Chapter 7 Performance Appraisal INP3004MAN3360 Dr. Steve

1
Chapter 7Performance AppraisalINP3004/MAN3360
Dr. Steve
2
Performance Appraisals

• How do performance appraisals benefit the
  organization?
  
• Help orgs make decisions about promotions and
  firing
  
• Provide feedback to employees that serves to
  motivate or convince poor workers to leave
  
• Improve commitment and satisfaction
• Provide documentation in case an employee sues
  for wrongful termination
  

3
Performance AppraisalDevelopment and Applications
Job Analysis
Criterion Development
Performance Appraisal
4
Performance AppraisalApplications

• Personnel Training Determine employees
  strengths weaknesses to determine need for
  training
  
• Diagnostic tool to help employee improve
• Determining Wages Determine who should get a
  raise and how much
  
• This issue may interfere with employee
  development, employees may become defensive to
  protect salary
  
• Possible solution intermediate appraisals for
  diagnosis, and year end for wage determination
  
• Placement Use P.A. data to re-assign workers to
  tasks they are best suited for

5
Performance AppraisalApplications (continued)

• Promotion Typically based on performance
  (P.A.), seniority, and available opening
  
• Good P.A. needed to legally defend choice of
  employee for promotion
  
• Discharge Organization that fires an employee
  may be asked to defend appraisal system
  
• Should demonstrate firing was last alternative
• Personnel research Provides database for
  determining level of performance expected
  
• Establish criteria for training and selection
  validities

6
Performance Appraisal Systems

• Performance Appraisal Systems should
• Be relevant to the job
• Not be used to assess non-observable behavior
• Not be overly vague
• Not show adverse impact
• Use job analysis for establishing criteria
• Show construct validity
• Be used by supervisors trained in its proper use
• Provide employees opportunity to appeal
  evaluation and opportunity to improve before
  discharge

7
Performance Appraisal Employee Data
Objective Data
Personnel Data
Judgmental Data
8
Performance Appraisal Employee Data

• Objective data
• Ex cars sold, time to completion, efficiency,
  etc
  
• Problem Criterion contamination

• Conceptual Criteria
• Salesmanship

• Criterion Deficiency
• total revenue
• profit
• markup
• repeat customers
• time spent on customer.

• Actual Criteria
• cars sold/month

• Criterion Contamination
• Geographic region worker is assigned

9
Performance Appraisal Employee Data

• Personnel data
• Absenteeism - of days missed from work
• How well does absences discriminate good from bad
  employee?
  
• Are unexcused absences more harmful than
  excused?
  
• Voluntary (requested time off) vs Involuntary
  (medical)
  
• Turnover how long employee stays on job
• Voluntary (quit) vs Involuntary (discharged)
• Why appraise length of time workers stay?
• May be a reflection of management, procedures,
  pay, etc
  
• Accidents cost to the company in terms of
  damage and time off work
  
• Typically used for truckers, machinists,
  production workers, etc.
  
• Problem Criterion Deficiency
• Appear to be only measures of poor performance

10
Performance Appraisal Employee Data

• Judgmental data subjective ratings
• Majority of performance appraisal systems
• Can be used in any type of job
• May be correlated with other measures (objective
  or personnel)
  
• Problem Rater must be skilled at identifying
  relevant behaviors

11
Performance Appraisal Methods

• Graphic Rating Scales rate worker on number of
  different dimensions by checking a box, circling
  a , Likert scale, etc.
  
• Examples

X
X
12
Performance Appraisal Methods

• Graphic Rating Scales (continued)
• Common Problems
• Halo Errors Overall impression of worker biases
  individual ratings
  
• Leniency Errors Particularly hard grader
  (negative) or easy grader (positive)
  
• Central Tendency Errors Tendency to select the
  mid point of scale particularly when unsure

13
Performance Appraisal Methods

• Rank-Order rank all employees from best to
  worst on performance (ordinal scale)
  
• Ex
• Sally
• Charlie
• Lucy
• Linus
• PigPen
• Problems
• Employee rankings are relative to each other
  rather than a standard.
  
• Difficult with large number of workers

14
Performance Appraisal Methods

• Paired Comparison compare each employee to
  every other employee
  
• Example

Lucy 3 PigPen 2 Linus 3 Charlie - 0

Sally 2

• Problem comparisons n(n-1) / 2

15
Performance Appraisal Methods

• Forced Distribution Use normal curve to place
  workers into categories of performance
  
• Useful when large number of workers
• Forces distribution to be normal, so that most
  workers are average
  

Problem No reason to believe distribution to be
normal
Poor performers are weeded out
16
Performance AppraisalMethods using Specified
Behaviors

• Critical Incidents Those behaviors that are
  particularly important for doing the job
  
• Supervisor keeps a running list of employees
  critical incidents as they relate to various
  job-related behaviors such as job knowledge,
  decision making, leadership, etc.
• Used mainly as a diagnostic tool
• Examples
• Failed to complete report
• Decision to use fluorescent bulbs instead of
  incandescent saved company 600 on years
  electric bill

17
Performance AppraisalMethods using Specified
Behaviors

• Weighted Checklists Takes critical incidents
  and weights each one according to importance
  
• SMEs list of critical incidents from good to bad
  for completing the job.
  
• Supervisor then uses scale to identify behaviors
  worker engaged in, then computes score

18
Weighted Checklist

• Position Secretary
• Critical Incident Scale Value
• - Knows the difference between correcting the
  6.5
  
• grammar in the bosss letter and correcting
  writing style
  
• Knows various postal rates and mails material in
  4.2
  
• a cost-efficient manner
• Knows what typing is to be done on plain vs.
  company letterhead 3.1
  
• Keeps a running count on the use of office
  supplies 2.5
  
• Opens all mail whether or not it is marked
  confidential -1.9
  
• Confuses priorities on typing that needs
  immediate attention -3.8
  
• and projects that have no established deadlines
• Files away correspondence so that it can rarely
  be found for -5.2
  
• later reference
• Leaves many mistakes in typing from failing to
  proofread the -7.1
  
• typed copy

19
Behaviorally Anchored Rating ScalesBARS

• BARS Rating scale which uses specific behaviors
  as anchor points
  
• Five step development process
• Create list of critical incidents
• Group incidents into meaningful dimensions
• Sort incidents (assess goodness of fit in groups)
  and discard inconsistent ones
  
• Rate remaining incidents on representativeness of
  the dimension (those with low inter-rater
  agreement are discarded)
  
• Incidents are placed on scale according to their
  rating
  

20
Behaviorally Anchored Rating ScalesBARS Example
21
Behavioral-Observation ScalesBOS

• BOS Supervisor rates employee on frequency of
  how often each critical incident occurs

22
Performance AppraisalsOther Factors

• Rater Training try to minimize errors such as
  leniency, halo, central tendency, etc.
  
• Perhaps videotaped performance with known rating
  (est by SMEs) and have rater match ratings to
  expert opinion
  
• Rater Motivation provide motivation for giving
  accurate ratings
  
• Are supervisors rewards tied to performance of
  subordinate ratees?
  

23
Performance AppraisalRater Motivation
24
Other Types of Appraisals

• Self Assessment appraise oneself on how well
  you think you are doing.
  
• Likely positive leniency
• People generally acknowledge their weaknesses
  when not tied to monetary considerations
  
• Can help diagnose training needs
• Peer Assessment evaluate co-workers
• Peer Nomination nominate specified of top
  coworkers
  
• Peer Ratings rate co-workers on various
  dimensions
  
• Peer Rankings rank co-workers from top to bottom

25
Performance Appraisal Follow-Up

• Post-appraisal interview with subordinate to
  discuss evaluation
  
• Identify both strengths and weaknesses
• Set goals for improvement (motivate)
• Factors affecting motivation of appraisal
• Does employee agree with assessment?
• Does employee approve and accept the goals?

26
Performance Appraisal Acceptance

• Seven things that contribute to employee
  acceptance of their evaluations as fair
  
• Was input solicited from employee and used in
  appraisal?
  
• Was there 2-way communication in feedback
  interview?
  
• Was there opportunity for employee to challenge
  evaluation?
  
• Was rater well-acquainted with employees work?
• Are performance standards applied uniformly?
• Are ratings based on actual performance (not
  personality)?
  
• Are salary promotion decisions based on ratings?

27
Top 10 Military Performance Appraisal Comments

• Got a full 6-pack, but lacks the plastic thingy
  to hold it all together
  
• This man is depriving a village somewhere of an
  idiot
  
• He has the wisdom of youth and the energy of old
  age
  
• Wheel is turning but the hamster is dead
• Was left on the tilt-whirl too long as a baby
• If he were any more stupid, hed have to be
  watered twice a week
  
• She sets low personal standards and consistently
  fails to achieve them
  
• So dense, light bends around him
• Got into the gene pool while the lifeguard wasnt
  watching
  
• A prime candidate for natural de-selection