Performance Appraisal Flashcards
Performance Management
The process of creating a work environment in which people can perform to the best of their abilities
Performance evaluations/appraisals/reviews
The result of an annual or biannual process in which a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information to show the person where improvements are needed and why
Criterion contamination
Elements that affect the appraisal measures that are not part of the actual performance (e.g. comparing salespeople across different geographic territories with different sales potential)
Criterion deficiency
When a measure focus on only a single criterion (e.g. sales) to the exclusion of other important by less quantifiable dimensions (e.g customer service)
Calibration
In PA, a process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another
Manager/Supervisor Evaluation
A performance evaluation done by an employee’s manager and often reviewed by a manager one level higher
Self-evaluation
A performance evaluation done by an employee being evaluated, generally on an evaluation form completed by the employees prior to the evaluation meeting
Subordinate evaluations
A performance evaluation of a superior by an employee, which is more appropriate for developmental rather than for administrative purposes
Peer evaluation
A performance evaluation done by one’s fellow employees generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employee’s manager
Team evaluation
A performance evaluation that recognizes team accomplishment rather than individual performance
Customer evaluations
A performance evaluation that includes evaluation from both a firm’s external and internal customers
360 degree-evaluations
A performance evaluation done by different people who interact with the employee, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employee’s manager
Error of Central Tendency
A performance rating error in which all employees are rated about average
Leniency/Strictness Error
A performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings
Forced Distribution/Ranking
A performance ranking system whereby raters are required to place a certain percentage of employees into various performance categories
Temporal (recency) error
A performance rating error in which the evaluation is based largely on the employee’s most recent behaviour rather than on behavior throughout the evaluation period
Contrast error
Occurs when an employee’s evaluation is biased either upward or downward because of another employee’s performance
Similar-to-me Error
A PR error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection
Trait Methods
Designed to measure the extent to which an employee possesses certain characteristics (e.g dependability, reactivity, initiative, and leadership) that are viewed as important for the job and the organization
Graphic rating scales
A trait approach to performance rating whereby each employee is rated according to a scale of characteristics
Mixed-standard scale method
A trait approach to performance rating similar to other scale methods but based on comparison with (better than, equal to, worse than) a standard
Forced-choice method
A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance (The rater will not know which statement is linked to successful job behaviour; hopefully resulting in less bias)
Essay Method
A trait approach that requires the rater to compose a statement describing employee behaviour
Critical incident
An unusual event that denotes superior or inferior employee performance in some part of the job
Behavioural Methods
Performance rating methods that describe which actions should or should not be exhibited on the job
Behaviourally anchored rating scale (BARS)
A behavioural approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance - these should be anchored to behaviours identified through critical incident job analysis
Behavioural checklist method
Requires the rater to check statements on a list that describes characteristics of employee’s behaviour
Behaviour Observation Scale (BOS)
A behavioural approach to performance rating that measures the frequency of observed behaviour; also based on critical incident job analysis; often preferred over BARS
Results methods
Focuses on evaluating employee accomplishments or results rather than on traits or behaviours
Management by Objectives
A philosophy of management that rates the performance of employees based on their achievement of goals set mutually by them and their manager
Guidelines of MBO
Objectives should be quantifiable and measurable; Expected results must be under the employee’s control; Firm goals must be aligned with employee goals; Time frames must be established
