HUMAN RESOURCE

MANAGEMENT
HRM 512 (Fall 2014)
Textbook: Managing Human Resources
By: Luis R. Mejia/David B. Balkin/Robert L. Cardy
Seventh Edition

DR. EDWIN E. TAN

Assistant Professor for Human Resource Management

Chapter 7

Appraising and
Managing
Performance

Learning Objectives:
Explain why performance appraisal is important and

describe its components.

Discuss the advantages and disadvantages of
different performance rating systems.
Manage the impact of rating errors and bias on
performance appraisals.
Discuss the potential role of emotion in performance
appraisal and how to manage its impact.
Identify the major legal requirements for appraisal.
Use performance appraisals to manage and develop
employee performance.

Managerial Perspective
Maintaining

and
improving
your
performance and the performance of other
people in the organization will be an
important part of your role as a manager.
To conduct this process, you may rely on
appraisal forms and systems that are open
designed by HR Personnel.
Although
these forms and systems are the key
elements of the appraisal process, they
are only starting point.
To appraise effectively,
you must spot
performance
problems,
provide
constructive feedback and take action to
improve performance. We all need, want
and deserve feedback regarding how we
are doing in the workplace.

Important Words to
Remember
What is performance appraisal?

Is the identification, measurement and management of

human performance in organizations.
Identification determining what areas of work the
manager should be examining when measuring
performance.
Measurement the centerpiece of the appraisal
system, entails making managerial judgment of how
good or bad the employee performance was.
Management appraisal must take a future oriented
view of what workers can do to achieve their
potential in the organization.

Sample of Absolute Rating Scale on Figure

7.5 on page 257 (to be distributed)
Sample of Trait Scales (Figure 7.6)
Level
1 Very Low
2
3
4 Moderate
5
6
7 Very
High

Decisivenes
s

Reliability

Energy

Loyalty

Determinig the Causes of

Performance Problems
Situational Factors:
Poor coordination of work activities among workers
Inadequate

information or instructions needed to

perform a job
Lack of necessary equipment
Inability to obtain raw materials, parts, or supplies
Inadequate financial resources
Poor supervision
Uncooperative co-workers/poor relations among
people
Inadequate training
Insufficient time to produce the quality of work
required
A poor work environment

How to determine and remedy

performance shortfalls
Cause

Questions to Ask

Possible
Remedies

Ability

Has the worker ever been

able to perform
adequately?
Can others perform the job
adequately, but not this
worker?

Train
Transfer
Redesign the job
Terminate

Effort

Is the workers
performance declining?
Is performance lower on
all tasks?

Clarify linkage between

performance and
rewards
Recognize good
performance

Is performance erratic?
(inconsistent)
Are performance problems
showing up in all workers,
even those who have

Streamline work process

Clarify needs to
suppliers
Eliminate conflicting
signals or demands

Situation