1. Chapter 7: Appraising and Managing Performance
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Chapter 7: Appraising and Managing Performance
MGT 3513
I'm a great believer in luck, and I find the harder I work the more I have of it.
Thomas Jefferson

2. Announcements
Note: When you are answering questions on these slides, you will need to start towards the middle of the chapter. Look for the section with rater errors.
When you get to the question on relative judgments, you’ll need to go back to close to the beginning of the chapter.

3. Questions on the Uses of Performance Appraisal
What are the two main purposes or uses of performance appraisal?
What is a dimension?

4. Challenges Time consuming Lead up to difficult conversations
Being consistent in ratings
Avoiding rater biases
High anxiety for employees
Negative employee reactions

5. Benefits Performance reviews are a basis for Legal defense
Documentation
Administrative decision making
Raises & promotions
Employee development

6. Questions on Rater Errors and Biases
What is a rater error?
Describe halo error
Describe horn error
Not in book—Dr. Barnett will address this)

7. Questions on Rater Errors and Biases
What are restriction of range errors?
Describe leniency error
Describe severity error
Describe central tendency error

8. Examples - - practice identifying rater errors
Keisha works in medical records and has very high performance. Her manager gives most employees average ratings. What type of error has he made?
Processing speed
Poor Average Excellent
Accuracy of entries
Correct use of medical terminology

9. Examples - - practice identifying rater errors
Lana is a standout salesperson & leads her department in sales dollars. Her manager Stephan assumes she is excellent is all areas. What type of error has he made?
Sales
Poor Average Excellent
# of new customers
Timeliness of reports

10. Examples - - practice identifying rater errors
Evan is a computer technician who is generally a low performer. His manager Eve has given him the following ratings. What type of error has she made?
Response time for claims
Poor Average Excellent
Ability to explain problem to system users
Up-to-date knowledge

11. Examples - - practice identifying rater errors
Tony is a high performing welder. However, his manager gives him and most other workers low ratings. What type of error has been made?
Promptness
Poor Average Excellent
Quality of welds
Adherence to safety standards

12. Avoiding Rater Errors and Biases
What is meant by comparability?
What is frame-of-reference (FOR) training?

13. Developing performance appraisal items
Job Analysis
Job Description
Performance Appraisal Items

14. Performance Appraisal
Relative Judgment
Absolute Judgment

15. Performance Appraisal
Relative Judgment
Absolute Judgment
Straight Ranking
Narrative Essays
Weighted Checklist
Paired Comparison
Graphic Rating Scale
Behavioral Observation Scale
Based on critical incidents
Forced Distribution
Behaviorally Anchored Rating Scale

16. Questions on Measurement Tools
What are relative judgments?

17. Relative Judgments Pro Cons Easy to use
Force managers to differentiate among workers (i.e., everyone can’t get a good rating)
Cons
Force managers to differentiate among workers (i.e., it may not accurately reflect who the good performers are)
Only considers one dimension of performance at a time
Example: Ranking based on quantity produced;
Ranking based on quality (e.g., # of errors made)

18. Performance Appraisal
Relative Judgment
Absolute Judgment
Straight Ranking
Paired Comparison
Forced Distribution

19. Example - - Relative Judgments
Jen, Jeff, and James are my employees. I compare Jen’s performance to that of Jeff and James. I also compare Jeff’s performance to James’ performance. I’m using __________________.
If I rank my employees from highest performer to lowest performer, I’m using _________________.
I manage a department of 100 employees. I rank employees, and employees in the top 15 % receive a bonus. In this case, I’m using ________________.

20. Questions on Measurement Tools
What are absolute judgments?

21. Absolute Judgments Can give specific feedback Pro
Consider many dimensions of performance
Can give specific feedback
Cons
Difficult & time-consuming to develop
Vulnerable to rating errors

22. Performance Appraisal
Relative Judgment
Absolute Judgment
Scales based on critical incidents
Narrative Essays
Graphic Rating Scale

23. Narrative Essays Raters give information in narrative form Cons:
Ex. Manager writes an essay describing an employee’s performance.
Cons:
Writing skills of supervisor (may be limited)
Time consuming

24. Narrative Essay Example
Please comment on the following aspects of the course:
The organization and delivery of classroom presentations
The instructor’s receptiveness to questions and the clarity of responses
Reading materials and written and oral assignments

25. Graphic Rating Scale Graphic rating scale can be used to assess both
Traits
Behaviors
Use anchors (e.g., “above average”)
Pros: easy to use
Cons: not much information (too general)

26. Anchors Rate this employee by the quality of his/her work:
Poor Average Excellent
Anchor = descriptor
above number

27. Graphic Rating Scale Examples
Quality of Work: Poor Average Excellent
A low rating tell us ___________________
but not ___________________.

28. Performance Appraisal
Relative Judgment
Absolute Judgment
Weighted Checklist
Behavioral Observation Scale
Based on critical incidents
Behaviorally Anchored Rating Scale

29. Scales Based on Critical Incidents
Critical incidents: Examples of good and bad performance
Each job in an organization will have different critical incidents
Examples
photos/videos/Highlights-Seahawks-at- Texans/551051a8-ae93-4fe8-af7a-34ffc

30. Weighted Checklist Generate critical incidents and weight them
Good incidents = positive number (ex. + 1)
Bad incidents = negative number (ex. -1)
Identify which incidents are characteristic of the employee and add up the points
Pros: specific behaviors = greater accuracy
Cons: determining weights

31. Weighted Checklist Example
___(+ 6) Knows the difference between correcting grammar in the boss’s letter and correcting the writing style.
___(+2) Keeps a running count on the use of office supplies.
___(-2) Opens all mail whether or not it is marked “confidential”.
___(-7) Leaves many mistakes in typing from failing to proofread the typed copy.
Total Points = _____

32. Behavioral Observation Scale
Generate critical incidents
Assess frequency of behavior
Pros: specific behaviors = greater accuracy
Cons: rater may not see all behaviors

33. BOS Example for a restaurant server
Refills water glasses:
Never Sometimes Always
Is absent when customers need something:
Confuses customer orders:

34. Behaviorally Anchored Rating Scale
Assign critical incidents to anchors of a rating scale
Pros: very specific - - greater accuracy
Cons: time consuming to develop

35. BARS Examples 1 Does not offer dessert 2
1 Does not do entrée check 2 3 Does entrée check late 4 5 Does entrée check at appropriate time
1 Does not offer dessert 2
3 Offers dessert, but makes no suggestions 4
5 Makes dessert suggestions
Notice that anchors are a specific behavior (rather than a descriptor like “average”)

36. Performance Appraisal
Relative Judgment
Absolute Judgment
Straight Ranking
Narrative Essays
Weighted Checklist
Paired Comparison
Graphic Rating Scale
Behavioral Observation Scale
Based on critical incidents
Forced Distribution
Behaviorally Anchored Rating Scale

37. Questions on Measurement Tools
What is 360-degree feedback?
What main advantage associated with using 360-degree feedback?

38. Performance Dimensions
Performance Dimensions Likely to be Observed by Different Rating Sources
Performance Dimensions
Subordinates
Peers
Supervisors
Customers
Administrative X
Leadership
Communication
Interpersonal
Decision-making
Technical
Personal motivation
Customer orientation
Source: Maximizing the Value of 360 Degree Feedback, Center for Creative Leadership, p. 19.

39. 360-Degree Feedback Disadvantages Confusing for employees
Information overload
Issues with confidentiality

40. Practical tips for Giving Feedback
Feedback should be given _______________
Focus feedback on _______, not on the person
Don’t use words like “_____” and “____”
Be constructive – discuss _______________
_________________________________________________________