1. Performance Appraisal
Definition: A systematic description of job relevant strengths and weaknesses of an individual
One of the most difficult processes in the field of personnel (e.g., Achilles Heel of I-O)

2. Uses of Performance Appraisals
1) Basis for a variety of personnel decisions (e.g., promotion, transfer, merit, suspension)
2) Criteria for validation studies
3) Assessing the worth of predictors (selection devices)
4) Identify for training
5) Feedback to employees (usually via P.A. interview)
6) Aid in organizational diagnosis/development
(set performance standards and differentiate between effective and ineffective performance)

3. 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 System

4. 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)

5. Some Issues Regarding Performance Appraisals
Political factors: (Catch-22 in many cases)
Good ratings: Best performing personnel may be promoted/transferred
Get less money to hire personnel or buy new equipment
Poor ratings reflect badly on the performance of the immediate supervisor
2) Favoritism
3) Non-acceptance/distrust of P.A. system
4) Role conflict for supervisor --- both judge & coach

6. attractiveness, values) Evaluation of performance (memory,
Supervisor
Characteristics
(e.g., age, gender,
attractiveness, values)
Evaluation of
performance (memory,
process/combine info.,
attributions)
Affective Reactions
(e.g., liking)
Observation of
Performance (selective
attention, timing,
frequency
Labels
Employee
Characteristics
(e.g., age, gender,
attractiveness, values)
Employee
performance
Supervisor
expectations
Behavior toward
employee
Employee
motivation

7. Sources of Appraisal Information
1) Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
2) Co-Workers (Peers)
Friendship bias
Leniency
High level of accuracy
Best used as a source of feedback
Best kept as anonymous especially if used for personnel decisions

8. Sources of Appraisal 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)
5) Client
Good source of feedback
Negativity bias

9. Subjective Appraisal Methods
Relative Methods [based on a direct comparison between employees]
Ranking
1st _____
2nd_____
3rd _____
2) Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.
Both are difficult to use with a large number of subordinates

10. Subjective Appraisal Methods
Absolute Methods
Narrative essay
Unstructured (e.g., content, length)
Affected by the writing ability of supervisors and time availability
No numbers available to validate selection tests
Rating Scale (most common)
_____ _____ _____ _____ _____
Very Average Excellent
Poor

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

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

13. Objective Appraisal Data
1) Production Data (e.g., sales volume, units produced)
When observation occurs (individual variability, situational factors) and how data is collected
Fairness and relevancy issue
Potential limited variability
Limitations regarding supervisory personnel (focus is on outcomes rather than specific behavior)
2) Personnel Data
Absenteeism (excused versus unexcused)
Tardiness
Accidents (definition, fault issue)

14. 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.

15. 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

16. BARS (Pros and Cons)
Process involves various employees (increases the 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

17. Performance Appraisal Training
Frequent observation of performance and feedback (both positive and negative)
2) Recordkeeping
3) Encourage self-assessment [enhances dialog]
4) Focus on behaviors (not traits)
Use specific behavioral criteria and standards
6) Set goals (specific and challenging ones)
7) Focus on how to observe job behaviors

18. 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.
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.
6) 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.

19. 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.
15) Educate personnel decision-makers regarding laws on discrimination.