Performance Appraisal Flashcards by Chris Gerlacher

Performance Appraisal

Ongoing, systematic evaluation of how well an individual is carrying out their responsibilities
Typically includes assessment of individual’s need for future development

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Key Points of Strong Performance Appraisal System

Ongoing
Systematic
Evaluation
Development

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Ongoing

Often annually

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Systematic

Logical assessment, closely tied to attributes of the job

DO JOB ANALYSIS

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Evaluation

Judgement of goodness or badness

Must have comparability so that personnel decisions can be accurately made

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Development

Areas for improvement in present job

Potential for future jobs

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Guidelines for Performance Appraisal

Use objective performance measures with clear standards
Provide raters with written instructions and training
Better when raters are diverse
Have review of the ratings

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4 Types of Performance Appraisal

Written Essays
Rating Systems
Ranking Systems
Appraisal by Objectives and Standards (MBO)

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Narrative Essays

Rater, usually manager, writes essay for each employee

Modern versions include keeping a diary for each employee

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Advantages of Essays

Detailed and rich
Tailored to individual employee
When used in diary form, seen as especially fair

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Disadvantages of Essays

Time consuming
Writers often focus on extreme examples
Unstandardized, making comparison difficult
Quality depends on author’s writing ability

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Common Rating Scales

Graphic Rating Scales (GRS)
Checklists and Forced Choice
Behaviorally-Based (BARS & BOS)

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Graphic Rating Scales (GRS)

List of attributes associated with the job
Rater provides numerical rating from high to low
Forms often include comment section

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Common GRS Dimensions

Productivity 
Quality of Work
Dependability 
Adherence to Values
Contribution to the Effectiveness of Others

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Advantages of GRS

Easy to Use
Quick & Efficient
Standardized factors can cover many jobs
Numerical ratings allow for calculations and comparisons

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Disadvantages of GRS

Vague definitions of factors 
Subjective interpretations 
No objective/factual basis for definition 
Often not closely related to job
Prone to various rating errors 
Courts are often skeptical

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Checklists

Obtain behavioral incidents

Rater indicates whether or not they occured

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2 Types of Checklists

Conventional Checklist (Sometimes weighted)
Forced Choice (Always weighted)

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Advantages of Checklists

Not vague
Greater objectivity and clear definitions
Evaluator more of a recorder than a judge
Very job specific

Disadvantages of Checklists

Takes time and money to develop
Some items seem similar and difficult to interpret
If rater doesn’t know weights, they can feel dis-empowered
Evidence of incremental validity is lacking

Behaviorally Based Ratings Scales

Behaviorally Anchored Scales (BARS)

Behavioral Observation Scales (BOS)

Behaviorally Anchored Scales

Indicate specific behaviors employee would be expected to do

Behavioral Observatoin Scales

Indicate specific behaviors employee has or has not been observed doing

5 Steps of Developing BARS

Collect Critical Incidents (Job Analysis)
SMEs Cluster CIs into 5-10 Performance Dimensions
Different SMEs Re-assign CI dimensions - Keep CIs with 50-80% Agreement
Scale CIs to relative effectiveness
Retain CIs that have been successfully retranslated and meet scaling requirement

Advantages of BARS/BOS

IDs specific behaviors - job-based More objective and less vague Provides easier communication with employee Some say more valid, evidence does not support this

Disadvantages of BARS/BOS

Expensive/Time-Consuming to Develop Development requires technical expertise No evidence of enhanced validity

Multi-source Feedback

Peers, subordinates, and even customers rate employee in addition to supervisor

Findings for 3 Sources of Multi-source Feedback

Peers and Supervisors tend to agree when measurement error is considered Each should have unique information, but there should be some agreement Self-ratings agree less because they're so lenient

2 Reasons to do 360 Degree Feedback

Limit to Development | Use for Administration

Why Limit 360 Degree Feedback to Development?

Quality of ratings suffer when they are used for real-life decisions Supervisor/Subordinate ratings have higher validity than peer ratings Self-ratings are lenient

Why Use 360 Degree Feedback for Administration?

Averaging ratings, even poor ones, may improve validity | 360s provide multiple perspectives for important decisions

What's a compromise between using 360s for development or administration?

Limit to development for few years, then use for administration

360 Degree Feedback Strains on Other HR Systems

Conduct work oriented job analysis that specifies necessary behaviors for success Train everyone to provide feedback People are most likely to accept negative feedback if there is follow-up training and support

2 Types of Ranking Systems

Formal Ranking | Rank & Yank (Forced Distribution)

2 Types of Formal Ranking

Alternation Ranking | Paired Comparison

Alternation Ranking

Rater looks at entire team and ranks members from very best to very worst, then second best to second worst, and so on

Paired Comparison

Rater looks at each possible pair and decides who's best. Subordinates ranked by number of "wins"

Advantages of one formal ranking system over other

Alternation - Faster | Paired Comparison - Better Validation Evidence

Rank and Yank

``` Forcing ratings to conform to a certain distribution/profile Ex: 20% outstanding 70% average 10% nonperformers ```

Rank and Yank pro and con

Some evidence of benefits | Undermines teamwork and creates pernicious politics - generally discouraged

Advantages of Ranking Systems

Inexpensive Easy to Use Eliminates certain types of error Requires little training

Disadvantages of Ranking Systems

Often no objective criteria for ranking Only an overall score Hard on morale Difficult to compare across departments or jobs Forces distribution that's usually unrealistic

Appraisal by Objectives and Standards

Supervisor and Subordinate meet to set goals | Subordinate evaluated on completion of those goals

Steps to Effective MBO

Hold initial performance planning meeting Collaboratively set SMART goals Provide ongoing performance communication Hold second meeting for performance review Provide feedback gauged to goals

Advantages of MBO

Links employee goals to team/org. goals Reduces likelihood of disagreement More likely to put manager and employee on same side Possibly most legally defensible approach to appraisal

Disadvantages of MBO

Takes more time than other systems Requires both parties to develop skills in goal writing May require more paperwork May be misused/used superficially Difficult to compare across employees and job

Tools for Performance Problems

Coaching Progressive Discipline Employee Assistance Programs