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Performance Appraisal Uses

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Slide 1 - Performance Appraisal: The Achilles Heel of Personnel?
Slide 2 - 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
Slide 3 - Breaking Down the Performance Appraisal Process Observation Selective Attention Timing Structure Frequency Storage Encoding of Information (e.g., categorization) Short vs. Long-term Memory Evaluation Retrieve Information Combine information Decision-making (judgment)
Slide 4 - 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
Slide 5 - 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
Slide 6 - Criteria Dimensionality Decision-making Communication Static --- Individual performance varies by performance criteria
Slide 7 - 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
Slide 8 - Criteria Dimensionality (cont.) Individual --- Employees excel at different aspects of job performance Employee # 1 Employee # 2 Production Client support & satisfaction Role prescriptions, organizational impact
Slide 9 - 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)
Slide 10 - Criteria Issues (cont.) Contamination --- Error b) Biases (e.g., rating scales, group membership, knowledge of predictor scores, self-fulfilling prophecy)
Slide 11 - Objective data Subjective data r = .39 Relevance --- Generally considered the most important issue Criteria Issues
Slide 12 - 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
Slide 13 - Sources of Information 1) Supervisors (most common) Role Conflict (e.g., judge and trainer/teacher) Motivation Time availability Friendship Co-Workers (Peers) Peer nominations: (Identifying those with highest and lowest KSAs) *Peer ratings: For providing feedback Peer 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 performance Lower cohesiveness Lower satisfaction Lower peer ratings
Slide 14 - 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)
Slide 15 - Technology and Client/Customer Feedback Other examples: Amazon, eBay, Trip Advisor, iTunes
Slide 16 - Technology and Client/Customer Feedback (cont.)
Slide 17 - Amazon Other Examples of Internet-Based Performance Information
Slide 18 - 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
Slide 19 - 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
Slide 20 - 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) Graphic Rating Scale (most common) _____ _____ _____ _____ _____ Very Average Excellent Poor
Slide 21 - 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
Slide 22 - 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
Slide 23 - 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
Slide 24 - 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 Cleans equipment after each use. _____ _____ _____ _____ _____ Never Usually Always
Slide 25 - Behaviorally Anchored Rating Scale (BARS) Process Generate critical incidents (examples of good and poor job performance) 2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety) 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) 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
Slide 26 - 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
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Slide 29 - 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)
Slide 30 - 360 Degree Performance Appraisal
Slide 31 - Performance Appraisal Training: Best Practices 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) 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
Slide 32 - 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. Use objective and uncontaminated data whenever they are available. 3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals. Use more than one independent evaluator of performance. 5) Use a formal, standardized system for personnel decisions. Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made. 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
Slide 33 - 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)
Slide 34 - 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)
Slide 35 - 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.