Compensation Ch. 11
The more popular rating (not ranking) formats have two common elements:
Require raters to evaluate on some absolute standard. Each standard is measured on a scale
Emphasis is on regular, constructive, detailed feedback in _________, not as a number or rating
words
Accuracy improves then raters must justify scores....
in writing
With MBO, each level has objectives which support organizational ____________.
goals Performance rating depends on how well objectives were met
A merit increase _________ ties pay not only to performance but also to position in the pay range
grid
Equal employment opportunity (EEO) and affirmative action influenced HR decision making for more than ________ years.
40
____________________ are used to anchor the continuum (main difference in rating scales)
Descriptors
Identify a question asked as part of the personnel research criterion to evaluate performance appraisal formats in an organization.
Does an instrument used lend itself well to validating employment tests?
Generally, the search for the perfect performance appraisal format to eliminate rating errors and improve accuracy has been successful.
FALSE
Top performers usually give the most subjective evaluations of peers during a performance appraisal process.
FALSE they give the most objective evaluations of peers
Customer as Rater:
May be surveyed, or rated by the customer service process
Subordinate (Direct Reports) as Rater:
More reliable if anonymous
Supervisor as Rater:
More than 80% of input but prone to halo and leniency errors
Identify a supervisor in a firm who makes errors in the actual evaluation of ratees as part of the performance appraisal process. Lisa, who keeps a diary and records information about employee performance as it occurs
Nathan, who weighs negative features more heavily than positive features
The ______________-____________ formula tells how interrater reliability changes as we add more raters
Spearman-Brown
When ________________ are anchors, behaviorally anchored rating scales (BARS) are the most common format
behaviors
Paired-comparison ranking:
compares each individual to all others
Raters should maintain a _________ of employee performance
diary
Just because something is quantifiable does not mean it is an ________________ measure of performance, it may be criterion-deficient
objective
Alternation ranking:
the rater starts with the best and worst employee
Tying pay to performance requires three things:
A company needs some definition of performance. A continuum describes levels from low to high on performance. The company decides on merit increases for different levels
Identify a true statement about the 360-degree feedback system used to assess employee performance.
Currently, most firms use the system only for evaluation of their top-level personnel and for employee development
According to the balanced scorecard approach, which of the following factors contribute to the bottom-line success of an organization? (Check all that apply.)
Customer satisfaction Employee commitment
The balanced scorecard approach depends on high scores for...
Customer satisfaction. Employee internal growth and commitment. Operational efficiency in internal processes. Financial measures
According to the balanced scorecard approach, which of the following indicate the bottom-line success of an organization? (Check all that apply.)
High scores on operational efficiency in internal processes High scores on financial measures
Which of the following is a question asked as part of the administrative criterion to evaluate performance appraisal formats in an organization?
How easily can evaluation results be used for managerial decisions concerning wage increases, promotions, terminations, and transfers?
What are the first steps to communicating and building a more effective appraisal process?
Identifying and understanding errors
Tasks that are highly uncertain:
Judgment-based evaluation procedures, such as standard rating scales
For less routine tasks, an ___________ strategy may be appropriate
MBO
Tasks that are less routine:
MBO
Performance Appraisal
Organization gets information on how well an employee is doing his or her job
Which of the following ratings is done by someone who has the most complete knowledge about a ratee's performance as part of the performance appraisal process?
Self-rating
3 ranking formats:
Straight Alternation Paired-Comparison
Performance reviews are used for a wide variety of decisions:
Strategic Developmental Administrative
The courts stress six issues when setting up performance appraisals;
Systems should give specific written instruction on how to complete. There should be clear criteria for evaluating performance. Job descriptions provide rational for personnel decisions. Supervisors should provide feedback to affected employees. Reviews by higher-level supervisors is a plus. Fair appraisals depend on consistent treatment
Employees should be involved in every stage of the process
TRUE
What are the implications of using peers as raters in performance appraisals? (Check all that apply.)
They operate more closely with a ratee than others. They possess an undistorted perspective of typical performance
Peer as Rater:
Undistorted perspective but may have no appraisal experience, creating group tension or yields to leniency
The standard rating scale uses _______________ to anchor the continuum
adjectives
Descriptors can be...
adjectives, behaviors, or outcomes
Different formats require assumptions about task _______________________
accomplishment
When combined with practice and feedback, __________ of rating improves
accuracy
A basic tool, called a ________________ session, improves consistency and accuracy or validity by improving the rater's motivation to rate accurately
calibration
With rating formats, performance is described along a __________________ from good to bad
continuum
Across-the-board increases are connected to
cost of living changes
Allowing non-performance factors to affect performance scores as part of performance appraisals is referred to as
criterion contamination
EEO forced ___________________ and ensured decisions were tied to performance
documentation
Employee development potential:
feedback has a positive impact on job performance.
A good appraisal format scores well on ________ dimensions
five
According to Michael Keeley, the choice of a performance appraisal format is based on the _____.
kind of tasks being performed
Pay increase guidelines have _________ motivational impact
little
Employees who start out high in performance and then get worse are rated _________ than workers who remain consistently low
lower
When _______________ are the standard, management by objectives (MBO) is the most common format
outcomes
A pay increase guideline that ties pay to performance and position in a pay range is that _____.
pay increases at a reducing rate as employees move through a pay range
Behaviorally anchored rating scales (BARS) work when employees are evaluated against specific ___________________ expectations
performance
Validity:
performance- based decisions can be made with confidence
A type of evaluation format for performance appraisals that requires a rater to compare employees against each other to determine the relative ordering of a group on some performance measure is known as a(n)
ranking format
360-degree feedback is ________ in appraisals or pay decisions
rare -too cumbersome
Ranking formats:
rater compares employees, determining the relative ordering of the group on some performance measure
A type of evaluation format used in performance appraisals that requires raters to evaluate employees on some absolute standard rather than relative to other employees is known as a(n)
rating format
A task continuum ranges from...
routine to uncertain
Pay increases in organizations that are tied to a preset progression pattern based on seniority are known as
seniority increases
Straight ranking:
simplest form - straight up ranking everyone in order
Deming contended the work _________________ is the major determinant of performance
situation (culture, enviro, peer impact, mngt style)
For highly uncertain tasks, the _____________ rating scales may work
standard
Firms hope the BARS format makes evaluations less.....
subjective
The biggest employee complaint about the appraisal process is that they are too....
subjective
Half of employees are _____________ by their ratings
surprised
Managers can be grouped into one of three categories, based on the types of employee behaviors they focus on:
task performance counterproductive performance or BOTH
Format choice depends on the types of _________ performed
tasks
Data suggests implementing a balanced scorecard approach can have positive impacts on....
the bottom line and on rating accuracy
New performance appraisals focus on _______ and _________________ performance feedback
timely / frequent
Many managers don't consider yearly performance evaluations....
useful
Reliability is true _________________ divided by the sum of true variance plus an ________ variance
variance / error
With BARS, Raters calculate performance as a...
weighted average
Performance management:
Ensure employee activities are congruent with organizational goals
Appraisal Formats:
Ranking Rating
Self as Rater:
Ratings may be too lenient and unreliable
In an essay format of rating, supervisors answer...
open-ended questions
General increases are seen in
unionized firms
What are they?
Employee development potential Administrative ease Personnel research potential Cost Validity
Identify a true statement about a merit increase grid, which ties pay to both performance and position in a pay range.
Employees low in a pay range get higher merit increases for the same level of performance than employees who have advanced further in the range.
Similar to me Error:
Individuals who are similar to us in race, gender, background, interest, beliefs, and the like receive higher ratings than those who are not
Personnel research criterion:
Is it possible to monitor applicants predicted to perform well through performance evaluation?
Identify a true statement about choosing an appropriate performance appraisal format when a task is less routine.
It is appropriate and feasible to specify multiple strategies to accomplish a goal.
Performance Feedback:
Provide employees information on their performance
Leniency Error:
Rater gives high ratings to all employees regardless of their performance
These new approaches are defined by three attributes:
Ratingless Reviews Ongoing feedback Crowdsourced feedback
Strictness Error:
Rater gives low ratings to all employees regardless of their performance
The basic steps in a calibration session are:
Managers prepare preliminary performance appraisals and ratings Mangers meet and post names and ratings for review. Every employee is reviewed and discussed. Participants adjust ratings to assure accuracy and consistency. Final performance appraisals are prepared
more specific factors focus on:
Planning and organizing. Training and coaching. Developing subordinates. Technical proficiency
Halo error:
Rater gives employee high ratings on all aspects of performance because of an overall positive impression of the employee
Performance appraisal criteria:
Congruence (strategic) Validity Reliability Acceptability
Employee development criterion:
Does the procedure communicate the organization's goals and objectives?
Identify a true statement about Michael Keeley's views on performance appraisal formats.
He suggests that appraisal formats need assumptions about the extent to which ideal behavior for task accomplishment can be specified
Horns error:
Rater gives employee low ratings on all aspects of performance because of an overall negative impression of the employee
central tendency Error:
Rater gives middle or average ratings to all employees despite their performance
Contrast Error:
Ratings are influenced by comparison between individuals instead of an objective standard (e.g., employee receives lower than deserved ratings because he or she is compared to outstanding peers)
The dominant view about the validity of supervisory ratings is that supervisors tend to give accurate appraisals of their subordinates
TRUE
Multiple raters maximize....
reliability