This document provides an overview of performance and the performance appraisal process. It discusses that performance is based on abilities, motivation, and opportunity. The performance appraisal process involves 10 steps: 1) determining the purpose, 2) identifying limitations, 3) determining evaluators, 4) selecting methods, 5) training raters, 6) observing performance, 7) evaluating, 8) communicating results, 9) making personnel decisions, and 10) monitoring for fairness. It describes common appraisal methods like graphic rating scales, forced choice, and behavioral checklists. It also discusses potential errors in evaluation like halo effects, leniency/strictness, and personal biases.
3. Performance
• Ability, innate capacities as well as attributes.
Researchers have found no differences in
overall abilities between men and women,
however, women tend to have lower
expectations of success.
• Motivation, reflected by the person’s
willingness to perform, and can be measured
by work effort.
• Opportunity is thought to be related to
environmental variables, including
organizational support.
4. The Performance Appraisal Process
Determine the purpose of
appraisal
Select the best PA method
Determine who will
evaluate
Train raters
Monitor the legality and
fairness of the process
Communicate the
results
Evaluate
Performance
Identify the environmental and
cultural limitations
Observe and document
the performance
Make personnel
decisions
5. Step 1: Purpose of Performance Appraisal
• Decisions about salary
• Promotion
• Termination
• Bonus
• Identification of employees’ strengths and
weaknesses
• Provision of feedback to employees
• Validaton of selection criteria
• Determination of training requirements
6. Step 2: Identify the environmental and
cultural limitations
• The work environment must be in line
with the nature of the workforce.
7. Step 3: Determine who will evaluate
• 360-degree feedback, it is a performance
appraisal system in which feedback is
obtained from multiple sources.
• People who observes and rates employees:
Supervisor, peers, subordinates, customers, self-
appraisal
9. TYPES OF PERFORMANCE APPRAISALS
• Objective
Easily observable and quamtifiable such as quantity
of output, quality of output, accidents, absenteeism
• Subjective
Includes ratings by supervisors, peers, subordinates,
or even self-ratings. It can be comparative or
Individual.
• Focused on Results
10. Subjective
• COMPARATIVE
a. Straight rankings, listing of workers from
best to worst.
b. Forced Distribution, ranked to fit a
distribution.
c. Paired comparison, each employee is
compared to every other employee in pairs.
14. Objective Measures
• Common types of objective measures include
quantity of work (number of relevant job
behaviors), quality of work (errors),
attendance (absences), and safety (success).
15. Objective
• INDIVIDUAL
a. Graphic Rating Scales, involves ratings on several
aspects of a job.
b. BARS, based on critical incidents.
c. BOS (Behavioral Observation Scale), rating to the
extent to which a person engages in every behavior.
d. Forced choice, the rater must choose between two
seemingly equally desirable or undesirable. It controls
halo effect as well as leniency and strictness.
e. Behavioral Checklist, a rater using a behavioral check
list checks off all the adjectives or descriptors that apply
to the employee being rated.
19. Step 5: Train raters
• Frame-of-reference training, a method of
training in which rater is provided with job-
related information, a chance to practice
ratings.
20. Step 6: Observe and document the
performance
• Critical incidents, a method of performance
appraisal in which the supervisor records
employee behaviors that were observed on
the job and rates the employee on the basis of
that record.
22. Step 7: Evaluating Performance
• Obtain and review first the objective data
relevant to the employee’s behavior to
avoid errors of evaluation.
23. ERRORS IN EVALUATION
• INSTRUMENT ERRORS
Deficiency, involve excluding important
aspects of the job from evaluations.
Contamination, rating an employee on
non-important aspects of the job.
24. ERRORS IN EVALUATION
1. Task-Based Rater Biases, when the rater adopts an
evaluative set based on the task.
a. Strictness set, the rater is overly strict and gives everyone
low ratings.
b. Leniency set, the rater is overly lenient and gives
everyone high ratings.
c. Central tendency set, the rater tends to rate everyone as
about average.
d. Halo Error, a rater allows either a single attribute or an
overall impression of an individual to affect the ratings that
she makes on each relevant job dimension.
e. Contrast Errors, the performance rating one person
receives can be influenced by the p erformance of a
previously evaluated person
25. 2. Ratee- Based Biases
a. Halo Error, occurs when the employee’s
performance rating is based on one positive or
negative aspect.
b. Personal biases, such as prejudices against
certain ethnicities, can influence the
evaluation of employees.
c. Others
ERRORS IN EVALUATION
26. Step 8: Communicate the Appraisal
Results
• Allocating Time
• Scheduling the Interview
• Preparing for the Interview
29. STRATEGIES TO IMPROVE RATINGS
• Training raters with instruments to be used
• Multiple raters
• Rates on ongoing basis rather than once or
twice a year
• Basing performance on clear and specific
performance standards.
First, focus on employee behaviors rather than traits
Second, helps recall behaviors when evaluating performance
Third, provides examples to use in reviewing performance ratings
Fourth, low adverse impact
Distribution errors are made when a rater uses only one part of a rating scale.