Chapter 7: Performance Management Learning Objectives • Understand the concept of performance management.

1. Chapter 7: Performance Management Learning Objectives • Understand the concept of performance management. • Understand how performance appraisal contributes to performance management. • Know the attributes of a legally defensible performance appraisal system. • Understand the concept of person perception. • Understand the three major rating errors. • Know the various types of rating scales. • Explain the purpose of rater training. • Understand the bases of rater motivation. • Understand the basis of contextual performance. • Understand peer assessment, self-assessment, and 360-degree feedback. • Explain the use of performance appraisal interviews.

11. Chapter Summary • Performance management is the process of aligning all of the organization’s components to achieve high organizational performance. • Performance appraisal is the evaluation of the organization’s personnel component. • Performance appraisal is used to make important personnel decisions (such as retention and advancement) and as such is governed by fair employment laws. • How employees are evaluated is related to how they are perceived in the workplace, which may include factors that have little to do with their performance. • Supervisor ratings are the most common form of performance appraisal. • I/O psychologists have developed various types of rating scales to evaluate job performance and have identified rating errors that occur with their use. • Individuals can be trained to make higher-quality ratings; thus the judgment of employees is a learnable skill.

12. Chapter Summary (continued) •An organization may have inhibiting factors that influence a rater’s decision to give accurate and honest evaluations of employees. • Appraisals of performance can be made by peers and subordinates (as well as oneself ) in addition to supervisors. • 360-degree feedback is an approach to performance evaluation based on a confluence of ratings from people at multiple organizational levels. The technique is used for both developmental and administrative purposes. • In some cultures it is not acceptable to solicit evaluations from any source except the supervisor.