Transcript Why evaluate the performance of employees?  Compensation (raises, merit pay, bonuses)  Personnel Decisions (e.g., promotion, transfer, dismissal)  Training (Identify specific requirements)  Research.

Why evaluate the performance of
employees?
 Compensation (raises, merit pay, bonuses)
 Personnel Decisions (e.g., promotion, transfer,
dismissal)
 Training (Identify specific requirements)
 Research (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
Approach
Breaking Down the 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)
Peer nominations: Identifying those with highest and lowest KSAs)
Peer ratings: For providing feedback
Peer rankings: For discriminating highest to lowest performance on various
dimensions
•
•
•
•
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback
Effects of poor peer ratings on
subsequent task performance:
Lower perceived group performance
Lower cohesiveness
Lower satisfaction
Lower peer ratings
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)
• Best if ratings are anonymous -- if not, leniency in ratings occur
(Antonioni, 1994)
• Can add information above and beyond other sources (Conway, et. al 2001)
5)
Clients
• Good source of feedback
• Negativity bias
Subjective Appraisal Methods
(can be used with any type of job)
Relative Methods
• Ranking
1st _____
2nd_____
3rd _____
• 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
Poor
Average
Excellent
Common Rating Scale Errors
Leniency (positive bias)
X
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
Central Tendency (midpoint)
X
_____
Very
Poor
_____
_____ _____ _____
Average
Excellent
Both 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
Supervisor
Characteristics
(e.g., gender,
race, age)
Attitudes,
Stereotypes
Subordinate
Characteristics (e.g.,
age, gender, race,
attractiveness)
Liking of
subordinate
Selective
Attention
Encoding of
Information
Self-Fulfilling
Prophecy Process
Labels for
Subordinate
(positive or
negative)
Expectations
for
Subordinate
Observation of
Subordinate
Job
Performance
Recall
Information
Evaluate
Performance
Performance Appraisal & Self-Fulfilling Prophecy
1
Supervisor Expectancy
Supervisor Behaviors
2
5
Subordinate
Self-Expectancy
6
3
Subordinate Performance
4
Subordinate
Motivation
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 self-evaluations)
• 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
• Using performance ratings for personnel decisions (e.g., pay, promotion)
Importance
of rater
training