2. The process by which an employee’s
contribution to the organization
during a specified period of time is
assessed.
Lets employees know how well they
have performed in comparison with
the standards of the organization
Performance Feedback
Performance Appraisal
3. STRATEGIC IMPORTANCE
Consistency between job behavior and
Organizational strategy
Organization values
Performance Management as an
Employee development tool
Administrative tool
4. A GOOD APPRAISAL SYSTEM
Criteria
Validity
Reliability
Freedom from bias: errors
Practicality
5. Recruitment
PA and other HRM Functions
Selection
Training &
Development
Compensation
Labor Relations
P
A
6. Why PA May Fail
Unclear
Language
Mgr not
taking PA
seriously
Mgr not
prepared
No on-
going
feedback
Mgr not
honest or
sincere
Ineffective
discussio
n
Lack
appraisal
skills
Mgr Lacks
Infor.
Insuff.
Rewards
8. Training Appraisers
Leniency or
Strictness Error
Similar-to-Me
Error
Contrast Error
Error of Central
Tendency
Recency Error
Common
Appraisal Errors
to Address in
Training
9. Types of Performance to Measure
3 Types of Methods
Trait based
Behavior based
Results based
Measurement Methods
Objective
Production
Dollar Sales
Performance Tests
Subjective
Comparative
Procedures
Ranking
Forced Distribution
12. Results-based Methods
Used when
It is not important how results are achieved
There are many different ways to succeed
Practicality
Contamination
Deficiency
Teamwork
13. PA Methods Vary upon Task Types
High Low
High Behavioral / Result
Ex: assembly workers
Result
Ex: sales
Low Behavioral
Ex: reporters
Extensive selection/
training
Ex: researchers
Knowledge of the transformation process
Reliability and Validity of PA Measurement
15. PA under a MBO Program
Step 1:
Org. goals
& metrics
Step 2:
Dpt. Goals
& metrics
Step 5:
Interim
review
Step 5b:
New inputs are
then provided
Step 5a:
Inappropriate
goals/metrics
deleted
Step 4:
Mutual
agreement
Step 3:
Sbt. proposes
goals & metrics
Step 3:
Spvr lists
goals & metrics
Step 7:
Review org.
performance Step 6:
Final
review
16. Self-Managed Teams
Characteristics
Focusing group result
Larger Span of control
More part-time/contract
workers
More cross-functional
workers
Challenges
Measuring individual
result Unfair & Hard
Quality and commitment
std. Diverse
Measure cross-
functional performance
Tough
19. CONCLUSION
Purposes of performance appraisal
Characteristics of an effective appraisal
Different sources of appraisal information
Various methods used for evaluation
Editor's Notes
Notes
One weakness in many performance appraisal programs is that managers and supervisors conducting the appraisal are not adequately trained for that task. Appraisal training, at the least, should focus on eliminating the subjective errors made by managers in the rating process. Common types of errors include:
Error of Central Tendency. A type of distributional error that involves a group of ratings given across various employees (occurs when all employees are rated about average).
Leniency or Strictness Error. Another distributional error, in which the appraiser tends to give employees either too high or too low a rating.
Recency Error. Recency is a performance-rating error in which the appraisal is largely based on the employee’s most recent behavior rather than on behavior throughout the appraisal period.
Contrast Error. Contrast error occurs when an employee’s evaluation is biased either upward or downward because of another employee’s performance who was just evaluated previously.
Teaching Tip: This tendency is explained in part by Sherif’s Social Judgment Theory in which positions similar to our own are believed to be closer to what we believe than they actually are (assimilated) and those different from our own are believed to be even more different from what they actually are (contrasted). By extension, a manager either improves or depresses an appraisal becasue of the similarity or difference of a particularly salient appraisal recently given another employee.
Similar-to-Me Error. This occurs when appraisers inflate the evaluations of people with whom they have something in common.
Teaching Tip: Again, Social Judgment Theory applies, as does Balance Theory.
Trait based--assesses the abilities or other personal characteristics of an employee.
Behavior based--measures the extent to which an employee engages in specific, relatively well-defined behaviors while on the job.
Results based--measures the “bottom line” associated with an employees work.
Trait approaches to performance appraisal are designed to measure the extent to which an employee possesses certain characteristics that are viewed as important for the job and the organization in general. The trait method approach continues to be the most popular appraisal method, although such appraisals can be easily biased and subjective. Common traits methods are:
Graphic Rating Scale Method. Here each trait or characteristic to be rated is represented by a scale on which the rater indicates the degree to which an employee possess that trait or characteristic.
Mixed Standard Scale Method. The mixed standard scale is a modification of the basic rating scale method by basing the comparison for appraisal in relation to some standard (often an idealized one). Employee performance is then categorized as better, equal, or worse than the standard.
Forced-Choice Method. This trait approach requires that the rater choose from statements designed to distinguish between successful and unsuccessful performance.
Essay Method. This method requires the rater to compose a statement describing employee behavior. Typically, the rater must describe the employee’s strengths and weaknesses and make recommendations for her or his development.
Behavioral methods seek to overcome the often vague and subjective drawbacks of trait methods by focusing on describing specifically which actions should or should not be exhibited on the job and appraising employees on the basis of this observable action. Common behavioral methods include:
Critical Incidents Method. As in job design, this is an unusual event that denotes superior or inferior employee performance in some part of the job. One advantage of this method is that it forces the appraiser to examine the entire appraisal period self-consciously for critical incidents, thus guarding against recency error.
Behavioral Checklist Method. This consists of having a rater check those statements on a list that the rater believes are characteristic of the employee’s performance or behavior.
Behaviorally Anchored Rating Scale (BARS). This approach consists of a series of vertical scales, one for each important dimension of job performance. One advantage of a BARS is that it is typically developed by a committee that includes both subordinates and managers. ABARS requires considerable time and effort to develop, but it also shows a high degree of content validity.
Behavior Observation Scales (BOS). This approach measures the frequency of observed behavior. The value of a BOS is that it allows the appraiser to play the role of observer rather than judge.
CONTAMINATION:
Results based measures may be difficult to obtain for some jobs. E.g. What are the performance results of a HS teachers behavior.
Results are not always under the control of an individual employee. E.g. equipment breakdowns, a change inn the economy, bad luck, inadequate budgetary or staff support, or other factors not directly controlled by an employee may greatly affect the job results.
May foster a “results at all cost mentality”.--e.g., hanging up on customers calling to cancel orders or arrange for returns.
DEFICIENCY
Teamwork among employees may suffer if individuals are preoccupied with their own personal results and will not take the time to help coworkers.
May not tap into such aspects of performance as cooperation.
Do not always provide clear information on how to improve work performance.
CONCLUSION:
Avoid trait-based appraisals, unless a clear link between traits and job effectiveness can be shown.
A carefully constructed combination of behavior-based and results-based approaches may be most appropriate for many jobs.