6

 66


? Process of obtaining, analyzing, and recording

information about the relative worth of an
employee to the organization.
? An analysis of an employee's recent successes
and failures, personal strengths and weaknesses,
and suitability for promotion or further training.
? Judgment of an employee's performance in a job
based on considerations other than productivity
alone.
V
  

 6






Æ
A PERFORMANCE APPRAISAL IS:
One of those special human encounters where the
manager gets no sleep the night before, and the
employee gets no sleep the night after.
³Thomas B. Wilson

Ô
  6  6

 66
 


? Setting goals for the appraisal system

? Developing criteria for successful performance

? Creating metrics for evaluating performance

? Selecting reviewees and reviewers

? Considering the timing of feedback

? Organizing logistics for the report and meeting

? Giving candid and constructive feedback

? Following up to ensure that the system works

AIMS

? Gives employees feedback on performance.

? Identifies employee training needs.
? Documents criteria used to allocate organizational rewards.
? Form a basis for personnel decisions like
salary increases, promotions, disciplinary actions, bonuses,
etc.
? Provides the opportunity for organizational diagnosis and
development.
? Facilitates communication between employee and
administration.
? Validate selection techniques and human resource policies
to meet federal Equal Employment
Opportunity requirements.
? To improve performance through counseling, coaching and
development.
   6

 66
 




 

? Paired comparison
? Graphic Rating scales
? Forced choice Description method
? Forced Distribution Method
? Checks lists
? Free essay method
? Critical Incidents
? Group Appraisal
? Field Review Method
? Confidential Report
? Ranking

 

? Assessment Center
? Appraisal by Results or Management by Objectives
? Human Asset Accounting
? Behaviorally Anchored Rating scales
? 360 degree
Case Study
DARK SIDE OF PERFORMANCE APPRAISAL
V V
 V  6

? A potential for unpleasant results.
? Can be a way of punishing.

? Recipients aren't the only victims of hazardous

feedback; so is the organization.
? Can trigger a recipient to react even more
negatively.
Getting Real About Performance Appraisals
  



One appraisal process can effectively serve several Appraisal is overloaded with too many functions³
functions at the same time. often one function undercuts
the other

A one size fits all coaching structure works well for all Supervisors have different styles of working with
supervisors and employees. people, and employees have different.

Appraisal processes can objectively and reliably assess Evaluative processes are largely subjective³just-in-
individual performance. time ratings provided for a single purpose are more
valid and reliable than multiuse ratings.

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66
 

? Managers often use the rating process to help

them get results they need.
? Accurate performance ratings might conceivably
interfere with managers' desires to protect their
people, encourage employee loyalty, minimize
conflict, and create the "wiggle room" they need
to achieve effectiveness through their employees.
 
 6 


? What are the primary reasons a manager might intentionally
increase or decrease a subordinate's performance rating(s)?

? What are the potential problems associated with giving an

employee a less than candid, accurate, or honest rating?
 V

 






  








 







The rating behaviors can be categorized as follows:
? Conflict Avoiders -- Managers who inflate employee ratings if
they believe accurate ratings will cause unwanted conflict or
confrontation with an employee.
? Manipulators -- Managers who inflate or deflate ratings
either to try to influence employee behavior, loyalty and/or
performance, or to influence employee pay-raise decisions.
?CYA Raters -- Managers who are cautious about employee
ratings because they constitute a long-term record with legal
implications that is accessible to review by others. Also
includes managers who give lenient ratings be cause they are
unsure of an employee's actual performance.
? Go-With-The-Flow Raters - Managers who carefully assess
an organization's current rating climate and adjust employee
ratings accordingly.
(Bad year -> lower ratings; Good year -> higher ratings)
? Feeling Types -- Managers who intentionally rate employees
higher or lower on the basis of personal liking and disliking.
? PR Types - Managers who consciously use the performance
ratings to make themselves or their employees look good.
? Godfathers - Managers who use the rating process to protect
valued employees who are struggling for various reasons.
Inflated ratings provide cover.
 V

 

  

 



  
 





 




Political ratings negatively affect employees in a number of
significant ways.
? They tend to reward the wrong behaviors.

? They discourage high performers.

? They raise everyone's expectations for higher ratings.

? Ñndermine employee development.
? Create an organizational culture based on the exchange of
favors instead of performance.
? Breeds widespread cynicism not only in the appraisal system
but the organization more generally.
? Subordinate performance ultimately declines as a result of
politics.
 66

 

? BE AWARE OF THE OBJECTIVES & REQÑIREMENTS OF

THE EMPLOYEE·S JOB.
? HAVE THE OPPORTÑNITY TO FREQÑENTLY OBSERVE
THE EMPLOYEE OR HIS/HER WORK.
? BE CAPABLE OF EVALÑATING AND RECORDING
OBSERVED WORK BEHAVIOR OR PERFORMANCE.
? AVOID OR MINIMIZE POTENTIAL APPRAISAL ERRORS
AND BIAS.
PROBLEMS IN PERFORMANCE
APPRAISAL
? Appraiser discomfort
? Lack of objectivity
? Halo/horn error
? Leniency/strictness
? Central tendency
? Recent behavior bias
? Personal bias
? Manipulating the evaluation
? Employee anxiety
APPRAISER DISCOMFORT
?Performance
appraisal process
cuts into
manager·s time
?Experience can be
unpleasant when
employee has not
performed well
LACK OF OBJECTIVITY
? In rating scales method, commonly used factors
such as attitude, appearance, and personality are
difficult to measure
? Factors may have little to do with employee·s job
performance
? Employee appraisal based primarily on personal
characteristics may place evaluator and
company in untenable positions
HALO/HORN ERROR
? Halo error £ Occurs when manager
generalizes one î
 performance
feature or incident to all aspects of
employee performance resulting in
higher rating
? Horn error - Evaluation error occurs
when manager generalizes one
Ú performance feature or
incident to all aspects of employee
performance resulting in lower
rating
LENIENCY/STRICTNESS
? Leniency - Giving undeserved high
ratings
? Strictness - Being unduly critical of
employee·s work performance
? Worst situation is when firm has
both lenient and strict managers
and does nothing to level inequities
CENTRAL TENDENCY
? Error occurs when employees are incorrectly
rated near average or middle of scale
? May be encouraged by some rating scale systems
requiring evaluator to justify in writing
extremely high or extremely low ratings
RECENT BEHAVIOR BIAS
? Employee·s behavior often improves and
productivity tends to rise several days or weeks
before scheduled evaluation
? Only natural for rater to remember recent
behavior more clearly than actions from more
distant past
? Maintaining records of performance
PERSONAL BIAS (STEREOTYPING)
? Managers allow individual differences such as
gender, race or age to affect ratings they give
? Effects of cultural bias, or stereotyping, can
influence appraisals
? Other factors ² Example: mild-mannered
employees may be appraised more harshly simply
because they do not seriously object to results
MANIPÑLATING THE EVALÑATION
? Sometimes, managers control virtually every
aspect of appraisal process and are in position to
manipulate system
? Example: Want to give pay raise to certain
employee. Supervisor may give employee a
undeserved high performance evaluation
EMPLOYEE ANXIETY
? Evaluation process may create
anxiety for appraised employee
? Opportunities for promotion,
better work assignments, and
increased compensation may
hinge on results
 6


 

? Past performance appraisal ratings influence

current ratings.
? Past ratings, good or bad, result in similar rating
for the current period although the demonstrated
behavior does not deserve the rating good or bad.
   

? It refers to overrating of employees in higher-

level jobs or jobs held in high esteem, and
underrating employees in lower level job or jobs
held in low esteem.
 
6

? Stereo typing is a standard mental picture that a

rater holds about a subordinate because of that
person·s sex, caste, age, physical characteristics
or place of origin, etc.
? Stereo typing results in an oversimplified view of
the individual and may blur the rater·s
assessment of the person·s performance on the
job.
   

? Giving the subordinate a rating higher than

deserved because the person has qualities or
characteristics similar to those of rater (or
similar to those held in high esteem)

 
 

? Giving the subordinate a rating lower than

deserved because the person has qualities or
characteristics different from the rater (or similar
to those held in low esteem)

  
 





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