CHAPTER 7: EVALUATING EMPLOYEE PERFORMANCE >> RATINGS OF PERFORMANCE

Step 1: Determine the Reason for Evaluating Employee Performance 1. Graphic Rating Scale
>> Providing Employee Training & Feedback 2. Behavioral Checklists
>>performance appraisal review 3. Comparison w/ other employees
>>Determining Salary Increases 4. Frequency of desired behaviors
>>Making Promotion Decisions 5. Extent to which organizational expectations are met
>>Making Termination Decisions Step 5: Train Raters
>>Conducting Personnel Research Step 6: Observe and Document Performance
Step 2: Identify Environmental & Cultural Limitations >>observe employee behavior and document critical incidents as they
Step 3: Determine who will evaluate the performance occur
>> 360-degree feedback >>supervisors tend to remember the ff:
>> multiple-source feedback 1. First Impressions
>> upward feedback 2. Recent Behaviors
1. Supervisors 3. Unusual or Extreme Behaviors
2. Peers 4. Behavior consistent w/ the supervisor’s opinion
3. Subordinates Step 7: Evaluate Performance
4. Customers >>Obtaining and reviewing objective data
5. Self-Appraisal >>Reading critical incident logs
Step 4: Select the best appraisal methods to accomplish your goals >>Completing the rating form
>Decision 1: Focus of the Appraisal Dimensions 1. Distribution Errors
>> TRAIT-FOCUSED a. Leniency Error
>> COMPETENCY-FOCUSED b. Central Tendency Error
>> TASK-FOCUSED c. Strictness Error
>> GOAL-FOCUSED 2. Halo Errors
>Decision 2: Should Dimensions be weighted? 3. Proximity Errors
>Decision 3: Use of Employee Comparison, Objective Measures, or 4. Contrast Errors
Ratings -assimilation
>>EMPLOYEE COMPARISON 5. Low reliability across raters
1. Rank-Order 6. Sampling Problems
-paired comparison a. Recency effect
2. Forced Distribution b. Infrequent Observation
>> OBJECTIVE MEASURES >>Cognitive Processing of Observed Behavior
1. Quantity of Work 1. Observation of Behavior
2. Quality of Work 2. Emotional State
3. Attendance
4. Safety
Step 8: Communicate Appraisal Results to Employees
>>Prior to the interview:
1. Allocating time
2. Scheduling the Interview
3. Preparing the Interview
>>During the interview (make sure to communicate the following)
1. The role of performance appraisal
2. How the performance appraisal was conducted
3. How the evaluation process was accomplished
4. The expectation that the appraisal interview will be
interactive
5. The goal of understanding and improving performance
Step 9: Terminating Employees
Employment-at-will doctrine
>>Legal reasons for terminating employees:
1. PROBATIONARY PERIOD
2. VIOLATION OF COMPANY RULES
a. a rule against a behavior must actually exist
b. if a rule exists, a company must prove that the
employee knew the rule
c. ability of the employer to prove that an employee
actually violated the rule
d. the extent to which the rule has been equally
enforced
e. the extent to which the punishment fits the crime
3. INABILITY TO PERFORM
4. REDUCTION IN FORCE (layoff)