Performance evaluation and management Flashcards
What is the halo error?
Mistake or bias that can occur in evaluating an individual’s performance where they are consistently rated based on the evaluator’s overall impression
Consciously or unconsciously, a supervisor may systematically rate certain workers lower or higher than others based on the basis of race, national origin, sex, age or other factors
What is actor/observer bias?
In most situations, supervisors tend to blame the worker when they observe poor performance, whereas workers tend to blame external factors. It is important that managers determine the causes of performance deficiencies accurately
What is performance appraisal?
Performance appraisal includes identification, measurement and management of human performance in organisations.
- Identification: determining what areas of work the manager should be examining when measuring performance
- Measurement: making managerial judgments of how good/bad employee performance was
- Management: overriding goal of any appraisal system
What is performance appraisal used for?
It is used for administrative or developmental purposes. Performance appraisals are used administratively whenever they are the basis for a decision about the employee’s work conditions, including promotions and rewards.
In the context of performance dimensions, what are they from the employer’s perspective?
- Individual differences in performance can make a difference to company performance
- Documentation of performance appraisal may be needed for legal defence
- Appraisals provides a rational basis for constructing a bonus/merit system
- Appraisal dimensions and standards can help to implement strategic goals and clarify performance and expectations
- Providing individual feedback is part of the performance management process
- Despite the traditional focus on the individual, appraisal criteria can include teamwork
In the context of performance dimensions, what are they from the employee’s perspective?
- Performance feedback is needed and desired
- Improvement in performance requires assessment
- Fairness requires that differences in performance levels across workers can be measured and have an effect on outcomes
- Assessment and recognition can motivate workers to improve their performance
How do you measure performance?
To measure employee performance, managers can assign numbers or a label such as excellent/good/average/poor. Whatever system is used, it is often difficult to quantify performance dimensions
What are the measurement tools for appraisal systems?
Appraisal systems based on relative judgment ask supervisors to compare an employee’s performance to the performance of others. Absolute judgment: supervisors make judgments about an employee’s performance based solely on performance standards. Often absolute rating systems are preferable to relative rating systems. Absolute systems do have one distinct advantage: they avoid creating conflict among workers.
In what way can performance measurement systems also be classified, besides absolute and relative judgments?
In addition to relative and absolute judgments, performance measurement systems can be classified by the type of performance data on which they focus: trait data, behavioural data, outcome data.
What are trait appraisal instruments?
They ask the supervisor to make judgments about traits, worker characteristics that tend to be consistent. Trait ratings have been criticised for being too ambiguous. Assessment of traits focuses on the person rather than on performance, which can make employees defensive.
What are behavioural appraisal instruments?
They focus on assessing a worker’s behaviours. Instead of ranking leadership ability, the rater is asked to assess whether an employee exhibits certain behaviours. The main advantage of behavioural approach is that performance standards are unambiguous and observable.
What are outcome appraisal instruments?
They ask managers to assess the results achieved by workers, such as total sales or number of products produced. The most prevalent outcome approaches are management by objectives in which workers and their supervisors set goals together for the upcoming evaluation period.
What are self-review, peer review, subordinate review?
Self-review: workers rate themselves
Peer review: workers at the same level in the organisation rate each other
Subordinate review: workers review their supervisors
What is frame-of-reference training?
A way to avoid error and bias is to develop and communicate evaluation standards via frame-of-reference training which uses behavioural examples of performance that a worker might exhibit.
