1. Performance Appraisal: The Achilles Heel of Personnel?

2. Why evaluate the performance of employees?
Compensation (raises, merit pay, bonuses)
Personnel Decisions (e.g., promotion, transfer,
dismissal)
Training (Identify specific requirements)
Research (e.g., assessing the worth/validity of
selection tests

3. Breaking Down the Performance Appraisal Process
Observation
Selective Attention
Timing
Structure
Frequency
Storage
Encoding of Information (e.g., categorization)
Short vs. Long-term
Memory
Evaluation
Retrieve Information
Combine information
Decision-making (judgment)

4. Basic Performance Appraisal Process
Conduct a Job Analysis (e.g., specify tasks and KSAs)
Develop Performance Standards (e.g., define what is superior, acceptable, and poor job performance)
Develop or Choose a Performance Appraisal Approach

5. Productivity measures, absenteeism, tardiness, turnover, absenteeism
Criterion Domain
Productivity measures, absenteeism, tardiness, turnover, absenteeism
Objective data
Subjective data
Performance ratings (e.g., supervisor, co-workers, self, subordinates, clients
Contextual data
Assisting others, loyalty, extra work/effort, emotional labor, volunteering, counterproductive behaviors (CWBs; tardiness, sabotage, gossiping)

6. Criteria Dimensionality
Static --- Individual performance varies by performance criteria
Decision-making
Communication

7. Criteria Dimensionality (cont.)
Temporal --- Performance varies as a function of time; importance of when performance is assessed IQ
1st year
Specific work methods, interests, personality, interpersonal relationships
2nd year

8. Criteria Dimensionality (cont.)
Individual --- Employees excel at different aspects of job performance
Role prescriptions, organizational impact
Production
Client support & satisfaction
Employee # 1
Employee # 2

9. Criteria Challenges (cont.)
Observation ---
Variation due to methods used, who observes
Low variability (e.g., production line speed, process limitations)?
Performance Dimensions ---
Uni-dimensional vs. multidimensional criteria
(Over-reliance on supervisor ratings of performance; 879/1506)

10. Criteria Issues (cont.)
Contamination ---
Error
b) Biases (e.g., rating scales, group membership, knowledge of predictor scores, self-fulfilling prophecy)

11. Criteria Issues
Relevance --- Generally considered the most important issue
Objective data
Subjective data
r = .39

12. To Combine or Not to Combine Criteria?
Global criteria
Separate, multiple criteria A C
3.0 GPA
Is there a single, underlying dimension that “allows” combining separate criteria?
Purposes of the data (e.g., a) for personnel decisions or b) feedback, understanding psychological and behavioral processes

13. Sources of Information
1) Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
Co-Workers (Peers)
Peer nominations: (Identifying those with highest and lowest KSAs)
*Peer ratings: For providing feedback
Peer rankings: For discriminating highest to lowest performance on various dimensions
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback
Effects of poor peer ratings on subsequent task performance:
Lower perceived group performance
Lower cohesiveness
Lower satisfaction
Lower peer ratings

14. Sources of Information (cont)
3) Self
Lots of knowledge
Leniency effect
Good preparation for performance appraisal meeting (conducive for dialog)
4) Subordinates
Biases (e.g., # of subordinates, type of job, expected evaluation from
supervisor)
Best if ratings are anonymous -- if not, leniency in ratings occur
(Antonioni, 1994)
Can add information above and beyond other sources (Conway, et. al 2001)
5) Clients
Good source of feedback
Negativity bias
Customer ratings on the web (usage/role, accuracy, verification issues)

15. Technology and Client/Customer Feedback
Other examples: Amazon, eBay, Trip Advisor, iTunes

16. Technology and Client/Customer Feedback (cont.)

17. Other Examples of Internet-Based Performance Information
Amazon

18. Other Examples of Internet-Based Performance Information
Expedia
That's the second time I stay in this hotel. The location is fantastic and the rooms, in general are very comfortable. The view from the top, at the breakfast place is superb. Rating: 4.0
The standard rooms are very, very small, I had only one bag and no place to put it. you could barely turnaround in the bathrooms. I love the decor/ art deco style but a little updating is definitely do. Rating: 2.0

19. Subjective Appraisal Methods (can be used with any type of job)
Relative Methods
Ranking
1st _____
2nd_____
3rd _____
Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.
Both are difficult to use with a large number of subordinates

20. Subjective Appraisal Methods
Absolute Methods
1) Narrative essays
Unstructured (e.g., content, length)
Affected by the writing ability of supervisors and time availability
Cannot validate selection devices (no numbers)
Graphic Rating Scale (most common)
_____ _____ _____ _____ _____
Very Average Excellent
Poor

21. Common Rating Scale Errors
Leniency (positive bias) X
_____ _____ _____ _____ _____
Very Average Excellent
Poor
Central Tendency (midpoint)
Both lead to a restriction in the range of performance scores

22. High ratings on other performance dimensions
Halo Error
Responsibility
Commitment
Initiative
Sensitivity
Judgment
Communication
Observation of specific behavior (s) (e.g., volunteers to work overtime)
High ratings on other performance dimensions

23. Self-Fulfilling Prophecy Process and Performance Ratings
Subordinate Characteristics (e.g., age, gender, race, attractiveness)
Labels for Subordinate (positive or negative)
Supervisor Characteristics
(e.g., gender, race, age)
Attitudes, Stereotypes
Expectations for Subordinate
Liking of subordinate
Observation of Subordinate Job Performance
Selective Attention
Encoding of Information
Recall Information
Self-Fulfilling Prophecy Process and Performance Ratings
Evaluate Performance

24. Subjective Appraisal Methods
Behavioral Methods (use of critical incidents; examples of good and poor job behavior collected by job experts over time)
Behavior Observation Scales (BOS)
Rate the frequency in which critical incidents are performed by employees
Sum the ratings for a total “performance” score
1) Assists others in job duties.
_____ _____ _____ _____ _____
Never Usually Always
Cleans equipment after each use.

25. Behaviorally Anchored Rating Scale (BARS) Process
Generate critical incidents (examples of good and poor job performance)
2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety)
Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong)
Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation)
5) Place critical incidents on a vertical scale

26. Process involves various employees (increases likelihood of usage)
BARS (Pros and Cons)
Process involves various employees (increases likelihood of usage)
Job specificity (different BARS need to be developed for each position)
Not any better at reducing common rating scale errors (e.g., leniency, halo)
Time consuming

27. 3. Problem Solving/Troubleshooting
Definition: Uses a logical, step-by step approach to identify and solve process problems
Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding
Expectations Expectations
Fails to understand how equipment and processes interrelate
Does not complete checklists or other required forms
Is not able to identify root causes of process deviations
Does not consistently meet A2E expectations
Depends on others to solve problems
Uses available resources (e.g., drawings, checklists, forms, people—engineers, data historian) to determine the root cause of problems
Selects and interprets data to solve problems
Investigates the nature of equipment and process malfunctions on an ongoing basis
Participates in A2E efforts
Develops novel, safe and effective solutions to current problems
Anticipates problems before they occur and suggests solutions
Takes ownership in problem solving and sees it through to completion
Effectively leads problem solving efforts (e.g., A2E, handles complicated analysis requests on one’s own)
Behavioral Examples of Rating:_____________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

28. 4. Teamwork
Definition: Strives to build and maintain a good working relationship with one’s work group; shares information with team members; accepts ideas and opinions of others
Well Below Expectations Below Meets Expectations Consistently Exceeds Outstanding
Expectations Expectations
Does not respond to work requests from other team members
Fails to share information and/or resources with others
Refuses to help co-workers
Conflicts with coworkers on 'yours not mine' work situations, or is known to say "that's not my job“
Frequently complains or makes negative or derogatory remarks about site initiatives, leadership, and/or fellow workers
Is slow to respond to work requests from other team members or management
Considers alternative solutions provided by team members
Accepts and provides feedback to others
Shares information (e.g., trends, status updates) and/or resources with others when asked
Readily offers to help other team members on tasks
Works with support services and other areas (e.g., maintenance) to resolve shift problems in a timely manner
Anticipates other team members’ needs (e.g., training, tools, equipment, information)
Resolves conflicts between team members
Supports company objectives and volunteers for work duties within and outside of one’s work area
Sacrifices one’s own needs for the need of the team
Initiates team building activities (e.g., organizing outside group activities, breakfasts)
Behavioral Examples of Rating:_____________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

29. Objective Appraisal Data
1) Production Data (e.g., sales volume, units produced)
When observation occurs (timing), and how data is collected
Fairness and relevancy issue
Potential limited variability
Limitations regarding supervisory personnel
2) Personnel Data
Absenteeism (excused versus unexcused)
Tardiness
Accidents (fault issue)

30. 360 Degree Performance Appraisal
Self
Supervisor
Customers
Subordinates
Co-Workers

31. Performance Appraisal Training: Best Practices
Frequent observation of performance and feedback (both positive and negative)
2) Recordkeeping (ongoing if possible)
3) Encourage self-assessment of employees
4) Focus on behaviors (not traits)
Use specific behavioral criteria and standards
6) Set goals for employees (specific and challenging ones)
7) Focus on how to observe job behaviors and provide incentives to do so

32. Legally Defensible Appraisal Systems
Ensure that procedures for personnel decisions do not differ as a function
of the race, sex, national origin, religion, or age of those affected by such
decisions.
Use objective and uncontaminated data whenever they are available.
3) Provide a formal system of review or appeal to resolve disagreements
regarding appraisals.
Use more than one independent evaluator of performance.
5) Use a formal, standardized system for personnel decisions.
Ensure that evaluators have ample opportunity to observe and rate
performance if ratings must be made.
Avoid ratings on traits such as dependability, drive, aptitude, or attitude.
8) Provide documented performance counseling prior to performance,-based
termination decisions.

33. Legally Defensible Appraisal Systems (cont)
9) Communicate specific performance standards to employees.
10) Provide raters with written instructions on how to complete performance evaluations.
11) Evaluate employees on specific work dimensions, rather than on a single overall or global measure.
12) Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings.
13) Base the content of the appraisal form on a job analysis.
14) Provide employees with an opportunity to review their appraisals (e.g., several days prior to formal feedback session).
15) Educate personnel decision-makers regarding laws on discrimination.

34. Factors Affecting Employees Acceptance of Performance Evaluations
Asking for (and using) performance information/input from employees
Ensure a 2-way interaction during the performance appraisal meeting
Provide a way for employees to counter or challenge the appraisal
Sufficient detail and knowledge of employee performance by supervisors
Consistent use of performance standards across employees
Basing performance evaluation on actual job behaviors
(importance of using employee self-evaluations)
Importance of rater training

35. Equal validity, unequal criterion means
Satisfactory
Non minority
Performance
Criterion
Minority
Unsatisfactory
Reject Accept
Predictor Score
Equal validity, unequal criterion means
Equal test scores; Minorities performing less well on job (over predicting performance)
Minorities hired same as non minorities but probability of success is small. Can
reinforce existing stereotypes.