Established in accordance with the organization's strategic goals, clear and objective enough to be understood and measured
Supervisor's expectations of employee work performance
Must be clear enough to communicate to employees, mutually agree to specific job performance measures, and appraise their performance against these established standards
Communicate Expectations
1. Once performance standards are established, communicate these expectations to employees
2. Employees should not have to guess what is expected of them
3. Communication is a two-way street, not just information transfer from supervisor to employee
Sources of information used to measure actual performance
Personal observation
Statistical reports
Oral reports
Written reports
Compare Actual Performance with Standards
1. Notes deviations between standard performance and actual performance
2. Includes an explanation of the different levels of performance and their degree of acceptability against the performance standard
Appraisal discussion
Can have negative as well as positive motivational consequences<|>Conveying good news is considerably easier than conveying bad news
Initiate Corrective Action if Necessary
1. Immediate corrective action - corrects problems such as mistakes in procedures and faulty training to get the employee back on track right away
2. Basic corrective action - asks how and why performance deviated from the expected performance standard and provides training or employee development activities to improve performance
Absolute Standards
Employees are compared to a standard, and their evaluation is independent of any other employee in a work group
Absolute Standards methods
Critical incident appraisal
Checklist
Graphic rating scale
Forced choice
Behaviorally anchored rating scales
Checklist Appraisal
The evaluator uses a list of behavioral descriptions and checks off behaviors that apply to the employee<|>An HRM analyst scores the checklist, often weighting the factors in relationship to their importance to that specific job<|>Reduces some bias in the evaluation process because the rater and the scorer are different<|>May be inefficient and time-consuming if HRM must spend considerable time in developing individualized checklists of items for numerous job categories