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

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 Overview (Continued)
 Who Should Provide Performance
Information?
 A Model of Rater Motivation
 Preventing Rating Distortion through
Rater Training Programs

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 Appraisal Forms:
Nine Major Components

1. Basic Employee Information

2. Signatures

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 Appraisal Forms:
Nine Major Components (Continued)
3. Accountabilities, Objectives, and
Standards
4. Competencies and Indicators
5. Major Achievements and Contributions
6. Stakeholder Input
7. Employee Comments

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 Appraisal Forms:
Nine Major Components (Continued)

8. Developmental Achievements
9. Developmental
• Needs
• Plans
• Goals

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 Appraisal Forms:
Eight Desirable Features
1. Simplicity
2. Relevancy
3. Descriptiveness
4. Adaptability

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 Appraisal Forms:
Eight Desirable Features (Continued)
5. Comprehensiveness
6. Definitional Clarity
7. Communication
8. Time Orientation

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 Determining Overall Rating
 Judgmental strategy
• Consider every aspect of performance
• Arrive at defensible summary

 Mechanical strategy
• Consider scores assigned to each section
• Add weighted scores to obtain overall scores

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Open-Ended (Comments) Sections
Challenges
 Difficult to systematically categorize and analyze
 Quality, length, and content vary

Tools to overcome challenges

 Computer-aided text analysis (CATA) software
 Establish goals of information provided
 Training in systematic and standardized rating
skills
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 Appraisal Period
Number of Meetings
 Annual
• May not provide sufficient opportunity for
supervisor/employee discussion
 Semi-annual
 Quarterly

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 When Review Is Completed
Anniversary date
 Supervisor doesn’t have to fill out forms for all
employees at the same time
 Can’t tie rewards to fiscal year
Fiscal year
 Rewards tied to fiscal year
 Goals tied to corporate goals
 May be burden to supervisor, depending on
implementation
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 Six Types of Formal Meetings
(Can Be Combined)
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?
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?
Direct knowledge of employee
performance
 Supervisors
 Peers
 Subordinates
 Self
 Customers
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 Supervisors
Advantages
 Can evaluate performance vs. strategic goals
 Make decisions about rewards
 Able to differentiate among performance dimensions
 Viewed as exclusive source in some cultural contexts

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

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 Peers
Advantages
 Assess teamwork

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

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 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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 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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 Self (Continued)
Suggestions to improve quality of self-
appraisals
 Use comparative instead of absolute
measurement systems
 Allow employees to practice their self-
appraisals
 Ensure confidentiality
 Emphasize the future

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Customers (External and Internal)
Advantages
 Employees become more focused on
meeting customer expectations.

Disadvantages
 Time
 Money

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 Disagreement Across Sources
 Expect disagreements
 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
• Maximize merit raise/rewards
• Encourage employees
• Avoid creating written record
• Avoid confrontation with employees
• Promote undesired employees out of unit
• Make manager look good to his/her supervisor

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 Motivations for Rating Deflation
• Shock employees
• Teach a lesson
• Send a message to employee
• Build a written record of poor
performance

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 Reducing Intentional Rating
Distortion
Recommendations:
 Have raters justify their ratings
 Have raters justify their ratings in a face-
to-face meeting

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Preventing Rating Distortion
Through
Rater Training Programs

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 Rater Training Programs
Should Cover:
 Information
 Motivation
 Identifying, observing, recording and
evaluating performance
 How to interact with employees when
they receive performance information

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Information—How the System Works

 Reasons for implementing the

performance management system

 Information on the appraisal form and

system mechanics

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Motivation—What’s in It for Me?

 Benefits of providing accurate ratings

 Tools for providing accurate ratings

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Identifying, Observing, Recording, and
Evaluating Performance

 How to identify and rank job activities

 How to observe, record, and measure
performance
 How to minimize rating errors

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 How to Interact with Employees
When They Receive Performance
Information
 How to conduct an appraisal interview
 How to train, counsel, and coach

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 Quick Review
 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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