1. Goals set to align w/ higher level goals 2. Behavioral expectations and standards set and then aligned w/ EE and org. goals 3. On-going perf. feedback provided during cycle 4. Perf. appraised by mgr 5. Formal review session conducted 6. HR decision making (pay, promo, etc...)

A7 - Performance Appraisal Flashcards by Kim Bowman

process of creating a work environ. in which ppl can perform to the best of their abilities
entire work system that emanates from a company’s goals

perf. mgmt

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Steps of Perf. Mgmt

Goals set to align w/ higher level goals
Behavioral expectations and standards set and then aligned w/ EE and org. goals
On-going perf. feedback provided during cycle
Perf. appraised by mgr
Formal review session conducted
HR decision making (pay, promo, etc…)

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the result of an annual/biannual process in which a mgr evaluates an EE’s perf. relative to the requirements of his/her job and uses the info to show the person where improvements are needed and why
to maintain and enhance productivity
facilitate progress toward their strat. goal

perf. appraisals

*if well executed - have capabilities to influence EE behavior and improve an org’s perf.

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adv. of ongoing perf. feedback

most useful when immediate and specific to a partic. situation - s/b occurring regularly
all types of EEs can benefit from ongoing perf. convos with mgrs
potential to serve as catalysts for improvement w/in the company

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(8) key points to address during feedback convos

(U of Indiana’s “University HR Services”)

give specific exps of desirable and undesirable behaviors
focused feedback on behavior, not the person
frame the feedback in turns of helping the EE by successful
direct the feedback towards behavior the EE can control
s/b timely
limit it to the amt the EE can process
use active comm. skills and confirm the EE is engaged in the convo

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an appraisal system in which all of an org’s EEs are reviewed at the same time of yr rather than on their anniv. of hire
enables mgrs to compare the perf. of diff. EEs simultaneously

focal perf. appraisal

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(2) purposes of perf. appraisals

administrative
developmental

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Administrative purposes of a perf. appraisal

doc. personnel decisions
promote EEs
determine transfers and assignments
ID perf. probs and develop ways to correct them
doc HRM actions in case of legal issues
make retention, term, and layoff decisions
validate selection criteria
meet legal requirements
eval. training programs/processes
assist w/ HR planning
make reward and compensation decisions

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**Developmental **purposes of a perf. appraisal

**feedback essential for discussing an EE’s goals and how they align w/ the org

provide perf. feedback
ID indiv. strengths and weaknesses
recognize indiv. perf. achievements
help EEs ID goals
evaluate goal achievement of EEs
ID indiv. training needs
determine org. training needs
reinforce authority structure
allow EEs to discuss concerns
improve communication
provide a forum for leaders to help EEs

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Why appraisal prog. sometimes fail

no support from mgmt
some believe they discourage teamwork b/c it frequently focuses on the indiv. achievements of workers rather than teams
useful only at extremes - the best or the worse - but not for those in between.
often focuses on S/T achievements rather than L/T improvement and learning
mgrs don’t engage EEs and are afraid to ‘hurt feelings’
slry often becomes main/only focus of meeting - instead of ways to improve perf.

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Parts to developing an effective appraisal program

what are the perf. standards?
are you complying w/ the law?
who should appraise an EE’s perf.?
putting it all together: 360-degree appraisal (feedback and appraisal)
training appraisers

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Establishing Perf. Standards

Strat. relevance
Criterion deficiency
Criterion contamination
Reliability

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Establishing Perf. Standards: Strat. Relevance

perf. standards linked to org. goals and competencies
also provides HR with the doc. needed to justify various training expenses in order to close any gaps b/w EEs’ current skills and those they will need in the future to execute the firm’s strat.

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Establishing Perf. Standards: Criterion Deficiency

if actual perf. is only measured by only focusing on one or a limited # of measurements = the appraisal is criterion deficient
the standards should capture the entire range of an EE’s responsibilities

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Establishing Perf. Standards: Criterion Contamination

standards s/b capable of being objectively applied
elements that affect the appraisal measures that are not part of the actual perf.
factors outside of the EE’s control that affect their perf.
- not comparing apples to apples
- it shouldn’t matter if someone has newer equipment than another person

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Establishing Perf. Standards: Reliability

measures that are consistent across raters and over time
measured by correlating 2 sets of ratings made by a single rater or by two differ. raters
to make sure mgrs are rating EEs consistently - use calibration b/w a group of supers

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process whereby mgrs meet to discuss the perf. of indiv. EEs to ensure their EE appraisals are in line w/ one another

calibration

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Are You Complying w/ the law?

must meet certain legal requirements
must have carefully defined and measurable perf. standards
Albemarle Paper Company v. Moody - prompted orgs to try to eliminate vagueness in descriptions of traits such as attitude, cooperation, dependability, initiative, and leadership

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Are You Complying w/ the law?

appraisals should meet the following legal guidelines:

perf. ratings must be job-related, w/ perf. standards developed thru a job analysis
EEs must be provided w/ clear, written job standards in advance of their appraisals so they
mgrs who conduct appraisals must be able to observe the behavior they are rating
do not allow perf. probs to continue unchecked
supers s/b trained to use appraisal form correctly
appraisals s/b discussed openly w/ EEs and counseling or corrective guidance offered to help poor performers improve their perf.
an appeals procedure s/b estab. to enable EEs to express their disagreement w/ the appraisals
document appraisals and reason for any actions

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Who Should Appraise an EE’s Perf?

mgr/super appraisal
self-appraisal
subordinate appraisal
peer appraisal
team appraisal
customer appraisal

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a traditional approach to evaluating an EE’s perf.
done by EE’s mgr and often reviewed by a mgr one level higher
mgrs must rely on perf. records to evaluate an EE’s perf.

mgr and/or super appraisal

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perf. appraisal done by the EE being evaluated, generally on an appraisal form completed by the EE prior to the perf. interview
beneficial to increase an EE’s involvement with the review process
gets EE thinking about strengths and weaknesses and opens convo about barriers to effective perf.
super/EE can work together to develop goals for the future
best used for development purposes

self-appraisal

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perf. appraisal of a superior by an EE, which is more appropriate for developmental than the admin puproses
both lg and sm orgs
gives mgrs feedback on how their subordinates view them
meant to improve the perf. of mgrs
s/b submitted anonymously and combined across several indiv. raters

subordinate appraisal

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dimensions of a subordinate appraisal

mgr’s leadership
oral comm
delegation of authority
coord. of team efforts
interests in subordinates

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* perf. appraisal done by one's fellow EEs, generally on forms that are compiled into a single profile for use in the perf. interview conducted by the EE's mgr * equal rank who work together

peer appraisal

a control system from the 1980s that involves setting standards (based on customer requirements), measuring a firm's perf. against those standards, and ID'g opps. for continuous improvements

Total Quality Mgmt (TQM)

a perf. appraisal based on TQM concepts, that recognizes team accomplishment rather than indiv. perf.

team appraisal

* perf. appraisal that, like team appraisal, is based on TQM concepts and includes evaluation from both a firm's external and internal cust. * could have vendors and suppliers included in review

customer appraisal

* this combines various sources of perf. appraisal info to create multirater appraisal and feedback systems * intended to provide EEs w/ as accurate a view of their perf. as possible by getting input from all angles: supers, peers, subs, cust., etc...

360-degree appraisal

Pros of 360-degree appraisal

* more comprehensive from info gathered from multiple perspectives * quality of info is better * complements TQM initiatives by emphasizing internal/external cust. and teams * lessens bias/prejudice since feedback comes from more ppl, not just one indiv. * feedback from peers and others may increase EE self-development

Cons of 360-degree appraisal

* system is complex in combining all the responses * feedback can be intimidating and cause resentment if EE feels the respondents have "ganged up" * may be conflicting opinions * system requires training to work together * EEs may collude or "game" the system by giving invalid evals to one another * appraisers may not be accountable if their evals are anonymous

(3) parts for Training Appraisers

1. estab. an appraisal plan 2. eliminating rater error 3. feedback training

Estab. an Appraisal Plan | (Training Appraisers)

* most effective if systematic process - begins w/ explanation of objs. * rater must know purpose * mechanics of system must be explained - how frequent, who, and standards * should alert raters to the weaknesses and porbs of appraisal systs. so they can be avoided.

Eliminating Rater Error | (Training Appraisers)

* elim. subjective errors TYPES: * halo * horn * distributional * error of central tendency * leniency or strictness error * forced distribution * temporal * recency error * contrast error * similar-to-me error

* type of rater error * occurs during the appraisal process if raters do not have carefully developed descripts. of the EE behaviors being rated

halo error

* type of rater error * mgr focuses on 1 negative aspect about an EE and generalizes it into an overall poor appraisal rating

horn error

* type of rater error * involves a group of ratings given across various EEs

distributional errors

* type of *distributional* rater error * eval. everyone the same and in the middle * when raters who are reluctant to assign either extremely high or extremely low ratings * results in all EEs rated as average

central tendency error

* type of distributional rater error * appraiser tends to give unusally high (lenient) or low (strict) ratings * way to reduce this error: have clearly defined characteristics or dimensions of perf. and to provide meaningful descriptions of behavior (anchors) of scale for appraisers to compare.

leniency or strictness error

* type of distributional rater error * raters are required to place a certain percentage of EEs into various perf. categories * if this involves any of the protective class, it could be at risk of discrim. issues

forced distribution (a.k.a forced ranking)

* type of rater error * perf. review is biased either favorably or unfavorably, depending on the way perf. info. is selected, evaluated, and org'd. by the rater over time

temporal error

* type of temporal rater error * the appraisal is based largely on the EE's most recent behavior rather than on behavior throughout the appraisal period * solution: keep log or diary

recency error

* type of temporal rater error * bias that occurs when an eval. of an EE is misconstrued based on the previously evaluated EE. * an avg EE can seem more productive in comparison to the recently appraised poor perf. EE * can be reduced with training that focuses on using obj. standards and behavioral anchors to appraise perf.

contrast error

* type of temporal rater error * appraiser inflates the eval. of an EE b/c of a mutual personal connection * could end up leading to discrim. if not corrected

similar-to-me error

Feedback training (Training Appraisers)

* provide some general points to consider for planning and providing feedback on an **ongoing** basis and during the appraisal interview * 3 basic areas: * comm. effectively * diagnosing the root causes of perf. probs * setting goals and objs.

perf. appraisal methods (3)

* trait * behavioral * results

**_Trait_** Perf. Appraisal Methods

* known for subjectivity (not necessarily a good thing) * designed to measure the extent to which an EE possesses certain characteristics that are viewed as important for the job and the org. in general * easy to develop * if not done right, can be biased and subj.

_Advantages_ of Trait Perf. Appraisal Methods

* inexpensive to develop * use meaningful dimensions * are easy to use

_Disadvantages_ of Trait Perf. Appraisal Method

* have high potential for rating errors * are not useful for EE counseling * are not useful for allocating rewards * are not useful for promotion decsions

Types of **_Trait_** Perf. Appraisal Methods

* Graphic Rating Scales * Mixed-Standard Scales * Forced-Choice Method * Essay Method

* a **_trait_** approach to perf. appraisal whereby each EE is rated according to a scale of characteristics * evaluators are often required to explain each rating w/ a sentence or two

graphic rating scale method

* a **_trait_** approach to perf. appraisal similar to other scale methods but based on comparison w/ (better than, equal to, or worse than) a standard * allows rater to select from three choices for each trait; reflecting superior, average and inferior perf.

mixed-standard scale method

* a **_trait_** approach to perf. appraisal that requires the rater to choose from stmts designed to distinguish b/w successful and unsuccessful perf. * rater selects one stmt from the pair w/o knowing which is correctly describing successful job behavior

forced-choice method

* a **_trait_** approach to perf. appraisal that requires the rater to compose a stmt describing EE behavior * rater is usually asked to describe the EE's strengths and weaknesses and to make recommendations for development * usually combined w/ another method b/c it provides additional descriptive info about an EE's perf. that cannot be generated w/ a structured rating scale

essay method

**_Behavioral_** Perf. Appraisal Methods

* provides *action-oriented* info * developed specifically to describe which actions s/b (or not) be exhibited on the job * often used to provide EEs w/ developmental feedback * improves a rating scale with having descripts. of behavior along a scale, or continuum * permit the rater to readily ID the point where a particular EE falls on the scale

_Advantages_ of Behavioral Perf. Appraisal Methods

* use specific perf. dimensions * are acceptable to EEs and superiors * are useful for providing feedback * are fair for rewards and promo decisions

_Disadvantages_ of Behavioral Perf. Appraisal Methods

* can be time-consuming to develop/use * can be costly to develop * have some potential for rating error

Types of **_Behavioral_** Perf. Appraisal Methods

* Critical Incident Method * Behavioral Checklist Method * Behaviorally Anchored Rating Scale (BARS) * Behavior Observation Scale (BOS)

* Type of **_Behavioral_** Perf. Appraisal Methods * structured to focus on occasions when the behavior of an EE results in unusual success or unusual failure * mgr keeps log/diary for each EE throughout the appraisal period and notes specific critical incidents related to how well they perform * elims. recency error b/c it covers then whole eval. period * helps mgr counsel EE when they are having perf. probs while the prob is still minor

critical incident method

* Type of **_Behavioral_** Perf. Appraisal Methods * rater checks the stmts on a list that the rater believes are characteristic of the EE's perf. or behavior

behavioral checklist method

* a behavioral approach to perf. appraisal that consists of a series of vertical scales, one for each important dimension of job perf. * based on critical incident approach * supers give descripts. of actual good and bad perf. for each of 5 to 10 rating scales * committees of mgrs and EEs then rework and approve a set of critical incidents for each scale and anchor them quantitatively along each scale * facilitates the assignment of points when EEs are eval'd on each of the job characteristics incorporated w/in the rating scales

behaviorally anchored rating scale (BARS)

behaviorally anchored rating scales (BARS) characteristics

* critical incidents are placed along the scale and are assigned point values according to the opinions of experts based on importance * developed by a committee that includes both subs and mgrs * studies show that this yields more accurate results * adv - personnel outside the HR dept partic. w/ HR staff in its development = greater acceptance in the process * disadv - requires lots of time and effort to develop

* a **_behavioral_** approach to perf. appraisal that measures the frequency of observed behavior * based on critical incidents * allows rater to play the role of abserver rather than of judge

behavior observation scale (BOS)

**_Results_** Perf. Appraisal Methods

* focuses on measurable contribs. that EEs make to org. * eval. EEs' accomplishments - the results they achieve through their work * more objective and empowering for EEs * gives EEs more responsibility for their outcomes while giving them discretion over the methods they use to accomplish them.

_Advantages_ of Results Perf. Appraisal Methods

* have less subjectivity bias * are acceptable to EEs and superiors * link indiv. perf. to org. perf. * encourage mutual goal setting * are good for reward and promo decisions

_Disadvantages_ of Results Perf. Appraisal Methods

* are time-consuming to develop/use * may encourage a S/T perspective * may use contaminated criteria * may use deficient criteria

Types of **_Results_** Perf. Appraisal Methods

* Productivity Measures * Mgmt by Objectives * The Balanced Scorecard (BSC)

* Type of **_Results_** Perf. Appraisal Methods * measures that directly links what EEs accomplish to results that benefit the org. * directly aligns EE and org goals

Productivity Measures

Disadv of Productivity Measures Perf. Appraisals

* can be contaminated by external factors that EEs cannot influence * encourages EEs to "look good" on S/T basis, while ignoring the L/T ramifications

* Type of **_Results_** Perf. Appraisal Methods * a philosophy of mgmt that rates perf. on the basis of EE achievement of goals set by mutual agreement of EE and mgr * EEs have established goals set by EE and mgr; evaluated based on these goals * s/b viewed as part of the total system for managing, not as merely an additon to the mgr's job * combines the super-oriented and the self-eval. systems

mgmt by objective (MBO)

steps of MBO

* Step 1: Org. goals and metrics * Step 2: Dept. goas and metrics * Step 3A: Super lists goals and metrics for sub. * Step 3B: Sub. proposes goals and metrics * Step 4: Mutual agreement of goals and metrics * Step 5: Interim review * Step 5A: Inappropriate goals/metrics deleted * Step 5B: New inputs are then provided * Step 6: Final review * Step 7: Review of org. perf.

guidelines for a successful mgmt by objs. (MBO)

* mgrs and EEs must be willing to estab. goals and objs. together * objs. s/b quantifiable and measurable for both L/T and S/T * expected results must be under EE's control * goals/objs. must be consistent for each level of the org. * mgrs and EEs must estab. specific times when goals are to be reviewed and eval'd

* Type of **_Results_** Perf. Appraisal Methods * used to appraise indiv. EEs, teams, bus. units, and the corporation itself * takes into acct 4 related categories - fin., cust., processes, and learning * EE can see more clearly how his/her perf. ties into the overall perf. of the firm * allows mgrs to translate broad corporate goals into divisional, departmental, and team goals in a cascading way

The Balanced Scorecard (BSC)

Tools for successful BSC

* translate the strat. into a scorecard of clear objs. * attach measures to each obj. * cascade scorecards to the front line * provide perf. feedback based on measures * empower EEs to make perf. improvements * reassess the strat.

Appraisal Interviews

* most important part of the entire perf. appraisal process * gives mgrs opp to discuss a sub's perf. record * able to explore possible improvement and growth with EEs * s/b sched'd far enough in advance to let both parties prepare for it

(3) types of appraisal interviews

1. tell-and-sell interview 2. tell-and-listen interview 3. problem-solving interview

* type of appraisal interviews * skills required: ability to persuade an EE to chg in a prescribed manner * may require the development of new bahaviors on the part of the EE and skillful use of motivational incentives on the part of the appraiser/super

tell-and-sell interviews

* type of appraisal interviews * 1st part: appraiser/super communicates the strong and weak points of an EE's job perf. * 2nd part: EE's feelings about the appraisal are thoroughly explored * gives both mgrs and EEs the opp. to release and iron out any frustations

tell-and-listen interviews

* type of appraisal interviews * skills required: listening, accepting, and responding to feelings * seeks to stimulate the growth and development of an EE by discussing his/her probs, needs, and on-the-job statisfaction and dissatisfaction

problem-solving interviews

guidelines for conducting the appraisal interview

* ask for a self-assessment * invite participation * express appreciation * minimize criticism * chg the behavior, not the person * focus on solving probs * be supportive * establish goals * followup day to day

Factors that effect an EE's perf.

* ABILITY * technical skills, interpersonal skills, prob-solving skills, analytical skills, comm. skills, physical limitations * MOTIVATION * career ambition, goals and expectations, job satisfaction and frustrations, fairness perceptions, relations w/ co-workers * ENVIRONMENT * equipment/materials, job design, econ. conditions, unions, rules/policies, managerial support, laws/regs