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Gathering Performance Information:Gathering Performance Information:OverviewOverview

• Appraisal Forms• Characteristics of Appraisal Forms• Determining Overall Rating• Appraisal Period and Number of Meetings• Who Should Provide Performance Information?• A Model of Rater Motivation• Preventing Rating Distortion through Rater Training

Programs

Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006

Major Components of Appraisal FormsMajor Components of Appraisal Forms (1)(1)

• Basic Employee Information

• Accountabilities, Objectives, and Standards

• Competencies and Indicators

• Major Achievements and Contributions

• Stakeholder Input

• Employee Comments

• Signatures

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Major Components of Appraisal Forms (2) Major Components of Appraisal Forms (2) (could (could

be included in a separate form)be included in a separate form)

• Developmental Achievements• Developmental

– Needs – Plans– Goals

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Desirable Features for All Appraisal FormsDesirable Features for All Appraisal Forms

• Simplicity• Relevancy• Descriptiveness• Adaptability

• Comprehensiveness• Definitional Clarity• Communication• Time Orientation

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Determining Overall RatingDetermining Overall Rating

• Judgmental strategy

• Mechanical strategy

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Appraisal periodAppraisal period

Number of Meetings• Annual • Semi-annual • Quarterly

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When Review Is CompletedWhen Review Is Completed

• Anniversary date– Supervisor doesn’t have to fill out forms at same time– Can’t tie rewards to fiscal year

• Fiscal year– Rewards tied to fiscal year– Goals tied to corporate goals– May be burden to supervisor, depending on

implementation

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6 Types of Formal6 Types of Formal Meetings Meetings (can be combined)(can be combined)

• System Inauguration• Self-Appraisal• Classical Performance Review• Merit/Salary Review• Development Plan• Objective Setting

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Who Should Provide Performance Who Should Provide Performance Information?Information?

Employees should be involved in selecting• Which sources evaluate• Which performance dimensions

When employees are actively involved• Higher acceptance of results• Perception that system is fair

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Who Should Provide Performance Information?Who Should Provide Performance Information?

Direct knowledge of employee performance• Supervisors• Peers• Subordinates• Self• Customers

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SupervisorsSupervisors

• Advantages– Best position to evaluate performance vs. strategic

goals– Make decisions about rewards

• Disadvantages– Supervisor may not be able to directly observe

performance– Evaluations may be biased

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PeersPeers

• Advantages– Assess teamwork

• Disadvantages– Possible friendship bias– May be less discriminating

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SubordinatesSubordinates

• Advantages– Accurate when used for developmental purposes– Good position to assess some competencies

• Disadvantages– Inflated when used for administrative purposes– May fear retaliation (confidentiality is key)

Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006

SelfSelf

• Advantages– Increased acceptance of decisions– Decreased defensiveness during appraisal interview– Good position to track activities during review period

• Disadvantages– May be more lenient and biased

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Customers (external and internal)Customers (external and internal)

• Advantages– Employees become more focused on meeting

customer expectations• Disadvantages

– Time– Money

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Disagreement Across SourcesDisagreement Across Sources

• Expect disagreement• Ensure employee receives feedback by

source• Assign differential weights to scores by

source, depending on importance

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Types of Rating ErrorsTypes of Rating Errors

• Intentional errors– Rating inflation– Rating deflation

• Unintentional errors– Due to complexity of task

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Expected Positive and Negative Consequences of

Rating Accuracy

Probability of Experiencing Positive & Negative

Consequences

Expected Positive and Negative Consequences of

Rating Distortion

Probability of Experiencing Positive & Negative

Consequences

Motivation to Provide Accurate Ratings

Motivation to Distort Ratings 

Rating Behavior

A Model of A Model of RaterRater Motivation Motivation

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Motivations for Rating InflationMotivations for Rating Inflation

• Maximize merit raise/rewards• Encourage employees• Avoid creating written record• Avoid confrontation with employees• Promote undesired employees out of unit• Make manager look good to his/her supervisor

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Motivations for Rating DeflationMotivations for Rating Deflation

• Shock employees• Teach a lesson• Send a message to employee • Build a written record of poor performance

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Prevent Rating Distortion through Prevent Rating Distortion through

Rater Training ProgramsRater Training Programs

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Rater Training Programs should cover:Rater Training Programs should cover:

• Information• Motivation• Identifying, observing, recording and

evaluating performance• How to interact with employees when they

receive performance information

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Information - how the system worksInformation - how the system works

• Reasons for implementing the performance management system

• Information on the appraisal form and system mechanics

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Motivation – What’s in it for me?Motivation – What’s in it for me?

• Benefits of providing accurate ratings• Tools for providing accurate ratings

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Identifying, observing, recording, and evaluating Identifying, observing, recording, and evaluating performanceperformance

• How to identify and rank job activities• How to observe, record, measure

performance• How to minimize rating errors

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How to interact with employees How to interact with employees when they receive performance informationwhen they receive performance information

• How to conduct an appraisal interview• How to train, counsel, and coach