r e n t t hat although Heather believed she had been doing a
great job, Christine did not agree. Christine recorded
Heather’s...
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