Essentials of Organizational Behavior

Concepts, Controversies and Applications

 

Chapter 15

Performance Appraisal and Reward Systems

 

Learning Objectives
Chapter Sixteen

• Identify the advantages of using behaviors rather than traits in evaluating performance
• Describe the potential problems in performance evaluation and actions that can correct these problems
• Talk about PROBLEMS with appraising
• Outline the various types of rewards

Selection Practices:
Popular Job Analysis Methods

• Observation Method
• Individual Interview Method
• Group Interview Method
• Structured Questionnaire Method
• Technical Conference Method
• Diary Method

Selection Devices

• Interviews
• Written tests
• Performance simulation tests
• Work sampling
• Assessment centers

Training and Development Programs Improve Skills

• Technical skills
• Interpersonal skills
• Problem solving skills

Training Methods

• On-the-job training
• Job rotation
• Apprenticeship
• Coaching
• Off-the-job training
• Lectures
• Simulations
• Vestibule training

Career Development

• Exploration
• try a variety of tasks
• Establishment
• learn how to develop competence, creativity, and innovation
• Midcareer
• learn how to update their technical skills and how to develop a broader view
• Late career
• how to plan for retirement and how to provide guidance to those who are just entering

Career Anchors
Talents and abilities, motives and needs, attitudes and values that guide and stabilize a person’s career.

• Technical/Functional competence
• Managerial competence
• Security
• Autonomy
• Creativity

Effective Career Development Practices ...use these practices to maximize employee growth and satisfaction over time.

• Challenging job assignments
• Job postings
• Career counseling
• Workshops
• Periodic job changes
• Appraisal of Performance

Performance Evaluation

• Input for promotions, transfers, and terminations
• Identify training and development needs
• Validate selection and development programs
• Provide feedback to employees
• Basis for reward allocations

What to Evaluate

• Individual task outcomes
• Behaviors
• Traits

Who Should Evaluate?

• Immediate superior
• Peers
• Self-evaluation
• Immediate subordinates
• 360-degree evaluations

How to Evaluate

• Written essays
• Critical incidents
• Graphic rating scales
• Behaviorally anchored rating scales (BARS)
• Multiperson comparisons
• group order ranking
• individual ranking
• paired comparison

Evaluation Problems

• Single criterion-excluding other job related factors
• Leniency error-marking everyone high or everyone low
• Halo error-marking high on all traits based on one high mark
• Low differentiation-using only a small part of the scale.
• Forcing information to match nonperformance criteria

Overcoming Evaluation Problems

• Use multiple criteria
• Emphasize behaviors rather than traits
• Document performance behaviors in a diary
• Use multiple evaluators
• Evaluate selectively
• Train evaluators

Team Evaluations

• Tie team results to organization goals
• Begin with team's customers and work process
• Measure both team and individual performance
• Train team to create own measures

Reward Systems

• Intrinsic rewards result from satisfaction with the job
• Extrinsic rewards provide pay, benefits, bonuses, holidays, profit sharing and stock options

Human Resource Policies and Practices Shape Employee Behavior and Attitudes

• Selection
• Training and Development
• Performance Evaluation
• Reward Systems