PERFORMANCE
APPRAISAL
FACTS ABOUT PERFORMANCE
APPRAISAL
REVIEW OF VARIOUS STUDIES SUGGESTS “THE APPRAISAL
OF PERFORMANCE APPRAISAL IS NOT GOOD.”
THOSE DOING RATING, THOSE BEING RATED, &
ADMINISTRATORS HAVE EXPRESSED DISSATISFACTION
WITH THEIR APPRAISAL SYSTEMS
WIDESPREAD DISSATISFACTION AMONG FORTUNE 500
COMPANIES THAT HAVE RESOURCE TO ACQUIRE BEST
APPRAISAL TECHNOLOGY
SURVEY ON SMALL & MEDIUM SIZED FIRMS REPORT EVEN
MORE DISSATISFACTION
SO, IS THERE ANY HOPE FOR PA?
FACTS ABOUT PERFORMANCE
APPRAISAL
STUDIES HAVE REVEALED THAT SOMETHING CAN BE DONE
TO IMPROVE THE EFFECTIVENESS OF APPRAISAL SYSTEM
PRESCRIPTION FOR EFFECTIVE PERFORMANCE MANAGEMENT:
1. PRECISION IN THE DEFINITION & MEASUREMENT OF
PERFORMANCE
2. LINK PERFORMANCE DIMENSIONS BY COMBINING
FUNCTIONS WITH ASPECTS OF VALUES (EG QUANTITY,
QUALITY, TIMELINESS)
3. INCORPORATE A FORMAL PROCESS FOR INVESTIGATING
AND CORRECTING FOR THE EFFECTS OF SITUATIONAL
CONSTRAINTS ON PERFORMANCE
PERFORMANCE APPRAISAL (PA)
A PROCESS OF DETERMINING
HOW WELL EMPLOYEES DO
THEIR JOBS COMPARED TO A
SET OF STANDARDS TO
IMPROVE THEIR
PERFORMANCE
EFFECTIVENESS.
WHY APPRAISE PERFORMANCE?
PLAY AN INTEGRAL ROLE IN THE
EMPLOYER’S PERFORMANCE MANAGEMENT
PROCESS.
HELP IN PLANNING FOR CORRECTING
DEFICIENCIES AND REINFORCE THINGS
DONE CORRECTLY.
USEFUL FOR CAREER PLANNING IN
IDENTIFYING EMPLOYEE STRENGTHS AND
WEAKNESSES.
APPRAISAL OBJECTIVES
Roles and Responsibilities in PA
PHASES OF APPRAISAL
MEETINGS
Goal
Develop Setting
Communicate
Expectations
Post- Personnel
Meeting Decisions Pre-
Phase Meeting
Plan the
Assessment
Phase
Feedback
Monitor, Assist,
&Control
Appraise
Meeting Phase
DESCRIPTIONS FOR STEP BY STEP
Step Description
# 1 Goal Setting Analyze job duties/responsibilities and required outcome; choose and define
appraisal criteria.
# 2 Communicate Set performance expectations/targets and communicate to subordinate; allow for
Expectations participation.
# 3 Plan Assist subordinate in determining and implementing effective strategies/processes
to perform tasks; explore options and limits to discretion in selection of methods;
obtain required resources.
# 4 Monitor, Continually monitor performance, providing ongoing feedback and assistance in
Assist, and the forms of problem solving, coaching, counseling, developing/removing
Control roadblocks to successful performance; take corrective action as required
# 5 Appraise Observe, recall, and evaluate performance against expectations/standards;
complete appraisal forms; back up evaluation with concrete examples/data.
# 6 Feedback Review evaluation with subordinate in carefully planned feedback session; be
specific and explicit; listen carefully; build a “problem-solving” focus, cover
strengths and weaknesses; complete an action plan to improve performance levels,
and/or develop performance capability.
# 7 Personnel Make personnel decisions (e.g. promotions, incentives, transfers, etc.)
Decisions
# 8 Develop Implement developmental action plans made in previous step.
APPRAISE METHODS/SCALES
GRAPHICAL RATING SCALE
ALTERNATION RANKING SCALE
PAIRED COMPARISON METHOD
FORCED DISTRIBUTION METHOD
CRITICAL INCIDENT METHOD
BEHAVIORAL ANCHORED RATING SCALE
(BARS)
Graphic Rating Scale
Paired Comparison method
FORCED DISTRIBUTION METHOD
BEHAVIORALLY ANCHORED
RATING SCALES (BARS)
Ratings Expected Behavior
5 — Exceptional Accurately completes and submits all
performance status change notices within an hour of
request
4 — Excellent Verifies all status change notice
performance information with requesting manager
before submitting
3 — Fully competent Completes status change notice forms by
performance the end of the workday
2 — Marginal Argues when asked to complete a status
performance change notice
1 — Unsatisfactory Says status change notice forms have been
performance submitted when they haven’t
DESIGNING AN APPRAISAL
SYSTEM
DESIGN DECISIONS
DECIDE THE NATURE OF THE SYSTEM
(UNIFORM OR DIFFERENTIATED;
INTERACTIVE OR ONE-WAY)
DECIDE THE PURPOSE (EVALUATIVE,
DEVELOPMENT OR BOTH)
DEFINE THE RATER/ APPRAISER (SINGLE
OR MULTIPLE)
DESIGNING AN APPRAISAL
SYSTEM
DEVELOP MEASUREMENT CONTENT
FOCUS OF APPRAISAL AND RELATIVE WEIGHTS
PERSON ORIENTED (ATTRIBUTES AND TRAITS)
WORK ORIENTED (JOB FUNCTIONS/ RESULTS)
ASPECTS OF VALUES
GENERALLY RATERS MAKE SINGLE OVERALL
JUDGEMENT ON JOB FUNCTION
CRITERIA BY WHICH THE VALUE OF PERFORMANCE
IN ANY WORK ACTIVITY CAN BE ASSESSED
(QUALITY, QUANTITY, TIMELINESS, COST
DESIGNING AN APPRAISAL
SYSTEM
DESIGN MEASUREMENT PROCESS
TYPES OF MEASUREMENT SCALE
(ORDINAL/RANKING; RATING/INTERVAL)
TYPES OF RATING METHODS/SCALES
ACCOUNTING FOR SITUATIONAL CONSTRAINTS
FOR PERFORMANCE
SCORE COMPUTATION METHODS
DESIGNING AN APPRAISAL
SYSTEM
DEFINING THE RATER
MORE COMMONLY USED PRACTICED IS THE RATING BY THE
BOSS/SUPERVISOR
UPWARD RATING IS INCREASING IN NUMBER OF ORGANIZATIONS
CUSTOMERS PROVIDE VALID & RELIABLE PERFORMANCE INFORMATION
SURVEY FOUND ONLY 70% OF FIRMS ALLOW SELF APPRAISAL
MORE ORGANIZATIONS ARE CONSIDERING MULTIPLE RATERS
MORE ACCURATE
FEWER BIASES
MORE FAIR
LESS TARGETS OF LAWSUITS
DESIGNING AN APPRAISAL
SYSTEM
ADMINISTRATIVE CHARACTERISTICS
FREQUENCY AND TIMING
PERFORMANCE RECORDING
PROCEDURES
INFORMATION COLLECTION AND
PROCESSING PROCEDURES
CONFIDENTIALITY AND ACCESS
RATING ERRORS & BIAS
PRIMACY AND RECENCY EFFECT
HALO AND HORN EFFECT
CENTRAL TENDENCY
LENIENCY/ SEVERITY
STEREOTYPING
CONTRAST EFFECT
SUNFLOWER EFFECT: PUTTING ONESELF ON
SAFER SIDE
NON PERFORMANCE FACTOR EFFECT
EFFECTS OF PA ERRORS &
BIAS
REDUCED JOB SATISFACTION
REDUCED EMPLOYEE MOTIVATION AND
ORGANIZATIONAL COMMITMENT
LESS EFFECTIVE
INCREASED TURNOVER
AVOIDING RATING ERRORS
IT IS UNAVOIDABLE TO MAKE APPRAISAL BIASES WHEN THE
RATEES AND RATERS ARE HUMAN BEINGS (BAKAN AND
KELLEROGLU, 2003), AND AFFECT IS IRREVOCABLE DURING
THE PROCESS.
AWARENESS OF ERRORS/ PROBLEMS AND THEIR LIKELY
EFFECTS
USE OF RIGHT APPRAISAL TOOLS
TRAINING OF APPRAISERS
USE OF DIARIES
• USE OF MULTI RATERS
• NOT USING EVALUATION AS A PRIMARY REWARD
