Performance Appraisal Uses

‡

Raises, Merit Pay, Bonuses

‡ Personnel Decisions (e.g., promotion, transfer, dismissal)

‡ Identification of Training Needs

‡ Research Purposes (e.g., assessing the worth of selection tests)

acceptable.. specify tasks and KSAs) Develop Performance Standards (e.Basic Performance Appraisal Process Conduct a Job Analysis (e.. and poor job performance) Develop or Choose a Performance Appraisal System .g.g. define what is superior.

Long-term ‡ Memory Evaluation ‡ Retrieve Information ‡ Combine information ‡ Decision-making (judgment) .g..Performance Appraisal Process Observation ‡ Selective Attention ‡ Timing ‡ Structure ‡ Frequency Storage ‡ Encoding of Information (e. categorization) ‡ Short vs.

g.Sources of Information 1) Supervisors (most common) ‡ Role Conflict (e. judge and trainer/teacher) ‡ Motivation ‡ Time availability ‡ Friendship 2) Co-Workers (Peers) ‡ Friendship bias ‡ Leniency ‡ High level of accuracy ‡ Best used as a source of feedback ..

# of subordinates..g. type of job.Sources of Information (cont) 3) Self ‡ Lots of knowledge ‡ Leniency effect ‡ Good preparation for performance appraisal meeting (conducive for dialog) 4) Subordinates ‡ Biases (e. expected evaluation from supervisor) 5) Client ‡ Good source of feedback ‡ Negativity bias .

Subjective Appraisal Methods (can be used with any type of job) Relative Methods 1) Ranking 1st _____ 2nd_____ 3rd _____ 2) Pair Comparison Employee-1 _____ versus Employee-2 _____ Employee-1 _____ versus Employee-3 _____ etc. ‡ Both are difficult to use with a large number of subordinates .

length) ‡ Affected by the writing ability of supervisors and time availability 2) Graphic Rating Scale (most common) _____ _____ _____ _____ _____ Very Average Excellent Poor .Subjective Appraisal Methods Absolute Methods 1) Narrative essay ‡ Unstructured (e. content.g..

Common Rating Scale Errors 1) Leniency (positive bias) X _____ Very Poor _____ _____ _____ _____ Average Excellent 2) Severity (negative bias) X _____ Very Poor _____ _____ _____ _____ Average Excellent All lead to a restriction in the range of performance scores 3)Central Tendency (midpoint) X _____ Very Poor _____ _____ _____ _____ Average Excellent .

volunteers to work overtime) .Halo Error Responsibility Commitment Initiative Sensitivity Judgment Communication High ratings on other performance dimensions Observation of specific behavior (s) (e..g.

Subjective Appraisal Methods Behavioral Methods (use of critical incidents. examples of good and poor job behavior collected by job experts over time) Behavior Observation Scales (BOS) ‡ Rate the frequency in which critical incidents are performed by employees ‡ Sum the ratings for a total ³performance´ score 1) Assists others in job duties. _____ _____ _____ _____ _____ Never Usually Always . _____ _____ _____ _____ Never Usually _____ Always 2) Cleans equipment after each use.

g. sales volume. units produced) ‡ When observation occurs (timing).Objective Appraisal Data 1) Production Data (e.. and how data is collected ‡ Fairness and relevancy issue ‡ Potential limited variability ‡ Limitations regarding supervisory personnel 2) Personnel Data ‡ Absenteeism (excused versus unexcused) ‡ Tardiness ‡ Accidents (fault issue) .

g. Responsibility.. Safety) 3) Retranslation Step (do step # 2 again with a separate group of job experts.Behaviorally Anchored Rating Scale (BARS) Process 1) Generate critical incidents (examples of good and poor job performance) 2) Place Critical Incidents Into performance dimensions (e. Initiative. Discard incidents where disagreement exists as to which dimension in which they belong) 4) Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation) 5) Place critical incidents on a vertical scale .

. halo) ‡ Time consuming .BARS (Pros and Cons) ‡ Process involves various employees (increases the likelihood of usage) ‡ Job specificity (different BARS need to be developed for each position) ‡ Not any better at reducing common rating scale errors (e. leniency.g.

Performance Appraisal Training 1) Frequent observation of performance and feedback (both positive and negative) 2) Recordkeeping (ongoing if possible) 3) Encourage self-assessment of employees 4) Focus on behaviors (not traits) 5) Use specific behavioral criteria and standards 6) Set goals for employees (specific and challenging ones) 7) Focus on how to observe job behaviors and provide incentives to do so .

5) Use a formal. 3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals.Prescriptions for Legally Defensible Appraisal Systems 1) Ensure that procedures for personnel decisions do not differ as a function of the race. drive.-based termination decisions. 4) Use more than one independent evaluator of performance. 2) Use objective and uncontaminated data whenever they are available. standardized system for personnel decisions. sex. . 6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made. religion. national origin. 7) Avoid ratings on traits such as dependability. aptitude. or age of those affected by such decisions. or attitude. 8) Provide documented performance counseling prior to performance.

12) Require documentation in terms of specific behaviors (e. critical incidents) for extreme ratings. 13) Base the content of the appraisal form on a job analysis.Prescriptions for Legally Defensible Appraisal Systems (cont) 9) Communicate specific performance standards to employees.g.. rather than on a single overall or global measure. 10) Provide raters with written instructions on how to complete performance evaluations. 15) Educate personnel decision-makers regarding laws on discrimination. . 14) Provide employees with an opportunity to review their appraisals. 11) Evaluate employees on specific work dimensions.

pay. promotion) ..Factors Affecting Employees Acceptance of Performance Evaluations ‡ Asking for (and using) performance information/input from employees importance of using employee selfevaluations ‡ Ensure a 2-way interaction during the performance appraisal meeting ‡ Provide a way for employees to counter or challenge the appraisal ‡ Sufficient detail and knowledge of employee performance by supervisors ‡ Consistent use of performance standards across employees importance of rater training ‡ Basing performance evaluation on actual job behaviors ‡ Using performance ratings for personnel decisions (e.g.

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