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Industrial and Organizational Psychology Performance Appraisal

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Presentation on theme: "Industrial and Organizational Psychology Performance Appraisal"— Presentation transcript:

1 Industrial and Organizational Psychology Performance Appraisal
Copyright Paul E. Spector, All rights reserved, March 15, 2005

2 What Does It Mean To Do a Job?
Criterion: Standard of judging; a rule or test by which anything is tried in forming a correct judgment respective it. Single Criterion: Global measure to represent performance Composite criterion: Combination of individual subcriteria Requires common metric Brogden & Taylor (1950) Dollar Criterion Convert each subcriterion to money Requires quantification of subcriteria Multidimensional Each person gets multiple scores that aren’t combined 

3 Characteristics of Criteria
Theoretical criterion: Conceptual definition of performance Actual criterion: How performance is assessed Relevance: Actual assesses the theoretical Contamination: Actual measures something other than the theoretical Deficiency: Actual fails to capture the theoretical


5 Performance Appraisal
Determination and Documentation of Individual's Performance Should be tied directly to criteria USES Administrative decisions (promotion, firing, transfer) Employee development and feedback Criteria for research (e.g., validation of tests) Documentation for legal action Training

6 Objective Methods Counts of behaviors or outcomes of behaviors
Advantages Consistent standards within jobs Not biased by judgment Easily quantified Face validity‑bottom line oriented Disadvantages Not always applicable (teacher) Performance not always under individual's control Too simplistic Performance unreliable--Dynamic Criterion

7 Subjective Methods People’s judgments about performance
Trait based graphic rating scale Behavior based: Critical incidents Mixed Standard Scale Behaviorally Anchored Rating Scale Behavior Observation Scales Problems: Rating errors: Leniency, Severity, Halo Supervisor subversion of system--leniency as a strategy Mixed purposes (feedback vs. administrative) Negative impact of criticism

8 Rater Error Solutions Error resistant rating forms Rater training
Behaviorally Anchored Rating Scale, BARS Behavior Observation Scale, BOS Mixed Standard Scale, MSS Research does not show these forms to be successful in eliminating errors Rater training Rater error training: instructs raters in how to avoid errors Reduces halo and leniency error Less accuracy in some studies Frame of reference training: Give raters examples of performance and correct ratings Initial research promising in reducing errors (Day & Sulsky, 1995)

9 Sound Performance Appraisal Practices
Separate purposes Raises dealt with separately from feedback Consistent feedback, everyday Limit criticism to one item at a time Praise should be contingent Supervisors should be coaches Appraisal should be criterion related, not personal

10 Technology Technology helpful for performance appraisal
 Employee performance management systems Web-based Automated—reminds raters when to rate Reduces paperwork Provides feedback  360-degree feedback systems Ratings provided by different people Peers Subordinates Supervisors Self Big clerical task in large organizations to track/process ratings Web makes 360s easy and feasible Consulting firms available to conduct 360s

11 Legally Defensible Performance Appraisal
Performance appraisals can be legally challenged Organizations lost 41% of cases—Werner & Bolino 1997 Practices that minimize legal challenges  Job analysis to define dimensions of performance Develop rating form to assess dimensions from prior point Have written instructions Train raters in how to assess performance Use multiple raters Management review ratings and allow employee appeal Document performance and maintain detailed records Provide assistance and counseling

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