Performance Appraisal: The Achilles Heel of Personnel?

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

Breaking Down the Performance Appraisal Process

Observation

• Selective Attention

• Timing

• Structure

• FrequencyStorage

• Encoding of Information (e.g., categorization)

• Short vs. Long-term

• Memory

Evaluation

• Retrieve Information

• Combine information

• Decision-making (judgment)

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

Objective data

Subjective data

Contextual data

Productivity measures,

absenteeism, tardiness, turnover,

absenteeism

Assisting others, loyalty, extra work/effort, emotional labor,

volunteering, counterproductive behaviors (CWBs;

tardiness, sabotage, gossiping)

Performance ratings (e.g.,

supervisor, co-workers, self, subordinates,

clients

Criterion Domain

Criteria Dimensionality

Decision-making Communication

Static --- Individual performance varies by performance criteria

1st year

Specific work methods, interests,

personality, interpersonal relationships

2nd year

Criteria Dimensionality (cont.)

Temporal --- Performance varies as a function of time; importance of when performance is assessed

IQ

Criteria Dimensionality (cont.)

Individual --- Employees excel at different aspects of job performance

Employee # 1 Employee # 2

Production Client support & satisfaction

Role prescriptions

, organization

al impact

Criteria Challenges (cont.)

Observation ---

Variation due to methods used, who observes

Low variability (e.g., production line speed, process limitations)?

Performance Dimensions ---

Uni-dimensional vs. multidimensional criteria

(Over-reliance on supervisor ratings of performance; 879/1506)

Criteria Issues (cont.)

Contamination ---

a) Error

b) Biases (e.g., rating scales, group membership, knowledge of predictor scores, self-fulfilling prophecy)

Objective data Subjective data

r = .39

Relevance --- Generally considered the most important issue

Criteria Issues

To Combine or Not to Combine Criteria?

Global criteria

3.0 GPA

Separate, multiple criteria

A

A

C

C

Is there a single, underlying dimension that “allows” combining separate criteria?

Purposes of the data (e.g., a) for personnel decisions or b) feedback, understanding psychological and behavioral processes

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 feedbackPeer 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 performanceLower cohesivenessLower satisfactionLower 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

• Customer ratings on the web (usage/role, accuracy, verification issues)

Technology and Client/Customer Feedback

Other examples: Amazon, eBay, Trip Advisor, iTunes

Technology and Client/Customer Feedback (cont.)

Amazon

Other Examples of Internet-Based Performance Information

Other Examples of Internet-Based Performance Information

Expedia

The standard rooms are very, very small, I had only one bag and no place to put it. you could barely turnaround in the bathrooms. I love the decor/ art deco style but a little updating is definitely do. Rating: 2.0

That's the second time I stay in this hotel. The location is fantastic and the rooms, in general are very comfortable. The view from the top, at the breakfast place is superb. Rating: 4.0

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 essays

• Unstructured (e.g., content, length)

• Affected by the writing ability of supervisors and time availability

• Cannot validate selection devices (no numbers)

2) Graphic Rating Scale (most common)_____ _____ _____ _____ _____ Very Average Excellent Poor

Leniency (positive bias)

X _____ _____ _____ _____ _____ Very Average Excellent Poor

Central Tendency (midpoint) X _____ _____ _____ _____ _____ Very Average Excellent Poor

Both lead to a restriction in the range of performance

scores

Common Rating Scale Errors

Responsibility

Commitment

Initiative

Sensitivity

Judgment

Communication

Observation of specific behavior (s) (e.g., volunteers to work

overtime)

Halo Error

High ratings on other performance

dimensions

Supervisor Characteristics

Subordinate Characteristics (e.g., age, gender, race,

attractiveness)

Labels for Subordinate (positive or negative)

Expectations for

Subordinate

Liking of subordinate

Observation of Subordinate

Job Performance

(e.g., gender, race, age)

Selective Attention

Attitudes, Stereotypes

Encoding of Information Recall

Information

Evaluate Performance

Self-Fulfilling Prophecy Process and Performance Ratings

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

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 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

3. Problem Solving/TroubleshootingDefinition: Uses a logical, step-by step approach to identify and solve process problems

1 2 3 4 5

Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding Expectations Expectations Fails to understand how equipment

and processes interrelate Does not complete checklists or

other required forms Is not able to identify root causes of

process deviations Does not consistently meet A2E

expectations Depends on others to solve

problems

Uses available resources (e.g., drawings, checklists, forms, people—engineers, data historian) to determine the root cause of problems

Selects and interprets data to solve problems

Investigates the nature of equipment and process malfunctions on an ongoing basis

Participates in A2E efforts

Develops novel, safe and effective solutions to current problems

Anticipates problems before they occur and suggests solutions

Takes ownership in problem solving and sees it through to completion

Effectively leads problem solving efforts (e.g., A2E, handles complicated analysis requests on one’s own)

Behavioral Examples of Rating:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4. TeamworkDefinition: Strives to build and maintain a good working relationship with one’s work group; shares information with team

members; accepts ideas and opinions of others

1 2 3 4 5

Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding Expectations Expectations

Does not respond to work requests from other team members

Fails to share information and/or resources with others

Refuses to help co-workers Conflicts with coworkers on 'yours

not mine' work situations, or is known to say "that's not my job“

Frequently complains or makes negative or derogatory remarks about site initiatives, leadership, and/or fellow workers

Is slow to respond to work requests from other team members or management

Considers alternative solutions provided by team members

Accepts and provides feedback to others

Shares information (e.g., trends, status updates) and/or resources with others when asked

Readily offers to help other team members on tasks

Works with support services and other areas (e.g., maintenance) to resolve shift problems in a timely manner

Anticipates other team members’ needs (e.g., training, tools, equipment, information)

Resolves conflicts between team members

Supports company objectives and volunteers for work duties within and outside of one’s work area

Sacrifices one’s own needs for the need of the team

Initiates team building activities (e.g., organizing outside group activities, breakfasts)

Behavioral Examples of Rating:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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)

360 Degree Performance Appraisal

Performance Appraisal Training: Best Practices

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

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

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 (e.g., several days prior to formal feedback session).

15) Educate personnel decision-makers regarding laws on discrimination.

Legally Defensible Appraisal Systems (cont)

• Asking for (and using) performance information/input from employees

• Ensure a 2-way interaction during the performance appraisal meeting

• 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

Factors Affecting Employees Acceptance of Performance Evaluations

Importance of rater training

(importance of using employee self-evaluations)

Non minority

Minority

Performance Criterion

Satisfactory

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.