Performance Appraisal:
The Achilles Heel of Personnel?
Why evaluate the performance of
employees?
Compensation (raises, merit pay,
bonuses)
Personnel Decisions (e.g., promotion,
transfer,
dismissal)
Training (Identify specific requirements)
Research (e.g., assessing the
worth/validity of
selection tests
Breaking Down the 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)
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 Approach
Criterion Domain
Objective data
Subjective data
Contextual data
Productivity measures,
absenteeism, tardiness,
turnover, absenteeism
Performance ratings
(e.g., supervisor, coworkers, self,
subordinates, clients
Assisting others, loyalty,
extra work/effort, emotional
labor, volunteering,
counterproductive behaviors
(CWBs; tardiness, sabotage,
gossiping)
Criteria Dimensionality
Static --- Individual performance varies by performance criteria
Decisionmaking
Communication
Criteria Dimensionality (cont.)
TemporalPerformancevariesasafunctionoftime;importance
ofwhenperformanceisassessed
IQ
Specificwork
methods,
interests,
personality,
interpersonal
relationships
1styear
2ndyear
Criteria Dimensionality (cont.)
IndividualEmployeesexcelatdifferentaspectsofjob
performance
Production
Employee#1
Clientsupport
&satisfaction
Employee#2
Role
prescriptions,
organizational
impact
Criteria Challenges (cont.)
Observation --Variationduetomethodsused,whoobserves
Lowvariability(e.g.,productionlinespeed,process
limitations)?
Performance Dimensions --Unidimensionalvs.multidimensionalcriteria
(Overrelianceonsupervisorratingsofperformance;879/1506)
Criteria Issues (cont.)
Contamination ---
a) Error
b)Biases(e.g.,ratingscales,groupmembership,knowledgeof
predictorscores,selffulfillingprophecy)
Criteria Issues
Relevance ---Generallyconsideredthemostimportantissue
Objective data
Subjective data
r=.39
To Combine or Not to Combine Criteria?
Globalcriteria
3.0GPA
Separate,multiplecriteria
A
A
C
C
Isthereasingle,underlyingdimensionthatallowscombining
separatecriteria?
Purposesofthedata(e.g.,a)forpersonneldecisionsorb)
feedback,understandingpsychologicalandbehavioralprocesses
Sources of Information
1)
Supervisors (most common)
Role Conflict (e.g., judge and trainer/teacher)
Motivation
Time availability
Friendship
2) Co-Workers (Peers)
Peer nominations: (Identifying those with highest and lowest KSAs)
*Peer ratings: For providing feedback
Peer rankings: For discriminating highest to lowest performance
on various dimensions
Effects of poor peer ratings on
subsequent task performance:
Friendship bias
Leniency
Lower perceived group
performance
High level of accuracy
Lower cohesiveness
Best used as a source of feedback
Lower satisfaction
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)
Best if ratings are anonymous -- if not, leniency in ratings
occur
(Antonioni, 1994)
Can add information above and beyond other sources
5) Clients
(Conway, et. al 2001)
Good source of feedback
Negativity bias
Customer ratings on the web (usage/role, accuracy,
Technology and Client/Customer
Feedback
Other examples: Amazon, eBay, Trip Advisor,
iTunes
Technology and Client/Customer
Feedback (cont.)
Other Examples of Internet-Based Performance
Information
Amazon
Other Examples of Internet-Based Performance
Information
Expedia
That's the second time I stay in this hotel. The location is fantastic and the
rooms, in general are very comfortable. The view from the top, at the breakfast
place is superb. Rating: 4.0
The standard rooms are very, very small, I had only one bag and no place to put
it. you could barely turnaround in the bathrooms. I love the decor/ art deco style
but a little updating is definitely do. Rating: 2.0
Subjective Appraisal Methods
(can be used with any type of job)
Relative Methods
Ranking
1st _____
2nd_____
3rd _____
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 essays
Unstructured (e.g., content, length)
Affected by the writing ability of supervisors and
time availability
Cannot validate selection devices (no numbers)
2) Graphic Rating Scale (most common)
_____
_____
_____
_____
_____
Very
Poor
Average
Excellent
Common Rating Scale Errors
Leniency (positive bias)
X
_____
Very
Poor
_____
_____
_____
Average
_____
Excellent
Central Tendency (midpoint)
X
_____
Very
Poor
_____
_____
_____
Average
_____
Excellent
Both lead to a
restriction in
the range of
performance
scores
Halo Error
Observation of specific
behavior (s) (e.g.,
volunteers to work
overtime)
Responsibility
Commitment
Initiative
Sensitivity
Judgment
High ratings on
other performance
dimensions
Communication
Supervisor
Characteristics
(e.g., gender,
race, age)
Subordinate
Characteristics (e.g.,
age, gender, race,
attractiveness)
Attitudes,
Stereotypes
Liking of
subordinate
Selective
Attention
Encoding of
Information
Self-Fulfilling
Prophecy Process and
Performance Ratings
Labels for
Subordinate
(positive or
negative)
Expectations
for
Subordinate
Observation of
Subordinate
Job
Performance
Recall
Information
Evaluate
Performance
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
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
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
3. Problem Solving/Troubleshooting
Definition: Uses a logical, step-by step approach to identify and solve process problems
1
4
2
5
Well Below Expectations
Below
Consistently Exceeds
Outstanding
Expectations
Expectations
Fails to understand how
equipment and processes
interrelate
Does not complete
checklists or other required
forms
Is not able to identify root
causes of process deviations
Does not consistently meet
A2E expectations
Depends on others to solve
problems
3
Meets Expectations
Uses available resources
(e.g., drawings,
checklists, forms, people
engineers, data
historian) to determine
the root cause of
problems
Selects and interprets
data to solve problems
Investigates the nature of
equipment and process
malfunctions on an
ongoing basis
Participates in A2E efforts
Develops novel, safe and
effective solutions to
current problems
Anticipates problems
before they occur and
suggests solutions
Takes ownership in
problem solving and sees
it through to completion
Effectively leads problem
solving efforts (e.g., A2E,
handles complicated
analysis requests on ones
own)
Behavioral Examples of
Rating:_____________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
___
4. Teamwork
Definition: Strives to build and maintain a good working relationship with ones work group; shares
information with team members; accepts ideas and opinions of others
1
4
Well Below Expectations
Exceeds
Outstanding
Below
Meets Expectations
Consistently
Expectations
Expectations
Does not respond to work
requests from other team
members
Fails to share information
and/or resources with
others
Refuses to help co-workers
Conflicts with coworkers on
'yours not mine' work
situations, or is known to
say "that's not my job
Frequently complains or
makes negative or
derogatory remarks about
site initiatives, leadership,
and/or fellow workers
Is slow to respond to work
requests from other team
members or management
Considers alternative
solutions provided by
team members
Accepts and provides
feedback to others
Shares information (e.g.,
trends, status updates)
and/or resources with
others when asked
Readily offers to help
other team members on
tasks
Works with support
services and other areas
(e.g., maintenance) to
resolve shift problems in a
timely manner
Anticipates other team
members needs (e.g.,
training, tools, equipment,
information)
Resolves conflicts between
team members
Supports company
objectives and volunteers
for work duties within and
outside of ones work area
Sacrifices ones own needs
for the need of the team
Initiates team building
activities (e.g., organizing
outside group activities,
breakfasts)
Behavioral Examples of
Rating:_____________________________________________________________________
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)
360 Degree Performance
Appraisal
Performance Appraisal Training: Best
Practices
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
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.
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
(e.g., several days prior to formal feedback session).
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
using employee
self-evaluations)
Ensure
a 2-wayofinteraction
during
the performance appraisal
meeting
Provide a way for employees to counter or challenge the
appraisal
Sufficient detail and knowledge of employee performance by
supervisors
Importanc
e of rater
training
Consistent use of performance standards across employees
Satisfactory
Non minority
Performance
Criterion
Minority
Unsatisfactory
Reject
Accept
Predictor Score
Equal validity, unequal criterion means
- Equal test scores; Minorities performing less well on job (over predicting performance)
- Minorities hired same as non minorities but probability of success is small. Can
reinforce existing stereotypes.
