HRM544

PERFORMANCE MANAGEMENT
CHAPTER 6
GATHERING PERFORMANCE
INFORMATION

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 Overview
 Appraisal Forms
 Characteristics of Appraisal Forms
 Determining Overall Rating
 Appraisal Period and Number of Meetings
 Who Should Provide Performance Information?
 A Model of Rater Motivation
 Preventing Rating Distortion through Rater Training
Programs

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 Appraisal Forms: 9 Major Components

1. Basic Employee Information

2. Accountabilities, Objectives, and Standards
3. Competencies and Indicators
4. Major Achievements and Contributions

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 Appraisal Forms: 9 Major Components

5. Developmental Achievements
6. Developmental Needs, Plans and Goals
7. Stakeholder Input
8. Employee Comments
9. Signatures

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 Appraisal Forms: 8 Desirable Features

1. Simplicity 5. Comprehensiveness
2. Relevancy 6. Definitional Clarity
3. Descriptiveness 7. Communication
4. Adaptability 8. Time Orientation

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 Determining Overall Rating

2 main strategies:

1. Judgmental strategy

2. Mechanical strategy

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 Appraisal period

Number of Meetings
a. Annual
b. Semi-annual
c. Quarterly

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 6 Types of Formal Meetings

1. System Inauguration
2. Self-Appraisal
3. Classical Performance Review
4. Merit/Salary Review
5. Development Plan
6. Objective Setting

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 Who Should Provide Performance Information?

REMINDER!
Employees should be involved in selecting
 Which sources evaluate
 Which performance dimensions

When employees are actively involved

 Higher acceptance of results
 Perception that system is fair

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 Who Should Provide Performance Information?

 Supervisors
 Peers
 Subordinates
 Self
 Customers

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 1. Supervisors

 Advantages
 Best position to evaluate performance vs. strategic goals
 Make decisions about rewards
 Able to differentiate among performance dimensions

 Disadvantages
 Supervisor may not be able to directly observe
performance
 Evaluations may be biased

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 2. Peers

 Advantages
 Assess teamwork

 Disadvantages
 Possible friendship bias
 May be less discriminating
 Context effects

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 3. Subordinates

 Advantages
 Accurate when used for developmental purposes
 Good position to assess some competencies

 Disadvantages
 Inflated when used for administrative purposes
 May fear retaliation (confidentiality is key)

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 4. Self

 Advantages
 Increased acceptance of decisions
 Decreased defensiveness during appraisal interview
 Good position to track activities during review period

 Disadvantages
 May be more lenient and biased

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 5. Customers (external and internal)

 Advantages
 Employees become more focused on meeting
customer expectations

 Disadvantages
 Time
 Money

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 Disagreement Across Sources

 Expect disagreement
 Ensure employee receives feedback by source
 Assign differential weights to scores by source, depending
on importance
 Ensure employees take active role in selecting which
sources will rate which dimensions

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 Types of Rating Errors

 Intentional errors
 Rating inflation
 Rating deflation

 Unintentional errors
 Due to complexity of task

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 A Model of Rater Motivation
Expected Positive and Negative
Consequences of Rating
Accuracy
Motivation to Provide Accurate
Ratings
Probability of Experiencing
Positive and Negative
Consequences Rating Behavior

Expected Positive and Negative

Consequences of Rating
Distortion
Motivation to Distort Ratings

Probability of Experiencing
Positive and Negative
Consequences

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 Motivations for Rating Inflation

1. Maximize merit raise/rewards

2. Encourage employees
3. Avoid creating written record
4. Avoid confrontation with employees
5. Promote undesired employees out of unit
6. Make manager look good to his/her supervisor

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 Motivations for Rating Deflation

1. Shock employees
2. Teach a lesson
3. Send a message to employee
4. Build a written record of poor performance

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 PERFORMANCE MANAGEMENT

CHAPTER 6
PREVENTING RATING DISTORTION
THROUGH
RATER TRAINING PROGRAMS

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 Rater Training Programs should cover:

1. Information
2. Motivation
3. Identifying, observing, recording and evaluating
performance
4. How to interact with employees when they
receive performance information

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 1. Information

 How the system works?

1. Reasons for implementing the performance
management system
2. Information on the appraisal form and system
mechanics

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 2. Identifying, observing, recording, and
evaluating performance

3. How to identify and rank job activities

4. How to observe, record, measure
performance
5. How to minimize rating errors

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 3. How to interact with employees

6. How to conduct an appraisal interview

7. How to train, counsel, and coach

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 4. Motivation

● What’s in it for me?

● Benefits of providing accurate ratings
● Tools for providing accurate ratings

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