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PERFORMANCE APPRAISALS

PURPOSES
Enhance

organizational decisions, eg. Pay raises, promotions the quality of individual decisions, eg. career choices, future development

Enhance

PURPOSES

Provide rational, legal defensible basis for personnel decisions Affect employees views and attachment to the organization- developmental Documentation of organizational decisions

Sources of Performance Appraisal Information


Objective

Production Data Personnel Data Judgmental Data

Appraisal Process
I. IDENTIFICATION
II. MEASUREMENT III. MANAGEMENT

I. IDENTIFICATION
Identifying the important aspects of job duties that should be evaluated based on Job Analysis.

II. MEASUREMENT
Developing reliable and valid appraisal methods. Two types of measures: a. Results What b. Process How

BEHAVIORALLY ANCHORED RATING SCALE


The important performance dimensions of a job are listed such as

communication skill, marketing strategies, motivating and modifying employee behavior and handling personnel responsibilities

MANAGEMENT BY OBJECTIVES

It was introduced by Peter Ducker in the early 1950s and further improved by George S. Odiorne, John Humble.

It is a process whereby superior and subordinate managers of an enterprise jointly identify their common goals and major area of responsibility in terms of results expected.

Performance Appraisals & the Law

Negligence-breach of duty by employer Defamation-disclosure of info that damages employees reputation Misrepresentation-disclosure of favorable info that is untrue

Using the Results of Performance Appraisals

Personnel Training Wage & Salary Administration Placement Promotions Discharge Personnel Research

Rater Motivation
Willingness

vs. Capacity to Rate Appraisal Politics

ERRORS IN JUDGMENT
HALO

ERRORS

Evaluations based on raters general feelings. Does not distinguish among many dimensions of performance.

LENIENCY ERRORS

NEGATIVE Gives harsher evaluation


than deserved

POSITIVE Gives higher ratings than


deserved

ERRORS

CENTRAL TENDENCY-

Rater unwilling to give extreme ratings, use only the middle part of the scale

Recency Effect
Allowing the most recent behavior of an employee to overly influence the overall appraisal.

Primacy Effect
Allowing first impressions of employees to overly influence subsequent perceptions of performance.

Escalation of Commitment
When supervisors use appraisals to support their views of and intentions toward employees e.g. to promote, dismiss, or punish.

Challenges: Liking
Often, interpersonal attraction affects appraiser perceptions of employees. Events and actions are seen through rose colored lenses. Also referred to as favoritism.

Politics
Often, supervisors allow politics to affect their appraisals. For example, a lower than justified rating may be used to punish an employee, or supervisors may avoid a pattern of low ratings to hide poor supervisory practices.

Types of Assessments

Self Assessments-most grade higher Peer Assessments


Peer Nomination, Peer Ratings, & Peer Rankings

360-Degree Feedback
Multi-Source Feedback Three Dimensions People, Change, Structure

RELIABILITY

Determined by inter-rater agreement Most use for feedback only

Feedback of Appraisal Information to Employees


Performance Appraisal Interview Credibility Power

Recommendations for Effective Feedback


1. Document important job behaviors. 2. Focus on behaviors, not traits. 3. Focus on events that employees can change. 4. Avoid criticism and confrontation. 5. Solicit employee input. 6. Provide feedback throughout the year. 7. Develop an action plan (to be followed-up). 8. Reflect on the effectiveness of the appraisal.