HRM 3490 Lecture Notes - Lecture 10: Performance Appraisal, Merit Pay, Merit System

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Document Summary

Performance appraisal: process of assessing performance level of individual employees. Experience: many companies can"t seem to find a performance appraisal system that they are happy with despite lack of success keep on trying to make performance appraisals work. Highly valued as a concept, translating concept to practice is difficult. Administrative: identify individuals who aren"t performing to required standards -- dismissal is necessary. Identify individuals who should be considered for promotion or merit increases. Monitor overall quality of performance in the firm. Help with legal issues surrounding employee dismissal and subsequent unjust dismissal lawsuits. Developmental reasons: helping employees to better understand employer expectations, dimensions of jobs, strengths and weaknesses in their performance, and how to improve their performance. Useful feedback emp want to know how performance is regarded by supervisors and org. Symbolic: creating an image that management cares about good employee performance. Pitfalls: need to be reliable and valid to be accurate.

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