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Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Gathering Performance Information: Overview Appraisal Forms Characteristics.

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Presentation on theme: "Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Gathering Performance Information: Overview Appraisal Forms Characteristics."— Presentation transcript:

1 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Gathering Performance Information: Overview Appraisal Forms Characteristics of Appraisal Forms Determining Overall Rating Appraisal Period and Number of Meetings Who Should Provide Performance Information? A Model of Rater Motivation Preventing Rating Distortion through Rater Training Programs

2 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Major Components of Appraisal Forms (1) Basic Employee Information Accountabilities, Objectives, and Standards Competencies and Indicators Major Achievements and Contributions Stakeholder Input Employee Comments Signatures

3 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Major Components of Appraisal Forms (2) (could be included in a separate form) Developmental Achievements Developmental –Needs –Plans –Goals

4 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Desirable Features for All Appraisal Forms Simplicity Relevancy Descriptiveness Adaptability Comprehensiveness Definitional Clarity Communication Time Orientation

5 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Determining Overall Rating Judgmental strategy Mechanical strategy

6 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Appraisal period Number of Meetings Annual Semi-annual Quarterly

7 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 When Review Is Completed Anniversary date –Supervisor doesn’t have to fill out forms at same time –Can’t tie rewards to fiscal year Fiscal year –Rewards tied to fiscal year –Goals tied to corporate goals –May be burden to supervisor, depending on implementation

8 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © Types of Formal Meetings (can be combined) System Inauguration Self-Appraisal Classical Performance Review Merit/Salary Review Development Plan Objective Setting

9 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Who Should Provide Performance Information? Employees should be involved in selecting Which sources evaluate Which performance dimensions When employees are actively involved Higher acceptance of results Perception that system is fair

10 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Who Should Provide Performance Information? Direct knowledge of employee performance Supervisors Peers Subordinates Self Customers

11 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Supervisors Advantages –Best position to evaluate performance vs. strategic goals –Make decisions about rewards Disadvantages –Supervisor may not be able to directly observe performance –Evaluations may be biased

12 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Peers Advantages –Assess teamwork Disadvantages –Possible friendship bias –May be less discriminating

13 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Subordinates Advantages –Accurate when used for developmental purposes –Good position to assess some competencies Disadvantages –Inflated when used for administrative purposes –May fear retaliation (confidentiality is key)

14 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Self Advantages –Increased acceptance of decisions –Decreased defensiveness during appraisal interview –Good position to track activities during review period Disadvantages –May be more lenient and biased

15 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Customers (external and internal) Advantages –Employees become more focused on meeting customer expectations Disadvantages –Time –Money

16 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Disagreement Across Sources Expect disagreement Ensure employee receives feedback by source Assign differential weights to scores by source, depending on importance

17 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Types of Rating Errors Intentional errors –Rating inflation –Rating deflation Unintentional errors –Due to complexity of task

18 Herman Aguinis, University of Colorado at Denver Expected Positive and Negative Consequences of Rating Accuracy Probability of Experiencing Positive & Negative Consequences Expected Positive and Negative Consequences of Rating Distortion Probability of Experiencing Positive & Negative Consequences Motivation to Provide Accurate Ratings Motivation to Distort Ratings Rating Behavior A Model of Rater Motivation

19 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Motivations for Rating Inflation Maximize merit raise/rewards Encourage employees Avoid creating written record Avoid confrontation with employees Promote undesired employees out of unit Make manager look good to his/her supervisor

20 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Motivations for Rating Deflation Shock employees Teach a lesson Send a message to employee Build a written record of poor performance

21 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Prevent Rating Distortion through Rater Training Programs

22 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Rater Training Programs should cover: Information Motivation Identifying, observing, recording and evaluating performance How to interact with employees when they receive performance information

23 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Information - how the system works Reasons for implementing the performance management system Information on the appraisal form and system mechanics

24 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Motivation – What’s in it for me? Benefits of providing accurate ratings Tools for providing accurate ratings

25 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Identifying, observing, recording, and evaluating performance How to identify and rank job activities How to observe, record, measure performance How to minimize rating errors

26 Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 How to interact with employees when they receive performance information How to conduct an appraisal interview How to train, counsel, and coach


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