DeNisi Sarkar HR PPT Ch07

Chapter 7
Performance Appraisal and

Career Management
DeNisi  Griffin  Sarkar
© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

Performance Appraisal and
Management
• Performance Appraisal
The specific and formal evaluation of an
employee conducted to determine the
degree to which the employee is
performing his or her job effectively
• Performance Management
The general set of activities carried out by
the organization to change (improve)
employee performance
Importance of Performance
Appraisal
1. Provide a benchmark to assess the adequacy
of recruiting and selection processes
2. Validate the legal aspects of appraisal
process decisions
3. Provide employees with information about
their current performance
4. Support incentive systems that foster
employee motivation and performance
Goals of Performance Appraisal
• To provide valid and reliable measures
of employee performance
• To provide information in support of HR
and performance management activities
• To improve job performance through
accurate and timely feedback

Fig 7.1 The Performance
Management Process in
a Typical Organization

Performance Appraisal Process
• Role of the Organization
• Role of the Rater
• Role of the Ratee

Fig 7.2 Sources of Information for Performance
Appraisal
• 360-Degree Feedback
 Involves gathering performance
information from people on all sides of the
manager
Performance Appraisal Issues
• What Gets Rated?
Traits (subjective)
Behaviors (subjective)
Outcomes (objective)
• Who Should Be Rated?
Individual performance
Team performance
© 2016 Cengage Learning India Pvt Ltd. All rights reserved. 10- 8
Beyond the Book: Two Ways to Assess
Behaviors
• Give separate behavior and results ratings.
• Use the 360-degree assessment to set
behavior goals for each employee.

Which Rating Method to Use?
Methods
Methods for
for Rating
Rating
Performance
Performance
Simple
Simple Paired
Paired Forced
Forced
ranking
ranking comparison
comparison distribution
distribution

Specific Rating Methods
Graphic
Graphicrating
rating
scale
scale
Critical
Criticalincident
incident Behaviorally
Behaviorallyanchored
anchored
method
method rating
ratingscale
scale(BARS)
(BARS)
Behavioral
Behavioralobservation
observation Management-by-
Management-by-
scale (BOS)
scale (BOS) objectives
objectives(MBO)
(MBO)

Forced Distribution Method
Fig. 7.3. Forced Distribution Method

Fig 7.4 Examples of Graphic Rating Scales

Beyond the Book:
Management by Objectives

Fig 7.5 Behaviorally Anchored Rating Scales

Which System Is Best?
• It is difficult to predict how a set of employees
will react to a given rating system.
• Electronic monitoring

Fig 7.6 Balanced Score Card (BSC) Framework

Beyond the Book: Are Most Workers
Motivated by Money?
YES NO
• Money is an objective way of • There are other ways to
measuring an employee’s reward employees.
value to a firm. • After deductions, a pay raise
• Money motivates some is always less than the
employees because they have employee expected.
a use or need for it. • Research indicates that work
• Studies indicate that the factors, recognition and
piece-rate system improves achievement are motivators
employee productivity while for most workers.
increasing take-home pay.

Beyond the Book: Possible Merit
Increase Guidelines

Rating Errors
Common
Common Rater
Rater
Bias
Bias Errors
Errors
Contrast
Contrast Distributional
Distributional Halo
Halo Horns
Horns
error
error errors
errors error
error error
error

Graphic Rating Scales
Distributional
Distributional Errors
Errors
Caused
Caused by
by Raters
Raters
Severity
Severity Leniency
Leniency Central
Central
error
error error
error tendency
tendency

Beyond the Job: Contextual
Performance
• Organizational Citizenship Behaviors
Tasks an employee does on the job
that are not required as part of the
job but that benefit the organization
in some way

Performance Management and
Feedback
• Performance-Management Techniques
Behavior modification
Goal setting
Performance feedback
Self-appraisal

Performance Management
and Feedback (cont’d)
• Productivity Measurement and Evaluation System
(ProMES)
 Is used to improve group- or firm-level
productivity
• Evaluating Performance-Enhancement Programs
 Determining whether or not strategic goals were
met
 Using multiple performance indicators
(e.g. human and financial goals)
Fig 7.7 A Sample ProMES Curve

Enhancing Performance at
Different Levels
• Firm-Level Performance
Is an indication of the likelihood of long-
term survival of the firm.
Generates profits for potential profit sharing
and determines the firm’s stock price.

Enhancing Performance
• Training
Is a planned attempt by an organization to
facilitate employee learning of job-related
knowledge, skills, and behaviors
• Development
Involves teaching managers and
professionals the skills needed for both
present and future jobs.

The Nature of Careers
• The Meaning of Career
 The set of experiences and activities that people
engage in related to their job and livelihood over
the course of their working life.
• Traditional Stages of Careers
 Exploration
 Establishment
 Maintenance
 Disengagement
© 2016 Cengage Learning India Pvt Ltd. All rights reserved. 10- 28
A typology of career systems
FORTRESS BASEBALL
External
TEAM
CLUB
ACADEMY
Internal
Group
Individual
A Typology of Career Systems
Academy
• Academy type of organizations nurtures personal
growth and development.
• Generally these organizations do very well in their core
competency domain.
• Employees have highly specialized firm-specific
knowledge. The organizations recognize skills and
might ensure fast track promotions for key
contributors.
• Organizations operating in pharmaceuticals,
automobiles, and consumer products are typical
examples of academy type organizations.
Club
• Club is such type of organization where it is
buffered from the rest of the world (e.g., military,
government etc.).
• Schooling, previous employment, prestige and
status determine employees’ worth in these
organizations.
• Many times club type organizations will be
involved in greater good for the society and
requires utmost commitment from the employees.
Baseball Team
• Like a typical baseball team each individual’s
contribution will determine market success of
the organization.
• Star performers gain celebrity status in these
organizations.
• Organizations operating in advertising
agencies, semiconductor industries are typical
examples of baseball team type.

Fortress
• Fortress are organizations which are not doing good business
and almost at the verge of taking turnover strategies.
• One of the reasons for getting attracted towards this struggling
organization is that this type of organization gives tremendous
learning opportunity to try out experimentations.
• If somehow the organization survives then those
professionally attached themselves for its revival can create a
niche image for them.
• Other obvious reason for joining such organization would be
lack of alternatives.

Fig 7.9 The Traditional Model of Career
Stages

New Views of Career Stages
and the Decision to Retire
• Older Workers May:
 Find themselves ready to disengage from
the organization at a relatively young age.
 Begin working again by seeking opportunities with
a better work and family balance.
 Retire if they have the financial resources
to maintain their pre-retirement lifestyles.
 Retire if their health makes work burdensome.

HRM and Career Management
• Limitations and Pitfalls in Career Planning
 Predicting an individual’s future levels of talent,
expertise, motivation, or interest is difficult.
 Unexpected business changes may result in
changes in career opportunities.
 Careers do not simply happen–they must be
planned and managed.
 Responsibility for career planning resides with
both the organization and the individual.

Fig 7.10 Individual and Organizational Perspectives on
Career Planning

Fig 7.11 Steps in Career Planning

Career Interest Inventory
• There are numerous career interest inventories
to capture potential or existing employees’
career interests and personality types.
 EK Strong's Interest Inventory
 Schein's Career Anchor
 Campbell Interest and Skill Survey

EK Strong's Interest Inventory
• Strong's Interest Inventory is a self-assessment tool
that helps high school and college students as well as
adults to discover their interests.
• It has 291 items which ask the respondents about
their preferences with respect to occupations, subject
areas, activities, leisure activities, and characteristics.
• It takes approximately 40 minutes to complete the
questionnaire.
• It helps students to choose a particular field of study,
helps individuals for career exploration and
development.
Schein's Career Anchor
• Career Anchors Self-Assessment helps
participants to identify their major career
orientation so that they can make better
career choices.
• Career anchor is the dominant self-
concept which a person will not let -go
even under difficult times.

Schein's Career Anchor
Eight career anchors identified by Edgar Schein are :
• Technical Functional Competence: Individuals under this category are good in
engineering, teaching and other related fields.
• General Managerial Competence: Individuals belonging to this category are more
generalists than specialists and like to move around different domains.
• Autonomy/ Independence: Individuals of this type requires high degree of autonomy
and flexibility in the job.
• Security /Stability: This category individuals are not risk oriented and would like to
seek security by sticking to a particular organization.
• Entrepreneur/Creativity: Individuals with career anchor as entrepreneur/ creativity
will like to create an organization of their own. They have high degree of risk taking
ability.
• Service/dedication to a cause: Individuals under this category intends to undertake
work which embodies values that are central to them.
• Pure challenge: Not the job, but the process of winning motivates individuals under
this category.
• Lifestyle: Individuals under this category strives for a work life balance since family
and career both are equally important to them.
Campbell Interest and Skill Survey
(CISS)
• This inventory helps to assess an individual's interest in different
occupational areas and estimates an individual's confidence in
his or her ability to perform various occupational activities.
• Human resource professionals, counselors can use this survey

for career counseling.
• CISS report has

 Orientation Scales (seven broad themes of occupational interests and
skills)
 Basic Interest and Skill Scales (detailed subscales of the Orientation
Scales)
 Occupational Scales (which compare respondent’s interest and skill
patterns with those of workers in a range of occupations).
Campbell Interest and Skill
Survey (CISS)
The 7 broad themes in the Orientation Scale are :
• Influencing: Influencing Orientation focuses on
influencing others through leadership, politics, public
speaking, sales, and marketing.
• Organizing: Organizing Orientation includes activities
that bring efficiency, productivity, and organization to
the work environment.
• Helping: Helping Orientation covers teaching,
counseling, medical services, and religious activities.

Campbell Interest and Skill
Survey (CISS)..[Contd.]
• Creating: Creating Orientation includes artistic, literary,
and musical activities such as writing, painting, dancing,
and working in the theater.
• aNalyzing: The aNalyzing Orientation involves scientific,
mathematical, statistical, and research activities
• Producing: Producing Orientation covers practical,
hands-on, "productive" activities such as construction,
farming, skilled crafts, and mechanical crafts.
• Adventuring: Adventuring Orientation focuses on
athletic, police, and military activities involving physical
endurance, risk taking, and teamwork.

Career-Development Issues
and Challenges
• Career Counseling
Involves interaction between an
individual employee or manager in the
organization and either a line manager or
an HR manager.
• Dual-Career and Work-Family Issues

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Chapter 7

Performance Appraisal and

DeNisi  Griffin  Sarkar

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

Fig. 7.3. Forced Distribution Method

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

• Human resource professionals, counselors can use this survey

• CISS report has

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

© 2016 Cengage Learning India Pvt Ltd. All rights reserved.

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