What is ‘performance appraisal’?<br />“The systematic review and evaluation of job performance as well as the provision of performance feedback.”<br />
What’s the purpose of Performance Appraisals?<br />Personnel Decisions<br />Development Purposes<br />Documentation<br />
I/O Psychology and Performance Appraisals<br />Development of performance appraisal systems<br />Includes:<br />Objective Goal Setting<br />Continuous coaching and feedback<br />Performance appraisal <br />Developmental planning<br />
Evaluating Performance<br />Graphic Rating Scales:<br />One of the oldest evaluation formats, scales consist of traits/behaviors. Rater judges amount of each trait that ratee possesses. <br />Behaviorally Anchored Rating Scales: (BARS)<br />Similar to graphic scales except a descriptions of behavior pertaining to each trait is given in order to make a judgment.<br />
Evaluating Performance con’t<br />Checklists:<br />Raters are asked to read behavioral statements and mark each that applies<br />Employee Comparison Procedures:<br />Evaluation of employees<br />in comparison to other <br />employees.<br />
Rating Errors<br />Halo:<br /> Results from rater’s tendency to allow their opinion of a ratee to influence making specific ratings about them. <br />Distribution Errors:<br />Leniency – when the mean across ratees is higher than all other ratees rated by different raters.<br />Severity- when raters give consistently low ratings.<br />Central Tendency- when the rater consistently gives ratees a middle rating.<br />
Rater Training<br /><ul><li>Rater Error Training: </li></ul>Describing errors to raters so they can avoid making those mistakes.<br /><ul><li>Frame of Reference:</li></ul>Enhances raters’ observations by using set behavioral descriptions to define each level of performance.<br />
Feedback is key for employee development.<br />London & Smither (2002) presented a model for performance management, they proposed that these outcomes are affected by the constructs of employee’s feedback oreintation, receptivity to feedback and feedback environment.<br />Development<br />
Participation<br />Research suggests a strong correlation between employee participation in the appraisal process and positive reactions towards it.<br />Cawley et al., found employee participation in the appraisal process positively influences : <br />1. Satisfaction with appraisal system<br />2. Motivation to improve<br />3. Fairness of appraisal<br />4. Usefulness of appraisal<br />
Feedback<br />Multisource Feedback (360 degree):<br />Multiple raters at various levels within an organization all provide feedback to a target employee. <br />Benefits- helps to eliminate bias, allows for employee participation, allows for a broader view of performance<br />Upward Appraisal Ratings: <br />Ratings being provided by individuals lower in an organizational-hierarchy to a ratee who is higher in the hierarchy <br />
Legal Issues in Performance Appraisal<br />In our nation, it is illegal to discriminate in performance appraisals based on non-performance-related factors.<br />No Employee can be promoted, demoted, fired, transferred or laid off on the basis of these factors.<br />
Legal Issues con’t…<br />Austin, Villanova & Hindman (1995) made legal recommendations for performance appraisal: <br />Start with a job analysis.<br />Communicate performance standards to employees in writing.<br />Recognize that there are separate dimensions of performance that should be evaluated individually.<br />Use both objective and subjective judgments where possible.<br />Give employees access to an appeal mechanism.<br />
Legal Issues con’t…<br />6. Use multiple raters.<br />7. Document everything pertinent to personnel decisions.<br />8. Train the raters. <br /><ul><li>Werner & Bolino (1997)
Due process metaphor:</li></ul>A view of performance appraisal that includes <br />Adequate notice<br />Fair hearing<br />Judgments based on evidence<br />
VIDEO TIME!<br />Please click the below link to watch the funny video clip. <br />While it is playing try to identify the following:<br />A type of performance evaluation method being used<br />A type of distribution error on the part of the ratee<br />What do you think could have improved Keith’s review?<br />http://www.youtube.com/watch?v=I9LLZJFBWdc<br />
Summary<br /><ul><li>Performance appraisals are used to provide employees with job-related feedback, document employee performance for legal protection of the company, and make personnel decisions.
I/O play a large role in performance management systems of organizations.
Performance appraisals come in many formats (rating scales, BARS, checklists and employee comparison procedures)
Appraising an individual’s performance is complex and can lead to errors (leniency, halo, severity, central tendency)
Employee participation is important in having successful performance appraisals as well as training of raters.
Performance appraisal is key in legal protection of organizations.</li>