Performance Appraisal Flashcards
Performance Appraisal
Ongoing, systematic evaluation of how well an individual is carrying out their responsibilities
Typically includes assessment of individual’s need for future development
Key Points of Strong Performance Appraisal System
Ongoing
Systematic
Evaluation
Development
Ongoing
Often annually
Systematic
Logical assessment, closely tied to attributes of the job
DO JOB ANALYSIS
Evaluation
Judgement of goodness or badness
Must have comparability so that personnel decisions can be accurately made
Development
Areas for improvement in present job
Potential for future jobs
Guidelines for Performance Appraisal
Use objective performance measures with clear standards
Provide raters with written instructions and training
Better when raters are diverse
Have review of the ratings
4 Types of Performance Appraisal
Written Essays
Rating Systems
Ranking Systems
Appraisal by Objectives and Standards (MBO)
Narrative Essays
Rater, usually manager, writes essay for each employee
Modern versions include keeping a diary for each employee
Advantages of Essays
Detailed and rich
Tailored to individual employee
When used in diary form, seen as especially fair
Disadvantages of Essays
Time consuming
Writers often focus on extreme examples
Unstandardized, making comparison difficult
Quality depends on author’s writing ability
Common Rating Scales
Graphic Rating Scales (GRS)
Checklists and Forced Choice
Behaviorally-Based (BARS & BOS)
Graphic Rating Scales (GRS)
List of attributes associated with the job
Rater provides numerical rating from high to low
Forms often include comment section
Common GRS Dimensions
Productivity Quality of Work Dependability Adherence to Values Contribution to the Effectiveness of Others
Advantages of GRS
Easy to Use
Quick & Efficient
Standardized factors can cover many jobs
Numerical ratings allow for calculations and comparisons
Disadvantages of GRS
Vague definitions of factors Subjective interpretations No objective/factual basis for definition Often not closely related to job Prone to various rating errors Courts are often skeptical
Checklists
Obtain behavioral incidents
Rater indicates whether or not they occured
2 Types of Checklists
Conventional Checklist (Sometimes weighted) Forced Choice (Always weighted)
Advantages of Checklists
Not vague
Greater objectivity and clear definitions
Evaluator more of a recorder than a judge
Very job specific
Disadvantages of Checklists
Takes time and money to develop
Some items seem similar and difficult to interpret
If rater doesn’t know weights, they can feel dis-empowered
Evidence of incremental validity is lacking
Behaviorally Based Ratings Scales
Behaviorally Anchored Scales (BARS)
Behavioral Observation Scales (BOS)
Behaviorally Anchored Scales
Indicate specific behaviors employee would be expected to do
Behavioral Observatoin Scales
Indicate specific behaviors employee has or has not been observed doing
5 Steps of Developing BARS
Collect Critical Incidents (Job Analysis)
SMEs Cluster CIs into 5-10 Performance Dimensions
Different SMEs Re-assign CI dimensions - Keep CIs with 50-80% Agreement
Scale CIs to relative effectiveness
Retain CIs that have been successfully retranslated and meet scaling requirement
Advantages of BARS/BOS
IDs specific behaviors - job-based
More objective and less vague
Provides easier communication with employee
Some say more valid, evidence does not support this
Disadvantages of BARS/BOS
Expensive/Time-Consuming to Develop
Development requires technical expertise
No evidence of enhanced validity
Multi-source Feedback
Peers, subordinates, and even customers rate employee in addition to supervisor
Findings for 3 Sources of Multi-source Feedback
Peers and Supervisors tend to agree when measurement error is considered
Each should have unique information, but there should be some agreement
Self-ratings agree less because they’re so lenient
2 Reasons to do 360 Degree Feedback
Limit to Development
Use for Administration
Why Limit 360 Degree Feedback to Development?
Quality of ratings suffer when they are used for real-life decisions
Supervisor/Subordinate ratings have higher validity than peer ratings
Self-ratings are lenient
Why Use 360 Degree Feedback for Administration?
Averaging ratings, even poor ones, may improve validity
360s provide multiple perspectives for important decisions
What’s a compromise between using 360s for development or administration?
Limit to development for few years, then use for administration
360 Degree Feedback Strains on Other HR Systems
Conduct work oriented job analysis that specifies necessary behaviors for success
Train everyone to provide feedback
People are most likely to accept negative feedback if there is follow-up training and support
2 Types of Ranking Systems
Formal Ranking
Rank & Yank (Forced Distribution)
2 Types of Formal Ranking
Alternation Ranking
Paired Comparison
Alternation Ranking
Rater looks at entire team and ranks members from very best to very worst, then second best to second worst, and so on
Paired Comparison
Rater looks at each possible pair and decides who’s best. Subordinates ranked by number of “wins”
Advantages of one formal ranking system over other
Alternation - Faster
Paired Comparison - Better Validation Evidence
Rank and Yank
Forcing ratings to conform to a certain distribution/profile Ex: 20% outstanding 70% average 10% nonperformers
Rank and Yank pro and con
Some evidence of benefits
Undermines teamwork and creates pernicious politics - generally discouraged
Advantages of Ranking Systems
Inexpensive
Easy to Use
Eliminates certain types of error
Requires little training
Disadvantages of Ranking Systems
Often no objective criteria for ranking
Only an overall score
Hard on morale
Difficult to compare across departments or jobs
Forces distribution that’s usually unrealistic
Appraisal by Objectives and Standards
Supervisor and Subordinate meet to set goals
Subordinate evaluated on completion of those goals
Steps to Effective MBO
Hold initial performance planning meeting
Collaboratively set SMART goals
Provide ongoing performance communication
Hold second meeting for performance review
Provide feedback gauged to goals
Advantages of MBO
Links employee goals to team/org. goals
Reduces likelihood of disagreement
More likely to put manager and employee on same side
Possibly most legally defensible approach to appraisal
Disadvantages of MBO
Takes more time than other systems
Requires both parties to develop skills in goal writing
May require more paperwork
May be misused/used superficially
Difficult to compare across employees and job
Tools for Performance Problems
Coaching
Progressive Discipline
Employee Assistance Programs
