Human Resource Management



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Human resource management

Performance Appraisal

  • Process of evaluating employee performance
    • job related strengths
    • development needs
    • progress toward goals
    • determine ways to improve performance
    • Pay an promotion decisions
  • More systematic is better, for the most part

Performance Appraisal (cont)

  • Self Appraisal
  • Peer Appraisal
  • 360 Degree appraisal
  • Central Tendency Error-everyone ranked as average
  • Leniency-individuals are ranked higher than they deserve

Who Appraises Performance?


Supervisors

Peers

Customers &

Clients

Subordinates

Self

Sources of

performance

appraisals

Figure 10.6

Pay and Benefits

    • Pay level: how the firm’s pay incentives compare to other firms in the industry.
        • Managers can decide to offer low or high relative wages.
      • Pay Structure: clusters jobs into categories based on importance, skills, and other issues.
    • Benefits: Some are required (social security, workers comp).
        • Others (health insurance, day care, and others) are provided at the employers option.
        • Cafeteria-style plan: employee can choose the best mix of benefits for them. Can be hard to manage.

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