ORGANIZATIONAL BEHAVIOR AND PERFORM ANCE APPRAISAL
M utual goal setting between supervisor and employee this is
Organizations require consistent levels of high performance from
their employees in order to survive in a highly competitive environment.
Many firms use some form of results-oriented planning and control
systems. Management By Objectives (MBO) is a cyclica l process that often
consists of four steps as a way to attain desired performance:
1. Objective setting joint determination by manager and employee
of appropriate levels of future performance for the employee,
within thw context of overall unit goals and resources. These
objectives are often set for the next calendar year.
2. Action planning participative or even independent planning by
the employee as to how to reach those objectives. Providing some
autonomy to employees is invaluable; they are more likely to use
their integrity, as well as feel more committed to the plans
success.
3. Periodic reviews joint assessment of progress toward objectives
by manager and employee, performed informally and sometimes
spontaneously.
4. Annual evaluation more formal assessment of success in
achieving the employees annual objectives, coupled with a
renewal of the planning cycle. Some MBO systems also use
performance appraisal to tie rewards for employees to the level of
results attained.
Appraisal Philosophy
A generation ago, appraisal programs tended to emphasize searching for ways to improve their performance.
employee traits, deficiencies and abilities, but modern appraisal
philosophy emphasizes present performance and future goals. Modern
philosophy also stresses employee participation in mutually setting goals
with the supervisor and knowledge of results. Thus the hallmarks of
modern appraisal philosophy are as follows:
1. Performance Orientation it is not enough for employees to put
forth effort; that effort must result in the attainment of desired
outcomes (products or services).
2. Focus on goals or objectives as the discussion of MBO shows,
employees need to have a clear idea of what they are supposed to
be doing and the priorities among their tasks; as the saying goes, Criteria for Performance Appraisal
If you know where you want to go, you are more likely to get
there. The three most popular sets of criteria are;
3.
the belief that people will work harder for goals or objectives that
they have participated in setting. Among their desire s are to
perform a worthwhile task, share in a group effort, share in setting
their objectives, share in the rewards of their efforts, and continue
personal growth. The Theory Y assumption is that people want
to satisfy some of their needs through work and they will do so if
management will provide them with a supportive environment.
4. Clarification of behavioral expectations this is often done via
a behaviorally anchored rating scale (BARS), which provides the
employee and manager with concrete examples of various levels of
behaviors. Brief descriptions of outstanding, very good,
acceptable, below average, and unacceptable behaviors are
specified for each major dimension of a job, thus cueing the
employee in advance regarding the organizations expectations.
BARS help reduce a managers tendency to focus on attitudes,
personality and quirks of an employee and shift the emphasis
toward productive behaviors.
5. Extensive feedback systems employees can fine -tune their
performance better if they know how they are doing in the eyes of
the organization
PERFORM ANCE APPRAISAL
Performance appraisal is a key aspect of performance
management. It may be defined as the process of evaluating the
performance of employees, sharing that information with them, and
Functions of Performance Appraisal
Performance appraisal is undertaken for the following reasons:
1. To give employees feedback on performance;
2. To identify the employees developmental needs;
3. To make promotion and reward decisions;
4. To make demotion and termination de cisions; and
5. To develop information about the organizations selection and
placement decisions.
In performance appraisal, there are certain criteria that are used.
 1. individual task outcomes; employee. These standards should be based on job-related requirements
2. behaviors; and derived from job analysis and reflected in the job descriptions and job
3. traits. specifications. An example of performance standard is: all customer
orders will be filled in 4 hours with a 98 percent accuracy rate.
Individual Task Outcomes. One way of appraising performance is
evaluating the employees task outcomes. For instance, the manager of a When goals are set with the active participation of the employees,
bank could be judged on criteria such as deposit generation and loans appraising employee performance will be an easy task.
collected. In the same light, a credit investigator could be judged on the
number of good accounts that turned out from the credit applications he Measuring performance is the third step in the appraisal process.
investigated and recommended for approval. To determine what actual performance is, it is necessary to acquire
information about it. Information may be derived from the following
Behavior. There are instances when it is difficult to measure an sources.
individuals task outcomes. This is so on advisory jobs or support
positions and those who are assigned to work in a group. Examples of jobs 1. Personal Observation
encountering this difficulty are those of teachers, nurses, and filing clerks. 2. Statistical Reports
In such cases, management tend to evaluate the employees behavior. 3. Oral Reports
Teachers, for instance, are evaluated according to how well they manage 4. Written Reports
classroom activities, the quantity and quality of professional training M ethods of Performance Appraisal
attend, research output, community service, and the like.
There are three different approaches which can be used for
Traits. Many organizations use traits as criteria in appraising appraising employees:
employee performance. This is true even if it is a very weak means. It is
weak because it has little connection with the actual performance of the 1. Absolute standards;
job. The traits commonly used as basis for performance appraisal include: 2. Relative standards; and
3. Objectives
1. good attitude
2. showing confidence Absolute Standards
3. being dependable
Under this approach, the subjects of appraisal are not compared
4. looking busy
with other persons. This approach consists of the following methods: the
5. possessing a wealth of experience
essay appraisal, the critical incident appraisal, the checklist, the adjective
The Process of Performance Appraisal rating scale, forced choice, and behaviorally anchored ra ting scales.

Performance appraisal is a process in an organization whereby Essay Appraisal

each employee is evaluated to determine how he or she is performing. It
The Essay Appraisal is a performance appraisal method
consists of the following steps:
whereby an appraiser writes a narrative about the employee. The
1. establishment of performance standards employees strengths and weaknesses are described and
2. mutually set measurable goals recommendations for development are indicated.
3. measure actual performance
The essay method provides an excellent opportunity to
4. compare actual performance with standards
point out the unique characteristic of the employee being
5. discuss the appraisal with the employee
appraised. The disadvantages, however, are the following:
6. if necessary, initiate corrective action
1. It is very time consuming;
Performance standards are those by which performance is to be 2. The quality of the appraisal may be influenced by the
evaluated. It should be clearly defined and communicated to the appraisers writing skill and composition style;
 3. It tends to be subjective and may not focus on relevant
aspects of job performance.
Critical Incident Appraisal
The Critical Incident Appraisal is a performance
appraisal method which requires effective or ineffective
performance for each employee being appraised. These incidents
are critical incidents.
_________ Processes orders correctly
The advantage of the checklist method is that it reduces
some bias since the rater and the scorer are different. The
disadvantage is when there are many job categories, a checklist of
items must be prepared for each job categories and that is costly
in terms of materials and time consumed.
Adjective Rating Scale

An example of a good critical incident is:
June 7 Pedro arrived thirty minutes early for work
and there were five customers who were already
waiting to be served. Pedro promptly fixed his wares
and started serving the customers. He was polite
and smiling.
An example of a bad critical incident is:
The adjective rating scale, also known as graphic rating
scale, is a performance appraisal method that lists a number of
traits and a range of performance for each. The traits listed are
assumed to be necessary to successful job performance. Examples
of traits are quality of work, job knowledge and dependability.
Each trait is accompanied by a five or seven-point rating scale.
Example:

July 1 Pedro took a ten minute personal call on

his cellphone. Three of the waiting customers could
not afford to wai t and left without being served by
Pedro.

The critical incident appraisal can be very useful if the

appraiser is given enough time to observe the subject employee.

Checklist

The checklist is a performance appraisal method wherein

the evaluator uses a list of behavioral descriptions and checks off
those behaviors that apply to the employee.

Example:

A checklist developed for motorcycle salespersons might

include a number of statements like the following:

_________ Is able to explain motorcycle products cle arly

_________ Keeps abreast of new developments in motorcycle
technology
_________ Tends to be a steady worker
_________ Reacts quickly to customer needs
The advantages of adjective rating scale is that it is
practical and cost little to develop. The disadvantages, however ,
are as follows:
1. It does not clearly indicate what a person must do to
achieve a given rating.
 2. It does not provide a good mechanism for providing Example:
specific, nonthreatening feedback.
3. Accurate ratings are not likely to be achieved because
the points on the rating scale are not clearly defined.

Forced-choice Appraisal

The forced-choice appraisal is a type of performance

appraisal in which the rater must choose between two or more
specific statements about an employees work behavior. The
supervisor or others familiar with the ratees performance evaluate
how applicable each statement is. Oftentimes, the statements are
ranked from most to least descriptive.

Forced-choice appraisal can be used by superiors, peers,

subordinates, or a combination of these in evaluating employees.

Example:

The greatest advantage of BARS is its ability to direct and

monitor behavior. The behavioral anchors let employees know
what types of behavior are expected of them which gives appraisers
the opportunity to provide behaviorally based feedback.

The weakness of BARS is the difficulty of selecting the one

behavior on the scale that is most indicative of the employees
performance le vel. Sometimes, an employee may exhibit behaviors
at both ends of the scale, so the rather would not know which
rating to assign.

Relative Standards

This category of appraisal methods compare individuals against

Behaviorally Anchored Rating Scale (BARS) other individuals. The most popular in this category are:
Behaviorally anchored rating scale (BARS) is a rating 1. group order ranking
instrument comprised of traits anchored by job behaviors. 2. individual ranking
Appraisers select the behavior that best describes the workers 3. paired comparison
performance level. The typical BARS includes seven or eight traits
called dimension each anchored by a seven or nine -point scale. Group order ranking

A BARS anchors each trait with examples of specific Group order ranking is a relative standard of performance
behaviors that reflect varying levels of performance. characterized as placing employees into a particular classification
such as top one -fifth. Under this method, the evaluators are
 asked to rank the employees as follows: top 5 percent, second 5 of joint goal setting between a supervisor and a subordinate. It is also a
percent, third 5 percent, and the like. This evaluation method process of converting organizational objectives into individual objectives.
prevents evaluators from inflating their evaluations of from
The advantage s of MBO are the following:
homogenizing the evaluations. The disadvantage of this method is
its inapplicability when the number of subjects is small. 1. it improves job performance by monitoring and directing
behavior;
Individual ranking
2. it is practical and inexpensive; and
The individual ranking method requires the evaluator 3. it fosters better communication between employees and
merely to list the employees in order from highest to lowest. This supervisors.
method does not show the difference between the first and second,
or between the second and third. The disadvantages of MBO are the following:

1. it does not specify the behavior required to reach goals;

Paired Comparison
Paired comparison is an appraisal method whereby
subordinates are placed in all possible pair and the supervisor
must choose which of the two in each pair is the better performer.
An example is provided as follows:
2. it tends to focus on short-term goals;
3. the successful achievement of MBO goals may be partly a
function of factors outside the workers controls;
4. MBO does not provide a common basis for comparison of
performance standards; and
5. It often fails to gain acceptance.

Errors in Performance Appraisal

A perfect performance appraisal is an ideal goal and to make it

happen, errors should be prevented from happening. To eliminate the
possibility of errors, they must first be identified.

The following are brief descriptions of errors in performance

appraisal.

Halo Error. This is a rating error that occurs when a rater assigns
ratings on the basis of an overall impression (positive or negative) of the
person being rated. For example, a teacher who topped the board
examination for electrical engineers is regarded as outstanding in the
aspect of professional qualification. If that impression spills over the other
The best performer in this example is Pedro, followed by aspects of evaluation, a halo error is committed.
Juan, then Josefa, and the last of all, Maria.
Leniency Error. This is a raters tendency to give relatively high
This method ensures that each employee is compared
ratings to virtually everyone . The opposite of this is strictness error where
against each other, but the method can become unwieldy when
the raters tend to give everyone a low rating. Most often, leniency errors
large numbers of employees are being compared.
happen when peers asses one another.
Objectives Central Tendency Error. This occurs when a rater lump everyone
The third approach to appraisal makes use of objectives. This together around the average, or middle, category. The idea is that there
approach, also known as management by objectives (M BO), is a process are no very good or very poor performers on the dimension being rated. As
a result, no true performance discrimination is made.
 Recency Error. This is a biased rating that develops by allowing
the individuals most recent behavior to speak for his or her overall
performance on a particular dimension. The result is a false picture of the
individuals job performance during the entire period.
Personal Biased Error. This occurs when a rater allows specific
biases, such as racial, age, and gender, to enter into performance
appraisals. For example, a rater may intentionally give higher rating to a
member of a certain fraternity than to a non-member.
Scope of Engineering Ethics
Overview of Themes
In studying Engineering Ethics, we explore a wide variety of topics and issues,
but seven themes recur. Taken together, the themes constitute a normative perspective on
engineering and on engineering ethics .
1. Engineering projects are social experiments that generate both new possibilities
and risks, and engineers share responsibility for creating benefits, preventing
harm, and pointing out dangers.
2. Moral values permeate all aspects of technological development, and hence
ethics and excellence in engineering go together.
3. Personal meaning and commitments matter in engineering ethics, along with
principles of responsibility that are stated in codes of ethics and are incumbent
on all engineers.
4. Promoting responsible conduct is even more important than punishing wrong -
doing.
5. Ethical dilemmas arise in engineering, as elsewhere, because moral values are
myriad and can conflict.
6. Engineering ethics should explore both micro and macro issues, which are often
connected.
7. Technological development warrants cautious optimism optimism, with
caution.
(1) Engineering as Social Experimentation
As engineering projects create new possibilities they also generate new
dangers. To emphasize the benefit-risk aspects in engineering, we introduce a model
of engineering as a social experiment. This model underscores the need for engineers
to accept and share responsibility for their work, exercise due care, imaginatively
foresee hazards, conscientiously monitor their projects when possible, and alert others
of dangers to permit them to give informed consent to risks.
(2) Ethics and Excellence: Moral Values are embedded in Engineering
Moral values are embedded at several junctures in engineering projects,
including: the basic standards of safety and efficiency, the structure of technological
corporations as communities of people engaged in shared activities, the character of
engineers who spearhead technological progress, and the very idea of engineering as
a profession that combines advanced skill with commitment to the public good. In
engineering, as in other professions, excellence and ethics go together for the most
part and in the long run. In general, ethics involves much more than problems and
punishment, duties and dilemmas. Ethics involves the full range of moral values to
which we aspire in guiding our endeavors and in structuring our relationships and
communities.
(3) Personal Commitment and Meaning
Engineers' motives and commitments are as many and varied as those of all
human beings. The desire for meaningful work, concern to make a living, care for
other human beings, and the need to maintain self-respect all combine to motivate
excellence in engineering.
(4) Promoting Responsible Conduct and Preventing Wrong -doing
An important part of engineering ethics is preventing wrongdoing in the
first place. There is a need for what we have referred to as "preventive ethics":
ethical reflection and action aimed at preventing moral harm and unnecessary ethical
problems. The main emphasis in ethics should be supporting responsible conduct. In
fact, the vast majority of engineers are morally committed. So too are most
corporations. Reinforcing the connection between ethics and excellence, individuals
and corporations should primarily be "value-driven. rather than simply preoccupied
with "compliance-based' procedures, to invoke terms used in management theory.
(5) Myriad Moral Reasons generate Ethical Dilemmas
Ethical dilemmas, or moral dilemmas, are situations in which moral
reasons come into conflict, or in which the applications of moral values are
problematic, and it is not immediately obvious what should be done. The moral
reasons might be obligations, rights, goods, ideals, or other moral considerations. In
engineering as elsewhere, moral values are myriad and they can come into conflict,
requiring good judgment about how to reconcile and integrate them.
(6) Micro and Macro Issues
Micro issues concern the decisions made by individuals and companies.
Macro issues concern more global issues, such as the directions in technological
development, the laws that should or should not be passed, and the collective
responsibilities of groups such as engineering professional societies and consumer
groups. Both micro and macro issues are important in engineering ethics, and often
they are interwoven.
(7) Cautious Optimism about Technology
Nothing is more central to human progress than sound technology, and no
aspect of creative human achievement is less appreciated by the public than
engineers' ingenuity.
What is Engineering Ethics?
Ethics is synonymous with morality. It refers to moral values that are sound,
actions that are morally required (right) or morally permissible (all right), policies and
laws that are desirable. Accordingly, engineering ethics consists of the responsibilities
and rights that ought to be endorsed by those engaged in engineering, and also of
desirable ideals and personal commitments in engineering.
Ethics is the study of morality; it is an inquiry into ethics in the first sense. It
studies which actions, goals, principles, policies, and laws are morally justified. Using this
meaning, engineering ethics is the study of the decisions, policies, and values that are
morally desirable in engineering practice and research.
The first two senses are normative. They refer to justified values and choices, to
things that are desirable (not merely desired). Normative senses differ from descriptive
senses of ethics. In one descriptive sense, we speak of Henry Ford's ethics or the ethics
of American engineers, referring thereby to what specific individuals or groups believe
and how they act, without implying that their beliefs and actions are justified. In another
descriptive sense, social scientists study ethics when they describe and explain what
people believe and how they act; they conduct opinion polls, observe behavior, examine
documents written by professional societies, and uncover the social forces shaping
engineering ethics.
Morality concerns respect for persons, both others and ourselves, It involves
being fair and just, meeting obligations and respecting rights, and not causing unnecessary
harm by dishonesty and cruelty or by hubris. In addition, it involves ideals of character,
such as integrity, gratitude, and willingness to help people in s evere distress.' And it
implies minimizing suffering to animals and damage to the environment.
Why Study Engineering Ethics?
Engineering ethics should be studied because it is important, both in
contributing to safe and useful technological products and in giving meaning to
engineers' endeavors.
In our view, the direct aim is to increase one's ability to deal effectively with
moral complexity in engineering. Accordingly, the study of engineering ethics strengthens
one's ability to reason clearly and carefully about moral questions. To invoke a term widely
used in ethics, the unifying goal is to increase moral autonomy.
Improving the ability to reflect carefully on moral issues can be accomplished by
improving various practical skills that will help produce autonomous thought about moral
issues. As related to engineering ethics, these skills include the following:
1. Moral awareness: Proficiency in recognizing moral problems and issues in
engineering.
2. Cogent moral reasoning: Comprehending, clarifying, and asses sing arguments on
opposing sides of moral issues.
3. Moral coherence: Forming consistent and comprehensive viewpoints based upon
a consideration of relevant facts.
4. Moral imagination: Discerning alternative responses to moral issues and
receptivity to creative solutions for practical difficulties.
 5. Moral communication: Precision in the use of a common ethical language, a skill
needed to express and support one's moral views adequately to others.

These are the direct goals in college courses. They center on cognitive skills-skills
of the intellect in thinking clearly and cogently. But it is possible to have these skills and
yet not act in morally responsible ways. Added to our list of goals are the following goals
that specify aspects of moral commitment and responsible conduct

6. Moral reasonableness: The willingness and ability to be morally reasonable.

7. Respect for persons: Genuine concern for the well-being of others as well as
oneself.
8. Tolerance of diversity: Within a broad range, respect for ethnic and religious
differences, and acceptance of reasonable differences in moral perspective.
9. Moral hope: Enriched appreciation of the possibilities of using rational dialogue
in resolving moral conflicts.
10. Integrity: Maintaining moral integrity, and integrating ones professional life and
personal convictions.