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Performance Appraisal Uses

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). Basic Performance Appraisal Process.

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Performance Appraisal Uses

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  1. 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)

  2. 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

  3. 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)

  4. 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

  5. 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

  6. 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

  7. 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

  8. ~ 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

  9. 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

  10. ~ 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

  11. 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) • 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

  12. ~ 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

  13. Performance Appraisal & Self-Fulfilling Prophecies Supervisor Expectancy Leadership Behaviors Subordinate Self-Expectancy Subordinate Performance Subordinate Motivation

  14. 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)

  15. Performance Appraisal Training • Frequent observationof performance and feedback • (both positive and negative) • 2) Recordkeeping(ongoing if possible) • 3) Encourage self-assessment of employees • 4) Focus on behaviors(not traits) • Use specific behavioralcriteria and standards • 6) Set goalsfor employees (specific and challenging ones) • 7) Focus on howto observe job behaviors and provide incentives

  16. Legally Defensible 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. • Use more than one independent evaluator of performance. • Use a formal,standardized system for personnel decisions. • Ensure that evaluators have ample opportunityto observeand rate performance if ratings must be made. • Avoidratings on traitssuch as dependability, drive, aptitude, or attitude. • Provide documented performance counseling prior to performance,-based termination decisions.

  17. Legally Defensible 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. • Educate personnel decision-makers regarding lawson discrimination.

  18. Intercept Bias (Test) Satisfactory Minority Performance Criterion Non minority Unsatisfactory Reject Accept Predictor Score Equal validity, unequal predictor means • Job performance is equal • Test scores are greater for non-minorities

  19. 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.

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