Peste This is the Perfromance Managemnet

8/13/2019 Peste This is the Perfromance Managemnet

1/37

Performance Appraisal

Overview

The Criterion Problem

Sources of Performance Data

Specific Performance Appraisal Methods

The Performance Appraisal Interview


2/37


Performance appraisal is

the formalized means of assessing worker

performance in comparison to certain

established organizational standards.

the process used by an organization to

evaluate the extent to which its workersare doing their jobs satisfactorily.


3/37

Development and Use of


Job Analysis

Criterion Development

Performance Appraisal System

Training

CompensationAdministration

Placement

Promotions

Discharge

Personnel

Research

Uses of Performance Data


4/37

Uses of Performance Appraisal

Between-person uses- salary administration,

promotion, retention/termination, recognition ofindividual performance, layoff, and identification

of poor performers.

Within-person uses- identification of individualtraining needs, performance feedback, determining

transfers and assignments, and identifying

individual strengths and weakness. System maintenance uses- workforce planning,

determining organization training needs, evaluating

goal achievement, evaluating personnel practices.


5/37

Performance Criteria

Performance criteria are measures used todetermine successful and unsuccessful job

performance.

The Criterion Problem - How should we judgeworker performance?

Objective performance measures - quantitative

indicators of work outcomes. Judgmental (subjective) performance -

ratings/rankings made by some knowledgeable

individual.


6/37


Three different levels of criteria

The ultimate criterion- an abstract, idealized

concept of the criterion.

The conceptual criterion- the various conceptsthat together make up the ultimate criterion.

The operational criterion - the manner in which

the operational criteria are measured.

The match between the operational criterion

to the conceptual criterion determines the

relevance of the criteria


7/37


Conceptual

Criterion

OperationalCriterion

Criterion

Deficiency

Criterion

Relevance

CriterionContamination


8/37

Sources of Performance Data Personnel Data - work-related information that is

regularly recorded

e.g., absenteeism, tardiness, # of accidents, letters of

commendation or reprimand

AdvantagesRelatively easy to obtain

Do not require subjective interpretation

DisadvantagesAssess mostly negative behaviors

Many aspects of job performance are not measured

Contextual factors may influence personnel records


9/37


Results-oriented (hard) criteria - direct

measures of job performance, productivity

e.g., dollar volume of sales, number of words

typed, units produced

Advantages

Face Validity

Disadvantages

Aspects of job performance may not be measured

Contextual factors may influence hard criteria


10/37


Judgmental (Soft) criteria - ratings or

rankings of job performance

Advantages

Ratings scales are flexible and can used to

measure many different aspects of job

performance.

Disadvantages

Rating errors and biases can result in criterion

contamination.


11/37

Who Rates Job Performance?

Supervisors

Self-appraisals

Peer appraisals Subordinate appraisals

Customer appraisals

360-degree feedback is a method of gatheringperformance ratings from supervisors,

subordinates, peers, and customers.


12/37

Rating Errors

Rating errors are unintentional rating

inaccuracies.

Leniency - the tendency to give ratings thatare overly high

Severity - the tendency to give ratings that are

overly low Central Tendency - the tendency to use the

midpoint of the scale too often


13/37

Rating Errors

Halo - the tendency to use an overall impression ofsomeone when making ratings on specific

performance dimensions.

Attributional errors - the tendency to underestimate

situational factors that may constrain the rateesperformance.

Personal biases - unintentional discrimination basedon age, sex, race, etc.

Recency effect - the tendency to give greater weightto recent performance and lesser weight to earlier

performance.


14/37

Reducing Rating Errors

Train performance ratersRater error training (RET) - making raters

aware of unintentional rating errors

Rater accuracy training (RAT) - train the rater

in what constitutes good or poor performance

and practice rating (videotaped) work samples

and get feedback on accuracy.

Use more than one performance rater Improve the rating process

e.g., structuring observations, changing rating

scale format


15/37

Rating Biases

Rating biases are intentional rating inaccuracies.

Longenecker et al. (1987), The politics of

performance appraisal.

Interviewed executives familiar with rating

performance to investigate the thought processes they

used when rating performance

Revealed that distortion of ratings was an acceptablemeans of accomplishes various ulterior goals.

Accurately rating performance is not as important

as keeping things cooking.


16/37

Rating Biases

Seven common reasons for inflating ratings:

Pain-in-the-neck factor

To get more bonuses/raises for the unit

To promote someone out of the unit

Boost morale

Underdog factor

Dirty laundry factor

Recognition of recent improvements


17/37

Rating Biases

Four common reasons for deflating ratings:

Give a kick in the pants to someone who is

coastingPay is linking to performance and the budget is

tight

Show them whos the boss

In an effort to provide justification for future

firing


18/37

Reducing Rating Biases

Reward supervisors who rate accurately

Limit access to performance appraisal

information

Make managers aware of the benefits of

accurate performance ratings and the

detrimental affects of inaccurate

performance ratings

Redesign organizational systems that

promote intentional distortion


19/37

Specif ic Performance Appraisal Methods

Narrative Evaluations

An essay describing the employees

performance over some time period.Used as either the only performance appraisal

method or to supplement a more structured

approach (i.e., ratings/ranking).

Used in self-, peer, subordinate, customer, and

supervisor performance appraisals.


20/37


Narrative Evaluations

Advantages

May provide specific behavioral examples ofjob performance

Fill in gaps

Few development demands (i.e., up-fronttime)


21/37


Narrative EvaluationsDisadvantages

Time consuming

Requires good communication and writing skillson the part of the assessor

May not address all of the aspects of job

performance (especially if it is the only method

used)

Affected by error and bias

No quantitative information and therefore difficult

to compare across employees


22/37


Graphic Rating ScalesPerformance appraisal methods using a

predetermined scale to rate the worker on

important job dimensions.It usually consists of:

a list and description of job related performance

dimensions/traits numerical anchoring system (typically 5-9 points)

or

verbal anchoring system (e.g., good/poor,


23/37


Graphic Rating Scales

Advantages

Quantifies job performance

Relatively easy to develop

Disadvantages


Often ambiguous and therefore different ratersinfer different meanings

Often generic and may not represent job very

well


24/37


Behaviorally Anchored Rating Scales (BARS)Using ratings scales with labels or anchors reflecting

examples of poor, average, and good behavioral

incidents

Four step development process

Critical incidents are generated

One group of SMEs clustered the critical

incidents into performance dimensions Another group of SMEs confirms the

performance and

Rates each critical incident (effective/ineffective)


25/37


Behaviorally Anchored Rating Scales (BARS)Advantages

Performance dimensions are clearly defined

Based on job analysis and therefore job relevantand legally defensible

Useful for feedback purposes

High content and face validity (if it is well

developed)

The development process may promote buy-in a

frame-of-reference for evaluating performance


26/37


Behaviorally Anchored Rating Scales (BARS)

Disadvantages

Development is time-consuming and expensive


If anchors are too representative of a particular

employees performance this may result in ratingerrors


27/37


Behavioral Observation Scales (BOS)Requires appraisers to rate how often a worker has

been observed performing key work behaviors

(critical incidents)

Values on the rating scale can reflect specificpercentages of time

5 = 95-100%

4= 87-94% 3 = 75-84%

2 = 65-74%

1 = 0-64%


28/37


Behavioral Observation Scales (BOS)Advantages

It is (supposedly) measuring observations of

behavior and therefore lessening subjective

judgement

Based on job analysis and therefore job relevant and

legally defensible

Very useful for feedback purposes High content and face validity (if well developed)

The development process may promote buy-in a

frame-of-reference for evaluating performance


29/37


Behavioral Observation Scales (BOS)

Disadvantages

A supervisor cannot always be observing theworkers he or she is rating

Appraisers cannot remember how often very

specific periods of time over any extensive time

period (certainly not 6 to 12 months)



30/37


Comparative Approaches

Rankings - involve a simple rank ordering workers

from best to worse

Paired Comparison - comparing each worker with

each other worker in the groupForced Distribution - assigning workers to

established categories of poor to good performance

with fixed limitations on how many employees can

be assigned to each category

Relative Percentile Method - indicating the

percentage of other employees performing at or

below level demonstrated by a worker


31/37


Comparative Approaches

Advantages

Relatively simple to develop (however, certainmethods may involve critical incidents)

Easy for raters and ratees to understand

Forces raters to make distinction among ratees


32/37


Disadvantages

Most methods make it difficult to compare across

work groups

Provides no information about an absolute level

of performance -- a problem with work groups of

exceptionally good or poor performers

Usually not very descriptive of performancebehaviors

Using for performance feedback may be difficult


33/37

The Performance Appraisal I nterview

At some point there is typically (and preferably) aface-to-face interview between the rater and the

ratee at which the results of the performance

appraisal are discussed.

There shouldnt be surprises in the interview.The

ratee should understand the appraisal process and

should be receiving feedback frequently.

There should be a review of job responsibilities

and goals how well theyve been met

Goals for future performance should be identified


34/37


Performance feedback should: focus on activities under the workers control

should be timely

describe the situation and behavior in specific termsshould allow for two-way communication

typically should balance the recognition of good

performance with the identification of areas forimprovement

should be constructive, not manipulative

should be used to motivate the worker


35/37


Characteristics promoting perceptions that the

performance appraisal system is fair (Greenburg,

1986)

Soliciting the ratees input prior to the performance

appraisal and using it

Two-way communication

Opportunity to challenge/rebut the evaluation The raters degree of familiarity with the ratees work

Consistent application of performance standards


36/37

Content Recommendations for Legally

Sound Performance Appraisals

Appraisal criteria should be:

should be job-related and based on job analysis

should be based on behaviors rather than traits

should be within the control of the ratee

should relate to specific functions, not global

assessments

should be communicated to ratees in advance

C t t R d ti f L l l


37/37

Content Recommendations for Legally

Sound Performance Appraisals

Appraisal procedures should:be standardized and uniform for all employees in a

work group

be formally communicated to employeesallow employees to review appraisal results

provide formal appeal mechanisms

use multiple, diverse, and unbiased raters

provide written instructions for training raters

require thorough and consistent documentation

establish a system for detecting error and bias

Peste This is the Perfromance Managemnet

Documents

Transcript of Peste This is the Perfromance Managemnet