Performance Appraisal/Management Flashcards
describe the general steps to developing a PA system
job analysis
criterion development
performance appraisal system
list the uses of performance management systems
training and employee feedback compensation promotions discharge personnel research (serves as criteria) Proper records to document HR decisions/legal requirements
Uses of PA
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
Performance criteria
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
Sources of performance data
personnel data
results-oriented (hard)
judgmental (soft)
what is personnel data? what are its advantages and disadvantages?
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
judgmental data; define and give advantages/disadvantages
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.
results oriented data; define and give advantages/disadvantages
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
Rating errors; list and describe
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.
How to reduce rating errors
rater training
use more than one rater
improve the rating process (structuring observations, changing rating scale format, etc.)
what are methods for training performance raters?
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.
rating biases: common reasons for inflation
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
rating biases: common reasons for deflation
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
difference between rating errors vs. rating biases
rating biases are intentional rating inaccuracies; rating errors are unintentional
list specific performance appraisal methods
narrative evaluations graphic rating scales BARS BOS Comparative Approaches
graphic rating scales: describe and give advantages and disadvantages
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
BARS: what are they and what are advantages/disadvantages
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
Behavioral Observation Scales (BOS): what are they and what are advantages/disadvantages?
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
Comparative Approaches: describe the types and what are advantages/disadvantages?
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
list the characteristics of effective performance feedback
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
how to promote fairness perceptions surrounding the PA system
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
content recommendations for legally sound PAs: What should appraisal criteria be?
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
content recommendations for legally sound PAs: appraisal procedures should what?
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
building a PM system: considerations
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.
what is the overarching goal of a PM system?
to make distinctions among people, ID talent, and address poor performance
steps involved in designing a PM system
Job analysis
define the strategy for appraising performance
FORS development
choose rating scales
Rater training
developmental plan
PM system design: role of JA
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
PM system design: strategy for appraising performance
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
PM system design: developmental plan
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
probelms with current state of PM
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
What should orgs do to fix PM? how to initiate PM behavior change?
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.
PM: what types of exceptions work best when
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
