1. MGTO 324 Recruitment and Selections Internal Selection: Performance Appraisal Kin Fai Ellick Wong Ph.D. Department of Management of Organizations Hong Kong University of Science & Technology

2. Outline Internal Selection Internal vs. external selection Performance appraisal Assessment Center (Guest Speakers)

3. Part 1: Internal vs. external selection Internal selection, though, may be less frequent than external selection, it is not uncommon –Let’s visit the web site of Poly U www.polyu.edu.hk Indeed, the logic of “prediction” for external selection is the same as the logic for internal selection –We predict what the performance will be –Perhaps, the major difference between external and internal selection is the depth and relevance of the data available For external selection, we may rely on some predictors that are relatively remote from job performance –Personality, general cognitive ability, etc. For internal selection, we should have more job related information –So, greater emphasis can be placed on samples and criteria rather than signs in selection

4. Part 1: Internal vs. external selection Take MGTO as the example –The general criteria for recruiting an Assistant Professor include Research potential –Letters of recommendation –Research interest –Interview performance –Publication record (but most fresh graduated PhDs may not have a very strong publication record) –Personality, creativity, conscientiousness, etc. Teaching potential –Teaching experience –Teaching evaluation (but most fresh graduated PhDs may not have teaching experience) –Interview performance

5. Part 1: Internal vs. external selection Take MGTO as the example –The criteria for promoting an Assistant Professor to an Associate Professor is more performance-related

6. Part 1: Internal vs. external selection Take MGTO as the example

7. Part 1: Internal vs. external selection Common methods for assessment (predictors for selection) –Skill inventory Assessing employee skills –Peer assessments –Self-assessment

8. Outline Internal Selection Internal vs. external selection Performance appraisal Assessment Center (Guest Speakers)

9. Part 2: Performance appraisal Purposes of performance appraisal –Administrative purpose (for employers) Determine employee’s salary, promotions, termination, etc.. Communicate organizational expectations to employees Documentation of employees’ performance (legal defense) Set appraisal dimensions that fit the strategic goals –Developmental purpose (for employees) Performance feedback and assessment for improving performance (not for criticizing) Fairness – outcomes (rewards and punishment) are based on standardized measures Increase motivation – the organization cares! Criterion measure in validation studies –The dependent variable (Y-axis) –Evaluate the criterion-related validity of a selection test

10. Part 2: Performance appraisal Factors Inhibiting Effective PA –Criterion relevance, deficiency, contamination i.e., we are not really measuring the construct of “performance” How to overcome? –Job analysis

11. Part 2: Performance appraisal Factors Inhibiting Effective PA –Rating errors Primacy / Recency effect –Performance ratings guided by initial impression / most recent impression –First impression v.s. end-of-game impression Halo effect –Performance ratings guided by an overall general impression –Excellent in one area ~ excellent in other areas Distribution errors –Leniency bias –Severity bias –Central tendency

13. Part 2: Performance appraisal Factors Inhibiting Effective PA –Politics Salary / lay off decisions I’m an excellent leader and supervisor –Personal factors Mood