07 Performance Management Flashcards
Refers to evaluating an employee’s current and/or past performance relative to the standards
performance appraisal
Refers to assessing performance in order to provide feedback that would facilitate improvements in performance
performance development
Refers to incorporating appraisal and development
performance management
3 steps in the appraisal process
- set performance standards
- assess actual performance relative to the standards
- provide feedback
How often should feedback be given to employees?
more than once a year
Why does feedback need to be given more than once a year?
to give chance to employees to improve
What is the hot stove principle?
giving feedback immediately after the action
3 reasons why employee appraisal is needed
- administrative decisions
- employee development
- research criteria
How is employee appraisal used in making administrative decisions?
basis for punishments and rewards
How is employee appraisal used in employee development?
helps identify taining needs
How is employee appraisal used as a research criterion?
enhancing I/O practices
5 parties who can evaluate performance
- supervisor
- peers
- subordinates
- customers
- self
[Performance Evaluators]
The most common performance evaluator
supervisor
[Performance Evaluators]
Main advantage of having the supervisor evaluate performance
the supervisor is able to see end results
[Performance Evaluators]
Main disadvantage of having the supervisor evaluate performance
the supervisor does not see every minute of the employee’s behavior
[Performance Evaluators]
Main advantage of having peers evaluate performance
peers see the actual behavior of the employee
[Performance Evaluators]
Main disadvantage of having peers evaluate performance
employees tend to react worse to negative feedback from peers
[Performance Evaluators]
Feedback from this party is also known as upward feedback
subordinates
[Performance Evaluators]
Upward feedback is usually used for what purpose?
developmental, rather than pay
[Performance Evaluators]
Why are honest subordinate ratings difficult to obtain?
fear of backlash for giving unfavorable ratings from their manager
[Performance Evaluators]
This helps remedy the fear of backlash in giving honest subordinate ratings
anonymous responses
[Performance Evaluators]
The informal manner of evaluating performance for customers
complements or complaints
[Performance Evaluators]
The formal manner of evaluating performance for customers
evaluation cards
[Performance Evaluators]
Refers to individuals enlisted by the organization to periodically evaluate the service they receive
secret shoppers
[Performance Evaluators]
Self-appraisals tend to suffer from (blank) errors
leniency
4 focuses of appraisals
- trait
- competency
- task
- goal
[Focus of Appraisals]
Concentrates on employee attributes
trait-focused performance dimension
[Focus of Appraisals]
3 main disadvantages of trait-focused
- provides poor feedback
- may be perceived as a personal attack
- unreceptive to feedback
[Focus of Appraisals]
Concentrates on employee knowledge, skills, and abilities
competency-focused performance dimension
[Focus of Appraisals]
Main advantage of competency-focused
easy to provide feedback and suggest corrective actions
[Focus of Appraisals]
Organized by the similarity of tasks performed and includes several competencies
task-focused performance dimension
[Focus of Appraisals]
Main advantage of task-focused
easier to evaluate since tasks are grouped together
[Focus of Appraisals]
Main disadvantage of task-focused
difficult to suggest corrective actions
[Focus of Appraisals]
Organized on the basis of goals to be accomplished
goal-focused performance dimension
[Focus of Appraisals]
Advantage of goal-focused
easier for employees to understand expectations
Refers to the theoretical construct of what good performance is
theoretical criterion
Refers to the way in which the theoretical criterion is assessed or operationalized
actual criterion
5 common problems of measuring actual criterion
- criterion deficiency
- criterion contamination
- criterion complexity
- dynamic criteria
- contextual performance
[Criterion Problems]
Refers to the actual criterion not adequately covering the theoretical criterion
criterion deficiency
[Criterion Problems]
Criterion deficiency indicates insufficient (blank) validity
content validity
[Criterion Problems]
Refers to the actual criterion measuring something outside the theoretical criterion
criterion contamination
[Criterion Problems]
2 sources of criterion contamination
biases and unreliability
[Criterion Problems]
Refers to jobs involving multiple tasks that can be evaluated using several perspectives
criterion complexity
[Criterion Problems]
2 approaches in dealing with criterion complexity
- composite criteria approach
2. multidimensional approach
[Criterion Problems]
Refers to combining individual criteria into a single score (averaging)
composite criteria approach
[Criterion Problems]
Main disadvantage of the composite criteria approach
does not indicate which areas need improvement
[Criterion Problems]
Refers to not combining individual criterion measures
multidimensional approach
[Criterion Problems]
Refers to performance variability over time that makes assessment difficult
dynamic criteria
[Criterion Problems]
Refers to employee behaviors that promote organizational citizenship
contextual performance
Refers to the extent to which the actual criterion assesses the theoretical criterion
criterion relevance
Criterion relevance indicates (blank) validity
construct validity
[Biases and Errors]
The tendency to rate everyone the same regardless of actual performance
distributional errors
[Biases and Errors]
3 types of distributional errors
- leniency
- severity
- central tendency
[Biases and Errors]
Both leniency and severity errors can result in employee (blank)
demotivation
[Biases and Errors]
Distributional errors do not recognize what?
which employees need developmental interventions and those who deserve rewards or recognition
[Biases and Errors]
The tendency to allow a single attribute or an overall impression to heavily influence the rating
halo and horn errors
[Biases and Errors]
The tendency to affect the rating of a dimension based on the rating preceding it
proximity errors
[Biases and Errors]
The tendency to be influenced by the performance of a previously evaluated person
contrast errors
[Biases and Errors]
The tendency to inflate the rating due to a mutual personal connection
similar-to-me error
[Biases and Errors]
3 other sources of errors
- personality
- closeness
- age and sex
[Biases and Errors]
Highly conscientious evaluators are more prone to (blank) errors while those high in agreeableness tend to commit more (blank) errors
highly conscientious, severity errors
highly agreeable, leniency errors
[Biases and Errors]
Reliability across rates is (blank)
low
[Biases and Errors]
2 sampling problems in performance evaluation
- recency effect
2. infrequent observation
[Biases and Errors]
Refers to recent behaviors being given more weight in the evaluation
recency effect
[Biases and Errors]
Refers to not being able to observe a representative sample of employee behavior
infrequent observation
[Biases and Errors]
3 cognitive processes affecting evaluation
- time of observation
- emotional state
- bias
4 ways to reduce rater errors
- rater error training (RET)
- frame-of-reference training
- 360-degree feedback
- Rating committees
[Reducing Rater Errors]
Raters are familiarized with rater errors to help them avoid committing such
rater error training or RET
[Reducing Rater Errors]
What danger does RET pose?
replacing errors with another set of erors
[Reducing Rater Errors]
Raters are provided a common understanding of the rating task (e.g. expectations of what a good performance is)
frame-of-reference training
[Reducing Rater Errors]
Rates use multiple perspectives for feedback
360-degree feedback
[Reducing Rater Errors]
Raters come together to discuss the reasons for their appraisals
rating committees
[Reducing Rater Errors]
Rating committees are usually composed of whom?
employee’s immediate supervisors and 3-4 other supervisors
[Reducing Rater Errors]
Discussions among members of a rating committee are called (blank)
calibration meetings
[Reducing Rater Errors]
Main advantage of using rating committees
helps cancel out individual biases
6 points of a legally defensible performance appraisal system
- job analysis
- rating form
- rater training
- upper management reviews and liberty for employees to appeal
- well-documented records
- assistance and counselling
2 types of measures for assessing job performance
objective and subjective
Refers to counts of various behaviors or results of job behaviors
objective measures
Refers to ratings of people knowledgeable about the employee’s job performance
subjective measures
The challenge for objective measures
determining the acceptable and unacceptable number
The challenge for subjective measures
minimizing subjectivity in ratings
3 types of subjective measures of job performance
- graphic rating scales
- employee comparison methods
- behavior-focused rating forms
[Subjective Measures]
The most commonly used rating scale that assesses individuals on several dimensions
graphic rating scales
[Subjective Measures]
Graphic rating scales consist of a (blank)
multi-point scale
[Subjective Measures]
The multi-point scale in graphic rating scales represent a continuum of performance form (blank) to (blank)
low to high
[Subjective Measures]
The multi-point scale in graphic rating scales usually contains how many values?
4 to 7
[Subjective Measures]
Main advantage of graphic rating scales
easy to construct and administer
[Subjective Measures]
2 main disadvantages of graphic rating scales
- no standards and clear definition
2. susceptible to rating errors
[Subjective Measures]
A rating method where individuals are compared with one another
employee comparison methods
[Subjective Measures]
Main advantage of employee comparison methods
eliminates leniency and central distribution errors
[Subjective Measures]
2 main disadvantages of employee comparison methods
- halo error can be manifested in multiple evaluations of the same perosn
- no defined standard
[Subjective Measures]
3 types of employee comparison methods
- rank order
- paired comparison
- forced distribution
[Subjective Measures]
In this employee comparison method, raters rank employees from high to low on a given dimension
rank order
[Subjective Measures]
Main advantage of rank order
easy to use for new employees
[Subjective Measures]
4 main disadvantages of rank order
- tedious and meaningless in large groups
- no defined standards
- does not indicate the level of performance of employees
- not motivational
[Subjective Measures]
In this employee comparison method, each possible employee is paired and the better of each pair is selected
paired comparison
[Subjective Measures]
Paired comparison is typically used to evaluate employees on (blank) or (blank)
single dimension or overall ability
[Subjective Measures]
How are employees ranked in paired comparison?
the number of times they are selected
[Subjective Measures]
Main advantage for paired comparison
easy to use with small samples
[Subjective Measures]
Main disadvantage of paired comparison
becomes tedious with large samples
[Subjective Measures]
This employee comparison method uses predetermined percentages based on the normal distribution
forced distribution
[Subjective Measures]
How do raters evaluate employees in forced distribution?
by placing the employees in one of the categories/percentages
[Subjective Measures]
Forced distribution is also known as (blank)
rank-and-yank method
[Subjective Measures]
2 main advantages of forced distribution
- increases organizational productivity because the lowest 10% are terminated
- applicable for large samples
[Subjective Measures]
3 main disadvantages of forced distribution
- no defined standards
- demotivating
- assumes that employee performance is normally distributed
[Subjective Measures]
A rating method that concentrates on specific behaviors
behavior-focused rating forms
[Subjective Measures]
In behavior-focused rating forms, observable behaviors are considered (blank)
standards
[Subjective Measures]
In behavior-focused rating forms, observable behaviors are indicative of (blank)
different levels of performance
[Subjective Measures]
4 steps in developing behavior-focused rating forms
- job analysis
- descriptions of effective and ineffective job performance
- placement of descriptions
- rating the effectiveness of descriptions
[Subjective Measures]
Descriptions of effective and ineffective job performances come from (blank)
critical incidents
[Subjective Measures]
4 kinds of behavior-focused rating forms
- critical incidents
- behaviorally anchored rating scales (BARS)
- behavioral observation scale (BSS)
- mixed standard scales (MSS)
[Subjective Measures]
This behavior-focused rating form makes use of observed performances
critical incidents
[Subjective Measures]
2 main advantages of critical incidents
- recalls specific behaviors for evaluation
2. can be used as a legal defense in court
[Subjective Measures]
Main disadvantage of critical incidents
lack of numerical ratings
[Subjective Measures]
This behavior-focused rating form combines critical incidents with rating scale methods
behaviorally anchored rating scales or BARS
[Subjective Measures]
Main advantage of BARS
offers more objective evaluations
[Subjective Measures]
Main disadvantage of BARS
time-consuming to develop
[Subjective Measures]
This behavior-focused rating form focuses on the frequency of critical incidents
behavioral observation scale or BOS
[Subjective Measures]
The final step in BOS is (blank)
item analysis
[Subjective Measures]
Item analysis in BOS is used to detect what?
the critical incidents with the most influence on performance
[Subjective Measures]
Main advantage of BOS
high content validity
[Subjective Measures]
This behavior-focused rating form rates job behaviors and critical incidents on the extent to which they represent various levels of job performance
mixed standar scale or MSS
[Subjective Measures]
3 behavioral indicators of MSS
good, satisfactory, and poor