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)

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)

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

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)

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

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

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

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

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

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

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

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

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)

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.

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

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

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

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.

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.