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Performance Evaluation & Appraisal: Milford B. Today’s Topics. Milford B Who is the most pressing problem? The least pressing? Appraisal for each rep Action plan for each rep Common evaluation mistakes Evaluation Survey Results- what’s being done in the real world.

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today s topics
Today’s Topics
  • Milford B
    • Who is the most pressing problem? The least pressing?
    • Appraisal for each rep
    • Action plan for each rep
  • Common evaluation mistakes
  • Evaluation Survey Results- what’s being done in the real world.
goals of evaluation
Goals of Evaluation
  • Allocate raises & promotions
  • Allocate territories
  • Decide whom to hire or fire
  • Help the employee improve
  • Fill human need for feedback
  • Protect against lawsuits
  • Most managers find it difficult to do and there’s great variation in how it’s done.
theoretical aspects of performance appraisal
Theoretical aspects of performance appraisal:
  • Distributive Justice
    • the outcomes do matter- reps will care about the perceived justice of the actual rewards
  • Procedural Justice
    • the procedures do matter- reps will care about the perceived justice of the process used to determine the rewards
avoiding barriers to evaluation effectiveness
Avoiding Barriers to Evaluation Effectiveness
  • Don’t
    • concentrate unduly on the squeaky wheels
    • neglect star performers
    • fail to recognize achievement & improvement
    • fail to clearly communicate goals & standards
    • fail to have a systematic plan for developing sales reps
    • try to impose unsuitable selling techniques & styles- different things work for different people
performance appraisal checklist
Performance Appraisal Checklist
  • The evaluation system is presented as a means to help salespeople become more effective
  • Good evaluations lead to some kind of reward (timing is important)
  • The formal evaluation process takes place at least once a year-more often is better
  • Appraisal forms are simple and easy to use and focus on specific outputs and behaviors
  • The appraisal form requires and explanation for the evaluation given
  • Appraisal criteria are applied uniformly to all salespeople in a given group
  • The salesperson’s perception of the quality and quantity of work done is part of the interview
  • All objectives that have not been met are accounted for and explained
  • Appraiser & salesperson develop an action plan jointly for the next period
evaluating and giving feedback
Evaluating and Giving Feedback
  • Be careful that feedback isn’t demoralizing or demotivating
  • Describe the situation as you see it; invite the rep to tell his/her perception
  • Describe how you feel about the situation
  • Describe the change you want
  • Describe the reward for making the change and the sanctions for not making it
  • Agree on an action plan for improvement & a timeline for the change
other feedback guidelines
Other Feedback Guidelines
  • Very little learning occurs without feedback- the more complex the task, the more true this is
  • Immediate feedback fosters learning better than delayed feedback
  • Focus feedback on specific behaviors
  • Relate feedback to underlying principles- mission, company objectives- the “why”
  • Listen to explanations
  • Probe with “why” questions to shape attributions for behaviors and results and to develop problem-solving & self-diagnosing skills
problems in assessing performance
Problems in Assessing performance
  • Output:- deciding what to measure and how to measure it
  • Input: record keeping burden; may be biased since the rep’s the recorder
  • Problems in using someone as a rater:
    • biases
    • subjectivity
  • Solutions to rater problems
    • rater training
    • fixed distribution of scale points
    • ideal point=100
    • more than one rater
biases in evaluation
Biases in Evaluation
  • Study of US managers:
    • They are too forgiving of high-volume salespeople
      • don’t expect enough; even forgive unethical behavior more
    • They don’t count territory features enough:
      • don’t expect enough of good territories
      • don’t lower expectations enough for poor territories
      • even though up to 40% of variation in performance is due to territory
    • They overweight sheer effort
      • too hard on those who get results without appearing to try hard
      • too soft on those who try hard but get nowhere
    • They overweight attitude & underweight numbers
biases in evaluation12
Biases in Evaluation
  • Attribution errors:
    • subject over-attributes good events to personal, internal factors
    • subject over-attributes bad events to external, environmental factors
    • external evaluator makes the opposite attributions
biases in evaluation13
Biases in Evaluation
  • Conservatism:
    • We sometimes overvalue prior information in the face of new information
    • We tend to anchor on our prior beliefs and do not adjust enough for new information
    • Example: performance evaluation of good work from a bad employee or bad work from a good employee
    • Evaluation must be on-going & task related, with specific guidelines for good/bad performance
biases in evaluation14
Biases in Evaluation
  • Availability:
    • Our perception of how likely an event is to occur again is influenced by how easily we remember similar past events.
  • Examples:
    • R words- first vs. third letter
    • Frequency of deaths- asthma vs earthquakes
    • Extremely good or extremely bad performance events
biases in evaluation15
Biases in Evaluation
  • Regression to the mean:
    • People fail to adequately consider regression to the mean (if one draw from a probabilistic process is extremely high or extremely low, the next draw I likely to be less extreme)
  • Examples:
    • Children of very tall parents
    • a salesperson’s performance from period to period
biases in evaluation16
Biases in Evaluation
  • Confirmation Bias:
    • People overlook disconfirming evidence for their opinions. They overweight confirming evidence for their opinions. They read ambiguous information as confirming their opinions.
  • Examples:
    • hiring decisions: we never see the success of the people we do not hire
    • are those signs of improvement in a troubled rep’s performance significant or not?
    • Is average (ambiguous) performance at a task good or bad? It may depend on our opinion of that person’s overall performance
what to do about these biases
What To Do About These Biases
  • Know your goals; evaluate based on those goals
  • Communicate expectations early and often
  • Record performance regularly
    • not just when you think about it, since that is usually a high or low point for the individual
    • set aside one day a month and record the most recent incident
  • Be fair in appraisal and feedback