Chapter 8 - Performance Appraisal and Rewards Flashcards
What are performance appraisals
self-development indicators for employees about their performance on the job (quality and quantity)
form the basis of organizational rewards such as pay increases and bonuses and make personnel decisions for promotions
what is perception?
an individual’s ability to screen, select, group, and interpret stimuli in a way that makes meaning
think perception selectiveness, response salience, social perception, etc.
organizations use performance appraisals for several reasons (5)
- provide feedback to employees
- to allow for employee self-development
- to allocate rewards
- to gather information for personnel decisions
- to guide them in developing training and development efforts
graphic rating scales
rater rates employee on various evaluation dimensions by assigning a number or rating on each
what is the most popular method of performance appraisal?
graphic rating scales
critical incident
records incidents or examples of each subordinates behaviour that led to either extraordinary success or failure
recorded daily or weekly under predesignated categories
final performance rating consists of descriptive paragraphs of employees performance
behaviourally anchored rating scales (BARS)
begins by selecting a job that can be described by observable behaviour
- managers and personnel specialists then identify these behaviours as they relate to superior or inferior performance
lots of effort
behavioural observation scales
like BARS in that it focuses on identifying observable behaviours as they relate to performance
less demanding on evaluator thought and rates employees on a scale
management by objectives (MBO)
closely related to goal-setting theory of motivation
employees work with their supervisor to establish goals and objectives that they’ll be responsible for that year
goals are stated in straightforward language and relate to tasks within the employee’s domain
assessment centers
focus more on evaluating an employee’s long range potential to an organization rather than on their performance over the past year
used almost exclusively among managerial personnel
do specific exercises for judging
problems with appraisal techniques
most deal with the issues of validity and reliability
what are several common sources of error for appraisal techniques?
- central tendency error (rater sorts everyone averagely)
- strictness or leniency error (overly strict/ lenient)
- halo effect (supervisor assigns the same rating to each factor being evaluated for an individual - based on perception)
- regency error (evaluators focus on an employee’s most recent behaviour in the process)
- personal biases
what do managers have to be careful about regarding feedback to employees?
if one or more aspects of feedback seem negative to an employee, the credibility of the feedback in its entirety is dismissed, and the employee may increase their resistance to task effort
if accepted, it reinforces employee’s direction, effort on task, and persistence
what are 5 functions of reward systems in organizations?
- job effort and performance
- attendance and retention
- employee commitment
- job satisfaction
- occupational and organizational choice
what are 4 bases for reward distribution?
- power (more power, more)
- equality (everyone with same job title gets same)
- need (greater need greater pay)
- distributive justice (employees receive their rewards as a function of their contribution to company)
