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 Average Excellent
Poor

All lead to a
2) Severity (negative bias) restriction in the
range of
X performance
_____ _____ _____ _____ _____
Very Average Excellent scores
Poor

3)Central Tendency (midpoint)

X
_____ _____ _____ _____ _____
Very Average Excellent
Poor
 Halo Error
Responsibility
Commitment
Initiative
Sensitivity
Judgment
Communication

High ratings on other Observation of specific

performance behavior (s) (e.g.,
dimensions 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
of using
employee
• Ensure a 2-way interaction during the performance appraisal meeting self-
evaluations

• Provide a way for employees to counter or challenge the appraisal

• Sufficient detail and knowledge of employee performance by supervisors

• Consistent use of performance standards across employees importance

of rater
training
• Basing performance evaluation on actual job behaviors

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