Chapter 9

• What does Employee Performance Appraisal assess?

  An employee's past or current job performance
• What is the purpose of performance appraisal?

  To measure, correct, and improve employee work performance
• What are two basic reasons for using performance appraisal?

  As an administrative tool and as a development-oriented tool
• What are the roles of performance appraisal as an administrative tool?

  • Relevant to promotions, demotions, and re-assignments
  • Essential for human resource planning
  • Synchronizes HRM practices like training programs and pay rates
• How does performance appraisal serve as a development-oriented tool?

  • Provides feedback on performance
  • Identifies strengths and weaknesses
  • Recognizes training needs
  • Fosters discussions to overcome challenges
• What are the fundamental points to consider in creating performance criteria?

  1. Relevance to company strategic goals
  2. Failure to include all important aspects of a performance standard
  3. Inclusion of a "should not have been there" criterion
  4. Reliableness
• What does relevance to company strategic goals mean in performance criteria?


  It refers to how performance criteria relate to organizational goals
• What does the inclusion of a "should not have been there" criterion imply?


  It means using irrelevant measures that unfairly influence performance results
• What does reliability refer to in performance standards?


  It refers to the consistency and stability of performance standards over time
• Who typically evaluates employee performance?

  Managers, departmental heads, self, peers, and subordinates
• What are the different methods of evaluating employee performance?

  1. Managers and Department Heads
  2. Self-Appraisal
  3. Subordinate Appraisal
  4. Peer Appraisal
  5. 360-degree Assessment
• What is the purpose of self-appraisal?


  It allows employees to assess their own job performance
• What is subordinate appraisal?


  Upward appraisal. It is a form of appraisal done by a subordinate to their supervisor
• What is the risk associated with peer appraisal?


  Employee to another employee. Those receiving low ratings might retaliate against their peers
• What does a 360-degree assessment involve?


  It gathers feedback from peers, colleagues, supervisors, and external sources
• What are the appraisal methods mentioned in the study material?

  1. Character Traits Method
  2. Graphic Rating Scale
  3. Mixed Standard Rating Scale
  4. Forced Choice Method
  5. Written Report Method
  6. Critical Incident Appraisal Method
  7. Behavioral Checklist Method
  8. Behaviorally Anchored Rating Scale
  9. Production-Based

  10. Management By Objectives (MBO)
• What is a characteristic of the Character Traits Method?


  It is easy to create and grade but can be highly subjective
• What does the Graphic Rating Scale evaluate?


  It evaluates the extent to which an individual possesses certain traits or behaviors
• How does the Mixed Standard Rating Scale differ from the Graphic Rating Scale?


  a newer version of graphic rating scale. It combines descriptive statements randomly to reduce rating biases
• What is the Forced Choice Method?


  It requires the evaluator to choose a single option from multiple choices
• What does the Written Report Method entail?


  It involves preparing a written report detailing strengths, weaknesses, and recommendations
• What is the purpose of behavior-based appraisal methods?

  • To outline permissible and impermissible conduct
  • To reduce bias in evaluations
  • To focus on observable behaviors rather than traits
• What is the Critical Incident Appraisal Method?


  It involves keeping a record of exceptionally good and unacceptable employee behaviors
• What does the Behavioral Checklist Method involve?


  It rates behavioral aspects relevant to the employee's job using check marks
• What is the Behaviorally Anchored Rating Scale?


  It uses behaviorally anchored rating scales based on descriptive statements of behavior
• What are the advantages of the output-based method of appraisal?

  • It is unbiased and motivating
  • Provides employees control over their outputs
  • Promotes empowerment and freedom in achieving goals
• What is Management By Objectives (MBO)?


  It describes the process of setting organizational goals that flow into personal goals
• What factors should be considered when choosing the best performance appraisal method?

  • Company's short- and long-term goals
  • Specific needs of the company or employee
  • Nature of the job and performance criteria
• What are common performance evaluation errors?

  Halo Effect, Horn Error, Central Tendency, Strictness/Leniency, and Bias
• What is the Halo Effect in performance evaluation?


  It occurs when a supervisor gives an all-positive rating based on one or more traits
• What is the Horn Error?


  It occurs when a supervisor sees only a negative trait and rates the employee low in all areas
• What does Central Tendency refer to in performance evaluation?


  It is rating all employees as average to avoid conflict
• What is the Strictness/Leniency error?


  It occurs when a supervisor rates performance too low or too high
• What does bias in performance evaluation imply?


  It implies negatively rating performance based on personal characteristics
• What is the purpose of the employee appraisal interview?

  • To assure a good working environment
  • To facilitate professional development
  • To discuss performance and development aspects
• What is a Production-Based 


  A performance review based on production is often a well-liked option.
• What is Managers and Department Heads? 


  Customary way of employee evaluation.
• What is Failure to include all important aspects of a performance standard?


  It occurs when important aspects are not included in the performance standard