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Performance Appraisals. Evaluating how well employees are working. Performance Appraisals. What are Performance Appraisals (a.k.a. Evaluations)? What is the purpose of Performance Evaluations? Validation of Selection Training Requirements Employee Improvement

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Performance Appraisals

Evaluating how well employees are working


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Performance Appraisals

  • What are Performance Appraisals (a.k.a. Evaluations)?

  • What is the purpose of Performance Evaluations?

    • Validation of Selection

    • Training Requirements

    • Employee Improvement

    • Pay, Promotion, and other decisions


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Performance Criteria

  • Need to have a standard by which to compare “good” behavior

  • Recall Predictors and Criteria

    • Predictors: what we are looking for when we hire

    • Criteria: the “evidence” of a good employee

      • Theoretical (ideal) vs. actual criteria

  • QG: What happens if performance evaluations are not fair or accurate?


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Issues with Criteria

  • Criterion Relevance

    • Is the actual criteria close to the theoretical criteria

  • Criterion Contamination

    • Biases and unrealiability

  • Criterion Deficiency

    • Problems with content validity

  • Criterion Usefulness

  • QG: Examples of these in your job


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Types of Appraisals

  • Objective

    • Behaviors

      • Absences, lateness, accidents

    • Production

      • Quantity and Quality of Output

      • Electronic Monitoring

  • May have problems of criterion deficiency


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Types of Appraisals

  • Subjective

    • Rankings of employees and ratings of performance

  • May have problems with criterion contamination and criterion relevance

  • QG: What are objective and subjective criteria in your jobs?


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Where do appraisals come from?

  • Self-appraisals

  • Peer appraisals

  • Supervisor appraisals

  • 360 degree feedback

    • From all around the employee

    • Inter-rater reliability/more fair

    • Leadership focused


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Specific appraisals: Comparative

  • Ranking

    • Supervisors rank employees

    • Problems

  • Forced Distribution

    • GE’s Top and Bottom 10%


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Specific appraisals: Individual

  • Graphic Rating Scales

    • Rating of dimensions from job analyses

    • Very subjective

  • QG: Example of Teacher Rating Scale

    • Strengths and weaknesses as a performance evaluation tool

    • Turn in!


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Specific appraisals: Individual

  • Behaviorally Anchored Rating scales (BARS)

    • Uses actual listing of behaviors of poor and good performance

    • Think back to our job analysis and critical incidents technique

  • Behavioral observation scores (BOS)

    • How often they perform this behavior


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Sources of Error in Appraisals

  • Severity, Average or Leniency Rating Error

  • Halo Effect

    • Both positive and negative

  • Recency Effect


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Sources of Error in Appraisals

  • Causal Attribution Errors

    • Extreme ratings for perceived effort over perceived ability

    • Actor-observer bias

      • Comes from the fundamental attribution error

      • Actor “blames” environment for failures and credits self for successes. Observer does the opposite


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Sources of Error in Appraisals

  • Personal Biases

    • Discrimination

    • Pregnancy

      • You’d be surprised

    • Friendship

    • Organizational training programs

      • Legal issues

      • Reverse discrimination


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Purpose of Feedback

  • Performance appraisals help employee learn about strengths and weaknesses

  • Employees want to know what they’re being evaluated on

  • Performance appraisals should motivate employees to improve

  • QG: What happens when employees don’t get feedback or get poor feedback?


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Improving the appraisal process

  • Improve performance appraisal techniques

  • Train the appraisers

    • Should know biases

  • Multiple evaluations

    • Inter-rater reliability!

  • Appraise the appraisers

  • Performance appraisals should be regular and often

  • Review and revise performance appraisals


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How to give feedback

  • Sandwich!!

  • Employees participate in process

  • Appraiser positive, constructive, supportive

  • Focus on specific job problems

  • Employee and supervisor jointly reach goals

  • Employee can challenge evaluation

  • Salary and Rank discussions linked


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