Performance appraisal

FACTS ABOUT PERFORMANCE
APPRAISAL
 REVIEW OF VARIOUS STUDIES SUGGESTS “THE APPRAISAL OF
PERFORMANCE APPRAISAL IS NOT GOOD.”
 THOSE DOING RATING, THOSE BEING RATED, &
ADMINISTRATORS HAVE EXPRESSED DISSATISFACTION WITH
THEIR APPRAISAL SYSTEMS
 WIDESPREAD DISSATISFACTION AMONG FORTUNE 500
COMPANIES THAT HAVE RESOURCE TO ACQUIRE BEST
APPRAISAL TECHNOLOGY
 SURVEY ON SMALL & MEDIUM SIZED FIRMS REPORT EVEN
MORE DISSATISFACTION
SO, IS THERE ANY HOPE FOR PA?

FACTS ABOUT PERFORMANCE
APPRAISAL
 STUDIES HAVE REVEALED THAT SOMETHING CAN BE
DONE TO IMPROVE THE EFFECTIVENESS OF APPRAISAL
SYSTEM
PRESCRIPTION FOR EFFECTIVE PERFORMANCE
MANAGEMENT:
1. PRECISION IN THE DEFINITION & MEASUREMENT OF
PERFORMANCE
2. LINK PERFORMANCE DIMENSIONS BY COMBINING
FUNCTIONS WITH ASPECTS OF VALUES (EG QUANTITY,
QUALITY, TIMELINESS)
3. INCORPORATE A FORMAL PROCESS FOR INVESTIGATING
AND CORRECTING FOR THE EFFECTS OF SITUATIONAL

WHY APPRAISE PERFORMANCE?
 PLAY AN INTEGRAL ROLE IN THE EMPLOYER’S
PERFORMANCE MANAGEMENT PROCESS.
 HELP IN PLANNING FOR CORRECTING
DEFICIENCIES AND REINFORCE THINGS DONE
CORRECTLY.
 USEFUL FOR CAREER PLANNING IN
IDENTIFYING EMPLOYEE STRENGTHS AND
WEAKNESSES.
 AFFECT THE EMPLOYER’S DEVELOPMENTAL

Roles and Responsibilities in PA

PHASES OF APPRAISAL MEETINGS
Goal
Setting
Communicat
e
Expectations
Plan the
Assessment
Monitor,
Assist,
&Control
Appraise
Feedback
Personnel
Decisions
Develop
Pre-
Meeting
Phase
Meeting Phase
Post-
Meeting
Phase

DESCRIPTIONS FOR STEP BY STEP
Step Description
# 1 Goal Setting Analyze job duties/responsibilities and required outcome; choose and
define appraisal criteria.
# 2
Communicate
Expectations
Set performance expectations/targets and communicate to
subordinate; allow for participation.
# 3 Plan Assist subordinate in determining and implementing effective
strategies/processes to perform tasks; explore options and limits to
discretion in selection of methods; obtain required resources.
# 4 Monitor,
Assist, and
Control
Continually monitor performance, providing ongoing feedback and
assistance in the forms of problem solving, coaching, counseling,
developing/removing roadblocks to successful performance; take
corrective action as required
# 5 Appraise Observe, recall, and evaluate performance against
expectations/standards; complete appraisal forms; back up evaluation
with concrete examples/data.
# 6 Feedback Review evaluation with subordinate in carefully planned feedback
session; be specific and explicit; listen carefully; build a “problem-
solving” focus, cover strengths and weaknesses; complete an action
plan to improve performance levels, and/or develop performance
capability.

APPRAISE METHODS/SCALES
 GRAPHICAL RATING SCALE
 ALTERNATION RANKING SCALE
 PAIRED COMPARISON METHOD
 FORCED DISTRIBUTION METHOD
 CRITICAL INCIDENT METHOD
 BEHAVIORAL ANCHORED RATING SCALE
(BARS)

BEHAVIORALLY ANCHORED RATING
SCALES (BARS)
Ratings Expected Behavior
5 — Exceptional
performance
Accurately completes and submits all
status change notices within an hour
of request
4 — Excellent
performance
Verifies all status change notice
information with requesting manager
before submitting
3 — Fully competent
performance
Completes status change notice
forms by the end of the workday
2 — Marginal
performance
Argues when asked to complete a
status change notice
1 — Unsatisfactory
performance
Says status change notice forms have
been submitted when they haven’t

DESIGNING AN APPRAISAL
SYSTEM
DESIGN DECISIONS
 DECIDE THE NATURE OF THE SYSTEM
(UNIFORM OR DIFFERENTIATED;
INTERACTIVE OR ONE-WAY)
 DECIDE THE PURPOSE (EVALUATIVE,
DEVELOPMENT OR BOTH)
 DEFINE THE RATER/ APPRAISER (SINGLE
OR MULTIPLE)

DEVELOP MEASUREMENT CONTENT
FOCUS OF APPRAISAL AND RELATIVE WEIGHTS
 PERSON ORIENTED (ATTRIBUTES AND TRAITS)
 WORK ORIENTED (JOB FUNCTIONS/ RESULTS)
ASPECTS OF VALUES
 GENERALLY RATERS MAKE SINGLE OVERALL
JUDGEMENT ON JOB FUNCTION
 CRITERIA BY WHICH THE VALUE OF PERFORMANCE IN
ANY WORK ACTIVITY CAN BE ASSESSED (QUALITY,
QUANTITY, TIMELINESS, COST EFFECTIVENESS,
INTERPERSONAL IMPACT)
SYSTEM

DESIGN MEASUREMENT PROCESS
 TYPES OF MEASUREMENT SCALE
(ORDINAL/RANKING; RATING/INTERVAL)
 TYPES OF RATING METHODS/SCALES
 ACCOUNTING FOR SITUATIONAL CONSTRAINTS
FOR PERFORMANCE
 SCORE COMPUTATION METHODS (JUDGEMENTAL
OR MATHEMATICAL)
SYSTEM

DEFINING THE RATER
 MORE COMMONLY USED PRACTICED IS THE RATING BY THE
BOSS/SUPERVISOR
 UPWARD RATING IS INCREASING IN NUMBER OF ORGANIZATIONS
 CUSTOMERS PROVIDE VALID & RELIABLE PERFORMANCE
INFORMATION
 SURVEY FOUND ONLY 70% OF FIRMS ALLOW SELF APPRAISAL
 MORE ORGANIZATIONS ARE CONSIDERING MULTIPLE RATERS
 MORE ACCURATE
 FEWER BIASES
 MORE FAIR
 LESS TARGETS OF LAWSUITS
SYSTEM

ADMINISTRATIVE CHARACTERISTICS
 FREQUENCY AND TIMING
 PERFORMANCE RECORDING PROCEDURES
 INFORMATION COLLECTION AND
PROCESSING PROCEDURES
 CONFIDENTIALITY AND ACCESS
 METHODS OF FEEDBACK
SYSTEM

RATING ERRORS & BIAS
 PRIMACY AND RECENCY EFFECT
 HALO AND HORN EFFECT
 CENTRAL TENDENCY
 LENIENCY/ SEVERITY
 STEREOTYPING
 CONTRAST EFFECT
 SUNFLOWER EFFECT: PUTTING ONESELF ON
SAFER SIDE
 NON PERFORMANCE FACTOR EFFECT

EFFECTS OF PA ERRORS & BIAS
REDUCED JOB SATISFACTION
REDUCED EMPLOYEE MOTIVATION AND
ORGANIZATIONAL COMMITMENT
LESS EFFECTIVE
INCREASED TURNOVER

AVOIDING RATING ERRORS
IT IS UNAVOIDABLE TO MAKE APPRAISAL BIASES WHEN
THE RATEES AND RATERS ARE HUMAN BEINGS (BAKAN
AND KELLEROGLU, 2003), AND AFFECT IS IRREVOCABLE
DURING THE PROCESS.
 AWARENESS OF ERRORS/ PROBLEMS AND THEIR LIKELY
EFFECTS
 USE OF RIGHT APPRAISAL TOOLS
 TRAINING OF APPRAISERS
 USE OF DIARIES
• USE OF MULTI RATERS
• NOT USING EVALUATION AS A PRIMARY REWARD

Performance appraisal

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