Presentation on theme: "Performance Appraisal: The Achilles Heel of Personnel?"— Presentation transcript:
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 ofselection tests
3 Breaking Down the Performance Appraisal Process ObservationSelective AttentionTimingStructureFrequencyStorageEncoding of Information (e.g., categorization)Short vs. Long-termMemoryEvaluationRetrieve InformationCombine informationDecision-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
7 Criteria Dimensionality (cont.) Temporal --- Performance varies as a function of time; importance of when performance is assessedIQ1st yearSpecific work methods, interests, personality, interpersonal relationships2nd year
8 Criteria Dimensionality (cont.) Individual --- Employees excel at different aspects of job performanceRole prescriptions, organizational impactProductionClient support & satisfactionEmployee # 1Employee # 2
9 Criteria Challenges (cont.) Observation ---Variation due to methods used, who observesLow 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 ---Errorb) Biases (e.g., rating scales, group membership, knowledge of predictor scores, self-fulfilling prophecy)
11 Criteria IssuesRelevance --- Generally considered the most important issueObjective dataSubjective datar = .39
12 To Combine or Not to Combine Criteria? Global criteriaSeparate, multiple criteriaAC3.0 GPAIs 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)MotivationTime availabilityFriendshipCo-Workers (Peers)Peer nominations: (Identifying those with highest and lowest KSAs)*Peer ratings: For providing feedbackPeer rankings: For discriminating highest to lowest performance on various dimensionsFriendship biasLeniencyHigh level of accuracyBest used as a source of feedbackEffects of poor peer ratings on subsequent task performance:Lower perceived group performanceLower cohesivenessLower satisfactionLower peer ratings
14 Sources of Information (cont) 3) SelfLots of knowledgeLeniency effectGood preparation for performance appraisal meeting (conducive for dialog)4) SubordinatesBiases (e.g., # of subordinates, type of job, expected evaluation fromsupervisor)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) ClientsGood source of feedbackNegativity biasCustomer 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 ExpediaThat'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: 4.0The 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 MethodsRanking1st _____2nd_____3rd _____Pair ComparisonEmployee-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 Methods1) Narrative essaysUnstructured (e.g., content, length)Affected by the writing ability of supervisors and time availabilityCannot validate selection devices (no numbers)Graphic Rating Scale (most common)_____ _____ _____ _____ _____Very Average ExcellentPoor
21 Common Rating Scale Errors Leniency (positive bias)X_____ _____ _____ _____ _____Very Average ExcellentPoorCentral Tendency (midpoint)Both lead to a restriction in the range of performance scores
22 High ratings on other performance dimensions Halo ErrorResponsibilityCommitmentInitiativeSensitivityJudgmentCommunicationObservation 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, StereotypesExpectations for SubordinateLiking of subordinateObservation of Subordinate Job PerformanceSelective AttentionEncoding of InformationRecall InformationSelf-Fulfilling Prophecy Process and Performance RatingsEvaluate 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 employeesSum the ratings for a total “performance” score1) Assists others in job duties._____ _____ _____ _____ _____Never Usually AlwaysCleans 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 problemsWell Below Expectations Below Meets Expectations Consistently Exceeds OutstandingExpectations ExpectationsFails to understand how equipment and processes interrelateDoes not complete checklists or other required formsIs not able to identify root causes of process deviationsDoes not consistently meet A2E expectationsDepends on others to solve problemsUses available resources (e.g., drawings, checklists, forms, people—engineers, data historian) to determine the root cause of problemsSelects and interprets data to solve problemsInvestigates the nature of equipment and process malfunctions on an ongoing basisParticipates in A2E effortsDevelops novel, safe and effective solutions to current problemsAnticipates problems before they occur and suggests solutionsTakes ownership in problem solving and sees it through to completionEffectively leads problem solving efforts (e.g., A2E, handles complicated analysis requests on one’s own)Behavioral Examples of Rating:_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
28 4. TeamworkDefinition: Strives to build and maintain a good working relationship with one’s work group; shares information with team members; accepts ideas and opinions of othersWell Below Expectations Below Meets Expectations Consistently Exceeds OutstandingExpectations ExpectationsDoes not respond to work requests from other team membersFails to share information and/or resources with othersRefuses to help co-workersConflicts 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 workersIs slow to respond to work requests from other team members or managementConsiders alternative solutions provided by team membersAccepts and provides feedback to othersShares information (e.g., trends, status updates) and/or resources with others when askedReadily offers to help other team members on tasksWorks with support services and other areas (e.g., maintenance) to resolve shift problems in a timely mannerAnticipates other team members’ needs (e.g., training, tools, equipment, information)Resolves conflicts between team membersSupports company objectives and volunteers for work duties within and outside of one’s work areaSacrifices one’s own needs for the need of the teamInitiates 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 collectedFairness and relevancy issuePotential limited variabilityLimitations regarding supervisory personnel2) Personnel DataAbsenteeism (excused versus unexcused)TardinessAccidents (fault issue)
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 employees4) Focus on behaviors (not traits)Use specific behavioral criteria and standards6) 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 functionof the race, sex, national origin, religion, or age of those affected by suchdecisions.Use objective and uncontaminated data whenever they are available.3) Provide a formal system of review or appeal to resolve disagreementsregarding 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 rateperformance if ratings must be made.Avoid ratings on traits such as dependability, drive, aptitude, or attitude.8) Provide documented performance counseling prior to performance,-basedtermination 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 employeesEnsure a 2-way interaction during the performance appraisal meetingProvide a way for employees to counter or challenge the appraisalSufficient detail and knowledge of employee performance by supervisorsConsistent use of performance standards across employeesBasing performance evaluation on actual job behaviors(importance of using employee self-evaluations)Importance of rater training
35 Equal validity, unequal criterion means SatisfactoryNon minorityPerformanceCriterionMinorityUnsatisfactoryReject AcceptPredictor ScoreEqual validity, unequal criterion meansEqual test scores; Minorities performing less well on job (over predicting performance)Minorities hired same as non minorities but probability of success is small. Canreinforce existing stereotypes.