Scribd
Upload
72 views

Performance Appraisal Uses: Raises, Merit Pay, Bonuses

Performance appraisals are used for raises, bonuses, personnel decisions like promotion or dismissal, and identifying training needs. The basic process involves conducting a job analysis, developing performance standards, and choosing an appraisal system. Common rating errors include leniency, severity, and central tendency. Halo error occurs when an impression in one area influences ratings in other areas. Behaviorally anchored rating scales involve generating examples of good and poor performance, sorting them into dimensions, and placing them on a scale. Prescriptions for legally defensible systems include ensuring procedures don't differ by protected class, using objective data when possible, providing appeals, using multiple raters, and documenting counseling before termination. Factors affecting employee acceptance include input from employees,

Uploaded by

Gaurav Savlani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
72 views

Performance Appraisal Uses: Raises, Merit Pay, Bonuses

Performance appraisals are used for raises, bonuses, personnel decisions like promotion or dismissal, and identifying training needs. The basic process involves conducting a job analysis, developing performance standards, and choosing an appraisal system. Common rating errors include leniency, severity, and central tendency. Halo error occurs when an impression in one area influences ratings in other areas. Behaviorally anchored rating scales involve generating examples of good and poor performance, sorting them into dimensions, and placing them on a scale. Prescriptions for legally defensible systems include ensuring procedures don't differ by protected class, using objective data when possible, providing appeals, using multiple raters, and documenting counseling before termination. Factors affecting employee acceptance include input from employees,

Uploaded by

Gaurav Savlani
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 17

Performance Appraisal Uses

Raises, Merit Pay, Bonuses

Personnel Decisions (e.g., promotion, transfer, dismissal)


Identification of Training Needs Research Purposes (e.g., assessing the worth of selection tests)

Basic Performance Appraisal Process


Conduct a Job Analysis (e.g., specify tasks and KSAs)

Develop Performance Standards (e.g., define what is superior, acceptable, and poor job performance)

Develop or Choose a Performance Appraisal System

Performance Appraisal Process


Observation Selective Attention Timing

Structure
Frequency Storage

Encoding of Information (e.g., categorization)


Short vs. Long-term Memory

Evaluation
Retrieve Information Combine information Decision-making (judgment)

Sources of Information
1) Supervisors (most common) Role Conflict (e.g., judge and trainer/teacher)

Motivation
Time availability Friendship 2) Co-Workers (Peers)
Friendship bias

Leniency High level of accuracy Best used as a source of feedback

Sources of Information (cont)


3) Self Lots of knowledge

Leniency effect
Good preparation for performance appraisal meeting (conducive for dialog) 4) Subordinates
Biases (e.g., # of subordinates, type of job, expected evaluation

from supervisor) 5) Client


Good source of feedback

Negativity bias

Subjective Appraisal Methods (can be used with any type of job)


Relative Methods

1) Ranking
1st _____ 2nd_____ 3rd _____

2) Pair Comparison
Employee-1 _____ versus Employee-2 _____
Employee-1 _____ versus Employee-3 _____ etc.

Both are difficult to use with a large number of subordinates

Subjective Appraisal Methods


Absolute Methods 1) Narrative essay Unstructured (e.g., content, length) Affected by the writing ability of supervisors and time availability

2) Graphic Rating Scale (most common) _____ _____ _____ _____ _____ Very Average Excellent Poor

Common Rating Scale Errors


1) Leniency (positive bias) X
_____ Very Poor _____ _____ _____ _____ Average Excellent

2) Severity (negative bias)


_____ Very Poor

_____

_____ _____ _____ Average Excellent

All lead to a restriction in the range of performance scores

3)Central Tendency (midpoint) X


_____ Very Poor _____ _____ _____ _____ Average Excellent

Halo Error
Responsibility Commitment Initiative Sensitivity

Judgment
Communication

High ratings on other performance dimensions

Observation of specific behavior (s) (e.g., volunteers to work overtime)

Subjective Appraisal Methods


Behavioral Methods (use of critical incidents; examples of good and poor job behavior collected by job experts over time)
Behavior Observation Scales (BOS) Rate the frequency in which critical incidents are performed by employees Sum the ratings for a total performance score
1) Assists others in job duties. _____ _____ _____ _____ Never Usually

_____ Always

2) Cleans equipment after each use. _____ _____ _____ _____ _____ Never Usually Always

Objective Appraisal Data


1) Production Data (e.g., sales volume, units produced) When observation occurs (timing), and how data is collected Fairness and relevancy issue Potential limited variability Limitations regarding supervisory personnel

2) Personnel Data
Absenteeism (excused versus unexcused) Tardiness Accidents (fault issue)

Behaviorally Anchored Rating Scale (BARS) Process


1) Generate critical incidents (examples of good and poor job performance) 2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety) 3) Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong)

4) Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation)
5) Place critical incidents on a vertical scale

BARS (Pros and Cons)


Process involves various employees (increases
the likelihood of usage) Job specificity (different BARS need to be developed for each position) Not any better at reducing common rating scale errors (e.g., leniency, halo) Time consuming

Performance Appraisal Training


1) Frequent observation of performance and feedback (both positive and negative) 2) Recordkeeping (ongoing if possible) 3) Encourage self-assessment of employees 4) Focus on behaviors (not traits) 5) Use specific behavioral criteria and standards 6) Set goals for employees (specific and challenging ones) 7) Focus on how to observe job behaviors and provide incentives to do so

Prescriptions for Legally Defensible Appraisal Systems


1) Ensure that procedures for personnel decisions do not differ as a function of the race, sex, national origin, religion, or age of those affected by such decisions.

2) Use objective and uncontaminated data whenever they are available.


3) Provide a formal system of review or appeal to resolve disagreements regarding appraisals. 4) Use more than one independent evaluator of performance. 5) Use a formal, standardized system for personnel decisions. 6) Ensure that evaluators have ample opportunity to observe and rate performance if ratings must be made. 7) Avoid ratings on traits such as dependability, drive, aptitude, or attitude. 8) Provide documented performance counseling prior to performance,-based termination decisions.

Prescriptions for Legally Defensible Appraisal Systems (cont)


9) Communicate specific performance standards to employees. 10) Provide raters with written instructions on how to complete performance evaluations. 11) Evaluate employees on specific work dimensions, rather than on a single overall or global measure. 12) Require documentation in terms of specific behaviors (e.g., critical incidents) for extreme ratings. 13) Base the content of the appraisal form on a job analysis. 14) Provide employees with an opportunity to review their appraisals. 15) Educate personnel decision-makers regarding laws on discrimination.

Factors Affecting Employees Acceptance of Performance Evaluations


Asking for (and using) performance information/input from employees importance Ensure a 2-way interaction during the performance appraisal meeting Provide a way for employees to counter or challenge the appraisal
of using employee selfevaluations

Sufficient detail and knowledge of employee performance by supervisors


Consistent use of performance standards across employees Basing performance evaluation on actual job behaviors

importance of rater training

Using performance ratings for personnel decisions (e.g., pay, promotion)

You might also like