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Evaluating Employee Performance

Evaluating Employee Performance. Effective and Legal Performance Appraisal Systems. Are job-related and based on a job analysis Are properly administered Formal Standardized Not too complicated Provide specific feedback Focus on behaviors rather than traits Ratings are documented

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Evaluating Employee Performance

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  1. Evaluating Employee Performance

  2. Effective and Legal Performance Appraisal Systems • Are job-related and based on a job analysis • Are properly administered • Formal • Standardized • Not too complicated • Provide specific feedback • Focus on behaviors rather than traits • Ratings are documented • Use appropriate raters • raters are trained • all relevant raters are used • Raters used must be relevant and qualified

  3. Steps in Developing the System • Create a task-force that includes all levels in the organization • Determine why you are evaluating performance (your goal) • Most systems have no goal • 90% of systems do not work (SHRM survey) • Will improving individual performance improve organizational performance? • Identify environmental and cultural variables that could affect the system

  4. Steps in Developing the System • Determine the sources to be used in appraising performance. • Assumptions (Coens & Jenkins, 2000) • Supervisors and raters are fair, objective, and unbiased • Supervisors and employees will not try to manipulate performance ratings to get desired outcomes • Raters can adequately distinguish an individual’s performance from the situational constraints (the system) • Determine the best method to accomplish your goal

  5. 1. Determine Purpose of the Appraisal

  6. What is the Purpose of the Appraisal? • Feedback and training (65%) • Personnel decisions • Raises (86%) • Promotions (45%) • termination decisions (30%) • Research • Legal or certification reasons

  7. 2. Identify Environmental and Cultural Limitations

  8. 3. Determine who will evaluate performance

  9. Who Will Appraise Performance? • Upper management • Direct supervisor • Peers • Subordinates • Support staff • Customers/the public • Vendors • Self

  10. 360º Feedback • Use • 28% of organizations (Mercer Consulting, 2005) • 65% (William Mercer survey) • SHRM Survey • 18% for nonexempt positions • 29% for exempt positions • 32% for executive level positions • Suggestions • 4-10 raters • 15 minutes to complete • Provide feedback within 6 weeks of evaluation

  11. Agreement Among RatersConway and Huffcutt (1997) Meta-Analysis

  12. 360-Degree FeedbackExercise 7.1

  13. Let's Talk Would you implement a 360-degree feedback system in your organization?

  14. 4. Select Appraisal Method

  15. Decision 1 What will be the focus of the dimensions?

  16. Goal Focus (Results) Prevent crimes from occurring Finish shift without personal injury Have arrests and citations stand up in court Task focus Crime prevention Arrest procedures Court testimony Use of vehicle Trait Focus Honesty Courtesy Responsibility Dependability Cooperation Competency Focus Report writing skills Driving skills Public speaking skills Knowledge of the law What Will be the Focus?

  17. Creating Performance DimensionsExercise 7.2

  18. How Will Performance be Appraised? • Employee Comparisons • Rank order • Paired comparison • Forced distribution • Results • Quantity • Accidents • Absenteeism • Tardiness • Subjective Ratings

  19. Decision 2 Should we use employee comparisons, objective measures, or ratings?

  20. Employee Comparison Methods • Rank Order • Paired Comparison • Forced Distribution

  21. Example of a Ranking Method

  22. Example of Paired-Comparison Method Paired Comparisons Green Briscoe Green Rey Green Logan Green Ceretta Briscoe Rey Briscoe Logan Briscoe Ceretta Rey Logan Rey Ceretta Logan Ceretta Scoring Green 4 Briscoe 3 Rey 1 Logan 2 Ceretta 0 Employees Green Briscoe Rey Logan Ceretta

  23. Example of a Forced Distribution

  24. Paired-Comparison ExerciseExercise 7.3

  25. Objective Measures • Quantity of work • Quality of work • Attendance • Absenteeism • Tardiness • Time theft • Safety

  26. Ratings of Performance • Graphic Rating Scales • Behavior-Based Methods • Behavioral checklists • Behaviorally anchored rating scales (BARS) • Behavioral observation scales (BOS) • Behavioral expectation scales (BES) • Mixed-standard scales • Forced choice scales

  27. Graphic Rating Scale Example Job knowledge Poor 1 2 3 4 5 Excellent Patrol activity Poor 1 2 3 4 5 Excellent Decision making Poor 1 2 3 4 5 Excellent Use of weapons Poor 1 2 3 4 5 Excellent

  28. 5— A customer wanted to deposit a large amount of money. The teller explained to the customer that he could earn more interest on a money market account than with a savings account 4— A customer applied for a new auto loan and had and E/I too high for approval. The employee suggested a lower-priced auto with a lower payment to reduce his E/I 3— When a customer called, this employee accurately answered her question about finance charges When a customer came to the bank for a loan, this employee had to search for instructions and kept the customer waiting 2— A customer wanted to cash a large check. The teller said that it could not be cashed but did not realize that it was all right as long as the customer had that amount in her account 1—

  29. Radio Procedures Behavioral Elements ___ Always uses proper codes and signals when sending information ___ Always understands codes and signals when receiving information ___ Voice is clear and easy to understand in normal situations ___ Voice is clear, easy to understand, and does not indicate panic in high stress situations ___ Always follows proper radio procedures ___ Always monitors the proper channels ___ Always knows the location of all district officers ___ Never communicates improper information over the radio ___ Keeps control informed of current status ___ Treats communications officers with respect and courtesy Dimension Rating ___ 5 Consistently exceed requirements, no improvements needed ___ 4 Exceeds most requirements ___ 3 Usually meets requirements, acceptable performance ___ 2 Usually meets most requirements, but needs much improvement ___ 1 Does not meet minimum requirements, needs immediate and extensive improvement

  30. Example of a Forced-Choice Scale

  31. Example of a Mixed-Standard Scale

  32. Example of a Behavioral Observation Scale (BOS) • Job Knowledge • ___ Is aware of current interest rates. • ___ Offers suggestions to customers about how they can • make the most interest • 3. ___ Knows various strategies for converting IRAs. • Employee Relations • ___ Offers to help other employees when own workload is down. • ___ Praises other employee when they do well

  33. Types of Rating Scales • Performance based (Extent to which expectations have been met) • exceeds expectations • meets expectations • Normative based (Comparison to other employees) • above average • average • Frequency based • always • sometimes

  34. Example of Scale TypesComparison to Other Employees Dimension: Refers to Customers by Name ___ Much better than other tellers ___ Better than other tellers ___ The same as other tellers ___ Worse than other tellers ___ Much worse than other tellers

  35. Example of Scale TypesFrequency Dimension: Refers to Customers by Name ___ Always ___ Almost always ___ Often ___ Seldom ___ Never

  36. Example of Scale TypesExtent to Which Expectations were Met Dimension: Refers to Customers by Name ___ Greatly exceeds expectations ___ Exceeds expectations ___ Meets expectations ___ Falls below expectations ___ Falls well below expectations

  37. Writing Behavioral StatementsExercise 7.4

  38. Going Hollywood Rating Exercise Road Trip

  39. Evaluation of Road Trip Waiter Friendly to customers 1 2 3 4 5 Attentive 1 2 3 4 5 Knowledge of menu 1 2 3 4 5 Uses suggestive selling 1 2 3 4 5

  40. 5. Train Raters

  41. 6. Observe and Document Performance

  42. Why Document Performance? • Forces supervisor to look for behaviors • Aids in recall during evaluation • Provides examples to use when reviewing performance • Provides concrete data to support personnel decisions

  43. Rating Exercise Who is the toughest rater? Sgt. Esterhaus Sgt. Jablonski Capt. Furillo 1 is a low rating 5 is the highest rating

  44. Sgt. EsterhousSgt. JablonskiCapt. Furillo Bobby Hill 5 1 3 Andy Renko 5 1 3 Howard Hunter 4 2 3 Neal Washington 3 2 3 Joe Coffey 4 3 4 Norman Buntz 4 2 2 Lucy Bates 3 3 5 Harry Garibaldi 3 3 1 Leo Schnitz 2 4 1 Ray Callentano 1 3 5 John Larue 1 4 4 Henry Goldblum 3 5 2 Tina Russo 2 4 4 Michael Belker 2 5 2

  45. Rating Exercise Who is the toughest rater? Sgt. Esterhaus Sgt. Jablonski Capt. Furillo

  46. Sgt. EsterhousSgt. JablonskiCapt. Furillo Bobby Hill 5 1 3 Andy Renko 5 1 3 Howard Hunter 4 2 3 Neal Washington 3 2 3 Joe Coffey 4 3 4 Norman Buntz 4 2 2 Lucy Bates 3 3 5 Harry Garibaldi 3 3 1 Leo Schnitz 2 4 1 Ray Callentano 1 3 5 John Larue 1 4 4 Henry Goldblum 3 5 2 Tina Russo 2 4 4 Michael Belker 2 5 2

  47. What We Tend To Remember • First impressions • Recent behaviors • Unusual behaviors • Extreme behaviors • Behavior consistent with opinion

  48. What We Tend to Forget • Details • The source of the information

  49. Critical Incidents • Are examples of poor or excellent performance • Provide behavioral examples • Are usually collected through logs • Employee performance record can be used

  50. Performance Record Example

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