The document discusses performance reviews and ratings. It outlines several objectives of performance reviews such as helping individuals understand their strengths and weaknesses, providing feedback, and encouraging goal setting. It also discusses the process of performance reviews and different types of rating scales used to measure performance, including nominal, ordinal, interval and ratio scales. Finally, it describes methods to reduce rater biases in performance ratings, such as using behaviorally anchored rating scales and rater training.

1. OBJECTIVES
 Helping to realise the potential as a manager or
leader
 Helping to understand the strengths and
weaknesses
 Providing an opportunity to acquire and analyse the
dynamics of the behaviour
 Helping to have better understanding of the
environment
 Increasing the personal and inter-personal
effectiveness by giving feedback
UNIT-3
PERFORMANCE REVIEW DISCUSSIONS

2. OBJECTIVES
 Encouraging to set goals for further improvement
 Encouraging to generate alternatives for dealing
with various problems
 Creating an empathic atmosphere to share and
discuss the tension, conflicts and problems.
 Helping to develop various action plans for further
improvement
 Helping to review the progress in achieving various
objectives

3. PROCESS
 Attending
 Listening
 Acceptance
 Exploration
 Problem Identification
 Diagnosis
 Action Planning
 Searching
 Decision – making
 Supporting

4. PERFORMANCE RATINGS
 A measurement that acts as a guide to how well an
organisation is performing,
 as a whole or in some aspect of its activities, ad
what its strengths and weaknesses.
Type of Scales
 Nominal - Everything that exists in certain quantity.
It is naming of an individual, quality, process and
phenomena. Ex : House no. Security no. etc.,
 Ordinal – Indicate the order or position on an object
or variable in relation to other objects or variables.
Ex: 1st born, 2nd born, 3rd born.

5. TYPES OF SCALES
 Interval – The difference between any two
consecutive numbers is equal to the difference
between any other two numbers. The numbers are
additive and subtractive but not multiplicative and
divisive
 Ratio – These are highly sophisticated scales with
an absolute zero and are amenable for addition,
subtraction, multiplication and division. These are
the scales used in space and physics.

6. ERRORS
 Halo Effect
 Leniency Effect
 Severity Effect
 Central tendency or averaging
 Assimilation or differential effects
 First Impression errors
 Recency effect
 Perception
 Interpersonal attraction
 Information processing
 Social psychology
FACTORS AFFECTING RATINGS

7. BARS
 Behaviourally Anchored Rating Scale
 Smith and Kendall (1963) have evolved a
procedure for developing evaluative rating scales
anchored by examples of expected behaviour.
 The format proposed for these rating scales is a
series of continuous graphic rating scales, arranged
vertically.

8. STEPS
1) Identify the roles or the categories of the roles.
The category of roles should require some
common capabilities
2) Constitute peer groups of appraisers of these
roles
3) Identify and list of qualities or characteristics that
are important for that role category.
4) Select the most frequently mentioned dimensions
5) Each group formulates general statements
representing definitions of high, low and
acceptable performance for each quality.

9. STEPS
6) The groups then prepare examples of behaviour in each
quality and these should be edited in the form of
expectations.
7)Some of the groups may act as judges and they should
attempt independently to reclassify each of the
behaviour descriptions into one of the dimensions
measured.
8)Use some of the groups to describe outstanding and
poor performer in each category. Use these
descriptions to see if the dimensions identified in steps
2 and 3 are critical to the role category.

10. STEPS
9) Present the finally selected behaviors in vertical
scale formats. Since the time BARS was
developed, a large number of research studies
have been conducted to examine the effectiveness
in reducing errors and increasing the quality of
ratings.
 Rater Training
 Rater participation in Scale Construction
 Statistical Control of Rating Errors
REDUCING RATER BIASES

11. PERFORMANCE RATINGS FOR
DEVELOPMENT VS ADMINISTRATIVE
DECISIONS
 In a development oriented appraisal system
performance ratings are not ends.
 They are one of the instruments that aid the
process of development.
 Hence these dimensions should be identified and
incorporated in the appraisal form with a view to
generate data for development purposes.
 Planning ability, organising ability, co-ordination,
supervision, leadership, initiative, creativity, team
spirit, delegation, decision making and so on.

12. PERFORMANCE RATINGS FOR
DEVELOPMENT VS ADMINISTRATIVE
DECISIONS
 In the development oriented appraisal performance
standards are decided between the appraiser and
the appraisee in the beginning of the year and may
differ from appraisee to appraisee.
 For reward administration, promotions and other
administrative purposes, appraisal ratings based on
common performance standards are reqd.