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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