Professional Documents
Culture Documents
Over the next 20 years, companies began focusing on employee motivation and
engagement. “In recent years, performance management has evolved even further,
with many companies pulling down the traditional hierarchy in favour of more equal
working environments” (Brooks, 2016, para. 7). This has led to an increase in
performance management systems that “seek multiple feedback sources when assessing
an employee’s performance – this is known as 360-degree feedback” (para. 7).
Monitoring
Monitoring involves consistently measuring performance and providing ongoing
feedback to employees and groups on their progress toward reaching their goals (Office
of Personnel Management, n.d.)
Developing
Developing involves increasing the capacity to perform though “training, giving
assignments that introduce new skills or higher levels of responsibility, improving work
processes or other methods” (Office of Personnel Management, n.d., para. 5). Training
and development opportunities “encourage good performance, strengthens job-related
skills and competencies and helps employees keep up with changes in the workplace,
such as introduction of new technology” (para. 5).
Rating
Rating involves evaluating employee or group performance against the standards in an
employee’s performance plan and assigning a summary rating of record (Office of
Personnel Management, n.d.). The rating is based on work performed during the entire
appraisal period and determine if the employee will receive a pay increase and how
much the increase will be.
Rewarding
Rewarding involves recognizing individual or groups of employees for their
performance. In order for employees to achieve goals and develop, they need to feel
recognized and appreciated (KeenAlignment, 2011).
Click the link below to watch the video: What is Performance Management?
Video Takeaways
Performance management identifies the work that individuals need to do to be effective
and contribute to the mission and objectives of an organization. The process should also
encourage, measure, and evaluate job performance so that improvements can be made.
Finally, it seeks to communicate, improve, and reward performance.
Lesson 1 Complete!
You completed the first lesson of this lecture. Please scroll down to complete the Check
Your Knowledge activity, in which you answer four True/False questions. You will
have unlimited attempts to do this activity, so do not worry if you do not get it correct
the first time. This is a non-graded activity.
Check your Knowledge #1
Today, performance appraisals are more systematic. Specific metrics are used to
evaluate an employee’s performance. Please watch the 2:30–minute video below
published by Gregg Learning on YouTube. It provides an overview of a performance
appraisal and its components. After viewing the video, you will be able to answer the
following questions:
Define performance appraisals?
List 2 challenges associated with performance appraisals.
Video Takeaways
Performance appraisal is the process of determining how well employees do their jobs
relative to a standard and communicating that information to them. This tool is a key
part of performance management because it helps employees improve their job
performance. They are often viewed as a critical element of any performance
management approach.
Several terms can be used when referring to performance appraisals. These include
employee rating, employee evaluation, performance review, performance evaluation,
and results appraisal. When designed well, performance appraisals can highlight and
address many work-related issues, and by communicating a positive roadmap to
employees, poor performance can often be successfully improved.
There are several challenges associated with performance appraisals. For instance,
ratings night not adequately reflect the actual job performance exhibited by employees
because of a rater’s bias, misperceptions, or failure to watch employees work. Despite
these challenges, having no formal performance appraisal can weaken discipline in a
company and harm an employee’s ability to improve.
Expectancy theory
This theory suggest that individuals adjust their behavior in the organization on the
basis of anticipated satisfaction of valued goals set by them. The individuals modify
their behavior in a way that will most likely lead them to attain these goals. This theory
also believes that performance is influenced by the expectations concerning future
events (Argawal, 2011).
Lesson 2 Complete!
You completed the second lesson of this lecture. Please scroll down to complete the
Check Your Knowledge activity, in which you answer four True/False questions. You
will have unlimited attempts to do this activity, so do not worry if you do not get it
correct the first time. This is a non-graded activity.
Rating method
Rating is a commonly used traditional method of performance appraisal. Under this
approach, an employee is numerically rated from 1 to 10 on various job performance
criterions like attendance, attitude, performance, output, dependability, etc. Employees
may be ranked on overall performance or on various traits. The employee may be rated
by his/her superiors, colleagues or even customers, depending upon the nature of job
(Bajracharya, 2018).
Ranking method
Under this method, employees are ranked from the best to the worst according to their
performance level. The best performing employees are ranked #1 and the least
performing one is ranked the last. Based on these rankings, the companies may take any
actions, from promotion to termination (Bajracharya, 2018).
Comparison method
Under this method, the pairs of employees of same job post or level are formed,
following which they are evaluated on the basis of performance of each other. Subjects
like skills, experience, team player, behavior, etc. are evaluated by the raters and the
raters pick the best performing employee (Bajracharya, 2018).
Self-assessment method
Self-assessment methods require the employee to rate themselves. As part of the self-
assessment, employees set their own goals for the next month or quarter. Some
managers believe self-evaluations are pointless because employees will give themselves
high scores. However, self-assessments give managers insight into the employee’s
thinking (Leonard, 2019). Take a look at the 3:10-minute video below published by CIO
Leadership on YouTube. After viewing the video, you will be able to answer the
following question:
List 10 tips for making self-evaluations more meaningful.
Please click the link below to watch the video: 10 tips for making your self-evaluation
more meaningful
Video Takeaways
Tips for making your self-evaluation more meaningful include:
Have a career path in place to achieve your goals. You should also keep an pen
dialogue to ensure that you are on the right track with your goals and priorities.
When completing the self-evaluation, be sure that you know how the evaluation
will be used. Also, it’s never a good idea to bash your employer. Keep the
evaluation 90% positive.
You can highlight your strengths but keep a balance. If there is a weakness,
don’t be afraid to ask for training, if need. Lastly, if your evaluation does not
alight with your manager’s evaluation, take it in stride. Ask for guidance
throughout the year to avoid surprises on your evaluation.
Trait method
The trait method rates employees on the basis of a specific set of parameters such as:
problem solving skills, teamwork, communication, judgment, creativity and
innovation. Appraisals are typically scored using descriptors ranging from
unsatisfactory to outstanding (Bajracharya, 2018).
Behavioral method
The behavioral method rates employees on the extent to which they display successful
job performance behaviors. In contrast to trait and comparison methods, behavioral
methods rate objective job behaviors. To learn more about the behavior method of
evaluation, please watch the 2:05 – minutes video below published by Gregg Learning
on YouTube. After viewing the video, you will be able to answer the following
question:
Differentiate between the trait method and behavioral method of evaluation
Click the link below to watch the video: Behavior Based Performance Systems
Video Takeaways
Unlike trait-focused methods, which emphasize generic personal characteristics,
behavior-based evaluation systems attempt to discern what a person actually does. The
relatively tangible, objective nature of these systems makes them more legally
defensible than personality scales.
A behaviorally anchored rating system (BARS) defines the dimensions to be evaluated
in behavioral terms and anchors or describes different performance levels. Such a rating
system relies on a customized analysis of the specific job and a breakdown of its
component parts. In contrast to trait-based formats, then, behavior-based methods tend
not to suffer from either vagueness or lack of job specificity. In fact, that is their strength
—they are customized for a job or job group.
Overall, then, whatever else trait- and behavior-based systems may do, they are largely
silent on the question of what an employee is to accomplish, as they do little to ensure
the alignment of goals and future plans except in areas denoted as deficient. For that
reason, like trait-based assessment instruments, behavior-based instruments are often
combined with a future-oriented or developmental component.
Goal-oriented method
The goal-oriented method of evaluation is also known as management by objectives
(MBO). This method of performance appraisal is common among sales staff but isn't
limited to that department. MOB reviews performance based on how well the employee
meets his goals. Goals could include sales numbers, deadline meetings or new
certifications. You can look at goals and see very clearly if an employee is meeting the
goals or not. This is a very black and white method of evaluation (Leonard, 2019).
Lesson 3 Complete!
You completed the third lesson of this lecture. Please scroll down to complete the
Check Your Knowledge activity, in which will match the method of evaluation to the
correct description. You will have unlimited attempts to do this activity, so do not
worry if you do not get it correct the first time. This is a non-graded activity.
Rating (b)
Ranking (f)
Comparison method (c)
360-degree appraisal (h)
Self-assessment method (d)
Trait system (e)
Behavioral method (g)
Goal-oriented method (a)
Bias Errors
Bias errors happen when the rater evaluates an employee based on a personal negative
or positive opinion of the employee rather than on the employee’s actual performance.
Similar-to-me effects – the rater tends to judge employers that they perceive to
be like themselves more favorably. Please watch the 1:23-minutes YouTube
video below published by InsideOutDev for an example of similarity bias.
Click the link below to watch the video: Similarity Bias | Bias in Performance
Management | Ep. 2
Video Takeaways
Similarity bias occurs because people are more likely to imitate cultural models
they see as similar to themselves, based on specific traits like age, ethnicity,
gender, and geographic location. In the video, the manager had similar hair and
physical traits as the employee. This caused her evaluation to be biased in her
favor.
Illegal discriminatory bias – the supervisor rates members of his or her race, sex,
nationality or religion more favorably than members of other classes.
(Petersen, 2019).
Contrast Errors
Supervisors make contrast errors when they compare an employee with other
employees rather than to specific, explicit performance standards. Please watch the
3:20-minute YouTube video below published by InsideOutDev for an example of
contrast bias. Click the link below to watch the video:
Video Takeaways
In the video, the manager compared the gentleman’s work to that of the other
employee. This caused the manager to have contrast bias because each employee
should be evaluated on their individual merit, rather than compared to the work of co-
workers.
How to eliminate bias and errors
Eliminating bias and error in performance appraisals is a critical responsibility for
supervisors, managers and human resources staff. Ways to eliminate bias errors
include:
1. Complete supervisor training on the fundamentals of performance management,
including your company’s philosophy and practices. Leadership training on
performance management also includes when and how to administer
disciplinary warnings, corrective action and suspensions, how to provide
employees with constructive feedback throughout the evaluation process and
how to conduct annual employee evaluation meetings.
2. Study the types of bias and errors most common in performance appraisals.
When supervisors give unequal weight to employee job tasks, it can produce an
inaccurate performance appraisal. Errors can occur when supervisors look only
at employee performance for the most recent period instead of the full evaluation
period.
3. Review employee documents to gain a complete picture of past performance.
Contact employees’ supervisors in other departments when it’s difficult to piece
together work history and performance for long-term employees. Make note of
discrepancies in earlier performance appraisals that may compound later
performance issues.
4. Obtain the correct appraisal forms from your human resources department.
Supervisors and managers with small companies that don’t have dedicated
human resources departments can check online sources for performance
evaluation templates and forms.
5. Read the performance standards for all the job duties and tasks for which the
employee is responsible. Look at her performance throughout the entire
evaluation period as objectively as possible. Gather documents that support
performance, such as sales records, call logs, reports and other materials that
measure the employee’s work quantitatively.
6. Compare the performance standards to the employee’s actual work.
7. Draft the performance appraisal form and attach supporting documentation. If
possible, ask a colleague to review your draft or ask a member of the human
resources staff to read the performance appraisal draft. Review it the next day
with a fresh set of eyes. Read the evaluation from your perspective and then put
yourself in the employee’s position, reading from his perspective.
(Mayhew, n.d., para. 2-8).
Lesson 4 Complete!
You completed the fourth lesson of this lecture. Please scroll down to complete the
Check Your Knowledge activity, in which you answer four True/False questions. You
will have unlimited attempts to do this activity, so do not worry if you do not get it
correct the first time. This is a non-graded activity.
Check your Knowledge #4
True or False: “Measure actual performance” is the final step of the performance
appraisal process.
(Establish Performance Standards)
True or False: Bias errors happen when the rater evaluates an employee based on a
personal negative or positive opinion of the employee rather than on the employee’s
actual performance.
True or False: Supervisors make contrast errors when they compare an employee with
other employees rather than to specific, explicit performance standards.
True or False: Compare the performance standards to the employee’s actual work is one
way to eliminate bias and errors.
Conclusion
Performance management uses performance appraisals to evaluate an employee’s
work. Proper steps must be taken to ensure that the employee is aware of the
evaluation criteria and how the information impacts their employment and/or pay. To
ensure evaluation are conducted fairly, standard procedures must be followed to ensure
all employees are evaluated using the same metrics. Factors such as bias and errors
should be eliminated as much as possible to keep the process fair and transparent.
References:
Agarwal, A. (2011, November 3). Models and Theories of Performance Management
System. Retrieved from https://www.projectguru.in/publications/models-and-
theories-of-performance-management-system.
CIO. (2018, March 26). 10 Tips for making your self-evaluation more meaningful.
Retrieved from https://youtu.be/-blNWDCjDcQ.
Gregg Learning. (2019, October 10). Behavior Based Performance Systems. Retrieved
from https://youtu.be/eEOL0DHufSg. (Referenced in Lesson 3)
InsideOutDev. (2019, January 16). The Halo Effect | Bias in Performance Management.
Retrieved from https://youtu.be/Txv4CXKKmM8.
Leonard, K. (2019, February 5). What Are the Different Types of Performance
Appraisal? Retrieved from https://smallbusiness.chron.com/different-types-
performance-appraisal-1904.html
Mayhew, R. (n.d.). How to Eliminate Bias and Error in Performance Appraisals.
Retrieved from https://smallbusiness.chron.com/eliminate-bias-error-performance-
appraisals-11187.html.
Schrage, M., & Hancock, B. (2019, March 26). 5 Facets of Performance Management
For the Future. Retrieved from https://blog.hrps.org/blogpost/5-Facets-of-
Performance-Management-for-the-Future