Transcript Performance Appraisal Uses • Compensation (raises, merit pay, bonuses) • Personnel Decisions (e.g., promotion, transfer, dismissal) • Identification of Training Needs • Research Purposes.

Performance Appraisal Uses
• Compensation (raises, merit pay, bonuses)
• Personnel Decisions (e.g., promotion, transfer, dismissal)
• Identification of Training Needs
• Research Purposes (e.g., assessing the worth/validity of
selection tests)
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
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)
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
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
Subjective Appraisal
Methods (can be used
with any type of job)
Relative Methods
1) 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
Subjective Appraisal Methods
Absolute Methods
1) Narrative essay
• Unstructured (e.g., content, length)
• Affected by the writing ability of supervisors and
time availability
2) Graphic Rating Scale (most common)
_____ _____ _____ _____ _____
Very
Average
Excellent
Poor
Common Rating Scale Errors
1) Leniency (positive bias)
X
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
2) Severity (negative bias)
X
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
3)Central Tendency (midpoint)
X
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
All lead to a
restriction in the
range of
performance
scores
Halo Error
Observation of specific
behavior (s) (e.g.,
volunteers to work
overtime)
Responsibility
Commitment
Initiative
Sensitivity
Judgment
High ratings on other
performance
dimensions
Communication
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 frequency in which critical incidents are
performed by employees
• Sum the ratings for a total “performance” score
1) Assists others in job duties.
_____ _____ _____ _____
Never
Usually
_____
Always
2) Cleans equipment after each use.
_____ _____ _____ _____ _____
Never
Usually
Always
Objective Appraisal Data
1) Production Data (e.g., sales volume, units produced)
• When observation occurs (timing), and how data is
collected
• Fairness and relevancy issue
• Potential limited variability
• Limitations regarding supervisory personnel
2) Personnel Data
• Absenteeism (excused versus unexcused)
• Tardiness
• Accidents (fault issue)
Behaviorally Anchored Rating Scale
(BARS) Process
1) Generate critical incidents (examples of good and poor job
performance)
2) Place Critical Incidents Into performance dimensions (e.g.,
Responsibility, Initiative, Safety)
3) 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
BARS (Pros and Cons)
• Process involves various employees (increases
the likelihood of usage)
• Job specificity (different BARS need to be
developed for each position)
• Not any better at reducing common rating scale
errors (e.g., leniency, halo)
• Time consuming
Performance Appraisal Training
1) Frequent observation of performance and
feedback (both positive and negative)
2) Recordkeeping (ongoing if possible)
3) Encourage self-assessment of employees
4) Focus on behaviors (not traits)
5) Use specific behavioral criteria and standards
6) Set goals for employees (specific and challenging
ones)
7) Focus on how to observe job behaviors and
provide incentives to do so
Legally Defensible Appraisal Systems
1) Ensure that procedures for personnel decisions do not differ as a function
of the race, sex, national origin, religion, or age of those affected by such
decisions.
2) Use objective and uncontaminated data whenever they are available.
3) Provide a formal system of review or appeal to resolve disagreements
regarding appraisals.
4) Use more than one independent evaluator of performance.
5) Use a formal, standardized system for personnel decisions.
6) Ensure that evaluators have ample opportunity to observe and rate
performance if ratings must be made.
7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
8) Provide documented performance counseling prior to performance,-based
termination decisions.
Legally Defensible Appraisal Systems (cont)
9) Communicate specific performance standards to employees.
10) Provide raters with written instructions on how to complete performance
evaluations.
11) Evaluate employees on specific work dimensions, rather than on a single
overall or global measure.
12) Require documentation in terms of specific behaviors (e.g., critical incidents)
for extreme ratings.
13) Base the content of the appraisal form on a job analysis.
14) Provide employees with an opportunity to review their appraisals.
15) Educate personnel decision-makers regarding laws on discrimination.
Factors Affecting Employees Acceptance of Performance Evaluations
• Asking for (and using) performance information/input from employees
• Ensure a 2-way interaction during the performance appraisal meeting
importance
of using
employee
selfevaluations
• Provide a way for employees to counter or challenge the appraisal
• Sufficient detail and knowledge of employee performance by supervisors
• Consistent use of performance standards across employees
• Basing performance evaluation on actual job behaviors
importance
of rater
training
• Using performance ratings for personnel decisions (e.g., pay, promotion)
Female attractiveness and corporate success
GENDER
FEMALE
REGULAR
UNATTRACTIVE
MALE
FAST
REGULAR
FAST
x
ATTRACTRIVE
RATED ON VARIOUS FACTORS (E.G., ABILITY, INTEGRITY, LIKEABILITY)
KEY IS PERCEPTION OF LEVELS OF FEMININITY. IF HIGHLY FEMININE,
NOT SEEN AS VERY CAPABLE.
Female traits and leadership
RATE TRAITS OF
RATE TRAITS OF
TYPICAL MALES
TYPICAL FEMALES
RATE TRAITS OF
TYPICAL OF LEADERS
MALE TRAITS SEEN AS SIMILAR TO LEADERSHIP TRAITS
RACE DISCRIMINATION
SHOVING INCIDENT (DURING A DEBATE)
BLACK SHOVES WHITE PERSON = 75% DEFINED IT AS ACT OF VIOLENCE
WHITE SHOVES BLACK PERSON = 17% DEFINED IT AS ACT OF VIOLENCE
WHITES INTERVIEWED BLACK APPLICANTS
• MORE DISTANCE
• LESS EYE CONTACT
• LESS OPEN
• BLACKS VIEWED LESS WELL
WHITES INTERVIEWERS TREATED WHITE
APPLICANTS THE SAME WAY AS BLACKS
• WHITE APPLICANTS VIEWED LESS WELL
AGE AND INTERVIEW QUESTIONS
QUALIFICATIONS
LOW
AVERAGE
HIGH
YOUNG
OLD
EASIER QUESTIONS ASKED TO OLDER APPLICANTS DESPITE QUALIFICATIONS
EFFECT OF LABELS
RANDOMLY ASSIGNED LABELS
LOW
ARMY RECRUITS
AVERAGE
HIGH
SELP-FULFILLING PROPHECY AT WORK
(LEADERS SPENT MORE TIME WITH THE
“HIGH” EXPECTATION GROUP)
THIS GROUP HAD
BETTER
PERFORMANCE
SCORES ON
VARIOUS MEASURES
ALSO VIEWED THEIR
LEADERS AS MORE
EFFECTIVE
IN AND OUT-GROUP BIAS
PERCEIVED
SIMILARITY
SELECTION TO THE IN-GROUP
1) ABILITY
2) RESPONSIBILITY
3) TRUST
IN-GROUP
OUT-GROUP
• LIKING, SPEND TIME WITH LEADER
• LESS DESIREABLE JOBS
• CHALLENGING, VISIBLE JOBS
• LESS TIME SPENT WITH SUPERVISOR
• BETTER MEMORY FOR GOOD
BEHAVIOR
• TREATED FORMALLY
• TREATED WARMLY
• LESS REWARDS
• PERFORMANCE EVALUATIONS
• ALLOCATION OF REWARDS
• LOWER PERFORMANCE EVALUATIONS
Occupations with Highest and Lowest Mean Earnings, 1990
Ranking
Occupation
% Female
Mean
Earnings
High 1
Physicians
11
$57,166
2
Dentists
5
46,369
3
Lawyers
10
39,132
4
Podiatrists
5
Medical science teachers
17
37,958
6
Law Teachers
13
36,411
7
Securities and financial services sales
17
35,448
8
Airline pilots and navigators
1
34,488
9
Optometrists
6
34,211
10
Medical Scientists
35
33,909
Child care workers, private household
98
$4,473
2
Private household cleaners/servants
92
5,530
3
Housekeepers and butlers
95
5,612
4
Child care workers, other
89
6,617
5
Cooks, private household
83
7,082
6
Waiters and waitresses
83
7,095
Low 1
5
38,402
If everyone were compensated for education and experience to the same
degree as White men, the following differences in pay would occur:
Projected Pay Adjustments Based on Education
and Experience
Observed Pay Projected Pay Difference % Difference
Women:
Black
$ 10,429
$ 14,367
+$3,983
+37.8
Latina
9,725
13,189
+3,464
+35.6
Asian
12,432
16,111
+3,679
+29.6
Native Amer.
10,052
13,663
+3,611
+35.9
White
11,213
14,662
+3,449
+30.8
Black
$ 14,372
$ 16,263
+$1,891
+13.2
Latino
14,935
16,473
+1,538
+10.3
Asian
20,148
21,288
+1,140
+5.7
Native Amer.
16,019
17,420
+1,401
+8.7
White
20,335
21,449
+1,114
+5.5
Men: