Week 4: Performance Appraisal

Question 1

Define

Performance Management

Answer 1

a system of ensuring the expected performance from employees

Question 2

What are the benefits of of measuring an employee’s job performance?

Answer 2

–helps identify developmental needs to determine training objectives

–provides feedback on performance and career management

–helps design equitable and motivating reward systems

–diagnoses organisational problems related to performance

–provides usable data (e.g. training evaluation, promotions)

–provides the legal backing for administrative decisions

Question 3

Performance Apraisal can be based on three different levels

Answer 3

• Traits-oriented
• Behaviour-oriented
• Results-oriented

Question 4

Name the different behaviour-oriented assessesments of employee performance

Answer 4

• narrative essays
• behaviour checklists
• graphic rating scales
• behaviourally anchored rating scales (BARS)
• critical incidents method
• employee ranking
• paired comparisons
• forced distribution

Question 5

Narrative Essay

Answer 5

written description of employee’s behaviour

–describes strengths and weaknesses
–mainly only appraiser input
–issues with subjectivity
–guides individual feedback, but may not be used for employee comparisons

Question 6

Behaviour Checklist

Answer 6

set of statements about behaviours an employee might engage in on the job

–based on job analysis
–employees rated on an interval scale
–behaviours may be assigned weightings
–enable employee comparisons

Question 7

Graphic rating scales

Answer 7

set of statements about behaviours an employee might engage in on the job

–based on job analysis
–employees rated on a continuous scale
–behaviours may be assigned weightings
–enable employee comparisons

Question 8

Behaviourally anchored rating scales (BARS)

Answer 8

–based on job analysis
–employees rated on a continuous scale
–examples of behaviours indicated for each scale point
–behaviours may be assigned weightings
–enable employee comparisons

Question 9

Critical incidents method

Answer 9

listing and analysis of effective and ineffective examples of specific behaviours demonstrated by an employee on the job

–behaviour checklists are tailored to critical job tasks
–provides high quality feedback
–time consuming
–perception of micro-management

Question 10

Ranking of employees:

Answer 10

–alternative to rating
–useful when making administrative decisions
(e.g. bonus distribution; promotions)

Question 11

Paired comparisons

Answer 11

–each employee is compared with every other employee
–computed outcomes reveal the rank of the employee in all paired comparisons
–easier method than ranking with large employee group
–issues of subjectivity

Question 12

Forced distribution

Answer 12

–raters are requested to provide ratings along a normal bell-curve
–minimises some subjectivity issues
–not liked by employees

Question 13

Define Results-oriented performance appraisal

Answer 13

assesses the extent to which employees achieved expected outcomes

−developed from dissatisfaction with behaviour-oriented appraisal methods
−may lead to short-term goal setting and motivation in employees

Question 14

What is management by objectives?

Answer 14

–results-oriented approach
–developed by Peter Drucker
–specific goals are set for each employee, considering milestones and involving ongoing feedback
–in-line with overall organisational strategy

Question 15

What are the steps in the process of a

Management by objectives

Answer 15

1.supervisor and employee agree on specific goals

2.supervisor and employee develop a goal achievement strategy
−state goals
−outline resources necessary for goal accomplishment

3. supervisor conducts a performance review
4. new goals are set; valued behaviours are reinforced

Question 16

What are the advantages of management by objectives?

Answer 16

• conveys confidence in employees (SMEs)
• manager viewed as a advisor/mentor rather than judge
• future-oriented
• constructive process

Question 17

What are the limitations of management by objectives?

Answer 17

• time-consuming
• highly dependent on supervisor availability and ability

•emphasis on outcomes may be too rigid
–changes in job role
–unanticipated obstacles to goal achievement

Question 18

What is meant by objective rating in the context of performance appraisal?

Answer 18

a set of factors used to assess job performance that are relatively objective or factual in nature

−production
−sales
−tenure or turnover
−absenteeism
−accidents
−theft

Question 19

What is meant by subjective rating in the context of performance appraisal?

Answer 19

a set of factors used to assess job performance that are the product of someone’s subjective rating supervisor or manager ratings

−behaviour checklist
−graphic scale rating form
−BARS (behaviour anchored rating scale)
−ranking of employees
−paired comparisons
−forced distribution

Question 20

Name some common rater biases and errors

Answer 20

−halo effect

• *−horns effect**
• disklike something about somebody, overshadows the whole evaluation in a negative way*

−similar-to-me effect

−distributional errors

−feelings towards the subordinate

−supervisor’s mood

Question 21

Name some methods to reduce rater biases and errors

Answer 21

−use methods that require involvement and analysis by raters
−establish clear criteria for performance
−train raters and hold them accountable
−recognise performance ratings are a valued part of being a good Manager
−consider “unlinking” pay and appraisal
−carefully consider who the rater should be

Question 22

What is the Three-tier system of rating:

Answer 22

• *−Rating officer**
• −immediate supervisor (commonly)*
• *−Employee**
• −self-appraisa*l

−Stakeholders
−reviewing officer
−peers
−colleagues
−clients

Question 23

How good are self-appraisals?

Are there specific groups who tend to overrate themselves?

Answer 23

•In general people are not very good at rating themselves honestly

•Tendency to overate performance
– males
– elders
– less educated
– high self-esteem
– external locus of control

Question 24

What is meant by 360° Feedback?

Answer 24

“evaluations gathered about a target participant from two or more rating sources, including self, supervisor, peers, direct reports, internal customers, external customers, and vendors or suppliers” (Dalessio, 1998, p.278)

−variety of perspectives minimises subjectivity
−difficult to combine different reviews

−subordinate ratings most predictive of objective performance measures (Sala & Dwight, 2002)
−most managers improve following feedback (De Nisi and Kluger, 2000)
−managers who overrated their own performance had most negative reaction (Atwater & Brett , 2005)
−higher level managers more likely to overrate themselves than lower level managers (Sala, 2003)

Question 25

Accuracy of performance appraisal ratings is influenced by:

Answer 25

−intelligence
−motivation
−accountability
−ease of use
−opportunity to observe
−reciprocated ratings

Question 26

Research indicates frequent reviews closely related with higher organisational outcomes

Answer 26

yep, that’s true