McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-1McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-2PerformanceEvaluationPerformanceEvaluationandManagementandManagementPerformanceEvaluationPerformanceEvaluationandManagementandManagementchapterchapter9McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-3PerformanceManagementPerformanceManagementProcessbywhichexecutives,managers,andsupervisorsworktoalignemployeeperformancewiththefirm’sgoalsDefines,measures,monitors,andgivesfeedbackPerformanceevaluationisacrucialpartofafirm’sperformancemanagementprocessMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-4PerformanceEvaluationPerformanceEvaluationTheactivityusedtodeterminetheextenttowhichanemployeeperformsworkeffectivelyInformalperformanceevaluationsystemFormalperformanceevaluationsystemMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-5CommunicationLegalcomplianceHRMresearchMotivationHRandemploymentplanningDevelopmentPurposesofFormalPerformanceEvaluationPurposesofFormalPerformanceEvaluationMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-6PerformanceEvaluationandtheLawPerformanceEvaluationandtheLawSupervisors’judgmentsareusedinmostperformanceevaluationproceduresBiascanexist(intentionalorunintentional)U.S.SupremeCourtCase:Britov.ZiaCompany(1973)Performanceevaluationinstrumentmustrelatetoimportantelementsinthejobsforwhichemployeeswerebeingevaluated(validity)ConsistentapplicationofevaluationsMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-7Toprovideinformationthatcanservetheorganization’sgoalsandthatcomplieswiththelaw,aperformanceevaluationsystemmustprovideaccurateandreliabledata.Thisisenhancedifasystematicprocessisfollowed.McGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-8SixStepsforaSystematicProcess:SixStepsforaSystematicProcess:(1of2)(1of2)1.Establishperformancestandardsforeachpositionandthecriteriaforevaluation2.Establishperformanceevaluationpoliciesonwhentorate,howoftentorate,andwhoshouldrate3.Haveratersgatherdataonemployees’performanceMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-9SixStepsforaSystematicProcess:SixStepsforaSystematicProcess:(2of2)(2of2)4.Haveraters(andemployeesinsomesystems)evaluateemployees’performance5.Discusstheevaluationwiththeemployee6.MakedecisionsandfiletheevaluationMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-10CharacteristicsofEffectiveCriteriaCharacteristicsofEffectiveCriteriaReliability–ameasureofperformancemustbeconsistentRelevance–ameasureofperformancemustberelatedtotheactualoutputofanincumbentSensitivity–criteriamustbeabletoreflectthedifferencebetweenhighandlowperformersPracticality–thecriteriamustbemeasurableDatacollectioncannotbeinefficientortoodisruptiveMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsreserved.9-11WhoShouldEvaluatetheEmployee?WhoShouldEvaluatetheEmployee?ImmediatesupervisorRatingbyacommitteeofseveralsupervisorsRatingbytheemployee’speers(co-workers)Ratingbytheemployee’ssubordinatesRatingbysomeoneoutsidetheimmediateworksituationSelf-evaluationRatingbyacombinationofapproachesMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.Allrightsrese...