Herman Aguinis, University of Colorado at Denver

GATHERING PERFORMANCE INFORMATION

Prof. Preeti Bhaskar

Symbiosis Centre for Management Studies, NOIDA

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Herman Aguinis, University of Colorado at Denver

Learning includes-:• 6.1 Understand the need to include each of several basic components in the

appraisal form.

• 6.2 Design effective appraisal forms.

• 6.3 Compute an overall employee performance score based on information found on the appraisal form.

• 6.4 Select an appropriate time period to document performance as part of a performance review.

• 6.5 Determine the number of formal meetings needed between the subordinate and supervisor to discuss performance issues.

• 6.6 Understand advantages and disadvantages of using supervisors, peers, subordinates, self, and customers as sources of performance information.

• 6.7 Know how to deal with potential disagreements involved with different sources evaluating the performance of the same employee.

• 6.8 Understand the psychological mechanisms leading to the inflation and deflation of performance ratings.

• 6.9 Understand that the implementation of training programs can address intentional and unintentional rating distortion.

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Major Components of Appraisal Forms • Basic Employee Information

• Accountabilities, Objectives, and Standards

• Competencies and Indicators

• Major Achievements and Contributions

• Stakeholder Input

• Employee Comments

• Signatures

• Developmental Achievements• Developmental Needs ,Plans &Goals

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Herman Aguinis, University of Colorado at Denver

Desirable Features for All Appraisal Forms

Simplicity Relevancy Descriptiveness

Adaptability Comprehensiveness Definitional Clarity

Communication Time Orientation

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Appraisal period

Number of Meetings• Annual • Semi-annual • Quarterly

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Herman Aguinis, University of Colorado at Denver

6 Types of Formal Meetings (can be combined)

System Inauguration

(Identification of roles and responsibilities b/w subordinate and manager)

Self-Appraisal

Classical Performance Review

Merit/Salary Review

Development Plan

Objective Setting

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Herman Aguinis, University of Colorado at Denver

Who Should Provide Performance Information?

Employees should be involved in selecting• Which sources of evaluation?• Which performance dimensions have highest

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

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Herman Aguinis, University of Colorado at Denver

Who Should Provide Performance Information?

Direct knowledge of employee performance

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Supervisors Peers Subordinates Self Customers

Herman Aguinis, University of Colorado at Denver

Supervisors

• 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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Herman Aguinis, University of Colorado at Denver

Peers

• Advantages– Assess teamwork

• Disadvantages– Possible friendship bias– May be less discriminating

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Herman Aguinis, University of Colorado at Denver

Subordinates• 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)

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Herman Aguinis, University of Colorado at Denver

Self• 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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Herman Aguinis, University of Colorado at Denver

Customers (external and internal)

• Advantages– Employees become more focused on

meeting customer expectations• Disadvantages

– Time– Money

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Herman Aguinis, University of Colorado at Denver

Types of Rating Errors

• Intentional errors– Rating inflation– Rating deflation

• Unintentional errors– Due to complexity of task

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Herman Aguinis, University of Colorado at Denver

Rating behavior are influenced by -:

• Motivation to provide accurate ratings.• Motivation to distort ratings.

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• What will the supervisor gain if ratings are accurate?• What he will loose ?• Will his own performance be rated higher and will he receive any

reward if this happen?• Will the relationship with his or her subordinates suffer ?

Herman Aguinis, University of Colorado at Denver

Motivations 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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Herman Aguinis, University of Colorado at Denver

Motivations for Rating Deflation

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

performance

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Herman Aguinis, University of Colorado at Denver

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Prevent Rating Distortion through

Rater Training Programs

Herman Aguinis, University of Colorado at Denver

Rater Training Programs should cover:

• Information how the system works• Motivation-What’s in it for me?• Identifying, observing, recording and

evaluating performance• How to interact with employees when

they receive performance information

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Herman Aguinis, University of Colorado at Denver

Information - how the system works

• Reasons for implementing the performance management system

• Information on the appraisal form and system mechanics

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Herman Aguinis, University of Colorado at Denver

Identifying, observing, recording, and evaluating performance

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

performance• How to minimize rating errors

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Herman Aguinis, University of Colorado at Denver

How to interact with employees when they receive performance information

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

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Herman Aguinis, University of Colorado at Denver

Strategies used to obtain Overall Rating

Judgmental strategy

Mechanical strategy

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Herman Aguinis, University of Colorado at Denver

Strategies used to obtain Overall Rating

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• Judgmental strategy

o Consider every aspect of performance

o Arrive at defensible summary

• Mechanical strategy

o Consider scores assigned to each section

o Add weighted scores to obtain overall score

Herman Aguinis, University of Colorado at Denver