HR Mgmt Lecture 9
Terms in this set (49)
What is the first step of the performance appraisal process ?
Establish work expectations
What is the third step in the performance appraisal process
Completing performance and development appraisal forms
What step is Determining Salary conditions in the Performance appraisal process?
What is the last step of the Performance appraisal process?
Conducting salary discussion
What step of the performance appraisal process is Conducting formal performance and developmental
appraisal discussions and establishing development plans
What would the second step of the performance appraisal process consist of
Coaching - Review progress and revising work as necessary/ Observing, describing
and documenting performance
If an appraisal cannot differentiate between performance levels, then what happens?
raining/development and the
assignment of rewards cannot be accurately carried out
The "Ideal" Appraisal System
1. Does your supervisor follow set (standardized) procedures? The system should provide clarity,
depth and forewarning.
2. Are the results fair and accurate? Perceptions of fairness and accuracy can be enhanced by
allowing employee participation. Further, there should be some balance (strong and weak points).
Case examples can be used to explain the ratings. One should avoid surprises.
3. Does the appraisal consider special circumstances? (e.g. acts of God, supplier strikes, etc.)
4. Do you get feedback? Feedback is most effective when it is given near the time the event.
5. Does your supervisor suggest ways to improve performance?
6. Does the supervisor provide the resources to improve performance?
7. Does management care about how the appraisals are done? The appraisal should be timely.
There should be some depth of detail. The appraisal should also capture the entire year.
What are the cautionary thoughts of reviewing appraisal methods
1) One should not blindly search for the perfect method and forget about coming to grips with the
underlying social situation. For example, one should consider why managers inflate appraisals.
2) Perhaps we should spend less time on the format and more time on training the raters.
This is the most popular method currently. It is inexpensive
to develop and use. The dimensions are very broad. Little useful feedback is given. A scale may be used with a range from "unsatisfactory" to "outstanding." A number of broad job dimensions are
rated: such as, directing, expression, knowledge, planning and organization.
Concerns of Graphic scales
1. Concerns: Leniency or Rating Inflation - For example, on a seven point scale, 80% of the
ratings are normally 6 or 7
2. Ambiguity = What do the terms mean? Is there too much room for interpretation? What do
the rating categories mean? Raters' standards vary just like teachers' grading standards vary.
Most experts feel you should stay away from abstract "traits" (e.g. loyalty or attitude) and
focus your attention on of observable behaviors that take place in a context.
Behavioral Observation Scales (BOS)
• Personally reviews all invoices for correct billing and merchandise received.
• Takes inventory monthly, checks discrepancies and promptly corrects any item requiring
• When there is a conflict among employees, takes the time to sit down and discuss the causes
Concerns of the BOS scale
The added detail requires more time and money as far as construction is concerned. One
could still rate everyone highly. Can anyone actually rate the percentage of the time one does things
like this? Perhaps these instruments create a false sense of accuracy.
Electronic Performance Monitoring (EPM)
The employees' computer terminals and telephones
are monitored. The employee's rate, accuracy, and time spent both at work and on breaks may be
Narrative summaries that can potentially capture strengths, improvements,
weaknesses, quantity and quality. Essays are inexpensive to develop, but expensive to use. No real
comparisons of employees are possible unless common dimensions are inserted and the raters
Why are in depth essays not used in Essay appraisals?
In-depth essays are extremely time consuming to apply with large numbers of employees.
One can require an appraiser to order subordinates from lowest to highest.
One problem with this method is there is no distance gauge, as in the diagram.
Further, no feedback is given, so it is normally used in conjunction with other methods
The raters are required to assign a specific proportion of their employees to
predetermined categories (a quota system).
Critical Incident Method.
The rater records incidents reflecting behavior that represents less than
satisfactory or outstanding performance for both evaluation and feedback. These events should be
critical elements of job performance. Supervisors prefer recording events daily, because it is easier
to recall events. The specificity of the feedback is a big plus, but it is very time consuming.
Concerns with the Critical Incident Method
Employees often feel supervisors are more prone to note the negative.
Employees may regard it as similar to a "little black book." The employees may also object because
they face unequal challenges
One might also be concerned about when the supervisors are watching.
The uncertainty is troubling as is the unknown criteria. One difficulty is, absent some numerical
ranking, it is hard to compare employees and make salary decisions
A set of behaviors, adjectives, or descriptive statements. The rater checks if it
describes the person. The items are simply present/absent.
Forced Choice (Army)
Small groups of statements are bunched (3 to 5) that are related to a
specific job. The rater selects the items that are most and least descriptive, which prevents rating
inflation. It is costly to develop and the categories are not very specific compared to BARS.
Behaviorally Anchored Rating Scales (BARS)
A continuum of 5 to 9 points which has
incidents/behaviors attached reflecting the relevant job dimensions. It has sometimes been described
as a mixture of graphic scales and the critical incident method. The quality of the feedback should
be high if the people who will apply the instrument develop it.
Concerns with BARS
It is process oriented, so end results are ignored. Are the incidents covered
observable? It is time consuming to develop, easy to use. Everyone may be rated highly, so it may
be hard to justify the added time and expense versus graphic scales. The actual scales are sometimes
questionable. Some of the incidents seem like apples and oranges. A common situation should be
posed, and the behavioral options should be mutually exclusive (i.e. you cannot do two of them).
Management by Objectives (MBO)
This is an end result orientation advocated by Peter Drucker.
It is used in many upper level jobs. Some firms set organizational and departmental goals before
specific superiors and subordinates start the process
What are the steps in an (MBO)
Step 1 = Objectives are jointly set. Employee participation should enhance motivation.
Step 2 = Coaching and progress reviews occur over the course of the appraisal period.
Step 3 = Actual results are compared at year end with the predetermined objectives.
Feedback is given and merit pay is then applied.
Concerns of MBO
If the objectives are set too high, frustration will result. If they are too low,
inappropriate rewards follow. The method fails if the employees just write up what management
wants to hear (no buy in). Sometimes the employees understate what they can do (do not lead your
superiors to expect too much) and report their progress with a lag (to provide security
existing between a
performance rating and some
of work outcomes
refers to relevant factors being left out.
refers to improper factors being considered. For instance, one should not consider factors like the sex and race, but should consider matters like opportunity bias (e.g. sales volume and region).
some studies have concluded rater biases account for what?
for the largest percentage of the observed variances in performance ratings
A supervisor might say "When I was your age, I ...." Since each supervisor's past experiences are different, each is using a different ruler, which means low reliability. If this is combined with intolerance of ways that are different, the situation is made even worse.
Does the employee the supervisor knows the best get rated differently? Does familiarity breed contempt? (i.e. The supervisor cannot get all of the growing pain errors out of his/her mind) Does the best known employee get the highest rating?
This has been labeled as the biggest source of error. The rater only notes the positive aspects of the best employee and the negative aspects of the worst employee. Ideally, the rater would see the positive and negative aspects of both.
Assessments require how many types of data?
To make pay decisions, you need broad comparative aggregate rankings.
For development, you need the specific positives and negatives of each individual.
Defensive reactions to negative parts of the appraisal
(denial by the employees - a poor carpenter blames his tools). Most people believe they are above average and the truth hurts. In some instances, no one deserves top ratings. Directly attacking a person's defenses tends to heighten the intensity of the denial reaction
Self- reinforcing cycle
see picture: Also like self- fulfilling prophecy
Most organizations have little if any formal training on?
how to carry out the appraisal interviews.
the supervisor's rewards are seldom contingent on the appraisal process
Are appraisals self-defeating?
This focus places emphasis on the individual parts rather than the relationship of the parts. Deming accordingly argued for the elimination of traditional performance appraisal. He believed in focusing instead on training, communication tools and supervision
The Performance Management Approach
The polar opposite of this would be to identify the bottom 10% of your current employees, and tell them they will either improve in say 90 days or they will lose their jobs.
Possible improvements to the appraisal process
-Setting Clear Goals
-Multiple evaluation methods
-Improving the feedback process
Setting Clear Goals.
Some organizations use the "SMART" method. Under this system goals should be specific, measurable, attainable, relevant, and timely (deadlines, milestones, etc.).
-should reduce bias
-see the person at different times.
-different areas of expertise.
-might include superiors, peers or subordinates.
-A rater must have substantial exposure to be meaningful. Including superiors from different functional areas could hurt the normal checks and balances.
-360-degree feedback In addition to superiors, peers and subordinates, one might include internal and external customers
Multiple evaluation methods.
-can lessen the limitations of the individual methods.
-It is not unusual to see 2-5 methods in use
-Eventually, the added accuracy of using one more method is not worth the added time and expense.
Improving the feedback process.
-The pay interview and the development interview(s) should be separated so people will listen to advice.
-waits three months to talk about development.
More frequent development interviews might be used (perhaps 3 to 4 per year).
Is it important for the employee to sign the appraisal form
It is vital that the employee sign a copy of his/her appraisal.
Trying to Reduce Employee Denial (Defensive Reactions)
- self criticism
-start with a positive observation
-some balance of positive and some negative feedback
-. The supervisor can offer to help with the negatives by providing suggestions
-get the employee to agree there is a problem
-An agreement also needs to be reached on the Steps to Take, Measures of Success and Date to Complete
-set limited objectives
"continuous appraisal and development." How often can this be done?
The appraiser can ask the employee where he/she thinks he/she need help (3 to 4 meetings)/(This cannot really be done near pay appraisal time)