Performance Appraisal: The Achilles Heel of Personnel?

1. Performance Appraisal: The Achilles Heel of Personnel?

2. Performance Appraisal Uses • Raises, Merit Pay, Bonuses • Personnel Decisions (e.g., promotion, transfer, dismissal) • Identification of Training Needs • Research Purposes (e.g., assessing the worth of selection tests)

3. Basic Performance Appraisal Process Conduct a Job Analysis (e.g., specify tasks and KSAs) Develop Performance Standards (e.g., define what is superior, acceptable, and poor job performance) Develop or Choose a Performance Appraisal System

4. Performance Appraisal Process • Observation • Selective Attention • Timing • Structure • Frequency • Storage • Encoding of Information (e.g., categorization) • Short vs. Long-term • Memory • Evaluation • Retrieve Information • Combine information • Decision-making (judgment)

5. Sources of Information • 1)Supervisors(most common) • Role Conflict (e.g., judge and trainer/teacher) • Motivation • Time availability • Friendship • 2)Co-Workers (Peers) • Friendship bias • Leniency • High level of accuracy • Best used as a source of feedback

6. Sources of Information (cont) • 3)Self • Lots of knowledge • Leniency effect • Good preparation for performance appraisal meeting (conducive for dialog) • 4)Subordinates • Biases (e.g., # of subordinates, type of job, expected evaluation from supervisor) • 5)Client • Good source of feedback • Negativity bias

7. Technology and Client/Customer Feedback Other examples: Amazon, eBay, Trip Advisor, iTunes

8. Technology and Client/Customer Feedback (cont.)

9. Other Examples of Internet-Based Performance Information Amazon

10. Other Examples of Internet-Based Performance Information Expedia Positive That's the second time I stay in this hotel. The location is fantastic and the rooms, in general are very comfortable. The view from the top, at the breakfast place is superb. Rating: 4.0 Negative The standard rooms are very, very small, I had only one bag and no place to put it. you could barely turnaround in the bathrooms. I love the decor/ art deco style but a little updating is definitely do. Rating: 2.0

11. 360 Degree Performance Appraisal

12. Subjective Appraisal Methods (can be used with any type of job) • Relative Methods • Ranking • 1st _____ • 2nd_____ • 3rd _____ • 2) Pair Comparison • Employee-1 _____ versus Employee-2 _____ • Employee-1 _____ versus Employee-3 _____ etc. • Both are difficult to use with a large number of subordinates

13. Subjective Appraisal Methods (cont.) Absolute Methods • Narrative essay • Unstructured (e.g., content, length) • Affected by the writing ability of supervisors and time availability • Graphic Rating Scale (most common) • _____ _____ _____ _____ _____ • Very Average Excellent • Poor

14. ~ Basic Rating Scale Errors ~ • Leniency (positive bias) • _____ _____ _____ _____ _____ • Very Average Excellent • Poor • Severity (negative bias) • _____ _____ _____ _____ _____ • Very Average Excellent • Poor • Central Tendency (midpoint) • _____ _____ _____ _____ _____ • Very Average Excellent • Poor All lead to a restriction in the range of performance scores

15. Halo Error Responsibility Commitment Initiative Sensitivity Judgment Communication Observation of specific behavior (s) (e.g., volunteers to work overtime) High ratings on other performance dimensions

18. ~ Subjective Appraisal Methods ~ Behavioral Methods(Use of critical incidents; examples of good and poor job behavior collected by job experts over time) • Behavior Observation Scales (BOS) • Rate the frequencyin which critical incidents are performed by employees • Sum the ratings for a total “performance” score • 1) Assists others in job duties. • _____ _____ _____ _____ _____ • Never Usually Always • Cleans equipment after each use. • _____ _____ _____ _____ _____ • Never Usually Always

19. Behaviorally Anchored Rating Scale (BARS) Process • Generate critical incidents (examples of good and poor job performance) • 2) Place critical incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety) • Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong) • 4) Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation) • 5) Place critical incidents on a vertical scale

20. ~ BARS (Pros and Cons) ~ Process involves various employees (increases chances of usage) J Job specificity (different BARS need to be developed for ach position) Not any better at reducing common rating scale errors (e.g., leniency, halo) Time consuming

21. Performance Appraisal & Self-Fulfilling Prophecies Supervisor Expectancy (e.g., labels) Leadership Behaviors Subordinate Self-Expectancy Subordinate Performance Subordinate Motivation

22. Best Practices for Performance Appraisal Systems • Ensure that procedures for personnel decisions do not discriminate on the basis of the race, sex, national origin, religion, or age of those affected by such decisions. • Use objective and uncontaminated data whenever they are available. • Provide a formal system of review or appeal to resolve disagreements regarding appraisals and encourage self-assessments. • Use more than one independent evaluator of performance. • Use a formal,standardized system for personnel decisions. • Ensure that evaluators have ample opportunity (and incentives) to observeand rate performance. Record the observations and comments/ratings. • Avoidratings on traitssuch as dependability, drive, aptitude, or attitude. • Provide documented performance counseling prior to performance,-based termination decisions.

23. Best Practices for Performance Appraisal Systems (cont) • Communicatespecific performance standardsto employees. • Provide raters with written instructions on how to complete performance evaluations. • Evaluate employees on specific work dimensions, rather than on a single overall or global measure. • Require documentationin terms of specific behaviors (e.g., critical incidents) for extreme ratings. • Base the content of the appraisal form on a job analysis. • Provide employees with an opportunity to reviewtheir appraisals. • Set goals for employees. • Educate personnel decision-makers regarding lawson discrimination.

24. Satisfactory Non minority Performance Criterion Minority Unsatisfactory Reject Accept Predictor Score Equal validity, unequal criterion means • Equal test scores; Minorities performing less well on job (over predicting performance) • Minorities hired same as non minorities but probability of success is small.Can • reinforce existing stereotypes.