Performance Appraisal/Management

Question 1

describe the general steps to developing a PA system

Answer 1

job analysis
criterion development
performance appraisal system

Question 2

list the uses of performance management systems

Answer 2

training and employee feedback
compensation
promotions
discharge
personnel research (serves as criteria)
Proper records to document HR decisions/legal requirements

Question 3

Uses of PA

Answer 3

between person: salary administration, retention/termination, layoffs, promotions, ID poor performers

within person: ID of individual training needs, performance feedback, determine transfers/assignments, ID individual strengths/weaknesses

system maintenance: workforce planning, evaluating personnel practices

Question 4

Performance criteria

Answer 4

Three different levels of criteria
The ultimate criterion - an abstract, idealized concept of the criterion.
The conceptual criterion - the various concepts that together make up the ultimate criterion.
The operational criterion - the manner in which the operational criteria are measured.
The match between the operational criterion to the conceptual criterion determines the relevance of the criteria

Question 5

Sources of performance data

Answer 5

personnel data
results-oriented (hard)
judgmental (soft)

Question 6

what is personnel data? what are its advantages and disadvantages?

Answer 6

Personnel Data - work-related information that is regularly recorded
e.g., absenteeism, tardiness, # of accidents, letters of commendation or reprimand
Advantages
Relatively easy to obtain
Do not require subjective interpretation
Disadvantages
Assess mostly negative behaviors
Many aspects of job performance are not measured
Contextual factors may influence personnel records

Question 7

judgmental data; define and give advantages/disadvantages

Answer 7

Judgmental (“Soft”) criteria - ratings or rankings of job performance
Advantages
Ratings scales are flexible and can used to measure many different aspects of job performance.
Disadvantages
Rating errors and biases can result in criterion contamination.

Question 8

results oriented data; define and give advantages/disadvantages

Answer 8

Results-oriented (“hard”) criteria - direct measures of job performance, productivity
e.g., dollar volume of sales, number of words typed, units produced
Advantages
Face Validity
Disadvantages
Aspects of job performance may not be measured
Contextual factors may influence “hard” criteria

Question 9

Rating errors; list and describe

Answer 9

Rating errors are unintentional rating inaccuracies.
Leniency - the tendency to give ratings that are overly high
Severity - the tendency to give ratings that are overly low
Central Tendency - the tendency to use the midpoint of the scale too often
Halo - the tendency to use an overall impression of someone when making ratings on specific performance dimensions.
Attributional errors - the tendency to underestimate situational factors that may constrain the ratees performance.
Personal biases - unintentional discrimination based on age, sex, race, etc.
Recency effect - the tendency to give greater weight to recent performance and lesser weight to earlier performance.

Question 10

How to reduce rating errors

Answer 10

rater training
use more than one rater
improve the rating process (structuring observations, changing rating scale format, etc.)

Question 11

what are methods for training performance raters?

Answer 11

Rater error training (RET) - making raters aware of unintentional rating errors

Rater accuracy training (RAT) - train the rater in what constitutes good or poor performance and practice rating (videotaped) work samples and get feedback on accuracy.

Question 12

rating biases: common reasons for inflation

Answer 12

Pain-in-the-neck factor
To get more bonuses/raises for the unit
To promote someone out of the unit
Boost morale
Underdog factor
Dirty laundry factor
Recognition of recent improvements

Question 13

rating biases: common reasons for deflation

Answer 13

Give a ‘kick in the pants’ to someone who is coasting
Pay is linking to performance and the budget is tight
Show them who’s the boss
In an effort to provide justification for future firing

Question 14

difference between rating errors vs. rating biases

Answer 14

rating biases are intentional rating inaccuracies; rating errors are unintentional

Question 15

list specific performance appraisal methods

Answer 15

narrative evaluations 
graphic rating scales
BARS
BOS
Comparative Approaches

Question 16

graphic rating scales: describe and give advantages and disadvantages

Answer 16

Graphic Rating Scales
Performance appraisal methods using a predetermined scale to rate the worker on important job dimensions.
It usually consists of:
a list and description of job related performance dimensions/traits
numerical anchoring system (typically 5-9 points) or
verbal anchoring system (e.g., good/poor,

Advantages
Quantifies job performance
Relatively easy to develop

Disadvantages

• Affected by error and bias
• Often ambiguous and therefore different raters infer different meanings
• Often generic and may not represent job very well

Question 17

BARS: what are they and what are advantages/disadvantages

Answer 17

Using ratings scales with labels or anchors reflecting examples of poor, average, and good behavioral incidents
Four step development process
Critical incidents are generated
One group of SMEs clustered the critical incidents into performance dimensions
Another group of SMEs confirms the performance and
Rates each critical incident (effective/ineffective)

Advantages

• Performance dimensions are clearly defined
• Based on job analysis and therefore job relevant and legally defensible
• Useful for feedback purposes
• High content and face validity (if it is well developed)
• The development process may promote buy-in a frame-of-reference for evaluating performance

Disadvantages

• Development is time-consuming and expensive
• Affected by error and bias
• If anchors are too representative of a particular employee’s performance this may result in rating errors

Question 18

Behavioral Observation Scales (BOS): what are they and what are advantages/disadvantages?

Answer 18

Behavioral Observation Scales (BOS)
Requires appraisers to rate how often a worker has been observed performing key work behaviors (critical incidents)
Values on the rating scale can reflect specific percentages of time
5 = 95-100%
4= 87-94%

Advantages

• It is (supposedly) measuring observations of behavior and therefore lessening subjective judgement
• Based on job analysis and therefore job relevant and legally defensible
• Very useful for feedback purposes
• High content and face validity (if well developed)
• The development process may promote buy-in a frame-of-reference for evaluating performance

Disadvantages

• A supervisor cannot always be observing the workers he or she is rating
• Appraisers cannot remember how often very specific periods of time over any extensive time period (certainly not 6 to 12 months)
• Affected by error and bias

Question 19

Comparative Approaches: describe the types and what are advantages/disadvantages?

Answer 19

Rankings - involve a simple rank ordering workers from best to worse
Paired Comparison - comparing each worker with each other worker in the group
Forced Distribution - assigning workers to established categories of poor to good performance with fixed limitations on how many employees can be assigned to each category
Relative Percentile Method - indicating the percentage of other employees performing at or below level demonstrated by a worker

Advantages

• Relatively simple to develop (however, certain methods may involve critical incidents)
• Easy for raters and ratees to understand
• Forces raters to make distinction among ratees

Disadvantages

• Most methods make it difficult to compare across work groups
• Provides no information about an absolute level of performance – a problem with work groups of exceptionally good or poor performers
• Usually not very descriptive of performance behaviors
• Using for performance feedback may be difficult

Question 20

list the characteristics of effective performance feedback

Answer 20

focus on activities under the worker’s control

should be timely

describe the situation and behavior in specific terms

should allow for two-way communication

typically should balance the recognition of good performance with the identification of areas for improvement

should be constructive, not manipulative

should be used to motivate the worker

Question 21

how to promote fairness perceptions surrounding the PA system

Answer 21

Greenburg 1986

Soliciting the ratee’s input prior to the performance appraisal and using it

Two-way communication

Opportunity to challenge/rebut the evaluation

The rater’s degree of familiarity with the ratee’s work

Consistent application of performance standards

Question 22

content recommendations for legally sound PAs: What should appraisal criteria be?

Answer 22

should be job-related and based on job analysis

should be based on behaviors rather than traits

should be within the control of the ratee

should relate to specific functions, not global assessments

should be communicated to ratees in advance

Question 23

content recommendations for legally sound PAs: appraisal procedures should what?

Answer 23

be standardized and uniform for all employees in a work group

be formally communicated to employees

allow employees to review appraisal results

provide formal appeal mechanisms

use multiple, diverse, and unbiased raters

provide written instructions for training raters

require thorough and consistent documentation

establish a system for detecting error and bias

Question 24

building a PM system: considerations

Answer 24

it needs to align with the org’s strategy and have high top management support

employees should be involved in the design of the system to increase satisfaction, fairness perceptions, and motivation to perform well.

Question 25

what is the overarching goal of a PM system?

Answer 25

to make distinctions among people, ID talent, and address poor performance

Question 26

steps involved in designing a PM system

Answer 26

Job analysis

define the strategy for appraising performance

FORS development

choose rating scales

Rater training

developmental plan

Question 27

PM system design: role of JA

Answer 27

helps develop performance standards,
use tasks and KSAOs with importance values above 50% to develop the PA instrument

use SMEs to cluster tasks into performance dimensions and weigh each dimension

Link all KSAOs back to the performance dimensions for content validity

Question 28

PM system design: strategy for appraising performance

Answer 28

determine whether to use an objective or subjective rating system.

if subjective: decide on relative or absolute scale

determine the behaviors or outcomes of effective performance

Question 29

PM system design: developmental plan

Answer 29

is PMS for administrative or developmental purposes?

how frequently should performance be evaluated?

how will termination decisions be made baed on performance ratings?

rewards for good performers

Question 30

probelms with current state of PM

Answer 30

Managers and employees hate it
Focus is not on behaviors but on administrative aspects
It’s not taken advantage of in terms of developing employees and communicating to them
There has been an ongoing cycle of trying to fix PM because its not working (e.g., lack of differentiation among employees). Its become disconnected and lost sight of its purpose.
Cascading goals are seen as best practice but in reality they don’t work well because as the goal cascades down many alterations may be made. Smart goals similar issue, over time due to changes in the workplace environment they aren’t sustained or relevant.
Demotivating and discouraging to have performance boiled down to single number
Managers inflate ratings because they don’t want to deal with the consequences of low rated employee performance
Check box mentality, only short spurts of caring about PM, high dissatisfaction with PM systems

Question 31

What should orgs do to fix PM? how to initiate PM behavior change?

Answer 31

Focus more on driving critical PM behaviors that increase engagement and performance. These include setting clear expectations, providing regular informal feedback, and focusing on employee development etc. also the current system of one to one feedback is starting to make less sense in the transition to team based work and larger networks of people. Due to the changing work environment, PM should exist in real time; conversations and changes should be communicated in real time. The overall talent management strategy of the org should contribute to this systems based approach.
Interventions could focus on training managers on these things. Recognizing that PM is not an action but is a result of interactions between people
To the greatest extent possible, simplify performance ratings

Step 1. Plan change: Evaluate the current state and develop a PM strategy.
Step 2. Streamline the current system: Remove burdensome, low-value steps.
Step 3. Motivate change: Change mindsets about what PM is and prime behavior change.
Step 4. Embed change: Train behaviors and solidify behavior change.
Step 5. Evaluate: Demonstrate the impact on attitudes, performance, and business outcomes.

Question 32

PM: what types of exceptions work best when

Answer 32

Objective metrics: best for jobs with readily measurable outcomes

Behavioral standards: for all jobs, most relevant for knowledge work

Task or project results: best for dynamic and unpredictable jobs with defined outcomes